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4 September 2013 DeepOcean Presentation Pareto Conference - Oslo Back on Track
4 September 2013
DeepOcean Presentation Pareto Conference - Oslo
Back on Track
An integrated provider of comprehensive subsea engineering solutions and a leading subsea contractor
Market leader in subsea IMR in the Greater North Sea and global leader of trenching services
Demonstrated track record of highly-engineered, complex subsea construction projects for the oil & gas, offshore wind and telecommunication industries
Corporate office in Amsterdam. Main execution centers in Haugesund Norway and Darlington UK. Global presence with offices in Trondheim Norway, Aberdeen UK, Macae Brazil, Ciudad del Carmen Mexico, Singapore and Den Helder the Netherlands
www.deepoceangroup.com 1
DeepOcean
Back on Track
HSEQS
2
Back on Track
www.deepoceangroup.com
Through 31 July 2013
Leading Indicators
HSEQS
Lagging Indicator
3
Back on Track
www.deepoceangroup.com
Through 31 July 2013
Lagging Indicators
A Decade of Transformation
2005
IPO at OSE
2006 2011
Acquires CTC Marine Projects Ltd
Acquired by Trico for
~NOK3.5 billion
2008 2009 2010 2007 2012 2013
Trico files for bankruptcy
protection in US
DeepOcean completes restructuring process
and appoints new Board
Appoints new CEO and CFO
Delivers strong EBITDA growth in 2H2012 - 1H2013
Acquires Oceanteam AS
www.deepoceangroup.com 4
Back on Track
Despite turbulence in 2009-
Back on Track
Awarded a 5-year firm IMR contract from Statoil for the Rem Ocean valued between ~$265 and ~$350 million depending on options and additional services Awarded a contract by Statoil for the procurement, installation and burial of the 140 km. Aasta Hansteen Fiber Optics Cable Closed new 125 million Credit Facility with 5 banks Secured extensions of Atlantic Challenger and Arbol Grande vessel charters through 2014 Acquired a 50% interest in ADUS DEEPOCEAN Chartered new vessels for 2014 and beyond, namely Havilia Phoenix, Rem Ocean and Deep Helder Opened Engineering Office in Trondheim and staffed up Reported a record and high quality backlog of $814(1) million effective 31 March Achieved one continuous year on hire of the Edda Fauna without any off hire breakdown Awarded Most Innovative Subsea Technology Provider at the Deepwater Excellence Awards ceremony at the 7th Annual Deepwater China Convention in May 2013 Recruited 158 (>10% increase) new employees and experienced turnover of less than 3% YTD
www.deepoceangroup.com 5
Recent Events in 2013
1) Unaudited
Back on Track
www.deepoceangroup.com 6
Leadership Team
Bart Heijermans CEO
20+ years of global oil & gas industry
experience
Shell E&P, Enterprise Products LP USA
EVP & COO Helix
2005 -2011
Dennis de Vreede CFO
20+ years of financial,
accounting experience
CFO Redevco
Mads Bårdsen President
DeepOcean AS
20+ years of oil & gas industry
experience
Stolt Offshore
Tony Inglis MD
DeepOcean UK
30+ years of global oil & gas
industry experience
Clough - SaiClo
Ottar Mæland Ops. Director
DeepOcean AS
13+ years of oil & gas industry
experience
Norsk Hydro
Pierre Boyde Com. Director
DeepOcean UK
15+ years of oil & gas industry
experience
EMC
Owned vessels: 7
Long Term Charters: 8 (+3 in 2014)
Spot charters: 2
28 ROVs
5 ROVs to be delivered in 2H2013
33 ROVs at 2013 year-end
> 4 ROVs to be delivered in 2014
7 ploughs
6 jet trenchers (+1 in 2014)
4 mechanical cutters
Ultimate trenching spread with T3200 and T1000 to be introduced in 2014
Vessels ROVs Trenchers & Ploughs
Company snapshot
~1200 employees
~250 agency personnel
Talent
www.deepoceangroup.com 7
Revenue: $513m Adj. EBITDA: $54m (10%) ROCE: 7% Net Debt < $0 CAPEX: $72m
2012 Financials (Audited) 1H2013 Financials (un-audited)
Revenue: $294m Adj. EBITDA: $51m (17%) ROCE: 19% Net Debt: $2m CAPEX: $29m
Back on Track
Survey, inspect and map terrain prior to the installation of
