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111 ABAN LOYD CHILES OFFSHORE LIMITED
222 ABAN LOYD CHILES OFFSHORE LIMITED
Aban Loyd Chiles Offshore Ltd
Forward Looking Statements
This presentation contains statements that constitute “forward looking statements” including, without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to our future business developments and economic performance.
While these forward looking statements represent our judgment and future expectations concerning the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations.
These factors include, but are not limited to, general market, macro-economic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors that we have indicated could adversely affect our business and financial performance.
Aban undertakes no obligation to publicly revise any forward looking statements to reflect future events or circumstances.
333 ABAN LOYD CHILES OFFSHORE LIMITED
Industry Standing
Aban LoydOwns and operates 6 Offshore Jack-up Rigs, an FPSO (the only one in India) and two Drillships; one new-built jack-
up is under construction
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Vision
? To continue the market leadership in providing offshore drilling services in India
? To have a global presence in the offshore drilling industry
? To be amongst the top ten offshore drilling asset owners in the world
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Growth of Aban Loyd
• Promoted in 1986 by lateMr. M A Abraham in technical collaboration
• Commenced operations with 2 Jack up Rigs (Aban 1 and Aban 2)
• Aggressive build up of assets since March 04, balance sheet has grown nearly three times
• Purchased drill ship Frontier Ice in Sep 2004• Purchased a 300 ft Jack up Offshore drilling rig Pride West Virginia (now renamed as Aban V) in Dec, 2004• Purchased a 250 ft Jack up Offshore drilling rig Energy Explorer IV (now renamed as Aban VI) in Feb, 2005• Purchased a 250 ft Jack up Offshore drilling rig Rowan Texas in September 2005
• Further capacity expansion in the pipeline
• Acquired Hitech Drilling Services India Limited from the TATA’s in 2001.
• Hitech owned one 300 ft Jack-up Rig and a Floating production, storage and offloading facility (along with cash reserves of INR 0.45 BN)
• Consideration of INR 1.65 BN (USD 42 MM)
• Hitech merged with Aban with effect from Apr, 2001
ORGANIC INORGANIC
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Rig Contract Status
Oct 2007
Jan 2008
Nov 2007
Jan 2008
Nov 2006
Contract Validity
120
148
148
148
85
Current **
rate (approx)(USD ‘000)
35-40Oriental Oil250 ft Jack up Aban VI
55-58ONGC300 ft Jack upAban V
55-58 ONGC300 ft Jack upAban IV
55-58ONGC300 ft Jack upAban III
25-35ONGC200 ft Jack upAban II
ContractDay Rate
(USD ‘000)
ClientTypeRig Name
** estimated based on recent fixtures
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Rig Contract Status
80Mar 200840-45ONGCDrill ShipFrontier Ice
1202 firm wells + 2 well options
71-73HOEC250 ft Jack upAban VII
185NANAUnder construction
375 ft Jack upAban VIII
4 firm wells + 4 well options
July 2007
Contract Validity
300
60
Current **
rate (approx)(USD ‘000)
295-300PioneerDrill shipAban Abraham
25-28HardyFPUTahara
ContractDay Rate
(USD ‘000)
ClientTypeRig Name
** estimated based on recent fixtures
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Matching assets to revenues
? Current Contracts run till FY 08? Around 42% of the current debt to be repaid by FY 08? Contracts largely with highly credit rated parties? Ability to place new acquisitions on charter with little or no
time delay
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Core Competencies
? Lowest cost operator leading to higher margins? In-house engineering capabilities? High credibility and repeated accolades from
clients for technical capabilities? High safety norms matching international
Standards? Highly trained technical & commercial employee
strength
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Aban Loyd - Strengths
• 100% drilling revenue in foreign currency (predominantly USD)
• High EBITDA Margins (above 55%)
• High quality of Receivables (ONGC)
• Firm Cash Flows
• Continuous Dividend track record for the last 18 years
• Internationally mobile assets of over USD 600 mn, against book value of USD 220 mn
• Easily saleable assets - an active market for rigs internationally as very few rigs have been built in the past several years
• Opportunity to deploy Rigs in international waters
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? F1+(Ind) by Fitch for Short Term Debt Program for INR 250 MM (USD 5.75 MM).
? ‘CARE A (RPS)’ rating by CARE for Preference Shares of INR 1500 MM (USD 35 MM).
