Songa Offshore SE Q2 2009 July 31, 2009
Highlights Q2 Move to Cyprus registered on May 11, headquarters moved to Limassol from same day Finalised SPS for Songa Dee, estimated cost increased to USD 65 mln Received AoC for Norwegian operations Entered Songa Dee onto 2 year contract with Marathon / Lundin from June 7 Entered Songa Delta onto 3 year contract with Wintershall / Det norske from 26 May Negotiated a deferral of USD 40 mln of the May instalment on the bank facilty Successful exchange offer to the bondholders of the USD 125 mln convertible bond; exchanged into a USD 62.5 mln high yield bond with maturity in June 2012 and stock worth USD 50 mln (issued 13.46 mln shares at NOK 23.70) Private placement of 18.08 mln shares at NOK 23.70 Termination of the remaining TRS at 23.70; posting a USD 6.3 mln gain EGM on July 30 approved an increase in the authorised capital
Fleet update Songa Venus Currently drilling for Shell offshore North West Australia until mid September Following the Shell job Venus will continue under the ADA Consortium contract until late February 2010 SPS due February 2010
Songa Mercur Currently drilling last well for Santos offshore North West Australia Estimated completion of contract mid August In discussion with operators for new assignments following the current contract with Santos SPS due July 2010
Songa Saturn Currently drilling for Petrobras offshore Libya Options not declared; estimated completion of the Nippon Consortium campaign in Libya by early October 2009 The rig is scheduled for 5-6 weeks yard-stay in Malta to complete upgrade to 3,800 ft water depth before mobilisation to EG for CNOOC SPS due December 2011
Songa Dee SPS and contract preparation delayed due to increased work scope Commenced two year contract for Marathon / Lundin in the North Sea on June 7 Good start-up with roughly 95% efficiency during the first well The rig completed first well on July 28, moved and has spudded second well
Songa Trym Operated by Odfjell, drilling development wells on the Troll field for StatoilHydro Continues with solid performance SPS due May 2012
Songa Delta Operated for StatoilHydro at a day rate of USD 425 from 15 April until 26 May Following the last well for Statoil the rig immediately commenced on its 3 yrs contract for Wintershall / DetNorske The rig will be operated by Odfjell for the duration of the contract. SPS Q3 2011
nov.06 des.06 jan.07 feb.07 mar.07 apr.07 mai.07 jun.07 jul.07 aug.07 sep.07 okt.07 nov.07 des.07 jan.08 feb.08 mar.08 apr.08 mai.08 jun.08 jul.08 aug.08 sep.08 okt.08 nov.08 des.08 jan.09 feb.09 mar.09 apr.09 mai.09 jun.09 Operational Efficiency Songa fleet - average operational efficiency 100 96 95 95 96 94 98 93 95 96 95 94 92 93 98 97 94 97 98 98 95 98 96 97 98 99 95 90 80 73 84 84 81 75 84 70 60 50 40 30 20 10 0
Operational Efficiency 100 90 80 70 60 50 40 30 20 10 0 Songa Fleet - quarterly utilization 91 91 95 96 97 97 97 92 87 72 Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009
Contract status
P&L Q2 2009 Hireout Delta and Trym personell TRS USD 6.3 mln, settlement conv. Bond USD 6.4 mln Going rate USD 22-23 mln per quarter when done with Dee USD 789 mln floating interest Tax rate reduced after move to Cyprus
Q2 vs Q1 Q2 2009 Q1 2009 Q4 2008 Q3 2008 USD '000s Venus 37 808 31 884 34 252 20 499 Saturn 36 305 27 803 32 947 17 558 Mercur 36 814 34 681 32 284 34 536 Dee 9 114 3 658 4 286 3 750 Trym 46 116 29 707 4 600 4 600 Delta 42 441 21 339 22 377 6 515 Other 151 2 208 598 149 072 130 897 87 460
