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Prosafe SE Investor Presentation 2010
3718_rns_2010-02-16_ad82bbaa-62a0-464b-bc85-b390d8e75cbb.pdf
Investor Presentation
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Prosafe Production
February 16, 2010
4th quarter 2009
Prosafe Production
Disclaimer
All statements in this presentation other than statements of historical fact are forward-looking statements, which are subject to a number of risks, uncertainties, and assumptions that are difficult to predict and are based upon assumptions as to future events that may not prove accurate. Certain such forward-looking statements can be identified by the use of forward-looking terminology such as “believe”, “may”, “will”, “should”, “would be”, “expect” or “anticipate” or similar expressions, or the negative thereof, or other variations thereof, or comparable terminology, or by discussions of strategy, plans or intentions. 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 presentation as anticipated, believed or expected. Prosafe Production does not intend, and does not assume any obligation to update any industry information or forward-looking statements set forth in this presentation to reflect subsequent events or circumstances.
2
Prosafe Production
Summary
- Stable development in underlying results
- Impairment charge relating to FPSO Ningaloo Vision and M/T Takama
- Robust operational performance
- FPSO Ningaloo Vision ready to commence production
- Market outlook improving
Prosafe Production
Financial results
Operations and projects
Market outlook
Progafe Production
Profit & Loss
| (unaudited figures in USD million) | Q4 09 | Q4 08 | 2009 | 2008 |
|---|---|---|---|---|
| Operating revenues | 90.4 | 71.4 | 315.0 | 264.7 |
| Operating expenses | (40.0) | (35.6) | (130.1) | (122.1) |
| Operating profit before depreciation | 50.4 | 35.8 | 184.9 | 142.6 |
| Depreciation | (30.3) | (14.9) | (83.7) | (57.6) |
| Impairment | (46.7) | (196.8) | (46.7) | (196.8) |
| Operating profit | (26.5) | (175.9) | 54.5 | (111.8) |
| Interest income | 0.1 | 0.8 | 0.7 | 3.3 |
| Interest expenses | (11.3) | (11.2) | (44.9) | (28.7) |
| Other financial items | 3.2 | (4.3) | (0.6) | (56.2) |
| Net financial items | (8.1) | (14.6) | (44.8) | (81.6) |
| Profit before taxes | (34.6) | (190.5) | 9.6 | (193.3) |
| Taxes | (6.6) | 3.8 | (19.9) | (10.2) |
| Net profit (loss) | (41.1) | (186.7) | (10.3) | (203.6) |
| Earnings per share | (0.16) | (0.73) | (0.04) | (0.80) |
| Earnings per share diluted | (0.16) | (0.73) | (0.04) | (0.80) |
Prosafe Production
Balance Sheet
| (unaudited figures in USD million) | 31/12/09 | 31/12/08 |
|---|---|---|
| Goodwill | 128.3 | 128.3 |
| Ships | 1,756.2 | 1,567.4 |
| Other non-current assets | 7.3 | 15.7 |
| Total non-current assets | 1,891.8 | 1,711.4 |
| Cash and deposits | 133.8 | 211.0 |
| Other current assets | 71.0 | 62.2 |
| Total current assets | 204.8 | 273.2 |
| Total assets | 2,096.6 | 1,984.6 |
| Share capital | 25.5 | 25.5 |
