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Eidesvik Offshore — Investor Presentation 2016
May 12, 2016
3586_rns_2016-05-12_49409b6a-f32b-47db-a24c-561f5ef1f755.pdf
Investor Presentation
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Presentation 1st Quarter 2016
Oslo 12.05.2016 CEO Jan Fredrik Meling
News in 1st Quarter 2016
Entered into a 9-months contract with Siemens for «Acergy Viking». The vessel will be used as a support vessel for offshore wind on German sector. A gangway system will be installed on the vessel prior to contract commencement.
News in 1st Quarter 2016
Awarded contract extension with Technip for «Viking Neptun». Contract commencement is primo April and will secure work for the vessel beyond 2016.
News after 31.03.2016
The PSV's «Viking Lady» and «Viking Athene» have been awarded contract extensions for 150 and 45 days, respectively.
News after 31.03.2016
Counterparty for the subsea vessel «Viking Poseidon» contract, Harkand Gulf Contracting Limited, is set under administration. By notice from the administrators, the contract is terminated.
1st Quarter 2016 results
(1st Quarter 2015 in brackets)
| Revenues | MNOK 193,3 | (278,5) |
|---|---|---|
| EBITDA | MNOK 93,6 | (167,1) |
| Operating profit | MNOK 40,1 | (106,1) |
| Pre-tax profit | MNOK 119,8 | (-103,7) |
Q1 2016 profits influenced by agio of MNOK 115,2 (-173,7). Q1 2015 profits influenced by termination fee of MNOK 22,2.
Results 1st Quarter 2016
(in million NOK)
Operating revenue Q1
The results in 1st Quarter compared to last year are influenced of:
-The subsea vessel "Viking Neptun" was delivered and commenced contract shortly after delivery in Q1 2015.
-"Viking Poseidon" contract terminated
-"Acergy Viking" and "Veritas Viking" without contract from 2015
-PSV's "Viking Princess", "Viking Lady" and "Viking Athene" operated on weaker rates
-"European Supporter" and "Viking 2" sold
-"Vantage" in lay-up after contract termination in Q1 2015 EBIT Q1
EBITDA Q1
2015 2016
Cash Flow (in million NOK)
| 1st Quarter | 1st Quarter | ||
|---|---|---|---|
| 2016 | 2015 | 2015 | |
| Net cashflow from operating activities | 27,2 | 68,8 | 629,8 |
| Net cashflow from investment activities | (8,3) | (943,5) | (706,7) |
| Net cashflow from finance activities | (138,1) | 634,3 | 229,6 |
| Net changes in cash holdings | (119,2) | (240,4) | 152,7 |
| Cash at beginning of period | 702,3 | 549,6 | 549,6 |
| Cash at end of period | 583,1 | 309,2 | 702,3 |
Interest paid is categorized under financing activities, interest received is categorized under operating activities.
Balance (in million NOK)
Segments
Incl. Share of Joint Ventures Excluded termination fee (MNOK)
| 1st Quarter 2016 | Seismic | Subsea | Supply | Other |
|---|---|---|---|---|
| Revenue | 74,6 | 97,6 | 69,3 | 4,1 |
| EBITDA | 73,5 | 52,0 | 16,8 | -5,1 |
| EBIT | 47,5 | 13,8 | -8,9 | -5,6 |
| EBITDA margin | 99% | 53% | 24% | N/A |
| EBIT margin | 64% | 14% | -13% | N/A |
| 1st Quarter 2015 | Seismic | Subsea | Supply | Other |
|---|---|---|---|---|
| Revenue | 81,6 | 124,4 | 93,8 | 5,2 |
| EBITDA | 80,8 | 74,3 | 36,7 | -6,2 |
| EBIT | 50,6 | 39,9 | 6,6 | -6,7 |
| EBITDA margin | 99% | 60% | 39% | N/A |
| EBIT margin | 62% | 32% | 7% | N/A |
Contract coverage (per 31.03.2016)
13
Contract status seismic
Contract status subsea
Contract status supply
| Viking Queen | |||||
|---|---|---|---|---|---|
| Viking Lady | |||||
| Viking Athene | |||||
| Viking Energy | |||||
| Viking Avant | |||||
| Viking Nereus | |||||
| Viking Prince | |||||
| Viking Princess | |||||
| 2016 | 2017 | 2018 | 2019 | 2020 | |
Market
The challenging market continues in 2016, and we see no short-term improvement. Still there is much vessel over-capacity in the markets Eidesvik operates in. A combination of more vessels being laid up and retirement of older vessels is necessary to improve the earnings of the industry.
The company continiously works with cost-reduction initiatives to face the difficult market.
Eidesvik plans for continuing difficult market conditions for several years.