Investor Presentation • May 23, 2017
Investor Presentation
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First quarter 2017
Oslo, 23 May 2017
Reese McNeel, CEO
This presentation and its enclosures and appendices (hereinafter jointly referred to as the "presentation") have been prepared by Sevan Marine ASA ("Sevan" or the "Company") exclusively for information purposes. This presentation has not been reviewed or registered with any public authority or stock exchange. Recipients of this presentation may not reproduce, redistribute or pass on, in whole or in part, the presentation to any other person.
The contents of this presentation are not to be construed as legal, business, investment or tax advice. Each recipient should consult with its own legal, business, investment and tax adviser as to legal, business, investment and tax advice.
There may have been changes in matters which affect the company subsequent to the date of this presentation. Neither the issue nor delivery of this presentation shall under any circumstance create any implication that the information contained herein is correct as of any time subsequent to the date hereof or that the affairs of the company have not since changed, and the company does not intend, and does not assume any obligation, to update or correct any information included in this presentation.
This presentation includes and is based on, among other things, forward-looking information and statements. Such forward-looking information and statements are based on the current expectations, estimates and projections of Sevan or assumptions based on information available to the company. Such forward-looking information and statements reflect current views with respect to future events and are subject to risks, uncertainties and assumptions. Sevan cannot give any assurance as to the correctness of such information and statements.
An investment in the company should be considered as an high-risk investment, and several factors could cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements that may be expressed or implied by statements and information in this presentation, including, among others, risks or uncertainties associated with the company's business, segments, development, management, financing, market acceptance and relations with customers, ability to implement cost reducing initiatives, the company's technology and offshore unit design, latent risks associated with divested businesses (including Teekay's / Logitel's ability to develop the accommodation business unit and repay the USD 60 million convertible loan in full), and, more generally, general economic and business conditions, including, but not limited to, within the oil and gas industry, changes in domestic and foreign laws and regulations, taxes, customs duties, vat or variations thereof, changes in competition and pricing environments, fluctuations in currency exchange rates and interest rates and other factors. Should one or more of these risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this document. The company does not intend, and does not assume any obligation, to update or correct the information included in this presentation.
This presentation does not constitute or form a part of, and should not be construed as, an offer or invitation to subscribe for or purchase any securities of the company. Neither this presentation nor anything contained herein shall form the basis of, or be relied on in connection with, any potential transaction referred to in this presentation. Any potential offer of securities of the company would be based on a prospectus prepared for that purpose.
This presentation is subject to Norwegian law, and any dispute arising in respect of this presentation is subject to the exclusive jurisdiction of Norwegian courts.
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| HiLoad LNG Offloading and FRD |
Drilling unit for Mid-water harsh environment |
Fish farming | Power hub for wind or subsea operations |
|---|---|---|---|
| • Co-operation with Flour Corporation announced regarding FRD regas |
• New concept development |
• New concept development |
• Further development of existing concept |
| • unit • Offloading concept included in current |
Potential for cost savings by designing unit for niche market |
• Looking to apply cylindrical design and knowledge to growing market |
• Low cost, geo-stationary, stable unit to handle power systems (potentially unmanned) |
| FLNG study |
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Note: Figures exclude one-off costs and variable project costs.
