Main Events Third Quarter 2015

Transcription

1 Q3 1

2 Main Events Third Quarter 2015 Main Events July - September 2015 The third quarter 2015 brought few significant events for Atlantic Offshore. No new charter contracts were signed, and no vessels were either added or removed from our fleet. In a quiet market scenario, our focus in Q3 was mainly on adapting our operating costs to a lower revenue base. As a consequence of this initiative, we are seeing a positive development in vessels operating costs, as well as cost reductions in our shore-based organisation, which will be realised gradually during the next quarters. Efforts related to strategic initiatives have been ongoing in Q3, including negotiations with Lenders concerning stretched amortization profiles as well as covenant waivers. These discussions are ongoing into Q4. RESULT DEVELOPMENT JANUARY SEPTEMBER 2015 Figures in brackets below show comparable figures for the first nine months of Operating Results Operating income was NOK 537 million (NOK 506,9 million). Operating costs before depreciation were NOK 331,6 million (NOK 366,3 million). EBITDA was NOK 205,3 million (NOK 140,6 million). The increase is due to the delivery of new vessels, improvements in vessel operating costs, as well as the reversal of a NOK 22,5 million provision related to the MRV vessel Ocean Ness. The vessel was previously chartered from a third party but repurchased in June 2015 based upon a purchase option in the charter agreement. The reversal is reported as a reduction in operating costs. Ocean Surf and Ocean Scout, our two PSV s in the spot market, are currently in lay-up. EBITDA for the third quarter of 2015 was NOK 69,1 million, against NOK 60,8 million for the third quarter of Reductions in vessel operating costs contributed positively to the EBITDA result. Depreciations amounted NOK 105,6 million (NOK 56,8 million), excluding an extraordinary writedown of NOK 30 million on one vessel. Financial Items Interest costs on credit facilities were NOK 92,1 million (NOK 68,1 million). The increase is attributable to mortgage debts drawn when new vessels were delivered, as well as a negative currency effect for interest payments made in USD and GBP. A net unrealized and temporary currency loss of NOK -69,4 million was recognized (-NOK 14,9 million). This relates to the Group s loans and deposits in foreign currency. The currency for all mortgage loans matches the revenue currency for the mortgaged vessel in question. Changes in value of derivatives yielded a negative result effect of 2 NOK -7,4 million (NOK -20,4 million). This is mainly attributable to forward currency contracts, contracts related to NOK nominated bareboat agreements for Ocean Ness and Ocean Troll who have charter earnings nominated in GBP, as well as interest hedging instruments. Net Result The result before tax and unrealized currency effects was NOK -20,5 million (NOK -9,3 million). The net result before tax was NOK - 97,3 million (NOK -44,5 million). Balance Sheet end Q against The book value for the Group s vessels was NOK 2440,9 million (NOK 2364,4 million). Bank deposits and other liquid assets were NOK 53,2 million (NOK 96,9 million). Total current assets were NOK 213,1 million (NOK 311,7 million). Total equity for the Group was NOK 347,6 million (NOK 427,8 million). The Group s long-term interestbearing debt was NOK 599,8 million (NOK 1753,1 million). The decrease is attributable to a reclassification of long-term liabilities (NOK 1315,5 million) to short-term liabilities due to a breach of the value-adjusted equity covenant contained in several loan agreements. Short-term liabilities were NOK 1652,4 million (NOK 435,7 million), including the current portion of long-term debt and long-term liabilities reclassified due to covenant breaches.

3 Cash Flow Q1-Q3 Cash flow from operating activities amounted to NOK 224,1 million (NOK 117,8 million). Cash flow from investing activities amounted to NOK -185,4 million (NOK -985 million). Cash flow from financing activities amounted to NOK -84,3 million (NOK 726,9 million). Market Development Our core business, Emergency, response and rescue vessel services (ERRV), continues to offer market opportunities in several geographies. Atlantic Offshore is marginally affected by the downturn in exploration drilling, as the majority of the vessels are linked up to producing installations. We expect the number of production installations to be stable due to better utilisations of the fields. In the PSV market we expect a weak market to continue. The current tonnage imbalance, where supply outstrips demand by some 30+ vessels in the North Sea basin, will take time to eliminate. Atlantic Offshore maintains a high level of contract coverage for its fleet (75% for Q Q excluding assets held for sale). The Fleet On the date of this report, Atlantic Offshore operates a fleet comprising 15 ERRVs and 5 PSVs. The Company currently has no vessels on order. Events after the Balance Sheet Date Shell UK has confirmed that the 5-year optional period for Ocean Spey, commencing 21 November 2015, will not be declared. The Company is currently in discussion with certain of its mortgage lenders concerning a deferral of loan instalments. The deferral would reduce mortgagedebt instalments in Q and Q by approximately NOK 48 million. These discussions have yet to be concluded. In accordance with financial covenants contained in the Company s loan agreements, value adjusted equity (including subordinated loans) shall constitute a minimum of 20% of the value adjusted balance sheet. The company was in breach of this covenant at the end of the second quarter, and a waiver has been granted until the reporting date for Q figures, i.e. end of February Ågotnes, Knut Øgreid Chairman Halvor Øgreid Board Member Runar Sakkestad Board Member Ove Gjerstad Board Member Roy Wareberg CEO 3

