financial results 4q 2015 - cisionmb.cision.com/main/1794/9914751/477418.pdffinancial results 4q...
Post on 20-May-2020
3 Views
Preview:
TRANSCRIPT
Financial results 4Q 2015
Oslo,16 February 2016
AGENDA
FINANCIAL RESULTS 4Q 2015
MARKET
OPERATIONS
SUMMARY
Income Statement – Key Figures
(USD mill) 4Q 2015 3Q 2015 Change
Operating revenues 257,9 235,1 22,8 Recharged income 7,3 6,3 1,0 Total revenues 265,2 241,4 23,8
Operating costs (116,3) (105,7) (10,6)Recharged expenses (7,4) (6,1) (1,3)Total operating expenses (123,7) (111,8) (11,9)
Oper. result before depr. (EBITDA) 141,5 129,6 11,9
Depreciation (86,2) (82,6) (3,6)Impairment (158,0) (31,0) (127,0)Operating result (EBIT) (102,7) 16,0 (118,7)
Net financial items (19,8) 6,3 (26,1)Result before tax (122,5) 22,3 (144,8)
Estimated tax 8,3 (0,9) 9,2 Net result (114,2) 21,4 (135,6)
EBITDA Comparison 4Q 2015 vs. 3Q 2015
Financial Items Breakdown
(USD mill) 4Q 2015 3Q 2015 Change
Interest income 0,4 0,4 - Other financial income 0,5 - 0,5 Gains on financial instruments 0,9 - 0,9 Financial income 1,8 0,4 1,4
Interest expenses (10,9) (11,7) 0,8 Capitalized borrowing cost (projects) - 1,8 (1,8)Losses on financial instruments (8,2) (7,7) (0,5)Other financial expenses (11,9) (3,5) (8,4)Financial expenses (31,0) (21,1) (9,9)
Net foreign currency gain 9,4 27,0 (17,6)
Net financial items (19,8) 6,3 (26,1)
Offshore Drilling Segment
(USD mill) 4Q 2015 3Q 2015 Change
Operating revenues 252,7 234,0 18,7 Recharged income 7,3 6,3 1,0 Total revenues 260,0 240,3 19,7
Operating costs (114,0) (103,4) (10,6)Recharged expenses (7,4) (6,1) (1,3)Total operating expenses (121,4) (109,5) (11,9)
Oper. result before depr. (EBITDA) 138,6 130,8 7,8
Depreciation (84,7) (82,0) (2,7)Impairment (158,0) (31,0) (127,0)
Operating result (EBIT) (104,1) 17,8 (121,9)
Engineering & Fabrication Segment
(USD mill) 4Q 2015 3Q 2015 Change
Operating revenues (external) 5,2 1,1 4,1 Inter-segment revenues 0,3 (1,1) 1,4 Total operating revenues 5,5 - 5,5
Operating costs (2,6) (1,2) (1,4)Oper. result before depr. (EBITDA) 2,9 (1,2) 4,1
Depreciation (1,5) (0,6) (0,9)
Operating result (EBIT) 1,4 (1,8) 3,2
Consolidated Balance Sheet
(USD mill) 4Q 2015 3Q 2015 Change
Intangible assets 11,2 11,6 (0,4)Property, plant & equipment 1 862,4 2 702,2 (839,8)Other non-current assets 22,9 30,3 (7,4)Total non-current assets 1 896,5 2 744,1 (847,6)
Other current assets 462,8 284,4 178,4 Cash and cash equivalents 214,1 209,5 4,6 Total current assets 676,9 493,9 183,0 Total assets 2 573,4 3 238,0 (664,6)
Equity 965,5 1 068,6 (103,1)
Non-current interest bearing debt 1 002,1 1 056,0 (53,9)Other non-current liabilities 100,3 123,7 (23,4)Total non-current liabilities 1 102,4 1 179,7 (77,3)
Current interest bearing debt 325,7 355,6 (29,9)Current liabilities newbuilds - 417,0 (417,0)Other current liabilities 179,8 217,1 (37,3)Total current liabilities 505,5 989,7 (484,2)Total equity and liabilities 2 573,4 3 238,0 (664,6)
Consolidated Cash Flow
(USD mill) 4Q 2015 3Q 2015 Change
Profit before income taxes (122,5) 22,3 (144,8)Depreciation and impairment 244,2 113,6 130,6 Interest expense 11,0 9,8 1,2 Changes in working capital 51,7 11,9 39,8 Unrealized loss/(gain) financial instruments (4,1) (17,8) 13,7 Cash generated from operations 180,3 139,8 40,5
Interest paid (11,7) (11,7) - Taxes paid (2,2) (3,8) 1,6 Net cash flow from operating activities 166,4 124,3 42,1
Net investment in fixed assets (74,2) (94,3) 20,1 Cash flow used in investment activities (74,2) (94,3) 20,1
Borrowing of loans - 130,0 (130,0)Repayments of loans (84,4) (135,5) 51,1 Cash flow from financing activities (84,4) (5,5) (78,9)
Foreign currency (3,2) (1,0) (2,2)Net change in cash and cash equivalents 7,8 24,5 (16,7)Cash at beginning of period 209,5 186,0 23,5 Cash at end of period 214,1 209,5 4,6
Offshore drilling EBITDA and margin
Fleet status
RIG DESIGN W DEPTH LOCATION CLIENT CONTRACT STATUS DAY RATE (USD) NEXT CRS
Bolette Dolphin DS/ Gusto P10' 12 000 Ivory Coast Anadarko 2Q 2014 - 2Q 2018 488 000 1Q 2019
Belford Dolphin Drillship 10 000 Labuan Terminated for convenience
Blackford Dolphin SS / Aker H-3 7 000 UK Chevron July '15 - January '17 428 000 2Q 2019
