DOF Subsea AS Quarterly presentation – Q2 2011 Agenda
Highlights Q2
Group overview
Contract status
Q2 Financials
Outlook
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DOF Subsea AS Presentation 2011 - 2 Highlights Q2
Contracts
DOF Subsea has in July agreed a contract with ENI for Goliat FPSO Marine
Skandi Niteroi is secured a 4 + 4 yrs contract with Petrobras in August
Several contracts for DOF Subsea project fleet
Fleet
Purchase of Skandi Constructor (ex “Sarah”) in operation mid June
Sale of Geosounder
Skandi Niteroi arrived Brazil mid August for final completion as PLSV. Expected to be completed mid September
Skandi Hercules commenced its first job in Vietnam early May
Skandi Skansen delivered 1 July
Finance
NOK 200 million private placement in DOF Installer ASA. DOF Subsea AS owns approx. 84% of the placement. Completed in May
Bond loan in DOFSUB MNOK 750 completed in April
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DOF Subsea AS Presentation 2011 - 3 Group overview
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DOF Subsea AS Presentation 2011 - 4 DOF Subsea – brief summary
No of vessels in operation*: 23
No of newbuilds: 1
No of ROV‟s in operation: 44
NO of ROV‟s in order: 1
Employees as per June 2011: ca. 1.244
Offshore engineers and project staff: ca. 800
Market value of fleet*: NOK 17,3 billion
Number of shares: 119,733,714
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* Does not include Skandi Singapore to be delivered in Q3 2011 (Skandi Skansen included) DOF Installer and Joint Venture vessels are included 100% in the calculation. DOF Subsea AS Presentation 2011 - 5 Ownership structure
FIRST RESERVE DOF ASA CORPORATION
51% 49%
DOF SUBSEA HOLDING AS
100%
Modern high-end fleet and equipment
23 subsea and AHTS vessels in operation + 1 DOF SUBSEA AS vessels under construction
42 ROVs, 1 ROTV and 1 AUV in operation + 1 ROVs on order
Leading subsea contractor
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DOF Subsea AS Presentation 2011 - 6 Group structure
DOF Subsea AS
DOF Subsea DOF Subsea DOF Subsea Engineering Ship Owning Management Asia Pacific Atlantic Brazil Companies Companies Companies
DOF Singapore Norway CSL Management (34%)
Australia UK Semar (50%) Marin IT (35%)
Indonesia US
DOF Subsea divided into regions, engineering companies Mashhor DOF Subsea (50%) Canada and ship-owning companies Brunei Regions, engineering companies and ship-owning
Angola/Congo companies are profit centers Head office in Bergen
Arctic (49%) Russia
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DOF Subsea AS Presentation 2011 - 7 Global Player
Bergen (222) Moscow Aberdeen (289)
St. Johns (33) Houston Cairo (45) Manila (3) Singapore Brunei (98) Angola Jakarta (30) (3) Macaé Perth Rio de Janeiro (238) (283)
Buenos Aires
GEOGRAPHICAL FOCUS AREAS
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DOF Subsea AS Presentation 2011 - 8 Contract status
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DOF Subsea AS Presentation 2011 - 9 Contract coverage (vessels)
2011 2012 2013 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D
Geograph Petrobras - Mar 2016 + 5y opt
Ocean Protector (Bergen) Seaforce - Sept 2014 + 2y opt
Skandi Seven Subsea 7 - Mar 2013 + 4y opt Skandi Salvadore Chevron - Sept 2012 + 1y opt Skandi Vitoria Petrobras - Oct 2014 + 4y opt Skandi Aker AKOFS 2 - Jan 2015 + 5y opt Skandi Santos AKOFS 1 - Jan 2015 + 5y opt Skandi Patagonia Total - Dec 2025 Skandi Carla Fugro - July 2013 + 14y opt Skandi Neptune Subsea 7 - Mar 2014 + 3y opt Skandi Achiever Technip - Aug 2015 + 4y opt
LongTerm Charters Skandi Acergy Acergy - Aug 2016 + 6y opt Skandi Arctic Technip - Mar 2017 + 8y opt Skandi Niteroi (H24) Petrobras - Sept 2015 + 4y opt Geosea Petrobras - Feb 2017 + 5y opt
Skandi Skansen (H723) Skandi Singapore (H621) Skandi Inspector Skandi Hercules (H722) Skandi Skolten Geobay Geosund Transit to Asia
Geoholm ProjectVessels Sk Constructor
Firm contracts Optional period Under construction www.dofsubsea.com
DOF Subsea AS Presentation 2011 - 10 ROV and other major contracts
2011 2012 2013
