GC Rieber Shipping ASA - Third Quarter 2018 Bergen 7 November 2018 - - PowerPoint PPT Presentation

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GC Rieber Shipping ASA - Third Quarter 2018 Bergen 7 November 2018 - - PowerPoint PPT Presentation

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GC Rieber Shipping ASA - Third Quarter 2018 Bergen 7 November 2018 GC RIEBER SHIPPING Agenda Highlights Q3 2018 Operational Review Financial Review Outlook and Summary Highlights Q3 2018 Fleet utilisation of 99% in

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SLIDE 1

GC RIEBER SHIPPING

GC Rieber Shipping ASA - Third Quarter 2018

Bergen 7 November 2018

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SLIDE 2

Agenda

  • Highlights Q3 2018
  • Operational Review
  • Financial Review
  • Outlook and Summary
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SLIDE 3

Highlights Q3 2018

  • Fleet utilisation of 99% in a quarter with continued

challenging market conditions

  • Contract backlog of NOK 463 million as of 6 November
  • Net loss of NOK 53.2 million

– Including loss from joint ventures of NOK 25 million

  • Shearwater GeoServices to acquire the marine seismic

acquisition assets and operations of WesternGeco, the geophysical services product line of Schlumberger, forming a market leading geophysical company

1 Excluding marine seismic 2 Excluding charterers’ extension options and marine seismic as of 1 October 2018 2 1

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SLIDE 4

Contract updates after the end of the period

  • Two time charter agreements for the CSV vessel «Polar Queen», performing walk-to-work duties and

accommodation services for two different clients

– First contract holds two firm periods; one of 45 days plus options from October 2018, and the other 50 days starting February 2019 – Second contract holds a firm period of 4 months from May 2019 plus options

  • Shearwater awarded two 3D surveys in the Mediterranean and South East Asia

– Adding 7 vessel-months to backlog – Both surveys scheduled to start in the first half of Q4 2018

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SLIDE 5

Highlights Q3 2018 - Key financial figures

81 50 31 61 70 10 20 30 40 50 60 70 80 90 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 64

  • 66
  • 22

9

  • 7
  • 80
  • 60
  • 40
  • 20

20 40 60 80 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018

REVENUES

NOK million

EBITDA*

NOK million

36

  • 81
  • 59
  • 9
  • 53
  • 100
  • 80
  • 60
  • 40
  • 20

20 40 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018

NET PROFIT

NOK million

*Includes profit and losses from Joint Ventures

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SLIDE 6

Operational Review

Q3 2018

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SLIDE 7

Contract backlog of NOK 463 million* as of 6 November 2018

92% 79% 34% 0% 20% 40% 60% 80% 100% From 6 Nov. 2018 2019 2020 39 248 176 100 200 300 From 6 Nov. 2018 2019 2020-2021

CONTRACT BACKLOG*

NOK million

CONTRACT COVERAGE*

Utilisation rate

*Excluding marine seismic Excluding charterers’ extension options

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SLIDE 8

Subsea Segment

  • Fleet utilisation of 97% in Q3 2018, compared with

86% in Q3 2017

  • «Polar Onyx» on charter for the entire period
  • «Polar King» on charter for the entire period
  • «Polar Queen» on charter for almost three

full months in the period

  • Outlook
  • «Polar Onyx» on a fixed charter with

DeepOcean until Q1 2021, with options for two more years

  • «Polar King» continues on a fixed charter

with Nexans until the end of August 2019

  • «Polar Queen» employed until September

2019

«Polar Onyx» «Polar King» «Polar Queen»

  • SURF vessel, built

2014

  • LOA: 130m
  • Crane: 250mt
  • VLS-tower: 275mt
  • Accommodation: 130
  • CSV vessel, built 2011
  • LOA: 111m
  • Crane: 150 mt
  • Accommodation: 112
  • CSV vessel, built 2011
  • LOA: 111m
  • Crane: 150 mt
  • Accommodation: 119
  • Undisclosed client

77 46 27 56 65 25

  • 13
  • 19

14 14

  • 20

20 60 100 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Operating income EBITDA Fleet utilisation (%)

86 %

KEY FIGURES

NOK million

58 % 97 % 48 % 86 %

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SLIDE 9

Ice/Support Segment

  • Fleet utilisation of 100% in Q3 2018,

compared with 100% in Q3 2017

  • «Ernest Shackleton» on bareboat

charter to British Antarctic Survey until September 2019

  • Polar research and

subsea support vessel

  • LOA: 80m
  • 50 berths, large decks

& cranes allows for multiple tasks

  • Used as an Antarctic

research vessel

4 4 4 4 4 4 4 4 4 4

2 4 6 8 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Operating income EBITDA Fleet utilisation (%)

100 % 100 % 100 % 100 % 100 %

KEY FIGURES

NOK million «Ernest Shackleton»

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SLIDE 10

Joint Ventures – Ice/Support

  • Ice/Support
  • Fleet utilisation of 100% in Q3

2018, compared with 100% in Q3 2017

  • «Polar Pevek» on charter to Exxon

Neftegas (ENL) until 2021

  • «Polar Baikal» and «Polar Piltun»
  • n charter to Sakhalin Energy

Investment Corporation until end

  • f 2019
  • Share of profit in Q3 2018 of NOK

14 million

  • Ice breaking tug with

towing anchor handling capacity

  • LOA: 74m
  • Oil spill drip tray and
  • il containment

system installed

  • Crew supply vessel
  • LOA: 29m
  • Used for crew

transport between shore and installation in North Eastern Russia

  • Pax: 70
  • Crew supply vessel
  • LOA: 35m
  • Used for crew

transport between shore and installation in North Eastern Russia

  • Pax: 70

12 12 3 5 14

5 10 15 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Share of profit

KEY FIGURES*

NOK million

«Polar Pevek» «Polar Baikal» «Polar Piltun»

