Oslo, 29 August Pareto Securities Oil and Offshore Conference Arne Austreid, President and CEO

Transcription

1 Oslo, 29 August 2007 Pareto Securities Oil and Offshore Conference Arne Austreid, President and CEO

2 2 Disclaimer All statements in this presentation other than statements of historical fact are forward-looking statements, which are subject to a number of risks, uncertainties, and assumptions that are difficult to predict and are based upon assumptions as to future events that may not prove accurate. Certain such forward-looking statements can be identified by the use of forward-looking terminology such as believe, may, will, should, would be, expect or anticipate or similar expressions, or the negative thereof, or other variations thereof, or comparable terminology, or by discussions of strategy, plans or intentions. Should one or more of these risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this presentation as anticipated, believed or expected. Prosafe does not intend, and does not assume any obligation to update any industry information or forward-looking statements set forth in this presentation to reflect subsequent events or circumstances.

3 3 Prosafe a late cycle oil service company Seismic E&D drilling Pre-eng./ concept studies Fabrication/ installation Operations & maintenance Decommissioning Offshore Support Services -the world's largest owner and operator of semisubmersible accommodation/service rigs Floating Production -a leading owner and operator of floating production and storage vessels Strongly positioned for delivering increased shareholder value and further growing the company

4 4 Clear strategic direction Vision Prosafe shall be a leading and innovative provider of technology and services within selected niches of the global oil and gas industry. Strategy Corporate: To strengthen and develop the leading positions in existing business units Offshore Support Services: Capitalise on the leading global position to enhance dayrates and utilisation Floating Production: Develop the position as the preferred provider in the upper segment

5 5 Transformation to an SE company Prosafe was in 2006 transformed from a Norwegian Joint Stock Public Company (ASA) to a European Joint Stock Public Company (Societas Europea, or SE company ) Prosafe will in mid-september 2007 relocate its headquarter from Norway to Cyprus.

6 6 Dividend policy NOK/Share * 2002* 2003* 2004* 2005* 2006 Ordinary dividend Special dividend Proposed special dividend * Adjusted for the 5-to-1 share split In line with Prosafe's stated policy to return capital to shareholders without compromising future growth opportunities, Prosafe adopted earlier this year an improved dividend policy: Prosafe will distribute total payments of at least NOK 5 per share in 2007 and 2008 The target dividend pay-out ratio is approximately 75% of net profits.

7 7 A truly international oil service company North Sea Scotland Norway Houston GoM Brasil India Singapore Indonesia Offices Rigs FPSO/FSO operations Future FPSO operations west Africa Australia New Zealand

8 8 Offshore Support Services

9 9 Offshore Support Services the market leader World s largest owner and operator of semi-submersible accommodation/service rigs Flexible fleet that can be deployed in a large number of geographical areas Strong operational performance Experience from all major offshore regions Safe Scandinavia Strong market position and good assets provide attractive basis for future contracts

10 10 Steady operation in extreme weather Safe Caledonia gangway-connected to Sleipner T on the NCS in October 2002 Waves: 15m Wind: 70 knots

11 11 Quality fleet with versatile applications Dynamically Positioned rigs Advanced units with high operational versatility: All water depths Any seabed infrastructure Against fixed installations and most floaters like FPSOs, Semis and Spars 2 1 Anchored rigs 1 Primary strengths: Shallow to medium waterdepths Fixed installations Some floaters, e.g. TLPs Prosafe Cotemar Pemex Prosafe FOE Awilco

12 12 Sharp increase in demand for available units Number of new prospects continues to increase due to: Increasing number of new field developments Production facilities from the 70 s and 80 s need maintenance / life extension Increasing number of tiebacks of new fields to existing installations MSV Regalia alongside the Girassol FPSO Emerging decommissioning market

13 13 Continuous increase in dayrates USD/day Time charter equivalent MSV Regalia Safe Scandinavia Safe Caledonia Safe Concordia Safe Bristolia Time of contract award

14 14 Offshore Support Services contract status Safe Astoria Safe Bristolia Asia Safe Esbjerg Safe Caledonia Safe Scandinavia North Sea/ West Africa MSV Regalia Safe Concordia Safe Britannia Safe Lancia Safe Regency Gulf of Mexico Jasminia Safe Hibernia 1Q04 3Q04 1Q05 3Q05 1Q06 3Q06 1Q07 3Q07 1Q08 3Q08 1Q09 3Q09 1Q10 3Q10 1Q11 Contract Option Mobilisation Yard Standby

