INTERIM REPORT Q2 2011

Transcription

1 DOF ASA Q2 2011

2 Group income for Q2 totalled NOK 1,581 million (NOK 1,521 million), with an operating result before depreciation (EBITDA) of NOK 495 million (NOK 485 million). Utilization rate for the subsea fleet in Q2 was 91%, with 92% for the supply fleet. The Group has added one new vessel to its fleet in Q2, in connection with DOF Subsea's purchase of the construction support vessel Skandi Constructor (ex "Sarah"). On 1 July, DOF Subsea took delivery of of Skandi Skansen. One vessel, Geosounder, was sold in the second quarter. DOF also completed the sale of one new building (hull no. 081 at Cochin Shipyard). This transaction was completed in July. In April, DOF signed an agreement for three 7year contracts for ConocoPhillips in the North Sea. Three new buildings have been contracted at STX OSV Norge in order to serve these contracts. In July, DOF Subsea was awarded the contract for Goliat FPSO marine with Eni Norge. The contract has a total value of approximately NOK 300 million. In August, Skandi Niteroi was awarded a 4year contract for Petrobras. In April, DOF Subsea completed the issue of a 5year bond loan totalling NOK 750 million. DOF Installer has carried out an issue of NOK 200 million, comprising 10 million new shares. DOF Subsea owns approx. 84% of the shares in DOF Installer subsequent to the share issue. DOF ASA is an international corporation involved in the ownership and operation of a fleet comprising supply and subsea vessels and engineering companies providing services to the subsea market. The Group has a modern fleet with an average age of approximately 6 years. When adjusted for market value, the average age is 3.5 years. As of August 2011, the fleet (partly/wholly owned) had 73 vessels (including new buildings). The fleet is comprised as follows: 20 AHTS, 24 PSV and 29 CSV. In addition, the Group owns a fleet of 45 modern ROVs. The main share of DOF ASA's fleet operates on longterm contracts. As of June, the financial nominal value of these contracts totalled approximately NOK 21 billion, including options with a value of approximately NOK 38 billion. Contractual coverage in 2011 is 87% with 69% for Main items in the interim accounts for Q2 Operating income amounted to NOK 1,581 million (NOK 1,521 million). Operating result before depreciation (EBITDA) totalled NOK 495 million (NOK 485 million). The operating result (EBIT) was NOK 215 million (NOK 198 million). Total financial costs before unrealised gain/loss on foreign exchange were NOK 310 million (NOK 105 million). Unrealised gain on foreign exchange totalled NOK 86 million (loss of NOK 252 million). The pretax result was negative at NOK 9 million (a loss of NOK 159 million). Net interestbearing liabilities as of 30 June 2011 were NOK 17,039 million (NOK 13,157 million). Prepaid instalments per vessel as of 30 June 2011 were NOK 2,334 million (NOK 3,354 million). Book equity including minority interests as of 30 June 2011 was NOK 6,618 million (NOK 6,525 million). Comments to second quarter operations The supply fleet in the North Sea had a high utilization rate for all vessels in the quarter. Two vessels, Skandi Falcon and Skandi Sotra, have partly operated in in the spot market with a utilization rate close to 100%. The activity in Brazil continues to increase, with the addition of new vessels to the fleet this quarter. Skandi Commander arrived in Brazil in April and started on a 5 year contract with Petrobras mid May. The new building, Skandi Emerald, arrived Brazil from Vietnam early May and started on its contract for OGX in the same month. A number of scheduled dry docks have been executed for the Brazilian fleet in the second quarter. Together with the transit of Skandi Commander and Skandi Emerald to Brazil, these dry docks have resulted in a reduced utilization rate for the fleet in the quarter. A weak USD rate against the BRL has had a negative impact on the EBITDA figures for parts of the Brazilian fleet. As projected, DOF Subsea had a higher level of activity when compared with the first quarter. The utilization