4 Profit and loss account (figures in NOK 1,000) OPERATING INCOME AND OPERATING EXPENSES 3Q Q Freight revenues Other operating income Cost of sales Man.fees income Profit on sale of vessel Total operating income Operating costs Group vessels Reversal onerous lease contract Bareboat hire Crew costs Group vessels Crew costs vessels under management Payroll costs onshore personnel Other operating costs Total operating costs before depreciation EBITDA Depreciation of tangible fixed assets Impairment of fixed assets EBIT FINANCIAL INCOME AND FINANCIAL EXPENSES Investments in associated companies Other financial income Interest costs on credit facilities Foreign exchange loss/profit - net Changes in value of derivatives Other financial costs Result of financial items Profit/loss before tax Tax Profit/loss for the period Profit/loss attributable to minority interests Group result

5 Balance sheet - Assets (figures in NOK 1,000) ASSETS Fixed Assets Intagible fixed assets Deferred tax asset Goodwill Total intagible fixed assets Tangible fixed assets Vessels Operating equipment, fixtures, office machines etc Total tangible fixed assets Financial fixed assets Investments in associated companies Investments in shares and units Pension funds Financial derivatives Other long-term receivables Total financial fixed assets Total fixed assets Current Assets Debtors Accounts receivable from customers Inventories Assets held for sale Loans to associated companies Financial derivatives Other receivables Total receivables Bank deposits, cash in hands, ect Total current assets TOTAL ASSETS

6 Balance sheet - Equity and liabilities (figures in NOK 1,000) EQUITY AND LIABILITIES Equity Paid-in capital Share capital ( shares at NOK 0,10) Own shares ( shares at NOK 0,10) Other paid-in-equity Total paid-in capital Revenue reserves Other equity Total retained earnings Minority interest Total equity Liabilities Provisions for liabilities and charges Deferred tax libilities Pension commitments Total provisions for liabilities and charges Other long-term liabilities Subordinated loans Loans Financial derivatives Other long-term liabilities Total other long-term liabilities Short-term liabilities Trade creditors Tax payable Public liabilities Financial derivatives Current portion of long-term debt Loans reclassified due to equity covenant breach Liabilities to credit institutions Other short-term liabilities Total short-term liabilities Total liabilities TOTAL EQUITY AND LIABILITIES

7 Cash Flow (figures in NOK 1,000) CASH FLOWS FROM OPERATING ACTIVITIES Profit/loss before tax Other financial income Interest costs on credit facilities Reversal of other non-cash financial items Net tax paid Depreciation Reversal of other non-cash operating items Change in working capital Net cash flow from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of fixed assets Purchase of tangible fixed assets Purchase of financial assets and own shares Proceeds from sale of financial assets Loans to associated companies Equity share capital Other financial income Net cash flow from investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of long-term debt Repayment of long-term debt Proceeds from issuance of short-term debt Partnership loan Intra-company accounts Realized financial derivatives Interest costs on credit facilities Net cash flow from financing activities NET CASH FLOW Net change in cash and cash equivalents Net exchange rate changes in subsidiaries Bank deposits, cash etc - start of period Bank deposits, cash etc - end of period

8 Statement of comprehensive income (figures in NOK 1,000) Statement of comprehensive income Profit/loss for the period Actuarial gains and losses on pensions Total items not reclassified in the income statement Foreign currency translation Total items reclassified in the income statement Total other comprehensive income Total comprehensive income for the year Profit/loss attributable to: Minority share Majority share Total profit/loss attributable to: Minority share Majority share Note 1 - Changes in equity (figures in NOK 1,000) Share capital Paid-in equity Other equity Total equity Other paidin equity Sum paid-in equity Conversion differences Other equity Sum other equity Sum majority interests Sum minority interests Sum equity Equity as per Stock options executive personnel Profit/loss for the year Equity as per Own shares Stock options executive personnel Transferred to "Other paid in equity" Profit/loss for the year Equity as per Equity share capital Stock options executive personnel Transferred to "Other paid in equity" Profit/loss for the year Equity as per

9 Note 2 - Segment reporting (figures in NOK 1,000) Revenue ERRV service PSV Total Norway UK Other Total EBITDA ERRV service PSV Management Total Norway UK Other Total Note 3 - Fleet and contract backlog Nov.15 Mai.16 Nov.16 Mai.17 Nov.17 Mai.18 Nov.18 Ocean Alden Ocean Art Ocean Clever Ocean Falcon Ocean King Ocean Marlin Ocean Ness Ocean Osprey Ocean Response Ocean Sky Ocean Spey Ocean Sprite Ocean Star Ocean Surf Ocean Swan Ocean Tay Ocean Troll Ocean West Ocean Scout Under construction Firm contracts Options 9

10 Layout/design: Kolbrun Retorikk Photo: Fotograf Christin Eide Office address: Building K2, 3rd floor 5347 Kystbasen Ågotnes Norway Postal address: PO box Kystbasen Ågotnes Norway Telephone: Telefax: Atlantic Offshore Rescue Ltd. Atlantic House Commerce Street Aberdeen AB11 5FE Telephone: +44 (0) Telefax: +44 (0)