3Q2011 Results Briefing Analyst & Investor Update 16 August 2011
Agenda 1. Introduction 2. Focus Section: Subsea Services Outlook 3. Subsea Business Review 4. Drilling Business Review 5. Financial Review 6. Questions and Answers 3
1. Introduction Howard Woon Head, Investor Relations 4
Key highlights Mermaid booked a net profit of approximately USD1.5 million in 3Q2011, representing a 107% improvement yearonyear Asia Offshore Drilling (AOD) successfully completed private placement raising USD80 million. Mermaid…
Key highlights (cont) The previous contract for MTR2 ended at the end of March 2011 and was subsequently working on a contract extension. A formal extension agreement was announced on 22 July 2011 to extend the agreement for…
2. Focus Section: Subsea Services Outlook Bruce Saunders Project Director, Mermaid Offshore Services 7
Subsea Services Overview Overview Fleet Mermaid Offshore Services (MOS) provides subsea engineering services including surveying, inspection, repair and maintenance (IMR), light construction and ROV/dive support , to the offshore…
Seascape Surveys Limited 80% owned by MOS since March 2008 Key customers Founded in 2005, Seascape has over 90 personnel employed in offices located in Singapore, Indonesia and Thailand Provides survey, positioning, and subsea…
Subtech Limited Wholly owned by MOS since March 2010 Key customers Established in 1995, with operation in Qatar Provides turnkey subsea support services to local and international clients: Dive intervention (air & saturation)…
Key competitive advantages Strong position in Parent company, Mermaid Maritime established in Thailand in 1983 Thailand, Indonesia Incumbent positions in Gulf of Thailand, Middle East and Indonesia and the Middle East Longterm…
Incumbent position in key geographies MOS has a strong foothold in its key markets Thailand, Indonesia, and the Middle East MOS can leverage on its strong presence in these three markets to win repeat business with key clients,…
Global oil demand is increasing Global oil demand Oil demand is projected to grow by 1% per year on average All the growth is expected to come from nonOECD countries The transport sector accounts for the majority of…
Increased E&P spending driven by higher oil prices Strong growth in E&P Oil service companies revenues and E&P spending spending expected the next few years 2008 level of E&P spending is expected to be surpassed in 2011…
Strongest growth expected in the Southern hemisphere Strongest growth expected in Brazil, West Africa and Asia Pacific 11 known new offshore projects in South East Asia from 2010 Known offshore projects in South East…
Strong Demand for Subsea Construction Expected Subsea construction market Successful drilling of commercial discoveries will Subsea tree eventually lead to field development tendering Subsea tree awards awards Awards of subsea tree…
Improving LongerTerm Rates Outlook Rates weakened further in 2009 DSV rates in 4 scenarios although this was supported by forward coverage & commitments Increasing utilization becomes more important than high rates to…
Markets will recover, slowly but surely Global demand by vessel type Global vessel utilization North Sea DSV dayrates to 2014 18
3. Subsea Business Review Bruce Saunders Projects Director Mermaid Offshore Services 19
Subsea Key Highlights Subsea achieved 75.3% utilization in 3Q2011 in line with our strategy to increase utilization through competitive pricing. Total service income for subsea increased by 65% yearonyear to approximately USD35.8…
Subsea Tender Update Greatly improved fleet utilisation at the prevailing market rates Current bids in progress Contracts won during 3Q2011 worth USD300 mil [1] USD8 mil primarily in key markets of Asia Pacific & Middle East…
Subsea Business Strategy Mermaid Offshore Services Seascape High profile Subtech market presence from Singapore 2011 2012 2013 Improve Increase added Leverage key utilization value services clients Improve soft Reduce…
4. Drilling Business Review Steve Lenz Executive Director, Mermaid Drilling Limited 23
Drilling Operations Update MTR1 Location: Thailand Status: Waiting next contract award MTR1: Currently awaiting a decision on Client: NA proposals on a contract for her to be employed as an accommodation barge by Chevron…
Asia Offshore Drilling Update Seadrill Mermaid Other 33.75% Mermaid 33.75% Investors 51% 49% Other Investors 32.5% 11.11.10 8.12.10 01.07.11 01.1212 31.09.13 PP successfully completed, Strike Steel at Keppel 2nd PP successfully…
Asia Offshore Drilling Company Structure Seadrill Limited 33.75% Mermaid Maritime Plc. (Thailand) 33.75% Corporate Management Agreement Technical & Commercial Management Agreement Other Investors As AODs activites increase, a…
5. Financial Review Howard Woon Head, Investor Relations 27
Financial Highlights 3Q2011 Year on Year Comparison 3M 3Q2011Revenue (in THB millions) 3M 3Q2011 Net Profit (Loss) (in THB millions) 9M Operating Cash Flow Basic and Diluted EPS (in THB millions) 1,454 881 0.06 174 3Q2010…
3Q2011 Sector Breakdown (3 Months) 2010 Service Operating Operating Utilization Description Income Profit/Loss 2011 Margin Rate 1,072.8 Inspection, repair and maintenance; 75.3% Subsea Services 564.5 Infrastructure 120.4 56.6%…
3Q2011 Profits & Losses (3 months) All units in THB millions Net gains on Share of disposal of Interest Forex Net gains Profits of Impair investments in Gross Mgmt & Other Admin gains on PPE investments Losses of subsidiaries/…
Debt structure Net D/E (Times) Loan Maturity Net gearing (%) Low D/E ratio Units in THB millions allows financial Total loans outstanding flexibility continues to decrease < 1 year during 9M2011* < 1 year 696.6 616.6 13.5% 16.82%…
Cash flow Cash & Cash Equivalents 1,450.5 3,742.9 1,435.2 1,216.9 Total cash in hand has ShortTerm Investments decreased mainly due 334.2 606.3 969.6 (fixed deposits) to dividend payment , debt repayment and All units in…
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