Songa Offshore SE Presentation 4Q 2013 26 August 2013 17 February 2014
Financial Performance Fourth quarter EBITDA of 60 QUARTERLY EBITDA million compares to 51 million in third quarter 2013 70 EBITDA Fourth quarter EBITDA negatively impacted by non-recurring items of 4 million included in G&A 59 60…
Highlights Completed refinancing with 400 million in new capital and 5% average day rates increase of the eight year firm Cat D contracts 5-rig fleet achieved 99.8% operating efficiency Sale of Songa Mercur and Songa Venus…
Subsequent events Songa Venus signed one additional well with Mubadala Petroleum estimated to 2 - 3 months at 226 dayrate Statoil pre-delivery loan of 222 million repaid by 111 million and Swedbank pre-delivery loan of 50 million…
We continue to build a new Songa under the New Songa Vision Vision: Songa Offshore shall be the preferred International Midwater Drilling Contractor with a strong presence in the harsh environment North Atlantic basin Mission: We…
With an experienced management team Bjrnar Iversen - CEO Before joining the company in June 2013, Mr. Iversen was a member of the executive leadership team at Odfjell Drilling AS. During his 17 year's tenure at Odfjell Drilling, he…
Areas of Operation We are building Norway's largest semi submersible company in 2014 and 2015 New Songa Enabler New Songa Encourage Songa Delta Songa Trym New Songa Endurance New Songa Equinox Songa Dee 8
Statoils largest drilling operator with 50% of Statoil firm contract backlog on the NCS Backlog per rig (USDm) Statoil rig years contracted in Norway (floaters) 900 836 800 700 600 525 3 31 4 500 4 Songa 425 411…
Operations solid performance
Solid Operations Operating Efficiency % Operating Efficiency of 100% for 100% 99,8% 97% 98% 97% the Norwegian fleet and Earnings Efficiency of 97% in fourth quarter 95% 94% 94% 94% 93% Songa Delta intermediate SPS 90% completed…
Rig Operating Expenses RIG OPEX - k /day 200 k /Day Q4 13 Q3 13 Q2 13 Q1 13 180 DELTA 184 166 191 197 160 DEE 184 175 161 179 140 TRYM 2091 201 190 107 120 k / Day Average 192 181 181 161 100 80 VENUS 94 92 95 89 60…
Contract Status 2013 2014 2015 2016 2017 2018 Unit Customer Current Option Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Day rate Day rate Norwegian Continental Shelf Rate end of firm Songa Dee Statoil 353…
Market Update North Sea semi market very strong with high entry barriers to the NCS with few potential rigs to enter Forecasted rig demand from IHS Petrodata shows North Sea rig demand growing from 40 to 47 units by 2014 Fearnley…
Update on sale of Mercur and Venus Both units for sale Units to be sold straight out or sold in combination with Songa Offshore SEA management organization Several interested parties 19
Update on Songa Dee Special Periodic Survey Strong experienced project organization in place (T&P division) Will take place August September 2014 with 60 days out of service incl. transit Budget of 90 million Lessons learned from…
Status Cat D Newbuild Project Songa Equinox Songa Endurance
Cat D Newbuild Project No change in delivery cost No change in delivery dates High focus on commissioning and mobilization planning Songa Equinox core operational team in place at yard - Songa Endurance team to follow shortly…
Cat D Newbuild Project Construction Progress Equinox Endurance Encourage Enabler August 2013 70.1% 65.8% 19.1% 8.0% October 2013 75.7% 72.8% 38.3% 12.1% January 2014 79.2% 77.2% 59.8% 22.8% Yard Delivery Equinox Endurance Encourage…
Cat D Newbuild Project Cat Ds constructed according to Statoils specifications reduces delivery risk considerably Mutual understanding that Statoil will accept as much as possible of the rigs before Songa takes delivery from yard…
Overview from the yard
Refinancing Completed refinancing process in December 2013 Raised new equity of approximately 250 million Issued convertible bond of 150 million with 4% coupon Amended bond loans Maturity extended for the NOK 750m bond from June…
Financing Good progress on the Cat D 1 and 2 financing Financial covenants aligned with other debt post refinancing in December 2013 Credit approval received from all lenders Competitive main terms 507 million per rig Average…
Shareholder matters Perestroika AS majority owner following refinancing transactions Long term, industrial strategy No plans to take Songa Offshore private Will support continued open dialogue with shareholders and other…
Financing expense non-cash/non-recurring 4Q 2013 4Q 2013 million Cash Impact Recurring financing expenses (9) (9) Bond loans changed substantially during refinancing For accounting purpose recognize as new loans NOK 1,400m Bond -…
Taxes 4Q 2013 4Q 2013 million Cash Impact Malaysia and Singapore corporate/withholding taxes (4) (3) Cyprus corporate tax (2) (1) Tax Provision Australia related to Transfer Pricing issues (1) (1) 2013 Norwegian profits charged…
Balance Sheet million Dec 31 Sept 30 June 30 March 31 2013 2013 2013 2013 Non-Current Assets Rigs, machinery and equipment 1,228 1,335 1,363 1,390 Newbuilds 583 561 542 524 Deferred tax assets 77 103 103 103 Derivative financial…
Balance Sheet million Dec 31 Sept 30 June 30 March 31 2013 2013 2013 2013 Total shareholders equity 1,117 959 957 952 Non-current liabilities Bank loans and other facilities 400 486 524 591 Bond loans 342 345 341 358 Convertible bond…
Summary Refinancing completed, including improved Cat D day rates Strong Contract backlog of 6.6 bn with options worth 8.4 bn Solid Operations with Operating efficiency closed to 100% Sale progressing for Songa Venus and Songa…
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