20
Fairstar Investor Presentation June 2010
Fairstar Investor Presentation
June 2010
2
Fairstar Heavy Transport N.V.
Fairstar Heavy Transport is publicly listed on the Oslo Stock Exchange (OSE) since 2006
Owns and operated two Vessels - FJORD and FJELL
Key characteristics:
In-house fleet management
Experienced Dutch officers and crew (full-time Fairstar employees)
All project engineering for offshore transports executed in-house
Strong risk management culture
Fairstar has established a consistent profile in the European and North American Capital Markets as a well disciplined, transparent, and reliable company
3
Fairstar Heavy Transport owns and operates two of the most modern semi-submersible vessels serving the Global Offshore Energy Industry today
FJORD FJELL
On June 1, 2010 Fairstar announced it been awarded two contracts by Chevron Australia and Kellogg Joint Venture – Gorgon
Each contract for a minimum of twelve months with an option for an additional four months
Total contract value exceeds USD 90 million including the options
Gorgon changes everything…...
4
FAIRSTAR wins GORGON module transport contract
FAIRSTAR Plans To expend its fleet
Fairstar has signed an agreement with Guangzhou Shipyard International Co., Ltd. (GSI), to build two new Semi-submersible, Open-stern, Heavy Transport vessels
Contract price will be USD 101m per ship
FORTE and FINESSE will be delivered in March 2012 and October 2012
Fairstar has retained Maersk Brokers to undertake due diligence on GSI
GSI is currently building two similar vessels for COSCO which are to be delivered on schedule in December 2010 and June 2011
5
“We recommended GSI since this is a shipyard renowned for its quality and
safety standards as well as on time deliveries. Our recommendation is based
on Maersk Broker's experience with GSI for the last 13 years wherein among
others, A.P. Moller Maersk, has placed substantial orders for and received on-
time deliveries of a large number of tankers been building there. All the
newbuilds has been delivered on time or even before the contractual
scheduled delivery date.”
Due Diligence Maersk Brokers April 2010
Vessels Details FORTE and FINESSE
Semi-submersible True open-stern
50,000 dead weight tonnes
Length 213.6 m, Deck beam of 45.5 m.
Submerging draft 26 m (13 m water above deck)
Ballast water treatment system
Ice Class
Fully loaded speed 14 knots
Range 18,000 nm
6
7
General Arrangement drawing
Global Marine Heavy Transport Fleet in 2010
Four distinctly different ship types
True Open Stern
Non-submersibleFlat Deck Carriers
False Open Stern
Converted Oil Tankers
8
Ship Characteristics
Maximum cargo versatility, removable buoyancy towers and fully submersible to twelve metres.
Limited ballast capacity, only used for roll-on/roll- off or lift-on/lift-off
Starboard buoyancy tower contains exhaust funnel limiting access for efficient stern loading. Can be temporarily removed at a significant cost
Fixed stern super-structure limits loading options for high value cargoes. Submersion capability limited to eight metres
Competitive landscape has changed dramatically
9
1
1 4
2
10
3
2
2
4 1
4
1
1 3
4 4
1
1
0 2 4 6 8 10 12 14 16 18 20
Converted oil tankers (20)
False open stern (3)
Non-submersible flat deck carriers (13)
True open stern (13)
CCCC International Shipping Corp COSCO COSCO Logistics
Dockwise Dong Bang Transport Logistics Fairstar Heavy Transport
Guangzhou Salvage Interex Mega Line Meriaura
NYK-Hinode Line Ocean HeavyTransport Shanghai Zhenhua Heavy Industry (ZPMC)
STX Pan Ocean Viatech Engineering
10
Four clear market segments have emerged
Low Value
High ValueLow Frequency
Specialist VesselsUnique cargoes
Specific vessel requirementsSingle voyages
Integrated Value-AddedService Provider
Multiple voyagesSpecific vessel requirements
Stingent crew/organisational requirements
Commodity Transport ProviderStandard cargoes
Generic vessel requirementsSingle voyages
Spot market
No-Go ZoneUnable to compete
Low Value
High ValueHigh Frequency
11
Examples of various market segments
Complexity of transportation requirements
Differentiating capabilities of MHT vessels
Low Value
High ValueLow Frequency
Low Value
High ValueHigh Frequency
Tug and Barge Combination
12
Specialist VesselsFew, single voyages
Complex engineeringT/C revenue: USD 100-130,000 per day
Integrated Value-AddedService Provider
