miclyn express offshore · miclyn express offshore. delivering operational excellence. . first half...
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![Page 1: Miclyn Express Offshore · Miclyn Express Offshore. Delivering Operational Excellence. . First Half FY14 Results Presentation . 1. . Half Year 2014 Results Normalised EBITDA flat](https://reader036.vdocuments.us/reader036/viewer/2022081611/5f032a547e708231d407dcf6/html5/thumbnails/1.jpg)
Miclyn Express OffshoreDelivering Operational Excellence
www.miclynexpressoffshore.com
First Half FY14 Results Presentation
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Half Year 2014 Results
Normalised EBITDA flat vs PCP, but 15% up vs 2HFY13
Core segments, OSV’s and Crewboats, continue to grow justifying CAPEX strategy
Non core segments as well as Tugs and Barges down vs PCP due to extraordinary DB Schenker project in 1HFY13
Fleet utilisation fell to 82% in 1H FY14, due to Tugs and Barges
Normalised PATMI down 17% vs PCP due to higher depreciation (fleet expansion) and financing costs (debt upsize)
Overheads increased marginally by 6% vs PCP
8 vessel additions in 1H FY14
Shipyard sold in Jan-14 for US$20m; non-core business, overhead reduction going forward
Acquisition of remaining shares in growth business Express Offshore Solutions in 2H2014
Acquisition of 50% of Uniwise Towage (“UWT”) completed early 1H FY14
1. Excluding the impact of one-off adjustments relating to privatisation2. Excluding the impact of the $4.6m one-off Iran provision
1HFY14US$m
Normalised1
1HFY14US$m
Normalised2
2HFY13US$m
VarianceNormalised2
1HFY13US$m
Variance
Revenue 124.5 124.5 117.3 6% 128.0 3%Operating EBITDA 48.4 47.6 41.4 15% 46.2 3%EBITDA 48.7 47.9 41.6 15% 47.6 1%
PATMI 21.4 24.8 24.0 3% 29.8 17%
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87% utilisation in 1H FY14
Sovereign 1 deployed in Australia (high cost, high DCR region) marginally reducing the % gross margin of the fleet
Acquisition of UWT, 5 vessels contributing from August’14
Continued fleet expansion:
Ranger and Resolution entered the fleet in Q1 and Q2 respectively
Four externally constructed AHTS (7,150 BHP) scheduled for delivery in FY15, two will be deployed in Thailand JV
Segment Highlights
Segment PerformanceOffshore Support Vessels (OSVs)
1HFY14 2HFY13 Variance 1HFY13 Variance
Revenue (US$m) 48.0 35.5 35% 39.4 22%
Gross Profit (US$m) 28.2 21.8 29% 24.1 17%
Gross Margin (%) 58.7 61.4 61.3
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Segment Highlights
Segment PerformanceCrew/Utility Vessels
95% utilisation in 1H FY14
Market leader in this segment
Margin improvement also due to newer, more efficient fleet as well as DCR appreciation
Multi vessel tender awards in Saudi Arabia and Brunei
Significant demand in all core markets driving investment in additional units
8 new vessels entering the fleet (4 in 1H FY14, 4 in 2H FY14)
Continued execution of fleet renewal strategy
1HFY14 2HFY13 Variance 1HFY13 Variance
Revenue (US$m) 30.2 28.5 6% 28.0 8%
Gross Profit (US$m) 19.1 16.9 13% 16.0 19%
Gross Margin (%) 63.2 59.3 57.1
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57% utilisation in 1H FY14
2 x 400 ft Ballastable Barges delivered from Shipyard in December’14
330 x 120 ft Barge acquired in Q2 FY14
Activity expected to pick up in Q4 FY14 once SE Asia monsoon ends and new Australian projects kick off
1HFY13 particularly strong due to DB Schenker project
Segment Highlights
Segment PerformanceTugs and Barges
1HFY14 2HFY13 Variance 1HFY13 Variance
Revenue (US$m) 20.9 22.9 9% 24.0 13%
Gross Profit (US$m) 9.3 11.3 18% 13.4 31%
Gross Margin (%) 44.7 49.3 55.6
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MEO acquired remaining 30% shares from minority shareholders end Dec-13
Alignment of interests of MEO and EOS management team through earn out
Business continues to its expand client base and grow earnings
Large Australian projects (Subsea 7 and Heerema) to support continued earnings growth over the next 2 years
Strong pipeline of new opportunities
Utilisation upside for MEO’s Tug and Barge fleet
Segment Highlights
Segment PerformanceExpress Offshore Solutions
1HFY14 2HFY13 Variance 1HFY13 Variance
Revenue (US$m) 21.2 20.9 1% 15.8 34%
Gross Profit (US$m) 5.4 2.8 93% 2.6 108%
Gross Margin (%) 25.3 13.4 16.5
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Includes Shipyard, Third Party Vessels and Coastal Survey Vessels
Shipyard disposed to ASL in Jan-14, non-core asset
Strong performance in non core segments in 1HFY13 driven by DB Schenker project
Segment Highlights
Segment PerformanceNon Core Segments
25.2
14.8
9.2
0.0
5.0
10.0
15.0
20.0
25.0
30.0
1HFY13 2HFY13 1HFY14
Rev
enue
(US
$m)
1HFY14 2HFY13 Variance 1HFY13 Variance
Revenue (US$m) 9.2 14.8 38% 25.2 63%
Gross Profit (US$m) 2.6 4.5 42% 6.3 59%
Gross Margin (%) 28.3 30.4 25.0
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Regional Update and Outlook
Activity in Australia picking up with Subsea 7 project (Gorgon) commencing in Q2 FY14 and Heerema project (Ichthys) commencing in Q4 FY14.
