1Q 2016 Deep Sea Supply Plc Presentation 31 May 2016
Highlights - Reduced revenue due to vessels coming off long term contracts and sale of vessels - Two AHTS vessels sold in February with a total book loss of USD 17.3 mill - EBITDA of USD 5.8 mill excluding the loss on sale of vessels - Cash position still solid, but reduced to USD 73.1 mill - Positive and well progressed discussions with the banks: refinancing of the balloon payments maturing in 2016 amendments to the repayment profile and covenant structure for DESS BTG - Term contracts for 5 PSVs entered into - Competition is fierce and rate levels are low - No signs of improvement of the fundamentals of the global OSV markets
Income statement Q1 Unaudited figures in USD 1,000) 1Q 2016 1Q 2015 4Q 2015 Operating revenue 16 494 40 315 22 899 Vessel operating expenses (8 515) (16 073) (10 745) Other operating expenses (2 249) (2 980) (2 739) Other gains/(losses) 31 298 1 012 Profit/(loss) from sale of vessels (17 337) 439 - Other write offs - - (660) EBITDA (11 575) 21 999 9 768 Depreciation, amortization and impairment (9 485) (11 382) (130 195) Impairment of investment in Joint Venture - - (30 894) EBIT (21 060) 10 617 (151 322) Financial income 178 134 179 Financial expenses (5 065) (5 274) (5 472) Net currency items 526 (1 130) (694) Net financial items (4 361) (6 271) (5 987) Pre-tax result (25 420) 4 346 (157 309) Taxes (50) (434) (230) Profit for the period/year (25 470) 3 913 (157 538) Earnings per share (0,10) 0,01 (0,60) Earnings per share diluted (0,10) 0,01 (0,60) 3
Balance Sheet (Unaudited figures in USD 1,000) 31.03.16 31.12.15 (Unaudited figures in USD 1,000) 31.03.16 31.12.15 Non-current assets Vessels cost 642 299 683 606 Equipment 722 745 Total property, plant and equipment 643 021 684 351 CIRR deposit 13 902 13 258 Total non-current assets 656 924 697 609 Current assets Inventories 3 611 3 374 Loans to related parties 15 000 15 000 Other short term receivables 8 798 9 780 CIRR deposit 2 817 2 684 Trade receivables 16 186 15 286 Cash and cash equivalents 73 067 87 079 Total current assets 119 480 133 203 Total assets 776 403 830 813 Liabilities Borrowings 334 016 345 678 CIRR loan 13 902 13 258 Deferred gain 397 401 Financial derivatives 200 221 Total long term liabilities 348 516 359 557 Borrowings 137 918 156 146 Loans from related parties 7 500 7 500 CIRR loan 2 817 2 684 Trade and other payables 13 396 13 219 Deferred gain 122 122 Total short term liabilities 161 753 179 672 Total liabilities 510 268 539 229 Net assets 266 135 291 583 Shareholders equity Share capital, share premium and treasury shares 207 507 207 507 Retained earnings and other reserves 58 629 84 075 Total shareholders equity 266 135 291 583 Total Equity and liabilities 776 403 830 813 4
Cash flow statement Period ended (Unaudited figures in USD 1,000) March 16 March 15 Cash flows from operating activities Cash generated from operations 4 769 25 323 Net cash generated from operations 4 769 25 323 Cash flows from investing activities Acquisitions and upgrades of property, plant and equipment (66) (2 603) Net cash (used in) investing activities (66) (2 603) Cash flows from financing activities Interest and finance expenses paid (3 693) (4 751) Repayments of borrowings (8 649) (9 885) Net cash from sale of vessel and prepayment of borrowings (6 373) - Net cash (used in)/generated from financing activities (18 715) (14 636) Total changes in liquidity in the period (14 012) 8 084 Cash and cash equivalents at beginning of period 87 079 61 839 Cash and cash equivalents at end of period/year 73 067 69 923 5
Contract backlog Contract Backlog Deep Sea Supply Fleet as per 1 April 2016 (Includes 50% of DESS BTG backlog) Vessel Type Vessels on Term Contracts Value of Firm period Value of Option period Total Firm & Option period AHTS 6 of 12 Vessels USD 12.3M USD 59.7M USD 72.0M PSV 11 of 25 Vessels USD 35.5M USD 38.1M USD 73.6M Total 17 of 37 Vessels USD 47.8M USD 97.8M USD 145.6M Revenue from Long Term Contracts per Quarter 20 000 Contract Coverage 2016 2017 Firm Period: 17 % 11 % Incl. Option period: 30 % 28 % 15 000 10 000 5 000 - Q2-16 Q3-16 Q4-16 Q1-17 AHTS (Firm) PSV (Firm) AHTS (Option) PSV (Option) 6