Multiple voyage contractsComplex engineering
T/C revenue: USD 80-110,000 per day
Commodity Transport ProviderSpot market
Price competitionT/C revenue: USD 30-40,000 per day
No-Go Zone
Relative pricing power for the various vessel types is becoming clear
Low Value
High ValueLow Frequency
Low Value
High ValueHigh Frequency
Australia’s gas reserves (trillion cubic feet) LNG Projects
Potential shortage of capacity is the biggest challenge to the marine heavy transport industry today
Project Field OperatorEst. cost
USD
Targeted
approvalProduction
Gorgon Carnarvon Chevron 43bn Approved 2014
Pluto 2 Carnarvon Woodside 4bn 2010 2013
Ichthys Browse Inpex 32bn 2010 2015
Gladstone LNG* Surat-Bowen Santos 11bn 2010 2014
Curtis Island LNG* Surat-Bowen BG Group 12bn 2010 2014
APLNG* Surat-BowenOrigin/
ConocoPhillips12bn 2010 2014
Fisherman`s
Landing*Surat-Bowen LNG/Arrow 500m 2010 2012-2013
Pluto 3 Carnarvon Woodside 4bn 2011 2014
Wheatstone Carnarvon Chevron 13bn 2011 2016
Sunrise Bonaparte Woodside 12bn 2011 2017
Browse Browse Woodside 30bn 2011 2018
TOTAL 174bn
*) Planned LNG production from coal seam gas piped to Gladstone. Analysis and proponents agree that the projects will need to consolidate and cannot all go ahead at current time framesand sizes
Carnarvon
Basin
81.75
Browse
Basin
30.3
Bonaparte
Basin
27.9
Perth
Basin
1.38
Cooper
Basin
7.5
Surat
Basin
7.5
Gippsland
Basin
7.15Bass
Basin
0.5
Otway
Basin
2.4
Gladstone
Curtis Island
Source: AFP and SEB Enskilda 13
Fairstar’s Strategic Agenda
Fairstar has achieved the highest EBITDA margin in the industry. The company maintains an efficient vessel support organization
Fairstar has a strong balance sheet with low leverage (<50% per vessel)
FJORD and FJELL currently financed by 8 year facility from HSH Nordbank at 135bp over LIBOR
The World Needs Energy
Fairstar vessels are positioned in the most
profitable segment of the Marine Heavy
Transportation Market
Strong reputation within the Energy Industry
Fairstar has consistently achieved strong financial
performance
Favorable outlook for the E&P/Oil service industry
Increased demand for offshore heavy transport, especially for modules involved in energy infrastructure onshore and offshore
Marine heavy transport on semi-submersible open stern vessels is clearly preferred by energy and offshore construction companies for large infrastructure projects
The marine heavy transport market is changing
Fairstar is emerging as the industry leader
Fairstar’s vessels are new and have performance characteristics that give Fairstar a clear competitive advantage over other industry participants
Fairstar has close relationships with important energy partners including Chevron, Total, Saipem, Transocean, Ensco, KBR, Heerema and Maersk Oil & Gas amongst others
This client group expects the highest levels of planning and execution of complex offshore energy projects by its marine transportation partners
Transportation of EGTL Modules for Chevron
Client: Charville Consultores e Servicos LDA (a joint venture of KBR and Snamprogetti)
Route: Abu Dhabi (UAE) to Nigeria
Cargo particulars:
Type: 15 skids and process modules for the Escravos Gas To Liquids Project (EGTL).
Weight :up to 2200 T
Largest dimensions: 55m x 22m x 26m (LxBxH)
(Un)loading: Roll-on / Roll-off
FHT Vessel: FJORD/ FJELL
Key Features:
Fairstar will make 3 consecutive round trip voyages to transport the EGTL modules for Chevron.
FJORD was selected because of its combination of shallow draft and large carrying capacity, enabling the vessel to enter the Musaffah Channel at Abu Dhabi as well as to pass the sandbar at the entrance of the Escravos river.
FJORD’s deck size allows up to 4 of the large EGTL modules to be transported simultaneously, saving additional voyages.
15
Transport of MSF/CE modules
Client: Heerema Marine Contractors for Chevron
Route: Okpo (South Korea) to Tombua Landana field, (Angola)
Cargo: Two MSF/CE modules
MSF module: Weight: 5,880 MT, Length: 71.9m, Width: 71.9m, Height: 27.4m
Central module: Weight: 4,570 MT, Length: 30.5m, Breadth: 71.9m, Height: 30.3m
(Un)loading: Skid-on / Lift-off
FHT Vessel: FJORD
Key Features:
The cargoes were loaded from the DSME quayside via skidding over the side each in less than five hours and discharged offshore using Heerema’s semi-sub crane vessel “Thialf”.
