Mosvold Supply Plc Presentation, DnBNor Offshore Seminar. John Bernander, Oslo 5 March, 2008

Transcription

1 Mosvold Supply Plc Presentation, DnBNor Offshore Seminar John Bernander, Oslo 5 March, 2008

2 VS 491 CD: high capacity AHTS - State-of-the art workhorses Main features Design: Vik Sandvik Overall length: 91 m Breadth moulded: 22 m Deadweight (7.9 m draft): 4,000 t Speed at 6.0 m draft: 17 knots Total horsepower: 28,080 Min. bollard pull: 270 t DP class: II Towing/anchor handling winch: 500 t Crane capacity: 2x 6t Fuel consumption: 13.5 t diesel per day Accommodation: 60 persons Prepared for ROV hangar Well reputed equipment suppliers Diesel engines: MAK Thrusters: Brunvoll Towing winches: Hatlapa DP: Kongsberg 2

3 Mosvold Supply AHTS with high-end specifications Mosvold Supply Siem Havila Farstad Olympic Design VS 491 CD VS 491 CD Havyard 845 UT 731 CD Aker A122 Loa Breadth BHP (horse power) Bollard Pull Winch 500t 500t 500t 500t 500t Winch Drum Triple Triple Triple Triple Deck Accommodation Max Speed Economical Speed DP Shark Jaws 2 x 350t 2x350t 2x350t Stern Roller SWL 600t SWL 750 SWL 600 Stern Roller Dimention ø4m,length 8m ø4m, length 8m. ø4.5m, length 6m Towing Pins 4 x 350t 4x350t 2x300 Deadweight Fuel Fresh Water Mud Dry Bulk Rig Chain Oilrec FIFI Prep.II II II Delivery Oct 09/Jun 10 May.09 May.09 May.09 Apr.09 Source: Mosvold and Pareto Securities 3

4 Mosvold Supply to meet future requirements New requirements focusing on environment, capacity and safety MARPOL Annex 1 Reg. 12a requires double hull protection of fuel tanks Applicable to all vessels/newbuilding with fuel tanks of total capacity of at least 600 m 3 which are ordered after Aug 2007 and delivered from Aug 2010 Oil companies starting to ask for ROV capability during critical anchoring NOX tax: NOK 15 per kilo emission. Norwegian charterers expected to require modern tonnage with catalyzer, which may reduce emissions with 90-95% Possible requirement for contingency tension testing of anchors Mosvold Supply VS 491 CD Double hull construction (DnV Clean Design notation) Safeguarding the environment from possible leakage Ships prepared for ROV Vessels with great stability and large towing and pulling capacity Vessels with light construction work capabilities Cost efficient fuel economy Reduces emissions of greenhouse gases Cost effective solution for charterers HYBRID propulsion system Straight shaft technology when steaming Diesel electric principles when the vessel is holding position The industry realized, only to late, that CD and larger vessels would be the consequence of the new requirements Source: R. S. Platou 4

5 Mosvold Supply Construction program 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 AHTS TBN 1 20% payment 10% payment 70% payment AHTS TBN 2 20% payment 10% payment 70% payment AHTS TBN 3 20% payment 10% payment 70% payment AHTS TBN 4 20% payment 10% payment 70% payment Favorable payment structure securing commitment from Batamec Shipyard 20% at contract signing 10% at key equipment delivery 70% at final delivery Contract price TBN 1 and 2, USD mill. / to be settled 60/40 EURO/USD conversion rate 1.34 Contract price TBN 3 USD 33 mill + EURO 36, 3 mill Contract price TBN 4 USD 33.8 mill +EURO 37, 2 mill Refund guarantees from Bangkok Bank (BBB+)Standard Chartered Bank Plc ( A ) 5

6 Batamec Shipyard with relevant expertise PT Batamec Shipyard wholly owned subsidiary of Otto Marine Pte Ltd Otto Marine Ptd Ltd started operations in 1979 Principal activities: Shipbuilding Ship repair & conversion Offshore structural engineering Batamec is strategically located at Batam Island, Indonesia Management comprises over 45 qualified and experienced engineers, primarily from PPL and Keppel Fels Total workforce: 2,200 Certified to ISO 9001:2000 with Lloyds Register Quality Assurance as at 25 April vessels successfully delivered since embarking on shipbuilding strategy Order book of 30 vessels with deliveries until 2010 Of which 10x 10,000HP AHTS Major clients: Tidewater ESNAAD Seatrucks PETRA RK Offshore Marine Subsea (Africa Offshore Services) 6

7 Mosvold Site Supervison Team Left to right Mr. Tri Prasetiyo, Surveyor, Mr. Michael Palfreeman, Head of the Site Supervision Team, and Per Tønnessen Mosvold Shipping AS, Technical Director and Project Manager for Mosvold Supply PLC.

