Disclaimer. NFF FPSO conference

Transcription

1 September 30, 2010 NFF FPSO conference 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 eventsents 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 Production 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. 1

2 Prosafe Production - in brief One of the world s leading FPSO contractors Fleet of 11 units Eight FPSOs Two FSOs One VLCC conversion candidate 25 years of track-record in converting and operating FPSOs and related technology Excellent operational uptime Good Health, Environment and Safety records Approx. 1,000 employees worldwide Agreement to combine with BWO Operations Operations Market outlook Appendix: Financial results 2

3 Solid operational performance Strong uptime delivered to clients over time All new units operating according to plan Robust HSE performance World class operations 100,0% 98,0% 96,0% 94,0% 92,0% 90,0% 88,0% 86,0% 84,0% 82,0% 80,0% Combined fleet uptime per quarter Contract status FPSO Cidade de Sao Mateus FDPSO Azurite FPSO Ningaloo Vision FPSO Umuroa FPSO Polvo FPSO Abo FPSO Espoir Ivorien FPSO Petroleo Nautipa (1) FSO Endeavor FSO Madura Jaya (2) Petrobras, Brazil Murphy, Congo Apache, Australia AWE, New Zealand Devon, Brazil Agip, Nigeria CNR, Côte d'ivoire Valco, Gabon Aban Offshore, India Kodeco Oil, Indonesia VLCC M/T Takama % ownership. Fred. Olsen Production holds remaining 50% Conversion/yard stay Availability dayrate 2. 50% ownership. Equinox holds remaining 50% Firm contract Option 3

4 Start-up of new units Five units brought on stream over the past few years: FPSO Polvo Brazil, 2007 FPSO Umuroa New Zealand, 2007 FDPSO Azurite Congo, 2009 FPSO Cidade de Sao Mateus Brazil, 2009 FPSO Ningaloo Vision Australia, 2010 Start-up of new units Five units brought on stream over the past few years: FPSO Polvo Brazil, 2007 FPSO Umuroa New Zealand, 2007 FDPSO Azurite Congo, 2009 FPSO Cidade de Sao Mateus Brazil, 2009 FPSO Ningaloo Vision Australia, 2010 FPSO Polvo Client: Devon Country: Brazil Contract: 7+8 years Commencement: August 2007 Processing capacity: 90,000 bopd 150,000 bfpd Storage capacity: 1.6m bbls 4

5 Start-up of new units Five units brought on stream over the past few years: FPSO Polvo Brazil, 2007 FPSO Umuroa New Zealand, 2007 FDPSO Azurite Congo, 2009 FPSO Cidade de Sao Mateus Brazil, 2009 FPSO Ningaloo Vision Australia, 2010 FPSO Umuroa Client: AWE Country: New Zealand Contract: years Commencement: August 2007 Processing capacity: 50,000 bopd 120,000 bfpd Storage capacity: 0.8m bbls Start-up of new units Five units brought on stream over the past few years: FPSO Polvo Brazil, 2007 FPSO Umuroa New Zealand, 2007 FDPSO Azurite Congo, 2009 FPSO Cidade de Sao Mateus Brazil, 2009 FPSO Ningaloo Vision Australia, 2010 FDPSO Azurite Client: Murphy Country: Congo Contract: 7+8 years Commencement: April 2009 Processing capacity: 40,000 bopd 60,000 bfpd Storage capacity: 1.4m bbls 5

6 Start-up of new units Five units brought on stream over the past few years: FPSO Polvo Brazil, 2007 FPSO Umuroa New Zealand, 2007 FDPSO Azurite Congo, 2009 FPSO Cidade de Sao Mateus Brazil, 2009 FPSO Ningaloo Vision Australia, 2010 FPSO Cidade de Sao Mateus Client: Petrobras Country: Brazil Contract: 9+6 years Commencement: October 2009 Processing capacity: 353 mmscfd 25,000 bopd 35,000 bfpd Storage capacity: 0.7m bbls Start-up of new units Five units brought on stream over the past few years: FPSO Polvo Brazil, 2007 FPSO Umuroa New Zealand, 2007 FDPSO Azurite Congo, 2009 FPSO Cidade de Sao Mateus Brazil, 2009 FPSO Ningaloo Vision Australia, 2010 FPSO Ningaloo Vision Client: Apache Country: Australia Contract: 7+8 years Commencement: February 2010 Processing capacity: 63,000 bopd 50,000 bfpd 80 mmscfd Storage capacity: 0.7m bbls 6

7 Advantages with consolidation Cost synergies Market synergies Big four reduced to big three Size matters Larger balance sheet important in an increasingly capital intensive business Increased robustness in project execution Alignment of operations Local content capabilities improved Proposed changes to lease accounting New model on accounting for leases proposed in an Exposure Draft issued 17 August 2010 by IASB/FASB Operational leases to be booked as financial leases Limited impact on Prosafe Production s balance sheet But clients will most likely have to recognize operational leases on their balance sheets Can have implications for the structure of the FPSO market in the long-term 7

