Mosvold Supply Plc Presentation, DnBNor Offshore Seminar
Mosvold Supply Plc Presentation, DnBNor Offshore Seminar
Mosvold Supply Plc Presentation, DnBNor Offshore Seminar
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<strong>Mosvold</strong> <strong>Supply</strong> <strong>Plc</strong><br />
<strong>Presentation</strong>, <strong>DnBNor</strong> <strong>Offshore</strong> <strong>Seminar</strong><br />
John Bernander, Oslo 5 March , 2008
VS 491 CD: high capacity AHTS<br />
- State-of-the art workhorses<br />
Main features<br />
Design:<br />
Vik Sandvik<br />
Overall length:<br />
91 m<br />
Breadth moulded:<br />
22 m<br />
Deadweight (7.9 m draft): 4,000 t<br />
Speed at 6.0 m draft:<br />
17 knots<br />
Total horsepower: 28,080<br />
Min. bollard pull:<br />
270 t<br />
DP class:<br />
II<br />
Towing/anchor handling winch: 500 t<br />
Crane capacity:<br />
2x 6t<br />
Fuel consumption:<br />
13.5 t diesel per day<br />
Accommodation:<br />
60 persons<br />
Prepared for ROV hangar<br />
Well reputed equipment suppliers<br />
Diesel engines:<br />
MAK<br />
Thrusters:<br />
Brunvoll<br />
Towing winches:<br />
Hatlapa<br />
DP:<br />
Kongsberg<br />
2
<strong>Mosvold</strong> <strong>Supply</strong> AHTS with high-end specifications<br />
<strong>Mosvold</strong> <strong>Supply</strong><br />
Siem<br />
Havila<br />
Farstad<br />
Olympic<br />
Design<br />
VS 491 CD<br />
VS 491 CD<br />
Havyard 845<br />
UT 731 CD<br />
Aker A122<br />
Loa<br />
91<br />
91<br />
87<br />
87.4<br />
94<br />
Breadth<br />
22<br />
22<br />
22<br />
21<br />
23<br />
BHP (horse power)<br />
28080<br />
28000<br />
23000<br />
25000<br />
26500<br />
Bollard Pull<br />
270<br />
300<br />
250<br />
240<br />
260<br />
Winch<br />
500t<br />
500t<br />
500t<br />
500t<br />
500t<br />
Winch Drum<br />
Triple<br />
Triple<br />
Triple<br />
Triple<br />
Na<br />
Deck<br />
700<br />
750<br />
675<br />
760<br />
840<br />
Accommodation<br />
60<br />
60<br />
35<br />
40<br />
68<br />
Max Speed<br />
17<br />
18<br />
17<br />
18<br />
17<br />
Economical Speed<br />
13<br />
12<br />
12<br />
13<br />
Na<br />
DP<br />
2<br />
2<br />
2<br />
2<br />
2<br />
Shark Jaws<br />
2 x 350t<br />
2x350t<br />
2x350t<br />
Na<br />
Na<br />
Stern Roller<br />
SWL 600t<br />
SWL 750<br />
SWL 600<br />
Na<br />
Na<br />
Stern Roller Dimention<br />
ø4m,length 8m<br />
ø4m, length 8m.<br />
ø4.5m, length 6m<br />
Na<br />
Na<br />
Towing Pins<br />
4 x 350t<br />
4x350t<br />
2x300<br />
Na<br />
Na<br />
Deadweight<br />
4000<br />
4250<br />
4000<br />
3900<br />
4925<br />
Fuel<br />
1550<br />
1450<br />
1550<br />
1100<br />
2800<br />
Fresh Water<br />
1090<br />
1160<br />
500<br />
700<br />
800<br />
Mud<br />
679<br />
670<br />
500<br />
850<br />
660<br />
Dry Bulk<br />
306<br />
300<br />
250<br />
175<br />
180<br />
Rig Chain<br />
670<br />
680<br />
610<br />
670<br />
800<br />
Oilrec<br />
1000<br />
870<br />
1000<br />
1000<br />
Na<br />
FIFI<br />
Prep.II<br />
II<br />
II<br />
Na<br />
Na<br />
Delivery<br />
Oct 09/Jun 10<br />
May.09<br />
May.09<br />
May.09<br />
Apr.09<br />
Source: <strong>Mosvold</strong> and Pareto Securities<br />
3
<strong>Mosvold</strong> <strong>Supply</strong> to meet future requirements<br />
New requirements focusing on environment, capacity and safety<br />
MARPOL Annex 1 Reg. 12a requires double hull protection of fuel tanks<br />
Applicable to all vessels/newbuilding with fuel tanks of total capacity of at least 600 m 3<br />
which are ordered after Aug 2007 and delivered from Aug 2010<br />
Oil companies starting to ask for ROV capability during critical anchoring<br />
NOX tax: NOK 15 per kilo emission. Norwegian charterers expected to require modern<br />
tonnage with catalyzer, which may reduce emissions with 90-95%<br />
Possible requirement for contingency tension testing of anchors<br />
<strong>Mosvold</strong> <strong>Supply</strong> VS 491 CD<br />
Double hull construction (DnV Clean Design notation)<br />
Safeguarding the environment from possible leakage<br />
Ships prepared for ROV<br />
