An Oslo Stock Exchange listed shipping company Ticker: OTS CEO: Haico Halbesma CFO: Torbjrn Skulstad Q3 2012 presentation Oslo 8th November 2012
CAUTIONARY STATEMENT This presentation contains forward looking information. Forward looking information is based on management assumptions and analysis. Actual experience may differ, and those differences may be material. Forward…
AGENDA Highlights Bond Refinancing Financials Market Outlook Appendix 3
HIGHLIGHTS Q3 Started the refinancing of the bond loan which was completed 24th October 2012 Completed refinancing of CSV BO 101 and CSV Southern Ocean Continued EBITDA and EBITDA-margin growth Full utilization of Lay Vessel North…
Successful Refinancing
DELIVERING ON PROMISES 2009 - 2012 1 Refocus and restructure Renegotiation and conversion of bond loan (2009 - July) Restructuring balance sheet and operations 2 Refinancing of two vessels OTS refinanced CSV BO 101 and CSV Southern…
NEW BOND vs. CURRENT BOND Current NOK bond called for redemption 23rd November 2012 NEW USD bond NOKm 400 (NOKm 497 incl. call premium) New bond USDm 92.5 Redeemed at 124% Issued at 97.5 % Redemption price increases 9% annually…
BOND REFINANCE IMPLICATIONS Bond loan of USD 92.5 million on balance sheet Net negative equity effect of estimated USD 5 million CF/ Operating implications Repaying USD 87 million in existing NOK 497 million bond loan Repaying USD 1…
Company Overview
COMPANY OVERVIEW ENGINEERING Shipping segment Engineering segment Four vessels, of which three REVENUE USD 7,4M Focus on Oil & Gas and Offshore are CSVs and one is LV EBITDA USD 1,8M Renewables through joint ventures plus EBITDA…
CHARTER STATUS Robust backlog with solid clients 11
Financials
FINANCIAL SUMMARY EBITDA Q3 2012 increased 29 % compared to the same quarter last year EBITDA Q3 2012 percentage without net result Lay Vessel North Ocean 105 is 48 % Revenue includes net income from Lay Vessel North Ocean 105 in…
REVENUE & EBITDA BY SEGMENTS Net income of associates is operational Lay Vessel North Ocean 105 Strong performance shipping 14
P&L REPORT END Q3 2012 Net finance costs include call premium costs USD 2.0M Operating profit increased 66 % compared to the same quarter last year 15
BALANCE SHEET Q3 2012 Book value of equity is 38 % 16
LARGE TAX DEDUCTIBLE LOSSES Norway OTS has confirmed tax loss to carry forward of USD 160 M (NOK 917 M) The CSV vessels comply with the Norwegian Tonnage Tax regime with approx. 0% tax CSV 101, CSV 104 and LV 105 are under the NTT…
Market Outlook
E&P spending to see double digit growth Source: Pareto Research, * - Based on longer term budgets/ spending plans 19
Solid growth in new subsea contracts Major SURF awards (USDm)* 18,000 Book-to-Bill x 16,000 Sunrise Pony 14,000 Mad Dog ph.2 Kizomba Sat. ph. 2 12,000 Quad 204 Egina 10,000 Book-to-Bill 1.25x Block 31 ph 2 8,000 Tweneboa…
H&D is strongest market in growth areas Average annual demand growth expected to be 12% in the H&D surf market in period 2011-16 OFFSHORE PIPELAY & SUPPORT MARKET Markets Vessels Harsh & Deep waters Shallow & Benign waters…
Lack of Harsh & Deepwater vessels, and about 75 vessels lacking in 2016 Base case has demand growth 2011-16 of 15% 15 new H&D pipelay vessels are needed in 2016, and p.a. and fleet capacity growth of 8% p.a. based another 7 vessels…
Brazil is the dominating market for H&D reel-lay vessels Demand expected to increase 9% in 2012 vs. 2011, and 10% more than expected in March 2012 23
Global offshore wind farm cable demand Most of activity increase until 2015 in Southern North Sea 24
FOCUS GOING FORWARD Focus Enhance equity instrument with continued focus on quality assets and balance New investment in quality assets utilizing the clean capital structure Target markets Large harsh- and deep-water…
Thank you Oceanteam Shipping ASA Corporate headquarters Tveitarsveien 12 T +47 55 10 82 40 PO Box 463, Nesttun F +47 55 10 82 49 5853 Bergen E infooceanteam.no Norway WWW.OCEANTEAM.NL 26
Appendix 1: Company overview 27
Our Fleet: SHIPPING CSV Bourbon Oceanteam 101 CSV North Ocean 102 North Ocean Series CSV Southern Ocean High-end deep-water offshore construction & pipe lay LV North Ocean 105 tonnage series FSV Mantarraya FSV Tiburon Proven…
Oil & Gas ENGINEERING - SERVICES Engineering Renewables services KCI is an experienced engineering company focusing on the oil and gas industry, complex structures and the renewable energy industry: Complex Structures Design and…
Selected assets ENGINEERING - EQUIPMENT POOL Oceanteam has an equipment rental division with a deep-water base in Dundee, Scotland OTS 10T tensioner Oceanteam Shipping is opening our cable facility in Velsen, the Netherlands…
Appendix 2: Bond loan 31
NOK BOND LOAN redemption date 23rd November 2012 In 2009 the OTS bond loan was restructured to NOK 400 million. Furthermore, it was added to an incentive structure that would compensate bondholders for the reduction in par value,…
NOK BOND LOAN CONTINUED The interest rate on the bonds increase every year in mid-December with 100 basis points (= 1%-points). Currently the interest rate is LIBOR + 5.75%-points after 19th of December 2011. If the loan is not redeemed…
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