? Ranked 2nd Best Investor Friendly Company by “BUSINESS TODAY” (a prominent Indian Business weekly) in June 05
? Ranked 253 among the top 500 companies in India as per ET500 rankings of the Top Wealth Creators by the Economic Times (daily Indian Business paper) in June 2005
? Aban’s drilling and production services is ISO 9001:2000 certified
Credit Ratings / Testimonials
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Shareholding Pattern as on 31 Jan 2006
100.0036,886,595TOTAL
24.308,964,574Public
13.364,928,301Institutional Investors
62.3422,993,720Promoters (including Foreign Collaborators)
%No. of SharesParticulars
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ENVIRONMENT AND OPPORTUNITIES
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Industry Outlook? Jackup day-rates are surging in all regions
due to:? Worldwide supply deficit – it takes 2 to3 years to build a new
rig? Very low addition to rig fleet in the 90s? Attrition from recent hurricanes in the GOM? Global competition for jack ups
? Willingness to sign long term contracts ? Pressure on E & P companies to accrue oil reserves.
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Market for Jack up rigs? Middle East
o Demand for jack-ups likely to increase by at least 14-15 rigs by end of 2006
o Demand coming in mainly from Saudi Arabia.o Day rates in Saudi Arabia have crossed USD 100,000 for 300 ft jack-ups
? South East Asiao Day rate fixtures in Southeast Asia range from USD 90,000-USD
150,000.o Deficit of around five to six units in the first half of 2006o Increased activity in the region is fuelling rising demand in the sector
? Indiao ONGC is still having an unfulfilled requirement of five to six rigs.o Recent fixtures for 300 ft rigs have ranged from USD 99,000 to USD
147,000 per day.
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Total units operating in India
35827TOTAL
11_Dolphin AS
1037Transocean
1_1Pride Foramer
1_1Sapiem
2_2ENSCO
2_2Noble Drilling
1_1Jagson Intl
211Great Eastern Shipping
514Aban Loyd
1028ONGC
TOTALDrillshipsJack upsOwner
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? Present oil prices have touched all time high of USD 68-69 per barrel
? E&P spend expanding after a long period of time
?Cash flows of oil companies strong
?Need to expand reserves
? Current day rates ruling at recent highs of USD 125,000 to 150,000 per day for 300 ft +Jack-up Rigs
Oil Prices and Day Rates
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Opportunities in India on account of NELP
? Large private sector players like Reliance,Cairn, Niko, Hardy Exploration, British Gas, GAIL, GSPCL entering into the exploration sector
? Recent Reliance gas reserve find has resulted in a spurt in global interest in the Indian oil sector
? Consequently, demand for Rigs in India is likely to increase
? Has worked on contracts with International companies like Cairn Energy, Hardy Exploration & Oriental Oil
? Experience of working with private sector players gives Aban anedge in meeting the demands of the private sector players
Demand for Rigs
Advantage for Aban Loyd
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Expansion
? Formed a Wholly-owned Subsidiary in Singapore viz.Aban Singapore Pte Ltd
? Contract with PPL Shipyard in Singapore for construction of one 375 ft jack-up drilling rig
? Delivery in March 2008? Contracted value is
approximately USD 160 million
? Aban has acquired a company viz. West Africa Drilling Co N.V. (WADC)
? WADC has acquired drillshipPeregrine III (now renamed as Aban Abraham)
? Capable of drilling in a water depth of 5000 ft
? Estimated cost around USD 185 million (including refurbishment)
? Awarded a contract for carrying out drilling operations in West Africa
Past Financials
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Past Financials-Balance SheetAs at As at As at
BALANCE SHEET 31st March,2005 31st March,2004 31st March,2003USD Mn USD Mn USD Mn
I. SOURCES OF FUNDS(a) Share Capital 1.66 1.66 1.66 (b) Reserves and Surplus 48.04 38.31 29.08
2. Loan FundsSecured Loan 161.33 54.13 69.21
3. Deferred Tax (Net) 12.69 9.93 7.73
