second quarter 2015kyber.blob.core.windows.net/gcrieber/1001/ose_2015...contract coverage*...
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Second quarter 2015Bergen 20 August 2015
20.08.2015 GC RIEBER SHIPPING1
Agenda
• Highlights Q2 2015
• Operational review
• Financial review
• Summary and outlook
20.08.2015 GC RIEBER SHIPPING2
“Polar Onyx”
Highlights second quarter
• Stable and good operations
• Fleet utilisation of 89 %
• Delivery of new seismic vessel “Polar Empress”
• Sale of subsea vessel “Polar Prince”
• Refinancing of five vessels successfully completed
• New charter agreement for crew boats “Polar Baikal” and “Polar Piltun”
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Key figures
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44 47
‐201
‐36
103
‐250
‐150
‐50
50
150
250
Q214 Q314 Q414 Q115 Q215
214241
258
224241
0
50
100
150
200
250
300
Q214 Q314 Q414 Q115 Q215
113
134 130114
142
0
30
60
90
120
150
180
Q214 Q314 Q414 Q115 Q215
REVENUESNOK million
EBITDANOK million
NET PROFITNOK million
Operational Review Q2 2015
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Contract update
• DOF Subsea Norway AS declared a one-monthoption of extension for "Polar King"
• New charter agreement with Sakhalin Energy Investment Company Ltd for the two crewboats “Polar Baikal” and “Polar Piltun”– Five years duration,
effective from June 2015
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“Polar King”
Delivery of new seismic vessel “Polar Empress”
• Advanced 3D seismic vessel with 22 streamers and ice class 1A*
• Delivered from MyklebustVerft (Kleven) 26 May 2015
• Five years contract with Dolphin Geophysical from delivery
• Successfully in operationdirectly from delivery
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“Polar Empress”
Contract backlog of NOK 3.2 billion* per 30 June 2015
91%
79%
61%
0%
20%
40%
60%
80%
100%
From 01.07.2015 2016 2017
564
943
765
951
0
300
600
900
1 200
From 01.07.2015 2016 2017 2018‐21
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CONTRACT BACKLOG*NOK million
CONTRACT COVERAGE*Utilisation rate
* Excluding options
Average duration of contract portfolio is 2.4 years
GC RIEBER SHIPPING
VESSEL CHARTERER
SUBSEAPolar King Dof Subsea Norway ASPolar Queen BOA Marine Services Option (3x1yr)Polar Onyx Ceona Services Option (5yr)
MARINE SEISMICPolar Duke Dolphin Geophysicalp p yPolar Duchess Dolphin Geophysical Option (4+2 yr)Polar Marquis Dolphin Geophysical Option (2 x 2 yr)p p yPolar Empress Dolphin Geophysical Contract (5 yr) + Option (2 x 3 yr)
ICE/ SUPPORTPolar Piltun Sakhalin Energy Inv. Polar Baikal Sakhalin Energy Inv.Ernest Shackleton British Antarctic Survey Option (3x1 yr)Polar Pevek Exxon Neftegas Long‐term contract until 2021
2015 2016 2017Q1Q1 Q2 Q3 Q4 Q1 Q2 Q1
2018Q3 Q4Q3 Q4 Q2 Q3 Q4Q2
2019Q1 Q2 Q3 Q4
Fixed Option
Fixed Option
Fixed Option
Note: Per July 2015
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Subsea
• Fleet utilisation 76 percent
– 100 percent in Q2 2014
– Sale of “Polar Prince” in June
– “Polar Prince” and “Polar King” not on charter part of the quarter
• Market
– Uncertain and expectant
– Sustained price pressure and time-consuming decision processes
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KEY FIGURESNOK million
132145 151
107 112
7280
56
3249
0
40
80
120
160
200
Q2 14 Q3 14 Q4 14 Q1 15 Q2 15Operating income EBITDA
Marine Seismic
• Fleet utilisation 100 percent
– 82 percent in Q2 2014
– Less vessels in operation in Q2 2014 due to yard stay for “Polar Marquis”
– Delivery of “Polar Empress” in May 2015
• Market
– Turbulent, marked by price pressure and weak earnings
67
90102
112
126
30
47
6274
86
0
30
60
90
120
150
Q2 14 Q3 14 Q4 14 Q1 15 Q2 15Operating income EBITDA
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KEY FIGURESNOK million
Ice/ Support
• Fleet utilisation 100 percent
– 100 percent in Q2 2014
– Management agreement for “HMS Protector” expired September 2014
– EBITDA contribution of NOK 4,5 million from joint venture companies
• Market
– Generally stable development
16
6 6 52
11
7
12
87
0
10
20
30
Q2 14 Q3 14 Q4 14 Q1 15 Q2 15Operating income EBITDA