Bideford Dolphin SS / Aker H-3 1 500 Norway Statoil January '14 - January '17 NOK 1048' + USD 301' 2Q 2019
Borgland Dolphin SS / Aker H-3 1 500 Norway Consortium* April '14 - March '17 NOK 1057' + USD 349' 1Q 2020
Bredford Dolphin SS / Aker H-3 1 500 Norway Idle, cold stacked 2Q 2017
Byford Dolphin SS / Aker H-3 1 500 UK BP April '13 - September '16 345 500 2Q 2020
Borgsten Dolphin Tender support / AH-3 UK Total October '15 - January '18 166 000 1Q 2018(204 500 incl. cap.contribution)
Borgholm Dolphin Accomodation / AH-3 UK Idle, cold stacked 4Q 2017
Borgny Dolphin SS / Aker H-3 2 300 Cold stacked
Participants in the consortium: * Wintershall, Tullow Oil, E.ON Ruhrgas, Suncor Energy
MID WATER FLOATERS NORWAY
MID WATER FLOATERS UK
ULTRA DEEPWATER UNITS
FINANCIAL RESULTS
MARKET
OPERATIONS
SUMMARY
Global market – floating units
Limited new demand is creating an increasing overcapacity resulting in declining day rates to a current low level
Cold stacking of units is expected to increase
Scrapping is expected to continue to some extent
The market imbalance is expected to prevail through 2016 and into 2017
NameWest NavigatorCOSLPioneerTransocean SearcherTransocean BarentsWest VentureSonga TrymBredford DolphinPolar PioneerTransocean SpitsbergenLeiv EirikssonTransocean WinnerWest AlphaBideford DolphinBorgland DolphinTransocean ArcticSonga DeltaSonga DeeWest HerculesStena DonIsland InnovatorScarabeo 5Deepsea BergenDeepsea StavangerScarabeo 8COSLInnovatorCOSLPromoterDeepsea AtlanticSonga EnduranceSonga EquinoxSonga EncourageSonga Enabler
Contract Option Yard/under construction
2016 2017 2018Q1 Q2 Q3 Q4 Q1 Q3 Q4 Q1 Q2 Q3 Q4Q2
Norwegian floater market
There has been a considerable reduction in the utilisation of the rig fleet in Norway during the last year
Few new visible contract opportunities in the near to mid term
Expect increased number of cold stacked units
As per January 2016
Source: DNB
Average dayrates Norway
NameOcean VanguardBorgny DolphinOcean NomadOcean PrincessTransocean ProspectSertaoSedco 711Transocean John ShawSedco 714Paragon MSS1Sedco 704WilHunterOcean ValiantByford DolphinWest PhoenixStena SpeySedco 712Ocean GuardianBlackford DolphinPaul B. Loyd, Jr.Ocean PatriotWilPhoenixTransocean LeaderDeepsea Aberdeen
Contract Option Yard/under construction
Q42016 2017 2018
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
UK floater market
The UK market is in a similar situation as the Norwegian market with a sharp decline in utilization of the fleet
Some of the tender activity in 2016 has been postponed to 2017
The visibility for 2016 and into 2017 is low
The low project activity in general is affecting the accommodation segment, with few contracting opportunities also in this market
As per January 2016
Source: DNB
Average dayrates UK
Deepwater dayrates - worldwide
FINANCIAL RESULTS
MARKET
OPERATIONS
SUMMARY
Russia
New Zealand
Papua -New Guinea
Australia
Philippines
Japan
Brunei
Taiwan
South Korea
North Korea
Indonesia
Malaysia
Vietnam
Cambodia
LaosMyanmar
Sri Lanka
Madagascar
India
Mongolia
China
Mozambique
South Africa
Malawi
Pakistan
Zimbabwe
Botswana
Kirgistan
Tadschikistan
Somalia
Afghanistan
Tanzania
Namibia
Sambia
Kenya
Dschibuti
Qatar
Yemen
Uganda
Ethiopia
Usbekistan
Angola
Turkmenistan
Eritrea
Iran
Zaire
Saudi-Arabia
Sudan
Iraq
Kazakhstan
Azerbaijan
Congo
Argentina
Jordan
Central Africa
Chile
Gabun
Israel
Syria
Lebanon
Georgia
Cameroon
Chad
Egypt
Cyprus
Nigeria
Turkey
Benin
Togo
Ghana
Libya
Greece
Niger
Bulgaria
Ivory Coast
Burkina Faso
Liberia
Ukraine
Serbia
Romania
Tunesia
Sierra Leone
Belarus
Mali
Guinea
Brazil
Hungaria
Algeria
Lithuania
Italy
Guinea- Bissau
Estonia
Latvia
Senegal
Gambia
Poland
Mauretania
Finnland
Bolivia
West Sahara
Germany
Marocco
Sweden
Denmark
Spain
France
Belgium
Netherlands
Portugal
Peru
Norway
French- Guayana
United Kingdom
Guyana
Ireland
Columbia
Ecuador
Venezuela
Trinidad
Panama
Puerto Rico
Costa Rica
Dominican RepublicHaiti
Nicaragua
Jamaica
Honduras
El Salvador
Iceland
Belize
Cuba
Mexico
USA
Greenland
Canada
NepalBhutan
Bangladesh
Thailand
Uruguay
Guatemala
Kuwait
Oman
United Arab Emirates
Lesotho
Swaziland
Burundi
Rwanda
Croatia Bosnia- Herzegovina
Austria
Switzerland
Luxemburg
Moldawia