TOTAL FUNDS EMPLOYED 223.71 104.03 107.68
II APPLICATION OF FUNDS1. Fixed Assets
Gross Block 256.39 130.04 129.76 Less:Depreciation 75.72 65.10 56.57 Net Block 180.67 64.94 73.20 Add: Capital Work in Progress 0.77 1.58 0.51
181.44 66.52 73.70 2. Investments 5.36 17.18 5.18 3. Current Assets,Loans and Advances
(a) Inventory of Stores & Spares 9.97 5.17 5.16 (b) Sundry Debtors 15.35 6.98 6.33 (c) Cash and Bank Balances 22.06 9.40 6.33 (d) Loans and Advances 3.91 3.41 11.13
51.28 24.96 28.95 Less:(A) Current Liabilities 12.04 4.98 2.81 (B) Provisions 2.33 1.40 0.93
14.37 6.38 3.74 Net Current Assets 36.91 18.57 25.21
4. Miscellaneous Expenditure - 1.74 3.59
TOTAL ASSETS 223.71 104.03 107.68
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Past Financials- P & L StatementYear ended Year ended Year ended
PROFIT AND LOSS ACCOUNT 31st March,2005 31st March,2004 31st March,2003USD Mn USD Mn USD Mn
I INCOMEIncome from Operations 64.94 62.21 54.80 Other Income 1.83 3.44 1.74
66.77 65.65 56.53
II EXPENDITUREOperating, Administrative and Other Expenses 31.11 32.33 31.34 Interest 4.27 5.79 8.28 Depreciation 10.66 8.56 7.40 Goodwill Amortised 1.41 1.41 1.41 Deferred Revenue Expenses Written off - 0.01 0.01
47.45 48.10 48.45
Profit for the year before taxation 19.32 17.55 8.08 Less: Provision for taxation -Current Tax 4.94 4.72 0.64 -Deferred Tax 2.75 2.21 5.41 Profit for the year after taxation 11.62 10.63 2.04 Add: Profit brought forward from Previous Year 32.01 23.91 23.03
Profit available for Appropriation 43.63 34.54 25.07 Transfer to General Reserve 1.35 1.12 0.22 Proposed Dividend 1.66 1.24 0.83 Tax on Dividend 0.23 0.16 0.11 Balance Carried to Balance Sheet 40.40 32.01 23.91
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Past Financials-Cash Flow StatementCASH FLOW STATEMENT 2004-2005 2003-2004 2002-2003
USD mns USD mns USD mns
A CASH FLOW FROM OPERATING ACTIVITIES:NET PROFIT BEFORE TAX 19.32 17.55 8.08 ADJUSTMENTS FOR:Miscellaneous Expenditure - 0.01 0.01 Amortised Dry Docking expenses 1.74 1.84 1.84 Depreciation 10.66 8.56 7.40 Goodwill written off 1.41 1.41 1.41 Interest 4.27 5.79 8.28 Income from Non -Trade Investments (0.63) (0.48) (0.52) Profit on sale of Long Term and Current Investments (0.19) - (0.02) Loss on sale of Investments - 0.02 - Provision no longer required - (0.08) - Loss on sale of Fixed Assets - 0.12 0.09 Profit on sale of Assets (0.02) OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES 36.56 34.75 26.58 ADJUSTMENTS FOR:Inventories (4.80) (0.01) (0.52) Trade and other receivables (9.06) 4.69 5.43 Trade and other payables 6.73 2.29 0.32 CASH GENERATED FROM OPERATIONS 29.44 41.72 31.81 Direct taxes paid (4.22) (2.72) (1.16) NET CASH FROM OPERATING ACTIVITIES 25.22 39.00 30.64
B CASH FLOW FROM INVESTING ACTIVITIES:Purchase of fixed assets (127.12) (3.01) (28.19) Sale of fixed assets 0.15 0.09 0.05 Interest and dividend received 0.54 0.87 0.15 Purchase of Investments (65.75) (78.27) (14.03) Sale of Investments 77.76 66.32 10.35 NET CASH USED IN INVESTING ACTIVITIES (114.42) (14.00) (31.67)
C CASH FLOW FROM FINANCING ACTIVITIES:Proceeds/(Repayment) of Long Term Borrowings 107.20 (15.08) - Proceeds from partly paid shares 0.00 - 12.40 Dividend paid including tax on dividend (1.40) (0.93) (0.66) Interest paid (3.94) (5.90) (8.53) NET CASH (USED IN)/ FROM FINANCING ACTIVTIES 101.86 (21.92) 3.21 NET INCREASE /(DECREASE) IN CASH AND CASH EQUIVALENTS 12.66 3.07 2.19 CASH -at beginning of the year 9.40 6.33 4.14 CASH - at end of the year 22.06 9.40 6.33
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Aban Rig Fleet
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JACK UP RIG - ABAN II
RIG SPECIFICATIONS
Year of Build : 1981
Major Upgradation and Refurbishment : 2001
Main Dimensional (Hull) Length : 166 ft (226 ft including Helideck)
Breadth : 109 ft (132 ft max. at pods )
Depth : 16 ft
Total Leg Length : 423 ft each
Designed Draft : 8.75 ft (max)
Slot size : 50 ft x 50 ft
MAT : 210 ft x 170 ft x 12 ft (2 ft Skirt incl)
Slot in Mat : 87 ft long x 90 ft wide
Classification Society : ABS
Accommodation/Hospital : 90 Persons/3 beds