3 rate for DOF Subsea's total fleet, both TC and project vessels, was 89% in April, 91% in May and 94% in June. For the project fleet alone, utilization was 74% in April, 74% in May and 81% in June. The main reason for the low utilization in April and May was the dry dockings and repositioning of 2 vessels. The level of activity in Asia has been high. One new vessel was added to the fleet in Asia during the second quarter Skandi Hercules which sailed from the North Sea and arrived in Asia at the start of May. This vessel had a good utilization rate both in May and June. The level of activity in Brazil has been high, while the North Sea and Gulf of Mexico have seen a low level of activity in the second quarter. Comments to operations to date this year Total income to date this year has been NOK 2,967 million (NOK 2,650 million), with EBITDA of NOK 869 million (NOK 823 million). Utilization rate of the fleet, in particular the subsea fleet, has been higher in Q2 than in Q1, repeating the trend from last year. The first quarter was impacted by the number of DOF Subsea vessels in transit to new market regions and the execution of a number of scheduled dry dockings. Dry dockings in Q2 were mainly for the supply fleet in Brazil. The Group has received delivery of three new buildings to date this year, all of which have been secured longterm contracts. Moreover, DOF Subsea has purchased a vessel in the secondhand market which, subsequent to delivery, has operated as a subsea/project vessel. One older vessel was sold in the second quarter. To date this year, DOF has contracted three new buildings from STX OSV Norge in connection with three longterm contracts for ConocoPhillips. Depreciation With effect from 1 January 2011, the DOF Group has amended its depreciation estimate. In brief, the amendment involves a reduced degree of decomposition than with previous depreciation estimates. Existing depreciation period is maintained which implies expected useful life for each vessel. Estimated residual value is 50% of original cost price for the vessel. Vessels older than 20 years are based on individual evaluations. Financial result and tax, Q2 Norskan operates with BRL as functional currency. Significant fluctuations between BRL and USD have a considerable impact on the accounts, even though Norskan has a limited degree of exposure to foreign exchange as all longterm contracts are hedged in the same currencies as the operating and financial costs. The financial result includes an unrealised gain on foreign exchange of NOK 86 million, mainly related to Brazil and generated from a weaker USD against BRL. The tax cost is based on an estimate. Balance sheet The Group's net interestbearing debt, including unemployed capital at the end of June, totals approximately NOK 14,705 million. The increase in net interestbearing debt this year mainly involves delivery of three new buildings in the first quarter and the purchase of one vessel in the second quarter. One of these vessels is classified under newbuilds in the balance sheet for June 2011, and is expected to start operation in fourth quarter. The vessel is secured a long term contract. As of 30 June 2011, cash reserves totalled NOK 1,831 million. Net cash flow from investment activities at the end of Q2 was negative at NOK 2,050 million (negative at NOK 2,572 million) and net cash flow from financial activities was NOK 885 million (NOK 1,534 million). Financing and capital structure In April, DOF Subsea issued a 5year bond loan of NOK 750 million, of which NOK 200 million is owned on the company's accounts. Parts of the bond loan due in 2012 have been repurchased. The cash effect of this transaction amounted to approx. NOK 400 million. The DOF Group's remaining liabilities for vessels under construction as of August are approximately NOK 6,350 million and apply to deliveries from the second half of 2011 to the end of Planned longterm financing of this new building program totals approximately NOK 6,100 million of which approx. NOK 4,500 million has been secured by longterm financing. The majority of these vessels, for which financing has not yet been agreed, have been secured long term contracts with solid clients.

4 Shareholders There were no significant changes in the company shareholders during the quarter. As of 30 June 2011, the company had 4,186 shareholders. The share price as of 30 June 2011 was NOK (NOK 42.30). The fleet/business activities DOF Subsea purchased Skandi Constructor in June (former "Sarah") from Marin Subsea. This vessel is a construction support vessel and is also equipped for well intervention. Since takeover date, the vessel has operated on the subsea project market in the North Sea. The vessel is scheduled to sail to West Africa in September to work on projects. During the first quarter, DOF Subsea took delivery of the new building Skandi Niteroi, which is owned 50/50 with Technip. In the third quarter, the vessel is in progress to be completed as a pipelaying vessel and is expected to start its a longterm contract with Petrobras. In June, DOF Rederi contracted three vessels: 2 with STX MRV 05 design and one with STX MRV 05 ROV design. All vessels are scheduled for delivery in Q and shall be utilised for contracts with ConocoPhillips. DOF Subsea has signed a contract for ROV services for one of the vessels. In July, DOF delivered one newbuilding to a subsidiary of Hitec Vision. The vessel is a PSV of STX PSV 09 design. She is the first vessel in a series of two from Cochin Shipyard in India. The impact of this sale on the accounts will occur in the third quarter. The DOF Group is planning to take delivery of the following 7 new buildings in 2 nd half year 2011: DOF Subsea took over Skandi Skansen 1 st July. DOF Subsea is also planning to take over Skandi Singapore at the end of August. Skandi Singapore is a diving vessel and will primarily operate in Asia. The Group's supply segment took delivery of Skandi Saigon on 10 th August. This vessel is a 16,000 BHK anchor handling vessel built at the STX yard in Vietnam. Skandi Saigon's sister vessel, Skandi Pacific, is scheduled for delivery in November. Skandi Hawk, a large PSV also equipped for subsea work, is scheduled for delivery in Q4. Skandi Feistein, the first of 5 new buildings planned for longterm contracts with ConocoPhillips, is scheduled for delivery in November. The last new building scheduled for delivery this year is Skandi Amazonas. This is a large anchor handling vessel, currently under construction in Brazil. Delivery of the vessel is scheduled in December. Market/new contracts The Group s fleet mainly operates in the North Sea, West Africa, Brazil and Asia/Australia. Subsea In August, a longterm contract was signed with Petrobras for Skandi Niteroi. One vessel, Skandi Commander, arrived in Brazil in the second quarter and started on its RSV contract for Petrobras in second half of May. Estimated startup of the third RSV contract is January DOF Subsea Asia has had a high level of projectrelated activity in the quarter and is expecting a busy second half and that include the arrival of Skandi Hercules and the delivery of Skandi Singapore from the yard in August. Skandi Hercules has achieved a very strong market position and has enjoyed a high utilization rate since its arrival, with good coverage for the second half of the year. Skandi Singapore, scheduled for delivery in Q3, is expected to start operations in September. In July, DOF Subsea was awarded the contract for Goliat FPSO. The contract, signed with Eni Norge, has an approximate value of NOK 300 million and duration from 2011 to This contract represents an important step forward for DOF Subsea, following the company's strategy to be the leading operator within the mooring and installation market. Supply During the quarter, DOF was awarded three 7year contracts with ConocoPhillips, scheduled for startup in Q These involve supply, standby and ROV services. In total, DOF has won 5 longterm contracts with ConocoPhillips to date this year, all of which in the Norwegian sector. The spot market in the North Sea in Q2 has been good for PSV vessels and variable for AHTS vessels.