Middle East business is expanding
5 crew/utility vessels awarded 5 year contracts by Saudi Aramco
MEO Ranger deployed into Saudi Arabia and likely to continue to be deployed in Middle East
Qatar and Abu Dhabi continue to be countries of focus
South-East Asia remains to be an important market
Significant expansion of Malaysian business, building up infrastructure
Multi vessel tender awarded in Brunei, a new operating region for MEO, investment in on the ground resources
Tendering activity to pick up in Thailand in 2HFY14, targeting deployment of new assets
Continued business development in Indonesia, Vietnam and Myanmar
Regional Update
Point Samson Support Base – North West Australia
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Finance Update
Strong cash position, ability to service new debt package and fund growth
Significant improvement in operating cashflow vs2HFY13
Loan package refinanced by DBS;
US$150m Term Loan
US$100m RCF
US$50m CAPEX facility (undrawn)
US$15m FX/BG facilities
Minority shareholders bought out with proceeds of S$200m bond raising
S$200m bond hedged to US$ (US$159m equivalent)
Acquisition of Uniwise Towage for US$18.9m
Further investment in new vessels against disciplined investment criteria (minimum 15% unlevered IRR)
Strong contract backlog to support future operating cashflows; ability to service debt and continue investment in new assets
1 Annualised FY14 EBITDA2 FY13 EBITDA, excluding the US$4.6m Iran provision3 Net Debt / (Net Debt + Equity)
14.6 29.8
51.4 2.5
250.1 232.0
159.4 137.6
20.3
18.9 32.8
5.9 0.5 0.2
-
50.0
100.0
150.0
200.0
250.0
300.0
350.0 1HFY14 FY131
Net Debt (US$m) 364.7 219.5
Net Debt / EBITDA 3.71 2.52
Gearing (%)3 47.5% 36.4%
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Solid execution capability
Financial capacity to fund growth
Well positioned in a healthy industry
Attractive pipeline of opportunities
Proven operational excellence
Strong balance sheet and cash position
Summary
Clear strategy for future growth
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Appendix 1Statement of Financial Performance
US$m1HFY14 (Equity)
Adjustments for Equity Accounting
1HFY14 (Proportionate)
1HFY13 (Proportionate) Variance %
Revenue 113.8 (10.7) 124.5 128.0 (3%)Operating Costs (56.3) 3.6 (59.9) (65.5) 8% Gross Profit 57.5 (7.1) 64.6 62.4 4%GP Margin 50.2% 51.9% 48.8%
Other Income 0.4 (0.1) 0.5 1.0 (50%) Overheads (17.0) 0.9 (17.9) (16.8) (7%) Forex 1.4 0.1 1.3 (0.5) 360%One-Off Iran Provision - - - (4.6) NMOperating Earnings 42.3 (6.2) 48.5 41.6 17%
Gain on disposal of vessels 0.3 - 0.3 1.4 (79%) EBITDA 42.6 (6.2) 48.8 43.0 13% EBITDA Margin 37.4% 39.1% 33.6%
Depreciation & Amortisation (13.4) 1.2 (14.6) (11.6) (26%)EBIT 29.2 (5.0) 34.2 31.4 9%
Net Finance Costs (9.3) 0.2 (9.5) (3.7) (157%)Share of profit from joint ventures 4.6 4.6 - - NMPBT 24.5 (0.2) 24.7 27.7 (11%)
Income Tax Expense (1.7) 0.2 (1.9) (2.0) (5%)Income Tax Expense Rate 7.0% 7.5% 7.1%PAT 22.8 - 22.8 25.7 (11%)
Minority Interest (1.4) - (1.4) (0.6) (133%) PATMI 21.4 - 21.4 25.2 (15%) PATMI Margin 18.8% 17.2% 19.7%
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Appendix 2Segments
1H FY14 Revenue
1H FY14Gross Profit
OSVs 48.0 28.2
Crew/Utility Vessels 30.2 19.1
Tugs and Barges 20.9 9.3
Coastal Survey Vessels 1.6 0.3
Third Party Vessels 4.4 1.3
Shipyard 3.2 1.0
EOS 21.2 5.4
EOS Elimination1 (5.0) -
Total 124.5 64.6
1. Elimination for intercompany charter of vessels from MEO to EOS
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Appendix 3Statement of Financial Position
(US$’000)As at 31 Dec 2013
(Equity)Adjustments for
Equity AccountingAs at 31 Dec 2013
(Proportionate)As at 30 Jun 2013