| Other equity | 788.2 | 780.2 |
| Total equity | 813.7 | 805.7 |
| Interest-free long-term liabilities | 38.3 | 56.3 |
| Interest-bearing long-term debt | 1,001.1 | 1,013.8 |
| Total long-term liabilities | 1,039.4 | 1,070.1 |
| Other interest-free current liabilities | 92.9 | 90.0 |
| Current interest-bearing debt | 150.6 | 18.8 |
| Total current liabilities | 243.5 | 108.7 |
| Total equity and liabilities | 2,096.6 | 1,984.6 |
Prosafe Production
Cash Flow
| (unaudited figures in USD million) | 2009 | 2008 |
|---|---|---|
| Profit before taxes | 9.6 | (193.4) |
| Unrealised currency loss (gain) | (0.9) | (1.2) |
| Depreciation | 83.7 | 57.6 |
| Impairment | 46.7 | 196.8 |
| Taxes paid | (12.7) | (18.2) |
| Loss on sale of assets | 0.0 | 52.6 |
| Change in working capital | (8.1) | 78.8 |
| Other items from operating activities | 33.3 | (25.1) |
| Net cash flow from operating activities | 151.6 | 148.0 |
| Acquisition of tangible assets | (317.6) | (895.7) |
| Acquisition of financial assets | 0.0 | (319.6) |
| Proceeds from sale of assets | 0.0 | 260.0 |
| Dividends received | 0.0 | 1.5 |
| Interest received | 0.7 | 3.3 |
| Net cash flow from investing activities | (316.9) | (950.6) |
| Proceeds from new interest-bearing debt | 235.0 | 963.2 |
| Repayment of interest-bearing debt | (107.6) | (50.6) |
| Paid-in capital | 0.0 | 70.1 |
| Dividends paid/Capital repayment | 0.0 | 0.0 |
| Interest paid | (39.2) | (22.1) |
| Net cash flow from financing activities | 88.1 | 960.6 |
| Net cash flow | (77.2) | 158.0 |
| Cash and deposits at beginning of period | 211.0 | 53.0 |
| Cash and deposits at end of period | 133.8 | 211.0 |
Prosafe Production
Key figures
| Notes | Q4 09 | Q3 09 | Q4 08 | 2009 | |
|---|---|---|---|---|---|
| EBITDA margin | 55.8% | 60.5% | 50.2% | 58.7% | |
| Operating margin | -29.3% | 36.4% | -246.4% | 17.3% | |
| Return on capital employed | 1 | -5.4% | 6.3% | -46.8% | 2.8% |
| Return on equity | 2 | -20.3% | 6.5% | -92.7% | -1.3% |
| Equity ratio | 3 | 38.8% | 40.1% | 40.6% | 38.8% |
| EPS (USD) | 4 | (0.16) | 0.05 | (0.73) | (0.04) |
| EPS adjusted (USD) | 5 | 0.02 | 0.05 | 0.04 | 0.14 |
| Working capital (USD million) | 6 | (38.7) | 6.9 | 164.4 | (38.7) |
| Net interest-bearing debt (USD million) | 1,017.9 | 1,035.2 | 821.6 | 1,017.9 | |
| Market capitalisation (USD million) | 547 | 599 | 401 | 547 | |
| Share price (NOK) | 12.45 | 13.70 | 11.00 | 12.45 | |
| Book equity per share (USD) | 3.19 | 3.33 | 3.16 | 3.19 | |
| Number of shares (million) | 255.2 | 255.2 | 255.2 | 255.2 | |
| Average number of shares (million) | 255.2 | 255.2 | 255.2 | 255.2 | |
| USD/NOK exchange rate | 5.81 | 5.84 | 7.00 | 5.81 |
Notes
- Operating profit / [Average total assets - Average interest-free current debt] (Annualised)
- Net profit / Average book equity (Annualised)
- Book equity / Total assets
- Net profit / Average number of outstanding and potential shares
- Figures adjusted for effects from impairment charge
- Current assets - current liabilities.