* «Polar Baikal» and «Polar Piltun» only

  • perate for half the year, the vessels are cold

stacked in the winter season

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SLIDE 11

Joint Ventures – Marine Seismic (Shearwater)

  • Marine Seismic (Shearwater)
  • Shearwater achieved a fleet utilisation of

83% in the period for its three active vessels

  • Continued competitive rate pressure in

Q3, and also challenging projects and intercontinental transits in the quarter

  • GC Rieber Shipping’s share of profit was

negative NOK 39 million in Q3

  • Outlook
  • Two of the active vessels are currently

booked for Q4

  • Shearwater to acquire the marine seismic

acquisition assets and operations of WesternGeco, forming a market leading geophysical company

  • Advanced 22

streamer 3D seismic survey vessel

  • Built: 2015
  • LOA: 113m
  • Accommodation: 70
  • ICE class 1A*
  • High speed 14

streamer 3D seismic survey vessel

  • Built: 2011
  • LOA: 107m
  • Accommodation: 70
  • 14 (+ 2) streamer 3D

seismic survey vessel

  • Built: 2000

(upgraded in 2014)

  • LOA: 118.5m
  • Accommodation: 70

23

  • 69
  • 10
  • 14
  • 39
  • 80
  • 60
  • 40
  • 20

20 40 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Share of profit

KEY FIGURES

NOK million «Polar Empress» «Polar Duchess»

«Polar Marquis»

«Polar Duke»

  • High speed 14

streamer 3D seismic survey vessel

  • Built: 2010
  • LOA: 107m
  • Accommodation: 70
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SLIDE 12

Financial Review

Q3 2018

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SLIDE 13

Income statement

(1) Profit bef. tax adjusted for unrealised currency gains/losses, profit from disposals and impairment of fixed assets.

NOK mill Q3 2018 Q3 2017 YTD 2018 YTD 2017 31.12.2017 Operating income 69.6 80.9 161.7 213.6 264.1 EBITDA

  • 6.5

63.7

  • 18.8

86.7 21.0 EBIT

  • 35.6

37.2

  • 78.7
  • 22.8
  • 90.0

Profit before tax

  • 49.4

35.9

  • 117.5
  • 48.6
  • 130.6

Net profit

  • 53.2

35.9

  • 121.3
  • 48.7
  • 130.1

Normalised profit before tax (1)

  • 49.1

28.3

  • 143.0
  • 32.5
  • 142.1

Earnings per share

  • 1.22
  • 0.82
  • 2.78
  • 1.12
  • 2.98

Number of shares (million) 57.1 43.7 57.1 43.7 43.7

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SLIDE 14

Balance sheet 30.09.2018

  • Total balance NOK 2,307 million
  • Equity ratio 48.2 percent
  • Cash position NOK 114 million, up

from NOK 108 million as per Q2 2018

  • Other current assets include

restricted cash of NOK 61 million

  • Net debt NOK 1 039 million

NOK million

114 58 122 1138 2071 1111 500 1 000 1 500 2 000 2 500 Assets Equity & Liabilities

Fixed assets Other current assets Cash & liquid assets Equity Long-term liabilities Current liabilities

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SLIDE 15

Outlook and Summary

Q3 2018

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SLIDE 16

Outlook

  • Market view short term
  • The oil price has fluctuated between USD 70 and 80 per barrel during the summer season and

has steadily increased since then. By the end of September, Brent spot exceeded the USD 80 per barrel mark for the first time since late 2014, and remained at this level until mid-

  • October. The overall offshore market sentiment has partially become more positive, but this

improved sentiment has yet to turn into tangible projects yielding appropriate returns

  • Expected market trends
  • Subsea/renewables: continued uptick in activity, but the rate levels remain as per earlier in

2018, with limited uptick in recent fixtures

  • Marine seismic: Improvement in activity levels and transactions
  • Ice/support: Stable and unchanged activities and rates in a gradually improving market
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SLIDE 17

Summary

  • High utilisation in all segments
  • Solid contract coverage for the remaining of 2018
  • Continued challenging market conditions with unsustainable rates
  • Shearwater to acquire the marine seismic acquisition assets and operations of WesternGeco,

forming a market leading geophysical company

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SLIDE 18

Disclaimer

This quarter presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. Such forward-looking information and statements are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for GC Rieber Shipping ASA and its

  • subsidiaries. These expectations, estimates and projections are generally identifiable by statements containing

words such as "expects", "believes", "estimates" or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for GC Rieber Shipping’s businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time. Although GC Rieber Shipping ASA believes that its expectations and the information in this Presentation were based upon reasonable assumptions at the time when they were made, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in this Presentation. GC Rieber Shipping ASA nor any

  • ther company within the GC Rieber Shipping Group is making any representation or warranty, expressed or

implied, as to the accuracy, reliability or completeness of the information in the Presentation, and neither GC Rieber Shipping ASA, any other company within the GC Rieber Shipping Group nor any of their directors,

  • fficers or employees will have any liability to you or any other persons resulting from your use of the

information in the Presentation. GC Rieber Shipping ASA undertakes no obligation to publicly update or revise any forward-looking information or statements in the Presentation.