Helideck : 60 ft x 70 ft (Designed for Sikorsky S-61N
Contract & Location : ONGC, on the EAST COAST OF INDIA
Contract Validity : Till Oct, 2006
Contract day rates: USD 25,000-USD 27,000
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JACK UP RIG - ABAN III
RIG SPECIFICATIONS
Year of Build : 1974
Major Upgradation and Refurbishment : 1984 / 2003
Main Dimensional (Hull) Length : 217 ft -10-5/16"
Breadth : 200 ft - 6"
Depth : 26 ft - 0"
Draft : 15 ft - 11-1/2"
Total No. of Legs / Type / Length : 3 / Square Open Truss / 410 ft
Classification Society : BV / IRS
Accommodation/Hospital : 94 Persons/3 Beds
Helideck : Round, 70.50 ft Dia (Designed for Sikorsky S-61 N)
Contract & Location : ONGC at MUMBAI HIGH
Contract Validity : Upto Jan, 2008
Contract day rates range : USD 55,000-60,000
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JACK UP RIG - ABAN IV
RIG SPECIFICATIONS
Year of Build : 1983
Major Upgradation and Refurbishment : 1999
Hull Dimension : 212 ft x 210 ft x 26 ft
Cantilever Movement : 45 ft Longitudinal 12 ft transverse each side
Max. Allowable Leg Length below Hull : 363 ft
Total Leg Length : 423 ft each
Classification Society : ABS *A1
Accommodation : 96 Persons
Helideck : 80 ft Dia. (Designed for Sikorsky S-61)
Contract & Location : ONGC at MUMBAI HIGH
Contract Validity : Upto Nov, 2007
Contract day rate range : USD 55,000-60,000
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JACK UP RIG - ABAN V
RIG SPECIFICATIONS
Year of Build : 1982
Major Upgradation : 2002
Hull Dimension : 180 ft x 175 ft x 25 ft
Cantilever Movement : 40 ft Longitudinal 10 ft transverse each
Max. Allowable Leg Length below Hull : 361 ft
Total Leg Length : 400 ft each
Classification Society : ABS *A1
Accommodation : 84 Persons
Helideck : 62 ft Dia. (Designed for Sikorsky – 61)
Contract & Location : ONGC at MUMBAI HIGH
Contract Validity : Jan, 2008
Contract day rate range : USD 50,000-55,000
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JACK UP RIG - ABAN VI
RIG SPECIFICATIONS
Year of Build : 1975
Major Upgradation and Refurbishment : 1998
Main Dimensional (Hull) Length : 170 ft
Breadth : 130 ft
Depth : 19 ft
Total Leg Length : 337 ft
Total No. of Legs/Type/Length : 4/Triangular legs
Classification Society : ABS
Accommodation/Hospital : 78 Persons/3 Beds
Helideck : 80 ft x 80 ft (Designed for Sikorsky S-61 N)
Contract & Location : Oriental Oil Co, Dubai (in the Persian Gulf)
Contract Validity : Oct, 2007
Contract day rate range : USD 35,000-40,000
303030 ABAN LOYD CHILES OFFSHORE LIMITED
FPU - TAHARA
FPU SPECIFICATIONS
Year of Build : 1973
Major Upgradation and Refurbishment : 1988 (converted to FPU) and 1997 (Upgradation)
Classification : A1 Floating Production System
Length : 322 ft
Breadth : 360 ft
Height to main deck : 146 ft
Operating Draft Afloat condition : 70 ft - 85 ft
On bottom condition : :50 ft - 125 ft
Contract & Location : Hardy Oil, on the EAST COAST OF INDIA
Contract Validity : Jul, 2007
Contract day rate range : USD 23,000-28,000
)
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DRILL SHIP - FRONTIER ICE
RIG SPECIFICATIONS
Year of Build : Built as Tanker in 1959 and converted to Drillship in 1975
Classification : ABS Maltese Cross A.1(M)
Length : 183.0 m
Breadth : 21.7 m
Displacement : 26,156 T
Operating Draft : 9.4 m
Variable deck load : 9,805 T
Mooring
- Anchors : 8 Nos. x 15 T 5 Nos. x 9 T 3 Nos. x 15 T
- Anchor Wire line : 8 Nos. x 3200 ft x 2-3/4” Chain
- Anchor Winch : National, Rating 4,95,000 lbs
Contract & Location : ONGC at MUMBAI HIGH
Contract Validity : Feb, 2008
Contract day rate range : USD 40,000-45,000
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JACK UP RIG – Aban VII
RIG SPECIFICATIONS
Year of Build : 1973
Rig Type : Jackup
Jackup Type : Independent Leg Slot
Rig Design : Le Tourneau Class 52-S
Rated Water Depth : 250 ft
Drilling Depth : 20,000
Rig Design : Le Tourneau Class 52-S
Built By : Marathon Le Tourneau
Flag : Panama
Classification Society : ABS
Contract & Location : Currently envisaged to be used in the spot market
Spot Market Day Rate Range : USD 70,000-75000
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