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Norskan Botafogo Petrobras Norskan Skandi Fluminence Petrobras Skandi Chieftain Petrobras Skandi Aker AKOFS DOFCON Skandi Seven Subsea 7 Skandi Vega Statoil DOF Sk Commander Petrobras Subsea IRM contract Shell Philippines Malampaya
Gorgon Upstream HDD Marine Monitoring Chevron Australia
Darwin operations Multiple RegionAsia Supply of Buckle Initiator Chevron Australia Smartwire Metrology Husky Energy Constructor & WS Technip Canada
Ross Survey Support Subsea 7 USA Block 31 FPSO EZRA/AMC Field Survey Support Services Deep Panuke GIS Development BP America
TH/Galapados/Atlantis BP America Region Atlantic Survey support BP Angola Vessel support SHL Frame Agreement Conoco Phillips Survey support HMC
Firm contracts Optional period
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DOF Subsea AS Presentation 2011 - 11 Skandi Singapore – to be delivered in 2011
DOFSUB Asia project vessel
DP II Dive Support Vessel
2 x Triton XLX W ROV
18 man saturation diving system
140 t Crane
900 m2 Cargo deck area
100 men accommodation
All specifications are subject to changes without prior notice. Please contact us for details and verifications. www.dofsubsea.com
DOF Subsea AS Presentation 2011 - 12 Q2 Financials
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DOF Subsea AS Presentation 2011 - 13 DOF Subsea AS – consolidated profit & loss FINANCIAL STATEMENTS YTD June, 2011
Proforma Proforma (NOK 000) 30.06.2011 31.12.2009 31.12.2008 30.06.2010 31.12.2010 Operating revenue 1 928 403 1 654 112 3 589 959 2 838 367 2 569 955 Profit from sale of non-current assets -293 21 451 16 409 -12 754 165 384 Wages and salaries 465 830 364 374 846 394 743 412 1 093 203 Operating expenses 896 569 819 444 1 665 288 1 347 511 842 500 EBITDA 565 711 491 745 1 094 687 734 690 799 636
Depreciation 333 883 324 736 702 590 496 286 318 578 Write down 6 650 - - -49 493 128 000 EBIT 225 178 167 009 392 097 287 897 353 058 Net Interest -276 107 -181 902 -427 515 -252 127 -262 755 Other financial items -70 632 -164 822 9 001 606 239 -258 361 Taxes 30 214 -44 247 -28 075 4 898 118 247 Profit from disc. Operations - - - - - Net result -91 347 -223 962 -54 492 646 907 -49 811 Minority interest -225 935 1 652
Operating revenue increased from NOK 1.654 million in proforma H1 2010 to NOK 1.928 million in H1 2011 (+17%)
EBITDA increased from NOK 491 million in proforma H1 2010 to NOK 566 million in H1 2011 (+15%)
EBIT increased from NOK -224 million in proforma H1 2010 to NOK -91 million in H1 2011
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DOF Subsea AS Presentation 2011 - 14 DOF Subsea AS – consolidated balance sheet
FINANCIAL STATEMENTS YTD June 30, 2011
(NOK 1000) 30.06.2011 31.12.2010 31.12.2009 (NOK 1000) 30.06.2011 31.12.2010 31.12.2009
Intangible fixed assets 511 514 533 483 624 886 Subscribed equity 4 069 262 4 069 262 2 892 511 Tangible fixed assets 14 306 222 13 450 206 10 225 287 Retained earnings 867 303 932 944 934 674 Financial fixed assets 271 660 209 082 83 053 Minority interest 155 728 203 983 6 571 Total fixed assets 15 089 397 14 192 770 10 933 226 Total Equity 5 092 293 5 206 189 3 833 755 Provisions for commitments 128 351 175 363 212 108 Other long term liabilities 10 413 703 9 977 089 8 067 791 Bunkers & Provtions 31 937 21 026 15 062 Total Long Term Liabilities 10 542 054 10 152 452 8 279 899 Receivables 1 370 094 1 326 036 1 133 808 Debt to credit institutions 1 293 018 1 177 176 859 809 Cash and cash equivalents 1 533 086 1 988 626 1 521 397 Other current liabilities 1 097 147 992 641 630 030 Total current assets 2 935 116 3 335 688 2 670 267 Total Short Term Liabilities 2 390 166 2 169 817 1 489 839
Total Liabilities 12 932 220 12 322 269 9 769 738
Total assets 18 024 513 17 528 458 13 603 493 Total Equity and Liabilities 18 024 513 17 528 458 13 603 493
Total fixed assets has increased from 14.2 billion and of 2010 to 15.1 billion as per 30th June 2011.
During first half of 2011 current assets has decreased from 3.3 billion to 2.9 billion.
Total liabilities as per end of June 2011 of 12.9 billion.
Total book equity in DOF Subsea AS is NOK 5.1 billion and of June 2011.
Book Equity ratio of 28.3% as per 30th June 2011.