5 As of the end of June, 261 vessels were operating in the North Sea market, of which 61 vessels on the North Sea spot market. Outlook DOF has a high contractual coverage for its supply fleet and a low rate of uncertainty regarding earnings from supply. DOF Subsea has secured satisfactory contractual coverage for its project fleet in Q3 and also started operations with new vessels. Currently it is expected that the earnings for the Group will increase in the second half compared with the first half of the year. Declaration of the Board of Directors and CEO We declare that, to the best of our knowledge, the halfyearly accounts for the period 1 January to 30 June 2011 have been prepared in accordance with IAS 34 Interim reports, and that the information in the accounts provides a correct illustration of the company s assets, liabilities, financial position and result as a whole. We also declare that, to the best of our knowledge, the halfyearly report provides a correct overview of significant events during the accounting period and their impact on the halfyearly accounts, the most central risk and uncertainty factors faced by the Group during the next accounting period and of significant transactions with closely related parties. The Board of Directors for DOF ASA, 17 August 2011 Helge Møgster Helge Singelstad Oddvar Stangeland (Chairman of the Board) Wenche Kjølås Britt Mjellem Mons Aase (CEO) IR contact persons: Mons S Aase, CEO msa@dof.no Hilde Drønen, CFO hdr@dof.no DOF ASA, NO5392 Storebø,

6 THE GROUPS SUMMARIZED PROFIT AND LOSS ACCOUNT (MNOK) Note Q Q Acc Q Acc Q Operating income operating expenses vessels Operating profit before depreciation EBIT Depreciation Writedown 0 7 Operating profit EBIT Net profit from associated companies Financial income Unralized profit/ loss on currencies Financial costs Net financial costs Pretax profit Taxes Result Profit attributable to Non controlling interest Controlling interest COMPREHENSIVE STATEMENT (MNOK) Note Q Q Acc Q Acc Q Currency translation differences Other income and costs Other comprehensive income Total comprehensive income Total comprehensive income attrubutable to Non controlling interest Controlling interest KEY FIGURES Q Q Acc Q Acc Q EBITDA margin 1) 31 % 32 % 29 % 31 % 31 % EBIT margin 2) 14 % 13 % 11 % 11 % 10 % Cashflow per share 3) 2,03 4,17 2,89 6,62 9,70 Profit per share ex. noncontrolling interest 4) 0,07 1,65 0,11 2,15 1,53 Profit per share ex. unrealized loss/gain 5) 1,11 0,48 2,88 0,65 3,27 Return on net capital 6) 0 % 5 % 2 % 7 % 5 % Equity ratio 7) 24 % 28 % 24 % 28 % 25 % Net interest bearing debt Net interest bearing debt ex. unemployed capital No of shares Face value per share (Operating profit before depreciation in percent of operating income) 2 (Operating profit in percent of operating income) 3 (Result incl. minority share ex unrealized gain/loss on currencies/average no of shares) 4 (Result ex minority share)/average no. of shares 5 (Result before taxes + depreciation + unrealized loss on currencies + minority)/average no of shares 6 (Profit after taxes in percent of booked equity) 7 (Equity/total capital)

7 THE GROUPS'S SUMMARIZED BALANCE SHEET (MNOK) Note ASSETS Deferred taxes Goodwill Intangible assets Vessel and equipments Newbuildings Tangible assets Investment in affiliated companies Investments in shares Other noncurrent receivables Financial assets Noncurrent assets Accounts receivables Other current receivables Current receivables Restricted deposits Cash and cash equivaltents Cash and cash equivalents incl. restricted deposits Currrent assets Total Assets EQUITY AND LIABILITIES Share capital Share premium fond Other equity Noncontrolling interests Equity Deferred taxes Other provisions and derivates Noncurrent provisions and commitments Bond loan Debt to credit institutions Other noncurrent liabilities Noncurrent liabilities Debt to credit institutions Accounts payable Other current liabilities *) Current liabilities Total liabilities Total equity and liabilities *) Other current liabilities includes an overdraft facilities draw on a newbuild delivered in first quarter. A longterm loan has been drawn for this newbulid in third quarter.