(Proportionate)Current assetsCash and cash equivalents 29.8 4.3 34.1 17.1Trade receivables 68.4 4.7 73.1 75.0Other receivables and prepayments 7.6 1.5 9.1 11.4Loan to immediate holding company 137.6 - 137.6 -Inventories 6.3 0.4 6.7 6.0Assets classified as held for sale 12.3 - 12.3 1.8Total current assets 262.0 10.9 272.9 111.2Non-current assetsProperty, plant and equipment 463.8 64.3 528.1 499.0Investment in joint ventures 56.1 (56.1) - -Other assets 0.4 - 0.4 3.0Deferred tax assets 0.5 - 0.5 0.4Goodwill 58.5 0.9 59.4 59.2Total non-current assets 579.3 9.1 588.4 561.8TOTAL ASSETS 841.3 20.0 861.3 673.0Current liabilitiesTrade and other payables 55.4 0.9 56.3 50.1Current tax payable 2.3 0.1 2.4 1.7Borrowings 14.0 7.5 21.5 23.1Other liabilities 0.3 - 0.3 0.3 Total current liabilities 72.0 8.5 80.5 75.2Non-current liabilitiesBorrowings 220.0 11.5 231.5 213.5 Senior secured guaranteed bonds 145.8 - 145.8 -Other non-current liabilities 0.7 - 0.7 0.9Total non-current liabilities 366.5 11.5 378.0 214.4TOTAL LIABILITIES 438.5 20.0 458.5 289.6NET ASSETS 402.8 - 402.8 383.4Shareholders equityShare capital - - - 190.4 Other equity reserves 146.7 (10.1) 136.6 (42.7)Translation reserve (6.6) - (6.6) (4.1)Retained earnings 259.8 10.1 269.9 238.3Minority interests 2.9 - 2.9 1.5 TOTAL EQUITY 402.8 - 402.8 383.4
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Appendix 4Cash Flow Statement
US$m1HFY14 (Equity)
1HFY13 (Proportionate)
EBIT 29.2 31.4
Depreciation and amortisation 13.4 11.6
EBITDA 42.6 43.0
Vessel disposal gains (0.3) (1.4)
Non-cash and other items 0.2 4.9
Working capital movement 8.9 (9.3)
Cash flows available from operations 51.4 37.2
Proceeds from sale of property, plant and equipment (including vessels) 2.5 7.6
Capital expenditure - growth (32.8) (45.3)
Capital expenditure - maintenance (5.9) (6.2)
Loan to immediate holding company (137.6) -
Acquisition of investment in joint venture (18.9) -
Other investing activities - (0.1)
Cash flows before financing and tax (141.3) (6.8)
Financing (2.9) (13.0)
Debt repayment (241.2) (55.1)
Debt drawdown 401.3 75.8
Tax (0.5) (3.2)
Cash flows after financing and tax 15.5 (2.2)
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32
64
114
4
8
24
0
10
20
30
40
50
60
70
80
OSV Crew/Utility Vessels Tugs and Barges Coastal Survey Vessels
Num
ber o
f ves
sels
Barges
Tugs
Appendix 5Fleet Composition as at 31 December 20131
135 vessels + 12 under
construction / to be delivered
Vessels under construction / to be delivered
1. Excludes Third Party Vessels
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Reliance on Third Party Information
The views expressed here contain information that has been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. This presentation should not be relied upon as a recommendation or forecast by Miclyn Express Offshore Limited (“Miclyn Express Offshore”).
Forward Looking Statements
Some of the information contained in this document may constitute forward-looking statements that are subject to various risks and uncertainties. Nothing in this document is a promise or representation as to the future. Statements or assumptions in this document as to future matters may prove to be incorrect. Miclyn Express Offshore does not make any representation or warranty as to the accuracy of such statements or assumptions. You acknowledge that circumstances may change and the contents of this document may become outdated as a result. You also acknowledge that no audit or review has been undertaken by an independent third party of the assumptions, data, results, calculations and forecasts contained in or referred to in this document. You should make your own independent assessment of the information.
No Warranties
We makes no warranty, express or implied, nor assumes any responsibility in its contents for its accuracy, completeness, its use for any general of particular purpose, nor that such items or use of such items would not violate or infringe rights of others.
No Offer of Securities
Nothing in this release should be construed as either an offer to sell or a solicitation of an offer to buy or sell Miclyn Express Offshore securities in any jurisdiction.
Pro-Forma Financial Information
References to pro forma financials exclude any exceptional items. A reconciliation to statutory financials is contained within the prospectus, available at our website www.miclynexpressoffshore.com.
Important notice and disclaimer