8 Market outlook Operations Market outlook Appendix: Financial results Improved market balance FPSO contract awards expected annually next five years years Execution capacity on supply side significantly reduced in last few years Improved market balance Substantial part of market is in challenging areas: High local content requirements Lack of infrastructure No. Of project ts Possible projects next five years by region Brazil SE Asia WA Australia No of players actively pursuing projects Active FPSO bidders / /2011 8

9 Positive short-term outlook Possible FPSO lease contracts next 12 months: Australia: 2 Brazil: 7 WA: 3 SE Asia: 6 Few redeployment candidates available will favor new Historic and expected awards Historical and expected FPSO orders conversions Forecast turnkey Forecast lease Past orders (speculative) Past orders (turnkey) Past orders (lease) Source: Fearnley Offshore Summary Strong operational trackrecord five complex units started-up successfully past tthree years Combining with BW Offshore creating a world-leading FPSO contractor Attractive market outlook combined company well positioned to benefit 9

10 Appendix: Financial results Operations Market outlook Appendix: Financial results Profit & Loss (unaudited figures in USD million) Q2 10 Q2 09 Six months ended 30/06/2010 Six months ended 30/06/2009 Operating revenues Operating expenses (46.8) (32.4) (95.1) (55.8) Operating profit before depreciation Depreciation (36.0) (19.6) (68.6) (33.3) Impairment (0.0) Operating profit Interest income Interest expenses (11.7) (11.1) (22.9) (22.5) Other financial items (0.5) (0.7) (1.3) (3.1) Net financial items (12.1) (11.7) (24.1) (25.3) Profit before taxes Taxes (5.9) (3.7) (7.5) (7.9) Net profit (loss) from continuing operations Discontinued operations Net profit (loss) from discontinued operations (1.3) (0.9) (2.1) (1.3) Net profit (loss) for the period Earnings per share from continuing operations Earnings per share diluted from continuning operations Earnings per share Earnings per share diluted

11 Balance Sheet (unaudited figures in USD million) 30/06/10 30/06/09 31/12/09 Goodwill Ships 1, , ,756.2 Other non-current assets Total non-current assets 1, , ,891.8 Cash and deposits Other current assets Total current assets Assets classified as held for sale Total assets 2, , ,096.6 Share capital Other equity Total equity Interest-free long-term liabilities Interest-bearing long-term debt , ,001.1 Total long-term liabilities , ,039.4 Other interest-free current liabilities Current interest-bearing debt Total current liabilities Total equity and liabilities 2, , ,096.6 Cash Flow (unaudited figures in USD million) Six months Six months ended 30/06/2010 ended 30/06/ Profit before taxes from continuing operations Profit (loss) from discontinued operations (2.1) (1.3) (2.5) Unrealised currency loss (gain) (0.9) Depreciation Impairment Taxes paid (6.1) (6.7) (12.7) Change in working capital (48.3) (34.7) (8.1) Other items from operating activities Net cash flow from operating activities Acquisition of tangible assets (11.5) (203.7) (317.6) Interest received Net cash flow from investing activities (11.4) (203.4) (316.9) Proceeds from new interest-bearing debt Repayment of interest-bearing debt (76.1) (10.1) (107.6) Interest paid (21.2) (21.8) (39.2) Net cash flow from financing activities (77.2) Net cash flow (31.9) (99.6) (77.2) Cash and deposits at beginning of period Cash and deposits at end of period

12 Shareholders as of 30 June 2010 Account No. of shares (million) Ownership BW OFFSHORE CYPRUS LIMITED (1) % PROSAFE HOLDING LTD % 7.75 BW EUROHOLDINGS LTD % BW OFFSHORE CYPRUS LTD % FOLKETRYGDFONDET % MORGAN STANLEY & CO INTERNAT. PLC % AWILCO INVEST AS % BROWN BROTHERS HARRIMAN & CO % RBC DEXIA INVESTOR SERVICES TRUST % ORKLA ASA % PARETO AKSJE NORGE % PROSAFE SE % UBS AG, LONDON BRANCH % BW LPG FPSO I LTD % 1.96 HSBC BANK PLC % ODIN OFFSHORE % STATE STREET BANK AND TRUST CO % BANK OF NEW YORK MELLON SA/NV % PARETO AKTIV % BANK OF NEW YORK MELLON % 1) BW Offshore Ltd is controlled by BW Euroholdings Ltd's parent company BW Group Ltd. In total they own 76,265,270 shares in Prosafe Production Public Ltd, which constitutes 29.88% of the shares outstanding. Contact details Prosafe Production Public Limited City House, 3rd Floor 6 Karaiskakis Street CY-3032 Limassol Cyprus Phone : Fax : Prosafe Production Management B.V. Polarisavenue 1 Unit JH Hoofddorp The Netherlands Phone: +31 (0) Fax: +31 (0) Prosafe Production Services Pte Ltd 1 International Business Park #10-01 The Synergy Singapore Singapore Phone: Fax: Investor Relations contact Sven Børre Larsen EVP and CFO Tel.: +31 (0) Mob.: +31 (0) sven.larsen@prosafeproduction.com 12