8 Block 104 Fore & 105 Aft, 29 Feb

9 Worldwide floater supply and demand forecast 300 Worldwide Rigs Total Supply Effective Supply Historical Demand Mid-Case Low-Case High-Case 1Q94 1Q96 1Q98 1Q00 1Q02 1Q04 1Q06 1Q08 1Q10 1Q12 1Q14 Source: ODS-Petrodata 9

10 Historical number of AHTS per rig The number of vessels per rig is increasing due to: Other demand, for instance FPSO and construction related work More activity on deeper water longer distances to tow the rigs High day-rates for rigs: Important that lack of vessels does not slow mob/demob Need for more vessels per rig Vessels per rig Sources: DnB NOR Markets estimates, Clarckson and ODS - Petrodata 10

11 World AHTS fleet is old (22 years avg age) - New vessels substantially larger and more capable than older vessels Number of newbuilds AHTS > 10,000 BHP AHTS > 20,000 BHP Source: Clarksons / JGO Shipbrokers / Pareto estimates 11

12 NO. OF VESSELS WORLDWIDE AHTS DELIVERY SCHEDULE 91 vessels BHP & 99 vessels BHP F MA M J J A S ON D J F MA M J J A S ON D J F MAM J J A SO ND J F M AM J J A SO ND J F M AM J J A S O BHP BH P Updated: 0 1/0 8 12

13 Large AHTS to be preferred going forward - Meeting new and stricter requirements from clients and authorities Mosvold Supply VS 491 CD 22 m breadth 500 t 7º tilting Conventional / older vessel 17 m breadth 400 t 19º tilting 13

14 GBP/DAY NORTH SEA AHTS BHP Spot Fixtures (Reported and Estimated) Full year 2005 average: GBP 25,840 / NOK 299,680 Full year 2006 average: GBP 49,400 / NOK 572,980 Year-to-date 2007 average: GBP 52,372 / NOK 607, We ek in 2005/2006/2007 NOK/DAY Weekly Average 2005 Weekly Average 2006 Weekly A verage 2007 Update d: 12/31/07 14

15 North Sea supply vessels AHTS spot dayrates N orth Sea North Sea supply - demand - utilisation % 95% % 88% 90% 94% 91% 88% 88% 92% 95% 95% 100% 92% 90% 80% NOK/d % 85% 80% Demand/supply % 60% 50% 40% 30% % 50 20% 10% % % W eek spot rate assumptions Utilisation Average demand Average supply Average utilisation Source: Carnegie Research, ODS Petrodata, Fearnley Offshore Source: Carnegie Research PSV spot dayrates North Sea % NOK/d % 90% 85% 80% 75% Current fleet of North Sea supply vessels is at 266 units, +3 w/w Week spot rate assumptions Utilisation 70% Source: Carnegie Research, ODS Petrodata, Fearnley Offshore 15

16 Consolidation opportunities ahead - Fragmented market creates room for consolidation - New, large AHTS in favor Source: Petrodata / Platou / Farstad / Pareto 16

17 Investor friendly and cost-effective company set up Mosvold Shipping Holding owned by founders, which owns 22.9% of Mosvold Supply No employees in Mosvold Supply Corporate governance in accordance with public company guidelines (incl. 30% mandatory offer threshold prior to listing) No corporate tax (pay only local tonnage tax) Management agreement with Mosvold Management (100% owned by Mosvold Shipping Holding ) Fixed price mgmt contract (G&A/accounting/reporting) of USD 42,500 per vessel per month - 12 months cancellation period Mosvold Management responsible for construction and building supervision at estimated cost of USDm 1.2 per vessel (may be subcontracted to reputable technical manager) Post-delivery commercial vessel fixture commission of 1.25% USDm 2 project development costs first 2 vessels + 1% commission on shipbuilding contracts 1% commission on sale of vessel(s) or change of control in Mosvold Supply (> 30%) Corporate set-up: Mosvold Shipping Holding Limited Cyprus 22.9% Mosvold Management Ltd Mosvold Supply Plc Cyprus 100% 100% Mosvold Supply I Mosvold Supply II Mosvold Supply III Mosvold Supply IV 17