Albania
Macedonia
Montenegro
Slovenia
Czech Republic
Slovakia
Armenia
Paraguay
Surinam
ByfordDolphin
BorgstenDolphin
BorgholmDolphin
BlackfordDolphin
BidefordDolphin
BorglandDolphin
BredfordDolphin
BorgnyDolphin (cold stacked)
BoletteDolphin Belford
Dolphin
Fred. Olsen Energy – Operating worldwide
Contract overview
Average contract length approximately 11 months
Contract backlog
Total backlog approximately USD 1.1 billion
Ultra deepwater
Belford Dolphin
Completed the five-year Class Renewal Survey at the Keppel yard in October 2015
Has undergone a preservation program and is located outside Labuan, Malaysia. The unit is marketed for contract possibilities worldwide
Bolette Dolphin
Operates under a four-year contract with Anadarko, estimated to expire 2Q 2018
Completed the first drilling campaign offshore Colombia and has recently arrived in the Ivory Coast
Midwater - Norway
Bideford DolphinOperates under a three-year contract with Statoil, estimated to be completed end of January 2017
Completed its five-year class renewal survey July 2014
One of the winterstorms have caused damages to the helideck of the rig. The unit is therefore inshore for repairs which is expected to be completed early March
Borgland Dolphin
Continued its operations under the 18-well contract with an RMN consortium, estimated to be completed 1Q 2017
The unit is currently inshore due to lack of drilling program for the client
The unit completed its Class Renewal Survey February 2015
Midwater - Norway / United Kingdom
Bredford DolphinCompleted the 12-well contract with an AGR consortium beginning of 2016
The unit is cold stacked at Kvinesdal, Norway, due to lack of new contract opportunities
The class renewal survey was completed August 2012
Borgholm DolphinThe unit is cold stacked and located at the quay side of Harland & Wolff
Class renewal survey was completed March 2013
Midwater - United Kingdom (cont.)
Byford Dolphin
Continued under the contract with BP Exploration in the UK. The contract is estimated to expire 3Q 2016
The unit completed its CRS July 2015
Borgsten Dolphin
Continued under the tender support services contract with Total E&P UK
The contract rate was amended from October 2015 with estimated expiry of the contact in January 2018, subject to certain early termination rights
Completed class renewal survey and conversion to tender support vessel in February 2013
Deepwater – United Kingdom
Blackford Dolphin
Continued the 572 days contract with Chevron offshore UK. The contract is estimated to expire around January 2017
The unit experienced 56 days of downtime related to subsea equipment during the 4th quarter and 18 days in January 2016
Completed its class renewal survey in June 2014
Bollsta Dolphin
HHI’s quantification of their claim that Bollstawas not entitled to cancel the contract was received in January 2016
In addition to claiming entitlement to the first instalment HHI claims an additional payment of about MUSD 178
An alternative claim of MUSD 38 has been submitted by HHI should their primary claim fail
Bollsta, together with FOE, remain firm that the cancellation was rightful, that Bollsta is entitled to a full repayment of the first instalment (of about MUSD 186) and that none of HHI’s claims holds any merit; they will all be vigorously refuted
An impairment of USD 91.4 million is booked for the Bollsta Dolphin due to the cancellation
Ta inn nytt bilde
Harland & Wolff
Focus on ship repair, ship building, steel fabrication and engineering services
The main activities during the quarter has been several dockings and a repair of the LNG tanker Al Oraig in the main dock
Borgny Dolphin and Borgholm Dolphin remains cold-stacked at the yard
Summary
Financial
Revenues were USD 265 million
EBITDA was USD 141.5 million
Profit before tax was negative USD 122.5 million
Impairment of totally USD 158 million is booked
Contract backlog amounting to approximately USD 1.1 billion
HHI’s quantification of their claim that Bollsta was not entitled to cancel the contract was received in January 2016
Operational
Bredford Dolphin completed its contract early January 2016
Market
Average contract duration approximately 11 months
Q&A
top related