Revenue USD '000 Operating Mobilisation Reimbursables Total Dayrate Dayrate Dayrate Dayrate Dayrate revenue & Other Q2 2009 Q1 2009 Q4 2008 Q3 2008 Q2 2008 USD Venus 36 032 725 1 051 37 808 395 956 400 356 357 380 218 315 221 044 Saturn 35 034 413 858 36 305 384 989 389 267 349 772 253 667 303 681 Mercur 36 112 702 36 814 396 835 401 244 381 535 359 674 273 670 Dee 8 684 24 406 9 114 361 833 114 263 40 761 40 761 41 029 Trym 42 941 3 175 46 116 471 879 477 122 50 000 50 000 50 000 Delta 36 331 6 110 42 441 399 242 403 678 167 500 180 972 Other - Sum 195 134 1 162 12 302 208 598 2 410 734 2 185 930 1 346 948 1 103 389 898 220 Dayrate = Operating revenue / 91 calendar days Mobilisation revenue Rem. Bal total 3 454
Operating expenses USD '000s Venus Saturn Mercur Delta Trym Dee G&A Q2 2009 Q1 2009 Q4 2008 Q3 2008 Rig op exp & reimb. 10 255 10 548 12 082 20 365 19 798 8 290 81 338 56 680 47 744 38 149 G&A / onshore 982 1 339 981 424 241 671 6 717 11 359 11 935 10 594 8 960 Sum 11 237 11 887 13 063 20 789 20 039 8 961 6 717 92 697 68 615 58 338 47 109 USD/day Q2 2009 Q1 2009 Q4 Q3 Q2 Q1 2008 YTD Venus 115 000 101 000 97 000 130 000 144 000 126 000 121 000 Saturn 126 000 111 000 116 000 130 000 99 000 84 000 94 000 Mercur 138 000 123 000 115 000 160 000 153 000 130 000 136 000 Delta 163 000 145 000 128 000 148 000 134 000 Trym 187 000 182 000 Dee 345 000 9 000 G&A 74 000 79 000 67 000 68 000 58 000 51 000 61 000 Other 35 000 13 000 Delta includes management fee Odfjell 9' p.d. Trym includes management fee Odfjell 48' p.d. Other - buildup Trym and Dee takeovers
Other gains & losses Q2 2009 Q1 2009 Q4 2008 Q3 2008 Q2 2008 Q1 2008 2008 TRS fair value 6,3-1,7-30,1-27,9 14,8-6,1-49,3 FX swap / net curr loss -0,8-3,8 8,5-1,4 0 0,8 7,9 Flippable swap 0,9-0,5-8,0-1,7 3,8-5,2-11,1 Buy back bond / settlement bond 6,4 0,1 0,1-0,7-1,8-2,1-4,5 Allowance doubtful debt -0,3-3,3-0,9-2,1-0,6 2,0-1,6 Loss disposal of assets -0,1 0-1,4-1,4 12,6-9,3-30,4-33,8 16,2-12,0-60,0 30 June 30 Mar End 2008 30 Sept 30 June 31 March End 2007 Shareprice Songa (NOK & USD) 20,90/3,24 10,35/1,54 13,20/1,89 55/9,37 82,25/16,19 68,5/13,4573,5/13,54 3 mo libor 0,60 % 1,19 % 1,43 % 4,05 % 2,78 % 2,69 % 4,70 % Flipable swap remaining period 2,15 % 1,53 % 1,90 % 3,84 % 4,10 % 3,07 % 4,08 % TRS reset (NOK) 9,32 USD / NOK 6,45 6,73 7,00 5,87 5,08
EBITDA adjusted Q2 2009 Q1 2009 EBITDA reported 128,6 71,1 TRS -6,3 Allowance doubtful debt 3,3 Other loss -0,9 6,1 Mobilisation earned 3,8 Buy-back bond -6,4 Adjusted 115,0 84,3
Balance sheet
Balance sheet (cont.)
Outstanding debt as per 30 June
Working capital Q2 2009 Q1 2009 Q4 Q3 Q2 Current assets Trade and other receivables 77 411 64 318 44 489 54 566 49 406 Prepayments 29 511 39 420 18 547 15 297 17 199 Incurred revenue 37 346 22 573 11 130 13 045 18 089 Other assets 13 205 8 964 6 175 2 584 23 325 Cash and cash equivalents 99 384 35 769 58 501 54 235 70 803 Total current assets 256 857 171 044 138 842 139 727 178 822 Current liabilities Trade and other payables 27 098 17 350 10 394 12 048 7 227 Derivative financial instruments 12 805 23 786 23 317 19 495 4 574 Deferred revenues 3 276 4 413 (2 515) 1 238 841 Tax payable 30 651 14 385 Other liabilities 23 311 21 247 21 351 15 555 16 427 Total current liabilities 97 141 81 181 52 547 48 336 29 069 Working capital 159 716 89 863 86 295 91 391 149 753
Cash flow
Investments Q2 2009 Q1 2009 2008 Venus 635 1 032 4 780 Mercur 2 223 885 7 175 Saturn (206) 5 219 22 333 Dee (*) 51 920 (14 682) 554 Trym - 22 15 964 Delta 693 1 523 431 250 Other 93 189 449 Sum 55 358 (5 812) 482 505 (*) Received compensation from Stena USD 19.2 mln
Business plan 2009 Market Mercur, Venus and Saturn for new contracts Secure high operational efficiency for Songa Dee Prepare and carry through SPS for Venus and Intermediate Survey for Trym Prepare and carry through waterdepth upgrade for Saturn Financial policy - deleverage
Q & A 25
APPENDIX