18 List of shareholders as per 28. February 2008 No. of shares % of total Mosvold Shipping Holding Limited Morgan Stanley & Co Client Equity acc. Deutche Bank AG Lon SA Credit Suisse Sec. Europe Ltd. Cheyne Global Catalyst Fund LP Ole Teigen Bjørgvin AS Otto Investment Limited Saga Shipping and Trading SA Frode Teigen Total 10 largest Others Total ,42 % 13,15 % 8,94 % 7,42 % 6,84 % 5,81 % 5,24 % 4,15 % 3,30 % 2,83 % 81,08 % 18,92 % 100,00 % 18

19 Confidential Mosvold an experienced shipping and offshore services group The Mosvold family has continuously been active in shipping since 1910.Has owned and operated vessels in many segments (tankers, dry bulk, reefers and passenger ferries. First investment in offshore: Part ownership of semi early 80ies Acquired 3 modern J/Us from Keyes Offshore in 1989 Mosvold Shipping was IPO d on the Oslo Stock Exchange in 1990 Acquired 100% of Dual Drilling Co in Dual was a Dallas based worldwide drilling contractor owning 3 J/Us and 10 platform rigs Through Dual, acquired further 3 J/Us in 1993 combined with raising new equity and listing of Dual on NASDAQ (Mosvold Shipping retained 60% of Dual) Dual merged with Ensco in 1996 with payment in shares. All shares distributed to Mosvold shareholders Mosvold initiated a J/U project 1H 2004 to build 2 J/U (with 4 options) at PPL Shipyard and Keppel FELS in Singapore. The entire project sold to Awilco in 2004 and is the now the foundation of Awilco Offshore Mosvold is managing the construction of two semi-submersible baredecks at the Russian yard Sevmash. The baredecks are sold to Saipem and Sea Dragon Offshore with forward delivery Mosvold founded Mosvold Drilling Ltd. in 2005 (2x Ultra Deep Water Drillships on order with Samsung, acquired by Sea Drill) Mosvold founded Mosvold Jackup Ltd. in 2006 (2x 300 ft Jackups on order at MIS), sold to Sea Wolf Mosvold with innovative approach taking advantage of yard market potential, eg. MIS and Sevmash Mosvold with proven track record demonstrating opportunistic approach and shareholder value creation 19

20 Mosvold Supply Plc Earnings Scenarios (Fully Invested) Pareto 11E 3yr Avg* 2007 Real* Day Rates NOK/day USD/day Utilisation 100 % 100 % 100 % Daily opex ($10 000) ($10 000) ($10 000) No of vessels 4,0 4,0 4,0 PROFORMA P&L Vessel EBITDA USDm SG&A " (2) (2) (2) EBITDA " Depreciation (25yr) " (14) (14) (14) Operating profit " Net financials fully invested (yr1) " (19) (19) (19) Net Profit (after tax) " Cash Earnings " Maintenance capex " (2) (2) (2) Free cash flow (pre debt amortisation) " Free cash flow (post debt amortisation) " EPS NOK 4,9 13,6 21,2 Share price NOK 14,0 14,0 14,0 No of shares (fully invested) mill 26,5 26,5 26,5 Market capitalisation USDm Net debt fully invested " Enterprise Value " EV/ EBITDA 6,7 3,9 2,8 P/E 2,8 1,0 0,7 RoE (on mkt cap) 35,1 % 96,8 % 151,3 % FCF yield (pre debt amortisation) 11 % 25 % 37 % Net interest bearing debt/ebitda 5,5x 3,2x 2,3x EBITDA/Net interest 3,0x 5,2x 7,1x * Platou 2007 Offshore Report 20