15 15 Outlook Rig market looks increasingly strong in a long term perspective Steadily increasing dayrates As from 2008: 4 rigs in the North Sea Renewal of Mexico contracts provides interesting opportunities Safe Scandinavia Strong market position and good assets provide attractive basis for future contracts

16 16 Floating Production

17 17 Floating Production a leading player A leading owner and operator of FPSOs and FSOs Owning/operating a fleet of 8 vessels Three FPSOs will commence production in early 2009 Solid project management experience 15 projects delivered according to plan Patented in-house developed turret and mooring technology Excellent operational trackrecord ( > 99% uptime) FPSO Polvo arriving in Rio Consolidating our position as a leading player in the FPSO business

18 18 Strong international presence FPSO Al Zaafarana FSO Endeavor FSO Madura Jaya FPSO Polvo MT Navarin/ FPSO Sao Mateus FPSO Umuroa FPSO Espoir Ivoirien MT Europe / FPSO undisclosed client Abo FPSO FPSO Petróleo Nautipa MT Kudam/ FPSO for Van Gogh field

19 19 Technological strength Capable and experienced engineering department Flexibility to offer clients best solution for their needs In an overheated market, we are in control High uptime on FPSOs confirms quality of designs and operational competence Proven track record Significant price advantage Potential for increased earnings Technology is a major competitive advantage

20 20 Disconnectable turret First application for Apache s Van Gogh field Opens new geographical areas for Prosafe s FPSOs Typhoon/hurricane areas such as Australia and GoM Strong competitive advantage Reduced cost compared with solutions from third parties Better control with lead time Increased control during project stage Facilitates maintenance during operations

21 21 Continued strong FPSO demand 109 floaters in the planning stages are likely to be FPSOs 30 of the 109 projects are in ultra-deepwater > meters Another 23 are in water depth of meters The remaining 56 projects are in water depth < meters Order backlog of production floaters up 75% over past two years œ 62 units at mid-march 2007 (46 FPSOs) Units/ fields Southeast Asia W. Africa Brazil Gulf of Mexico No. Europe Australia/NZ Floater Projects in the Longer Term Planning Stage Floater Projects in the Bidding/Final Design Stage Other Source: IMA, March 2007

22 22 Recent FPSO contract awards confirm segmentation Well positioned in high growth markets Proven delivery on local content Strong management systems in place Capacity to conduct multiple projects Technology support through own engineering organisation Proprietary technology FPSO contract awards last 24 months Prosafe 1 Modec 1 SBM Maersk Tanker Pacific 2 Saipem BWO 5 Fred Olsen 2 Teekay Petrojarl Bluewater Aker Floating Prod 2 4 Operational experience and record support strong growth

23 23 Floating Production - contract status FPSO Australia FPSO Brazil LoI Umuroa Polvo Abo Espoir Ivoirien Petr. Nautipa (1) CNR, Angola Apache, Australia Ł 2023 Petrobras, Brazil Ł 2023 Ł 2024 NZOP, New Zealand Ł 2017 Devon, Brazil Ł 2022 Agip, Nigeria Canadian Natural Resources, Ivory Coast Ł 2022 Vaalco, Gabon Al Zaafarana (2) Endeavor Madura Jaya (3) 1994 Zaafarana Oil Comp, Gulf of Suez 1997 Aban Offshore, India Kodeco Oil, Indonesia Project phase Production contract Options Letter of Intent (1) 50% ownership: 5- year term, cancellable from September 2011; (2) Management contract; (3) 50% ownership

24 24 Status conversion projects: FPSO Cidade de São Mateus for Petrobras, FPSO for undisclosed client (LOI), FPSO for Apache Engineering progressing according to plan Long lead items have been ordered Target arrival in field: Q Target first oil: early 2009 M/T Navarin M/T Europe Substantial increase in earnings when three new FPSOs come into operation in early 2009 M/T Kudam

25 25 Floating Production outlook Continued high level of bidding activity Well positioned in high growth markets Strong competitive edge based on in-house technology and project experience Ambition and capacity to commence One additional FPSO conversion later this year One additional project within 12 months FPSO Umuroa Consolidating our position as a leading player in Growth the continues FPSO business at higher pace

26 26 Conclusion and summary

27 27 Summary and outlook Strong market positions and international presence Rig market continues to improve and looks increasingly strong in a long term perspective FPSO growth continues at high pace in tight market Financial strength to grow considerably Expect strong improvement in earnings in 2007, 2008 and 2009 Strongly positioned for delivering increased shareholder value and further growing the company