8 EQUITY STATEMENT Paidin capital Retained earnings Currency translation differences Total Noncomtrolling interest Total equity Balance at Result /loss for the year Other comprehensive income Share issues Transaction with nonconrolling interests 6 6 Balance at Balance at Result /loss for the year Other comprehensive income Share issues Transaction with nonconrolling interests Balance at CASH FLOW STATEMENT (MNOK) Acc Q Acc Q Profit before taxes Profit/loss on disposal of tangible assets Depreciation and write offs of tangible assets Changes in accounts receivables Changes in accounts payable Foreign exchange gain/losses Changes in other working capital Share of profit/loss from assosiates Cash from operating activities Interest income/cost Interest received Interest paid Tax paid for the period Net cash from operating activities Payments received fro sale of tangible assets Purchase of tangible assets Payments received for sale of shares Purchase of shares and associates Payments received /purchase of other noncurrent receivables Net cash from investering activities Proceeds from borrowings Repayment fo borrowings Payments from nonconrolling interests Equity payments received Net cash from financing activities Net changes in cash and cash equivalents Cash and cash equivalents at the start of the period Exchange gain/loss on cash and cash equivalents Cash and cash equivalents at the end of the period

9 Notes to the Condensed Financial statements Note 1 General This interim report has been prepared in accordance with the standard for interim reporting (IAS34). Amendments to the standards and their interpretation may result in amended figures. The accounting principles and calculation methods applied for the last annual accounts published have been applied to this document. The interim report has not been audited and should be read in the context of the annual report for The Financial statement are unaudited. Note 2 Segment informasjon Operating income and EBITDA per segment Operating Income Acc Q Acc Q PSV AHTS CSV Total EBITDA Acc Q Acc Q PSV AHTS CSV Total Note 3 Events after balance date DOF completed the sale of one new building (hull no. 081 at Cochin Shipyard). This transaction was completed in July. DOF Subsea was awarded the contract for Goliat FPSO marine with Eni Norge in July. The contract has a total value of approximately NOK 300 million In August, Skandi Niteroi was awarded a 4year contract for Petrobras. Note 4 Depreciaiton With effect from 1 January 2011, the DOF Group has amended its depreciation estimate. In brief, the amendment involves a reduced degree of decomposition than with previous depreciation estimates. Existing depreciation is maintained which implies expected useful life for each vessel. Estimated residual value is 50 % of original cost price for the vessel. Vessels older than 20 years are based on individual evaluations. Note 5 Cash and cash equivalent Cash and cash equivalent Restricted cash Total cash and cash equivalent Note 6 Transaction with related parties Transactions with realated parties are governed by market terms and conditions inaccordance with the "arm's length principle". Note 7 Current part of noncurrent debts Current part of noncurrent debts amounts to NOK million at Note 8 Taxes Taxes per 30 June 2011 are an estimate.

10 SHARE CAPITAL AND SHAREHOLDERS Largest shareholders as of Name No. shares Shareholding Voting shares MØGSTER OFFSHORE AS ,76 % 50,76 % ODIN NORGE ,63 % 6,63 % PARETO AKSJE NORGE ,44 % 5,44 % SKAGEN VEKST ,30 % 5,30 % PARETO AKTIV ,47 % 2,47 % MP PENSJON PK ,03 % 2,03 % ODIN OFFSHORE ,90 % 1,90 % PARETO VERDI ,32 % 1,32 % VESTERFJORD AS ,96 % 0,96 % KANABUS AS ,88 % 0,88 % NORDEA BANK NORGE ASA MARKETS ,83 % 0,83 % MUSTAD INDUSTRIER AS ,70 % 0,70 % DNB NOR SMB ,60 % 0,60 % HOLBERG NORGE ,57 % 0,57 % MOCO AS ,55 % 0,55 % PACTUM AS ,44 % 0,44 % CITIBANK N.A. NEW YORK BRANCH ,41 % 0,41 % FORSVARETS PERSONELLSERVICE ,39 % 0,39 % ODIN NORGE II ,39 % 0,39 % ODIN MARITIM ,37 % 0,37 % Total ,95 % 82,95 % Total other shareholders ,05 % 17,05 % Total no of shares % 100 %