Value Adjusted Equity ratio of 34.2% as per 30th June 2011.
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DOF Subsea AS Presentation 2011 - 15 High asset values
Fair market values of DOF Subsea fleet have been stable in first half 2011.
All vessels are currently valued higher than the original capex
Market value development
800
700
600
500 MNOK
400
300
200 2002 2003 2004 2005 2006 2007 2008 2009 2010 Q2 2011
Skandi Seven Ocean Protector Geoholm Skandi Patagonia
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DOF Subsea AS Presentation 2011 - 16 DOF Subsea AS – debt maturity profile
Debt maturity profile DOF Subsea AS Level 2011E–2016E (NOKm)*
2 500 DOFSUB03 PRO - NOK 500 million 2 000 - Maturity July 2012
1 500 DOFSUB04 - NOK 750 million 1 000 - Maturity April 2014
500 DOFSUB05
DOFSUB05 - NOK 750 million DOFSUB 04 DOFSUB - 03 DOFSUB - Maturity April 2016 2011E 2012E 2013E 2014E 2015E 2016E After
Outstanding Bonds Bank Debt Balloon Payments
www.dofsubsea.com •The figures reflects amortization and balloon payments on debt drawn as pr 30th June 2011 * Debt maturity profile excludes approx NOK 0.9 billion in payments to Eksportfinans which is DOF Subsea AS serviced by corresponding amount of restricted cash. Presentation 2011 - 17 DOF Subsea AS – Asset coverage
Combined market value DOF Subsea’s fleet is more than NOKbn 17.2
Asset-level gearing on the existing fleet is 61%, decreasing to 42% in 2014 Provides a significant equity cushion on top of the existing vessel-level financing Significant gearing reduction forecasted upon completion of the current newbuild program
Newbuilding program and financing close to completion (Q3 2011)
Gearing forecast – summary Total Fleet Market value
Vessels(a) 17,282 100 % 39 % 80 % 46 % Other Equipment (b) 1,100 51 % 58 % 70 % 77 % 60 % Total Fleet 18,382 40 % 61 % 54 % Note: Vessel values as of 30 June, 2011 49 % 42 % 20 % (a) Does not include market value of Skandi Singapore to be delivered in Q3 2011 30 % 23 % Installer vessels and Joint Venture vessels are included 100% in the calculation 0 % (b) Includes ROVs, AUV, diving systems, other equipment 2011E 2012E 2013E 2014E 2015E 2016E
Fleet Level Gearing Fleet Market Value Cushion www.dofsubsea.com
* The figures reflects amortization and balloon payments on debt drawn as pr 30 June 2011 DOF Subsea AS *Includes the financing on Skandi Skansen and Skandi Niteroi which was drawn in July 2011 Presentation 2011 - 18 Outlook
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DOF Subsea AS Presentation 2011 - 19 Short term outlook (Q3)
Subsea / CSV
Skandi Skansen onhire from mid July
Skandi Constructor onhire from end June
Skandi Niteroi expected onhire end September
Skandi Singapore expected onhire mid September Skandi Skansen
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DOF Subsea AS Presentation 2011 - 20 Thank you This presentation is available at: www.dofsubsea.com Disclaimer
This presentation by DOF Subsea AS (“DOF Subsea” or the “Company”) is designed to provide a high level overview of aspects of the operations of DOF Subsea and the DOF Subsea group.
The material set out in the presentation is current as at 18 August 2011.
This presentation contains forward looking statements relating to operations of DOF Subsea and the DOF Subsea Group that are based on management‟s own current expectations, estimates and projections about matters relevant to DOF Subsea„s future financial performance. Words such as “likely”, “aims”, “looking forward”, “potential”, “anticipates”, “expects”, “predicts”, “plans”, “targets”, “believes” and “estimates” and similar expressions are intended to identify forward looking statements.
References in the presentation to assumptions, estimates and outcomes and forward looking statements about assumptions, estimates and outcomes, which are based on internal business data and external sources, are uncertain given the nature of the industry, business risks, and other factors. Also, they may be affected by internal and external factors that may have a material effect on future business performance and results.
No assurance or guarantee is, or should be taken to be, given in relation to the future business performance or results of DOF Subsea or the DOF Subsea Group or the likelihood that the assumptions, estimates or outcomes will be achieved.
While management has taken every effort to ensure the accuracy of the material in the presentation, the presentation is provided for information only. DOF Subsea, its officers and management exclude and disclaim any liability in respect of anything done in reliance on the presentation.
All forward looking statements made in this presentation are based on information presently available to management and DOF Subsea assumes no obligation to update any forward looking statements. Nothing in this presentation constitutes investment advice and this presentation shall not constitute an offer to sell or the solicitation of any offer to buy any securities or otherwise engage in any investment activity.
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DOF Subsea AS Presentation 2011 - 22