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Nautilus Marine Services PLC Investor Presentation April 2017
Nautilus Marine Services PLCInvestor Presentation
April 2017
Forward Looking DisclaimerSome statements contained in this presentation or in documents referred to in it are or may be forward-looking statements. Actual results may differ from those expressed in such statements, depending on a variety of factors. The Company will not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events, circumstances or unanticipated events occurring after the date of this presentation, except as required by law or by any appropriate regulatory authority. Nothing in this presentation or in documents referred to in it should be considered as a profit forecast.
Past performance of Nautilus Marine Services PLC (formerly Global Energy Development PLC) or its shares is not a guide to future performance.
Any forward-looking information contained in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect, and accordingly, actual results may vary.
This presentation does not constitute, or form part of or contain any invitation or offer to any person to underwrite, subscribe for, otherwise acquire, or dispose of any shares in Nautilus Marine Services PLC or advise persons to do so in any jurisdiction, nor shall it, or any part of it, form the basis of or be relied on in any connection with or act as an inducement to enter into any contract or commitment therefore. No reliance may be placed for any purpose whatsoever on the information or opinions contained in this presentation or on its completeness and no liability whatsoever is accepted for any loss howsoever arising from any use of this presentation or its contents otherwise in connection therewith.
This presentation has been prepared in compliance with English law and English courts will have exclusive jurisdiction over any disputes arising from or connected with this presentation.
Nautilus - Pathway of Change
What differentiates Nautilus as an investment?
Companies trading on AIM1 – 973
Energy companies trading on AIM1 – 103
Energy service companies trading on AIM1 – 7
Offshore energy service companies listed on AIM1 - 4
“Unique investment…..small niche”
100%
10%
1%
0.4%
¹ Source: AIM Summary Statistics / London Stock Exchange February 2017
6 to 12 months
Enhance operations personnel and expertise in the Company
Close further acquisitions of assets (vessels and/or ROV)
Become specialised service provider
3 to 6 months
Acquire or invest in commercialised niche offshore
technologies
Assess and enhance current vessels
Watch for further decline in vessel pricing with banks and distressed
companies
0 to 3 months
Close transaction of offshore vessels – completed.
Close on $10.5 million of new capital funding – completed.
Establish dock facilities accessing Gulf of Mexico – completed.
Near Term Plans
Offshore energy services• A trillion $ global industry
• More than 10,000 companies globally in the industry
Why the Gulf of Mexico1?• $32 billion contributed to U.S. economy• The highest concentration of offshore structures in
the world• Production of 600 million barrels of oil annually
from roughly 3% of the reserves in the Gulf of Mexico
• Significant opportunities for acquisition/investment
Offshore Energy Services -Massive Industry
Targeting a Niche Market
¹ Source: NOIA America’s Offshore Energy Industry
Decline in producer
revenues affected offshore
energy services
35 38 36
26 23
47 50 49
4036
7380 77
5246
93100 97
7266
0
20
40
60
80
100
120
2012 2013 2014 2015 2016
Air Dive ROVSV 4P SAT Dive DP SAT Dive
Gulf of Mexico Day Rates by Vessel Type (US$ thousands per day)1
• Gulf of Mexico utilisation rates have dropped 49% from 2013 to 20161
• 36% drop in day rates since 2013 driven by sharp drop in utilization across all vessel type1
¹ Source: Wood McKenzie
“…domino effect led to currently distressed market conditions…….”
What differentiates
the Nautilus strategy?
SpecialisedService
Provider
Offshore Vessels and
Assets
CommercialisedNiche
Technology
Near- term buying
opportunity: window of time Investment window is open near-term
before prices and demand increase
Nautilus has sufficient financial strength and working capital to survive a continued downturn in 2017
while we execute the strategy.
…In summary…
• Acquiring/investing in offshore service assets and commercialised, niche technologies
• Working towards become a provider of surveying, inspecting, repair and decommissioning services in the Gulf of Mexico
• Ongoing economic recovery in the U.S.
• Gulf of Mexico provides the largest concentration of offshore structures in the world
• Potential for sector cross-over and international application
AppendixCorporate Structure: Shares in issue: 36,112,187 (as at 31 December 2016)
Registered Office: 3 More London Riverside, London SE1 2AQ, United Kingdom
Nominated Adviser: finnCap Ltd
Auditors: RSM UK Audit LLP
Solicitors: Norton Rose Fulbright
IR Adviser: Abchurch
AppendixExecutive Management:
John Payne, Director of Operations
John Payne, Director of Operations, has more than 30 years’ experience in the international subsea sector. A qualified Master Mariner, Mr. Payne has held a number of senior business positions since coming ashore in 1999. He has gained his international experience within the subsea telecom, renewable and offshore subsea sectors and has held senior roles in Business Administration, Business Development and Service Delivery and more recently was interim Chief Executive to Hallin Marine before taking a senior role with specialist chemical provider Aubin Ltd. He has qualified as a Chartered Director and is a Fellow of the Institute of Directors with experience in operating in USA, Europe and Asia.
Anna Williams, Director of Strategy and Business Development
Anna Williams formerly served as Finance Director of Global Energy Development PLC from 2010 to 2016. She served as Chief Financial Officer for HKN, Inc. (formerly Harken Energy Corporation), a US publicly-listed company, from 2000 to 2010 and as International Finance Manager from 1996 to 2000. Prior to that, Ms. Williams began her career in public accounting work at Arthur Andersen & Co. She has also served on the Board of Directors and Audit Committee of an independent Canadian-listed oil and gas company. Ms. Williams is a Certified Public Accountant.
Sarah B. Gasch, Finance Director
Sarah Gasch formerly served as Executive Vice President and Chief Operating Officer of HKN, Inc. and Chief Executive Officer of BriteWaterInternational, Inc., a wholly-owned subsidiary of HKN from 2009 to 2016. During her tenure with HKN, she also served as Chief Financial Officer, Chief Accounting Officer, Corporate Secretary, and Controller. Prior to joining HKN, Ms. Gasch served as Vice President and Chief Accounting Officer for Green Hunter Energy, Inc., a public alternative energy company where she was responsible for the creation and management of the entire accounting and reporting organization from 2008 to 2009. Ms. Gasch also served as Financial Reporting Manager for Magnum Hunter Resources, Inc., a public oil and gas company from 2002 to 2005. Ms. Gasch began her career in public accounting.
AppendixUS$ Thousands Year ended
31 December 2016Year ended
31 December 2015
Statement of Financial Position
Total non-current assets 1,053 1,100
Notes receivable 12,060 8,040
Cash and cash equivalents 16,446 25,608
Other current assets 608 754
Total current assets 29,114 34,402
Non-current liabilities 2,161 2,011
Current liabilities 2,370 1,238
Total liabilities 4,531 3,249
Net assets 25,636 32,253