Fjord’s sophisticated ballast system had sufficient redundancy to enable the side-loading of this heavy cargo while simultaneously compensating for the very large tidal difference.
Fjord’s triple thruster propulsion increased manoeuvrability alongside the SSCV resulting in a smooth offshore lift-off.
Fjord’s unobstructed stern of the provided additional clearance during the lift-off.
16
Transport “Perro Negro 3”
Client: Saipem Portugal S.P.A.
Route: Visag (India) to Sharjah (UAE)
Cargo: Jack-Up rig
Weight: 10,000 tonnes
Loading/Unloading: Float on/ Float off
Fairstar Vessel: FJELL
Key Features:
Access to a safe loading area in Visag, India was limited due to
shallow water in the only available sheltered water.
High cribbing to accommodate the unusual spud cans was not
possible as it would cause stability issues for the drilling rig.
Welding sea-fastenings onto the rig’s hull was not acceptable to the
client. Fairstar engineers developed a solution which lowered the
center of gravity while fastening the rig to the ships deck without
welding on to the Perro Negro’s hull.
17
Transport of Jack-up rig “Energy Exerter”
Client: Northern Offshore LLC
Route: Kirkenes (Norway) to Kavala (Greece)
Cargo: Jack-up drilling rig
Weight: 12,765 MT
Length: 67.3m, Width: 86.3m, Leg length: 133.7m
(Un)loading: Jack-up / Jack-down
FHT Vessel: FJORD
Key Features:
Loading and sea fastening above the Arctic circle under extreme
conditions averaging -17oC. The jack-down solution was selected
since a float-on was technically ruled out in the prevailing weather
and water conditions.
FJORD’s performance was tested through some of the most extreme winter marine conditions in the Barents Sea, along the Northern Norway coast and in the Bay of Biscay. FJORD’s bow thruster and two azimuth stern thrusters were significant factors in receiving approval for the operation from the MWS, Noble Denton.
The rig was jacked-up from FJORD’s stern on the oil field where the rig’s first well was to be drilled, without tug boat assistance, resulting in significant time and cost savings for the client.
18
Launch of Chemical tanker “Marettimo M”
Client: Cantiere Navale di Trapani S.P.A.
Location: Trapani (Italy)
Cargo: Chemical tanker
Weight: 6,379 MT
Length: 135m, Breadth: 26m
(Un)loading: Roll-on / Float-off
FHT Vessel: FJELL
Key Features:
The client required a roll-on/float-off operation. The technical
solution developed by Fairstar was the only proposal that was
proven to be acceptable to the client’s Marine Warranty Surveyor.
Marettimo M was rolled onto the deck of the FJELL using an array
of Mammoet Self-Propelled Mobile Trailers.
After loading at the quayside, FJELL transported the tanker to a
sheltered location off-shore and partially submerge, facilitating the
float-off.
FJELL’s open stern, shallow draft and sophisticated ballasting
capability provided the perfect solution to our client’s needs.
19
Contact details - Fairstar Heavy Transport NV
Postal address Visiting addressP.O. Box 2225 Weena 316-318, Tower A3000 CE Rotterdam 3012 NJ RotterdamThe Netherlands The Netherlands
Philip Adkins (CEO) Mark de Haas (CFO)M +44 (779) 668 1414 M +31 6 5120 5150E [email protected] E [email protected]
This material has been prepared by Fairstar Heavy Transport NV (“FHT").
This material is for distribution only under such circumstances as may be permitted by applicable law. It has no regard to the specificinvestment objectives, financial situation or particular needs of any recipient. It is published solely for informational purposes. Norepresentation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of theinformation contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developmentsreferred to in the materials. It should not be regarded by recipients as a substitute for the exercise of their own judgement. Anyopinions expressed in this material are subject to change without notice and may differ or be contrary to opinions expressed byother business areas or groups of FHT as a result of using different assumptions and criteria. FHT is under no obligation to update orkeep current the information contained herein. Neither FHT nor any of its affiliates, nor any of FHT’s or any of its affiliates, directors,employees or agents accepts any liability for any loss or damage arising out of the use of all or any part of this material.
© 2009 Fairstar Heavy Transport NV. All rights reserved. Fairstar Heavy Transport NV specifically prohibits the redistribution of thismaterial and accepts no liability whatsoever for the actions of third parties in this respect.
ContactT +31 (0)10-403 5333F +31 (0)10-403 5344I www.fairstar.comE [email protected]
20