Deep Sea Supply: Fleet list & charter status as per May 2016 2016 2017 Vessel Type Bhp/Dwt Year Built Trading Area Q2 Q3 Q4 Q1 Q2 AHTS Vessels Sea Ocelot Khiam Chuan 10800 BHP 2007 Lay-Up Sea Eagle I Khiam Chuan 12000 BHP 2009 Malaysia Sea Badger Seatech P-729 6800 BHP 2011 Lay-Up PSVs Sea Trout VS 470MK II 3250 DWT 2008 Lay-Up Sea Angler PSV UT 755 L 3250 DWT 2007 Lay-Up Sea Witch PSV UT 755 L 3250 DWT 2008 W.Africa Sea Falcon Ulstein PX 105 4700 DWT 2013 Lay-Up/North Sea Sea Flyer Ulstein PX 105 4700 DWT 2013 North Sea Sea Tantalus STX 05-L CD 4100 DWT 2013 North Sea Sea Titus STX 05-L CD 4100 DWT 2014 Caribbean Sea Tortuga STX 05-L CD 4100 DWT 2014 Australia Sea Triumph STX 05-L CD 4100 DWT 2014 Australia Sea Supra Ulstein PX 105 4700 DWT 2014 Russia Sea Surfer Ulstein PX 105 4700 DWT 2014 Lay-Up Sea Swan Ulstein PX 105 4700 DWT 2014 Lay-Up Sea Swift Ulstein PX 105 4700 DWT 2014 Mediterranean Firm Option Spot Lay-Up 7
DESS BTG DESS BTG: Fleet list & charter status as per May 2016 2016 2017 Vessel Type Bhp/Dwt Year Built Trading Area Q2 Q3 Q4 Q1 Q2 AHTS Vessels Sea Tiger KMAR 404 15000 BHP 1999 Brazil Sea Panther KMAR 404 15000 BHP 1999 Brazil Sea Leopard KMAR 404 15000 BHP 1998 Brazil Sea Cheetah Khiam Chuan 15000 BHP 2007 Lay-Up Sea Jaguar Khiam Chuan 15000 BHP 2007 Lay-Up Sea Fox Seatech P-729 6800 BHP 2011 Brazil Sea Jackal Seatech P-729 6800 BHP 2011 Brazil Sea Vixen Seatech P-729 6800 BHP 2011 Brazil Sea Stoat Seatech P-729 6800 BHP 2011 Brazil PSVs Sea Halibut PSV UT 755 L 3250 DWT 2007 Lay-Up Sea Pike PSV UT 755 L 3250 DWT 2007 Lay-Up Sea Bass PSV UT 755 L 3250 DWT 2008 Lay-Up Sea Pollock PSV UT 755 L 3250 DWT 2008 Brazil Sea Turbot PSV UT 755 L 3250 DWT 2008 Lay-Up Sea Brasil STX 09CD 4700 DWT 2012 Brazil Sea Forth Ulstein PX 105 4700 DWT 2013 North Sea Sea Frost Ulstein PX 105 4700 DWT 2013 Russia Sea Spear Ulstein PX 105 4700 DWT 2014 Mediterranean Sea Spark Ulstein PX 105 4700 DWT 2013 Mediterranean Sea Spider Ulstein PX 105 4700 DWT 2014 Lay-Up Sea Springer Ulstein PX 105 4700 DWT 2014 Lay-Up Firm Option Spot Lay-Up 8
Area of current operation Office PSV AHTS PSV DESS BTG AHTS DESS BTG LAY-UP 9
Shareholders The largest shareholders as per 18 May 2016 registered in VPS Citizen No. of shares: % HEMEN HOLDING LIMITED CYP 91 543 853 35,05 % DNB NOR MARKETS NOR 41 065 804 15,72 % SKAGEN KON-TIKI NOR 17 250 931 6,60 % UBS SWITZERLAND AG CHE 7 985 450 3,06 % BANK OF NEW YORK BEL 6 110 655 2,34 % SKANDINAVISKA ENSKILDA BANKEN AB SWE 5 500 000 2,11 % KLP ALFA GLOBAL ENERGI NOR 4 400 000 1,68 % CENTRA INVEST AS NOR 3 157 853 1,21 % SOLSTEN INVESTMENT FUNDS PLC DEU 2 935 604 1,12 % J.P. MORGAN BANK LUXEMBOURG SA GBR 1 994 200 0,76 % VPF NORDEA NORGE VERDI NOR 1 960 639 0,75 % PACTUM AS NOR 1 960 000 0,75 % VERDIPAPIRFONDET KLP AKSJENORGE NOR 1 586 800 0,61 % CIPI LAMP UCITS SWEDBANK SMB GBR 1 400 000 0,54 % NORDEA BANK SVERIGE AB SWE 1 315 840 0,50 % STATOIL PENSJON NOR 1 213 306 0,46 % DANSKE BANK A/S DNK 1 051 708 0,40 % EUROCLEAR BANK S.A./N.V. BEL 1 038 344 0,40 % KOMMUNAL LANDSPENSJONSKASSE NOR 1 008 200 0,39 % PER HAGA NOR 1 000 000 0,38 % Total 20 largest shareholders: 195 479 187 74,84 % Total other shareholders: 65 718 007 25,16 % Total number of shares: 261 197 194 100,00 % 10
COMPANY ADDRESSES Cyprus Deep Sea Supply Plc John Kennedy Ave., Iris House, 7th Floor, Office no.740b Limassol 3100 Cyprus Deep Sea Supply Management (Cyprus) Ltd P.O.Box 53340 CY-3302 Limassol Cyprus Norway Deep Sea Supply Management AS Storgaten 4 N-4876 Grimstad Norway Singapore Deep Sea Supply Management (Singapore) Pte.Ltd. 1 Maritime Square #11-03 Harbour Front Centre, S 099253 Singapore Brazil Deep Sea Supply Servicos Maritimos LTDA Avenida Republica do Chile 230, 22o andar, 20031-170 Centro, Rio de Janeiro RJ Brazil www.deepseasupply.no