Shareholders as of 10 February 2010
Prosafe Production
| Account | # of shares | Ownership |
|---|---|---|
| BW OFFSHORE CYPRUS LIMITED | 44,500,000 | 17.44% |
| PROSAFE HOLDING LTD. | 19,778,137 | 7.75% |
| BW EUROHOLDINGS LTD | 15,332,280 | 6.01% |
| BW OFFSHORE CYPRUS LTD | 11,432,990 | 4.48% |
| FOLKETRYGDFONDET | 9,946,785 | 3.90% |
| RBC DEXIA INVESTOR SERVICES TRUST | 8,441,364 | 3.31% |
| BROWN BROTHERS HARRIMAN & CO | 7,500,000 | 2.94% |
| AWILCO INVEST AS | 6,638,538 | 2.60% |
| ORKLA ASA | 5,850,000 | 2.29% |
| PARETO AKSJE NORGE | 5,717,800 | 2.24% |
| PROSAFE SE | 5,596,997 | 2.19% |
| BGL BNP PARIBAS | 5,208,467 | 2.04% |
| BW LPG FPSO I LTD | 5,000,000 | 1.96% |
| UBS AG, LONDON BRANCH | 4,303,696 | 1.69% |
| JPMORGAN CHASE BANK | 4,277,035 | 1.68% |
| HSBC BANK PLC | 4,143,255 | 1.62% |
| MORGAN STANLEY & CO INTERNAT. PLC | 4,110,129 | 1.61% |
| BANK OF NEW YORK MELLON | 3,961,174 | 1.55% |
| ODIN OFFSHORE | 3,932,000 | 1.54% |
| STATE STREET BANK AND TRUST CO. | 3,800,536 | 1.49% |
Prosafe Production
Operations and projects
Financial results
Operations and projects
Market outlook
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Prosafe Production
Robust operations…
- Strong uptime delivered to clients also in Q4 09
- Operations of new vessels going well
- Robust HSE results - LTI frequency of 0.28 in 2009
World class operations
Prosafe Production
...gives stable and visible results
EBITDA per quarter
Prosafe Production
FPSO Ningaloo Vision
- On dayrate from beginning of January
- Final commissioning of disconnectable turret has gone well
- Ready to commence operations
Prosafe Production
FPSO Ningaloo Vision
14
Prosafe Production
MoU with Höegh LNG
- Cooperation regarding LNG FPSOs
- Höegh LNG to be responsible for design, project execution, completion and funding
- Prosafe Production to be responsible for operations and maintenance, as well as supporting Höegh LNG with marketing and project execution
- Attractive ticket to enter market with exciting long-term growth potential
Prosafe Production
Contract status
- 50% ownership. Fred. Olsen Production holds remaining 50%
- 50% ownership. Equinox holds remaining 50%
Conversion/yard stay
Availability dayrate
Firm contract
Option
Prosafe Production
Market Outlook
- Financial results
- Operations and projects
- Market outlook
17
Prosafe Production
Gradual improvement short-term
- Only seven contracts awarded in 2009 – quietest year since 2002
- Signs of improvement – tender activity likely to increase gradually through 2010
FPSO contracts awarded
Market indicator – enquiries received
Source: Fearnley Offshore
Source: Prosafe Production
Prosafe Production
Optimistic forecasts
- Fearnely Offshore expects high activity in the next few years
- 2010E: 14 awards
- 2011E: 23 awards
- 2012E: 18 awards
- ODS-Petrodata sees 106 planned and possible FPSO awards over the next 4 years
- IMA currently has 170 FPU prospects in its database
Fearnley Offshore – number of FPSO awards
IMA - No. of FPU projects in planning stage
Prosafe Production
Bright long-term outlook
- Demand for oil anticipated to grow in foreseeable future
- Oil field decline rate expected to continue to increase
- Structural case – an increasing part of future oil production to come from “FPSO-friendly” areas
- Leading indicators positive
- Oil price stabilized at higher level
- High drilling activity
Source: Facset
Source: First Securities
Prosafe Production
Summary
- Stable development in underlying results
- Impairment charge relating to FPSO Ningaloo Vision and M/T Takama
- Robust operational performance
- FPSO Ningaloo Vision ready to commence production
- Market outlook improving
Prosafe Production
Contact details
Prosafe Production Public Limited
City House, 3rd Floor
6 Karaiskakis Street
CY-3032 Limassol
Cyprus
Phone: +357 2550 3120
Fax: +357 2550 3001
e-mail: [email protected]
Prosafe Production Services Pte Ltd
1 International Business Park
10-01 The Synergy
Singapore 609917
Singapore
Phone: +65 6665 6200
Fax: +65 6567 5110
e-mail: [email protected]
Investor Relations contact
Sven Børre Larsen
EVP and CFO
Tel.: +65 6302 0321
Mob.: +65 9657 2590
E-mail: [email protected]
www.prosafeproduction.com