Balance sheet composition at 31 March 2017 (NOKm)
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| NOK million | Q1 17 | Q4 16 | Q1 16 | 2016 |
|---|---|---|---|---|
| Continued operations | ||||
| Operating revenue | 12.1 | 18.3 | 42.9 | 117.1 |
| Operating expense | -28.7 | -34.2 | -102.2 | -221.1 |
| EBITDA | -16.7 | -16.0 | -59.3 | -104.0 |
| Depreciation, amortization and impairment | -0.6 | -2.0 | -0.5 | -3.3 |
| Operating profit/(loss) | -17.3 | -18.0 | -59.8 | -107.3 |
| Financial income/(expense) | 7.3 | -0.6 | -24.1 | -127.7 |
| FX gain/(loss) relating to financing | -2.0 | 9.1 | -18.3 | -12.2 |
| Net financial items | 5.3 | 8.5 | -42.4 | -139.8 |
| Profit/(loss) before tax | -11.9 | -9.5 | -102.2 | -247.1 |
| Tax income/(expense) | 0.0 | -0.2 | -0.1 | 5.7 |
| Net profit/(loss) continued operations | -11.9 | -9.7 | -102.3 | -241.4 |
| Discontinued operations | ||||
| Disposal group classified as held for sale | -2.5 | -1.3 | 5.7 | 28.5 |
| Net profit/(loss) discontinued operations | -2.5 | -1.3 | 5.7 | 28.5 |
| Net profit/(loss) | -14.4 | -11.0 | -96.6 | -212.9 |
| NOK million | 31.03.17 | 31.03.16 | 31.12.16 |
|---|---|---|---|
| Fixed assets |
1.2 | 2.8 | 1.4 |
| Intangible assets | 5.5 | 7.9 | 5.9 |
| Deferred tax assets | 0.0 | 0.9 | 0.0 |
| Loan | 0.0 | 108.3 | 0.0 |
| Other non-current assets | 46.4 | 45.3 | 46.7 |
| Total non-current assets | 53.1 | 165.2 | 54.0 |
| Trade and other receivables | 24.6 | 123.8 | 22.2 |
| Cash and cash equivalents | 152.3 | 344.5 | 213.9 |
| Total current assets | 176.9 | 468.3 | 236.1 |
| Assets held for sale | 81.8 | 75.5 | |
| Total assets | 311.8 | 633.5 | 365.5 |
| Share capital | 210.4 | 210.4 | 210.4 |
| Other equity | -12.9 | 119.8 | -0.1 |
| Total shareholders' equity | 197.5 | 330.2 | 210.4 |
| Non-controlling interest | 7.0 | 9.0 | 8.6 |
| Total equity | 204.5 | 339.2 | 218.9 |
| Retirement benefit obligations | 4.2 | 8.1 | 6.4 |
| Other non-current liabilities/provisions | 0.0 | 3.3 | 0.0 |
| Total non current liabilities | 4.2 | 11.4 | 6.4 |
| Current liabilities | 29.8 | 282.8 | 77.1 |
| Total current liabilities | 29.8 | 282.8 | 77.1 |
| Total liabilities | 34.0 | 294.2 | 83.4 |
| Liabilities held for sale | 73.3 | 63.2 | |
| Total equity and liabilities | 311.8 | 633.5 | 365.5 |
| NOK million | Q1 17 | Q4 16 | Q1 16 | 2016 |
|---|---|---|---|---|
| Cash flows from operating activities | ||||
| Cash from operations | -61.6 | 4.8 | -12.3 | -44.3 |
| Taxes paid | 0.0 | 0.0 | -31.7 | -31.7 |
| Net cash generated from continued operating activities | -61.6 | 4.8 | -44.1 | -76.0 |
| Net cash generated from discontinued operating activities | 11.8 | 2.4 | 66.5 | -40.2 |
| Net cash generated from operating activities | -49.9 | 7.2 | 22.4 | -116.2 |
| Cash flows from investment activities | ||||
| Sale of shares KANFA Aragon | 0.0 | 0.0 | 0.0 | 20.0 |
| Net cash from continued investment activities | 0.0 | 0.0 | 0.0 | 20.0 |
| Net cash from discontinued investment activities | 0.0 | 0.0 | 0.0 | 0.0 |
| Net cash from investment activities | 0.0 | 0.0 | 0.0 | 20.0 |
| Cash flows from financing activities | ||||
| Dividends paid | 0.0 | 0.0 | 0.0 | 0.0 |
| Net cash from continued financing activities | 0.0 | 0.0 | 0.0 | 0.0 |
| Net cash from discontinued financing activities | 0.0 | 0.0 | 0.0 | 0.0 |
| Net cash from financing activities | 0.0 | 0.0 | 0.0 | 0.0 |
| Net cash flow for the period - continued activities |
-61.6 | 4.8 | -44.1 | -56.0 |
| Net cash flow for the period - discontinued activities |
11.8 | 2.4 | 66.5 | -40.2 |
| Cash balance at beginning of period | 225.9 | 218.7 | 322.1 | 322.1 |
| Cash balance at end of period | 176.0 | 225.9 | 344.5 | 225.9 |
| Cash balance at end of period continued operations | 152.3 | 213.9 | 225.9 | 213.9 |
| Cash balance at end of period discontinued operations | 23.7 | 12.0 | 118.6 | 12.0 |
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