geir sjurseth 2
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Offshore MarketTRANSCRIPT
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Geir Sjurseth, General Manager DVB Group Merchant Bank (Asia) Ltd Managing Director Offshore Support Group
The OSV Market Outlook & Financing Dubai 6 March 2013
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Introducing DVB
DVB Overview
European Company (SE), listed on the Frankfurt Stock Exchange
95% owned by DZ Group, the largest co-operative banking group
in Germany
Over 500 professionals, all specialising in transport finance
Over 500 clients worldwide, all active in the transport sector
Market Approach Aviation Shipping Land Transport
EUR 1.11bn Market Capitalisation
$ 28.1bn / EUR 21.7bn Total Loan Book
EUR 110.4m / 104.0m Net Profit FY 2011 / FY 2010
19.7% Basel II Core Capital Ratio
A+ Long Term Debt (Standard & Poors)
A-1 Short Term Debt (Standard & Poors)
Key Facts
DVB Global Offshore Support Group
Structured Asset Financing
Corporate Advisory
Risk Distribution
Loan Participations
Asset Management
Asset & Market Research
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Overview of the Offshore Support Sector
Offshore Support Segments
Crew Accommodation
Jack-up Platforms
Semisubmersible Platforms
Mono-hull Vessels
Accommodation Barges
Hybrids
Accommodation
Seabed Installation
Diving Support Vessel (DSV)
Lay Support Vessel
ROV Support Vessel
Lay Barge
Reel Lay Vessel
Well Intervention Vessels
Derrick Barge
Pipe Carrier
Subsea & Construction
Hydrocarbon Exploration
Seismic Survey Vessel (SSV)
Electro Magnetic Survey Vessel
Seismic
Supply & Anchor Handling
OSVs
Anchor Handling Tug (AHT)
Anchor Handling, Tug & Supply (AHTS)
Platform Supply Vessel (PSV)
Crew Boat
Stand-by Vessel
Emergency Response Rescue Vessel (ERRV)
Utility Vessel
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Outlook and financing
PSVs - large scale ordering, to end soon, soft values, a lot for sale
AHTS silence across the segments
Subsea/construction/seismic bonanza?
Accommodation/lift boats a lot of NBs; start ups; limited transparency good prospects but many hitting the market in 2015..
BRAZIL - cooling off
In general - Fewer banks but preferential treatment for offshore, terms to remain tight
Local v international banks - the regional banks are there for local business
S&LBs many around, focusing primarily on smaller/mid sized AHTS; PSVs, often yard re sales; equity returns between 15-18%
Bonds (and bank) - Oslo & NY; bonanza; credit quality is fast diluting
Market trends Bank, S&LB & bond financing
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AHTS Prospects by Region and Vessel Type
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PSV Prospects by Region and Vessel Type
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Unsustainable Disconnects?
Unparalleled optimism: new finds in shallow and deep water, a record jack up/drillship orderbook
E&P spending 2013: to reach $367bn or 7-9% for international spending (i.e. excluding US spending, which is growing at a slower pace due to low gas prices)
Oil prices: High Vessels: AHTS, subsea & construction markets, seismic moving towards a fine market equilibrium; while the larger PSV segment is facing oversupply
NB/yard prices: softer, very good payment terms is luring owners
Sovereign debt crisis: No near term solution Shipping crisis: Too much supply, too little cargo, crisis to continue with more defaults and bankruptcies
Banking crisis: Will get worse, with Basle III coming, less capacity available
OIL: In abundance, shale gas/oil to add more supply
World growth: Sluggish and extremely fragile Brazil: Is cooling off; units are redelivered, more off hire, delayed charter payments
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Choppy waters ahead?
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Thank you for your attention! [email protected]
The OSV Market Outlook & FinancingDubai 6 March 2013Introducing DVBOverview of the Offshore Support SectorOutlook and financingAHTS Prospects by Region and Vessel TypePSV Prospects by Region and Vessel TypeUnsustainable Disconnects?Choppy waters ahead? Slide Number 9