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KEY FIGURESNOK million
Financial reviewQ2 2015
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Income statement
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NOK mill Q2 2015 Q2 2014 1H 2015 1H 2014 2014
Operating income 240.8 214.4 464.7 382.3 881.5EBITDA 141.7 113.3 255.6 189.1 453.5
EBIT 97.5 72.2 151.7 113.4 280.2Net financial income and expenses
5.6 -28.4 -84.2 -27.8 -358.6
Profit before tax 103.1 43.8 67.6 85.7 -78.5
Net profit in the period 103.4 43.5 67.1 84.7 -80.1Normalized profit before tax (1) 54.5 57.8 91.6 90.7 253.8
Earnings per share 2.37 1.00 1.54 1.94 -1.83
(1) Profit bef. tax adjusted for unrealised currency gains/losses, profit from disposals and write‐downs.
Balance sheet per 30.06.2015
290 400240
2475
4761
2479
64
0
1 000
2 000
3 000
4 000
5 000
6 000
Assets Equity & Liabilities
Intangible assets
Fixed assets
Other current assets
Cash & liquid assets
Equity
Long‐term liabilities
Current liabilities
• Total balance NOK 5 353 million
• Equity ratio 46.3 percent
• Cash position NOK 290 million
• Net debt NOK 2 548 million
• Average duration of loan portfolio is 5.7 years
• June 2015:
– Refinancing of five vessels
– USD 225 million loan facility, whereof USD 46.25 as credit facility
– Fully financed until 2020
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NOK million
Outlook
• Market view short term– Uncertainty regarding the oil price development cause continued
pressure on cost cuts and further reductions in the investment activity
• Uncertain trends in segments– Subsea: Expectant, short term focus – Marine Seismic: Challenging market and weak results– Ice/support: Stable and unchanged activity
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Summary
• Stable and good operations, but challenging market
• Delivery of new seismic vessel “Polar Empress”
• Refinancing of five vessels successfully completed
• New time charter for crew boats “Polar Baikal” and “Polar Piltun”
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“Polar Marquis”
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Disclaimer
This quarter presentation includes and is based, inter alia, on forward-looking information andstatements that are subject to risks and uncertainties that could cause actual results to differ.Such forward-looking information and statements are based on current expectations, estimatesand projections about global economic conditions, the economic conditions of the regions andindustries that are major markets for GC Rieber Shipping ASA and its subsidiaries. Theseexpectations, estimates and projections are generally identifiable by statements containingwords such as "expects", "believes", "estimates" or similar expressions. Important factors thatcould cause actual results to differ materially from those expectations include, among others,economic and market conditions in the geographic areas and industries that are or will bemajor markets for GC Rieber Shipping’s businesses, oil prices, market acceptance of newproducts and services, changes in governmental regulations, interest rates, fluctuations incurrency exchange rates and such other factors as may be discussed from time to time.Although GC Rieber Shipping ASA believes that its expectations and the information in thisPresentation were based upon reasonable assumptions at the time when they were made, it cangive no assurance that those expectations will be achieved or that the actual results will be as setout in this Presentation. GC Rieber Shipping ASA nor any other company within the GC RieberShipping Group is making any representation or warranty, expressed or implied, as to theaccuracy, reliability or completeness of the information in the Presentation, and neither GCRieber Shipping ASA, any other company within the GC Rieber Shipping Group nor any of theirdirectors, officers or employees will have any liability to you or any other persons resulting fromyour use of the information in the Presentation. GC Rieber Shipping ASA undertakes noobligation to publicly update or revise any forward-looking information or statements in thePresentation.
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