new subsea systems
More than 50 000 km pipeline surveyed Water depth to 2100 m ROV and vessel based Co-owner of ADUS DeepOcean
Installation of subsea structures
SURF Power Cables and umbilicals Structures Module replacement Life of Field Seismic cables
Leading provider of subsea trenching and
protection services
Global leader
Largest portfolio of seventeen trenching assets with wide range of capabilities
Subsea Installation Trenching
Service lines
Survey and Seabed Mapping
DeepOcean is the largest subsea IMR
service provider in the Greater North Sea
Largest subsea IMR Contractor in Greater North Sea More than 1200 vessel days per year and 700 call-offs per year Long term service contracts
Inspection, Maintenance and
Repair (IMR)
ROV based subsea decommissioning
Lead contractor on subsea decommissioning projects
Decommissioning
www.deepoceangroup.com 8
Back on Track
Confidential Not for Public Dissemination
Arbol Grande
Deep Endeavour CBO Isabella
Edda Flora Edda Fauna
Edda Fonn
Deep Vision Volstad Surveyor
Northern Wave
Volantis
Maersk Recorder
Rem Forza
Vessel and project activity
T1
Office locations
Northern Commander
Northern Supporter
Back on Track
Maersk Responder
Maersk Assister
Excludes: Walker I Havila Phoenix (2014) Rem Ocean (2014) Deep Helder (2014) TBD (2014)
www.deepoceangroup.com 9 Atlantic Challenger
Activity on 6 continents managed by regional offices through two execution centres
www.deepoceangroup.com 10
Proprietary visualization software and data
acquisition methodology
Decommissioning of Statfjord Loading Buoy. Novel technology used to disconnnect chains from buoy
Installation of X-MAS tree with Edda Fauna IMR vessel
ADUS DEEPOCEAN STATFJORD LOADING BUOY DECOMMSSIONING AND REMOVAL
Clamp Installation on Glitne
Selection of recent projects Back on Track
Flexible Riser End Replacement
IMR
www.deepoceangroup.com 11
Trenching of pipelines by AMP500 plough
Snoree LOFS / PRM
Macedon and Gorgon Ithaca Stella
Burial of umbilicals offshore Australia
Selection of recent projects Back on Track
Installation and burial of 80 array cables in German sector of North Sea
BARD
Installation and burial of ~535km of cables and umbilicals on Snorre PRM project
More subsea wells Increased demand for construction, IMR and decommissioning
Bigger and more complex subsea structures Need for larger and more capable vessels More pro-active and critical maintenance requirements
Ageing Infrastructure Increased requirements for IMR and replacement scope Focus on IOR (Increased Oil Recovery) Installation, IMR and change-out of subsea production systems Well intervention (downhole IMR) Permanent Reservoir Monitoring (PMR) Electrification projects
Renewables Increase in number of Offshore wind farms IMR market for remedial trenching
West European Grid New interconnector power cables
Subsea trends
Back on Track
www.deepoceangroup.com 12
Oil & Gas vs. Renewables revenue
CAPEX vs. OPEX funded revenue
Day-rate vs. qualified lumpsum or qualified EPCI
Differentiated services vs. differentiated assets
Large number of relatively inexpensive assets vs. small number of expensive assets
Global vs. regional strategy
www.deepoceangroup.com 13
Trade Offs for DeepOcean to achieve predictable and sustainable growth
Back on Track
- T3200
Our Focus
Zero incidents as the result of thorough preparations, training, development and ACT for Safety
Retain and attract talent through investment, development and empowerment and become an Employer of Choice, that is admired by its peers
Deliver high quality and reliable services to our Customers
Grow ROCE
Manage balance sheet to withstand and take advantage of opportunities during downturns
Credibility Say what you do and do what you say
www.deepoceangroup.com 14
Back on Track
www.deepoceangroup.com
High ambitions - Deep knowledge!
www.deepoceangroup.com 15