Vessels with great stability and large towing and pulling capacity<br />
Vessels with light construction work capabilities<br />
Cost efficient fuel economy<br />
Reduces emissions of greenhouse gases<br />
Cost effective solution for charterers<br />
HYBRID propulsion system<br />
Straight shaft technology when steaming<br />
Diesel electric principles when the vessel is holding position<br />
►The industry realized, only to late, that CD and larger vessels would be<br />
the consequence of the new requirements<br />
Source: R. S. Platou<br />
4
<strong>Mosvold</strong> <strong>Supply</strong> Construction program<br />
2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11<br />
AHTS TBN 1<br />
20% payment 10% payment<br />
70% payment<br />
AHTS TBN 2<br />
20% payment 10% payment 70% payment<br />
AHTS TBN 3<br />
20% payment 10% payment 70% payment<br />
AHTS TBN 4<br />
20% payment 10% payment 70% payment<br />
Favorable payment structure securing commitment from Batamec Shipyard<br />
20% at contract signing<br />
10% at key equipment delivery<br />
70% at final delivery<br />
Contract price TBN 1 and 2 , USD 77.350 mill. / to be settled 60/40 EURO/USD conversion rate 1.34<br />
Contract price TBN 3 USD 33 mill + EURO 36, 3 mill<br />
Contract price TBN 4 USD 33.8 mill +EURO 37, 2 mill<br />
Refund guarantees from Bangkok Bank (BBB+)Standard Chartered Bank <strong>Plc</strong> ( A )<br />
5
Batamec Shipyard with relevant expertise<br />
PT Batamec Shipyard wholly owned subsidiary<br />
of Otto Marine Pte Ltd<br />
Otto Marine Ptd Ltd started operations in 1979<br />
Principal activities:<br />
Shipbuilding<br />
Ship repair & conversion<br />
<strong>Offshore</strong> structural engineering<br />
Batamec is strategically located at Batam Island,<br />
Indonesia<br />
Management comprises over 45 qualified and<br />
experienced engineers, primarily from PPL and<br />
Keppel Fels<br />
Total workforce: 2,200<br />
Certified to ISO 9001:2000 with Lloyds Register<br />
Quality Assurance as at 25 April 2005<br />
6 vessels successfully delivered since embarking<br />
on shipbuilding strategy<br />
Order book of 30 vessels with deliveries until 2010<br />
Of which 10x 10,000HP AHTS<br />
Major clients:<br />
Tidewater<br />
ESNAAD<br />
Seatrucks<br />
PETRA<br />
RK <strong>Offshore</strong><br />
Marine Subsea (Africa <strong>Offshore</strong> Services)<br />
6
<strong>Mosvold</strong> Site Supervison Team<br />
Left to right Mr. Tri Prasetiyo, Surveyor, Mr. Michael Palfreeman, Head of the Site Supervision Team, and Per Tønnessen <strong>Mosvold</strong> Shipping AS,<br />
Technical Director and Project Manager for <strong>Mosvold</strong> <strong>Supply</strong> PLC.
Block 104 Fore & 105 Aft , 29 Feb 2008<br />
8
Worldwide floater supply and demand forecast<br />
300<br />
Worldwide<br />
250<br />
200<br />
Rigs<br />
150<br />
100<br />
50<br />
0<br />
Total <strong>Supply</strong><br />
Effective <strong>Supply</strong><br />
Historical Demand<br />
Mid-Case<br />
Low-Case<br />
High-Case<br />
1Q94 1Q96 1Q98 1Q00 1Q02 1Q04 1Q06 1Q08 1Q10 1Q12 1Q14<br />
Source: ODS-Petrodata<br />
9
Historical number of AHTS per rig<br />
• The number of vessels per rig is increasing due to:<br />
• Other demand, for instance FPSO and construction related work<br />
• More activity on deeper water – longer distances to tow the rigs<br />
• High day-rates for rigs: Important that lack of vessels does not slow mob/demob<br />
Need for more vessels per rig<br />
0.5<br />
0.45<br />
0.4<br />
0.35<br />
0.3<br />
0.25<br />
0.2<br />
0.15<br />
0.1<br />
0.05<br />
0<br />
1985<br />
1987<br />
1989<br />
1991<br />
1993<br />
1995<br />
1997<br />
1999<br />
2001<br />
2003<br />
2005<br />
2007<br />
2009<br />
Vessels per rig<br />
Sources: DnB NOR Markets estimates, Clarckson and ODS - Petrodata<br />
10
World AHTS fleet is old (22 years avg age)<br />
- New vessels substantially larger and more capable than older vessels<br />
Number of newbuilds<br />
50<br />
45<br />
40<br />
35<br />
30<br />
25<br />
20<br />
15<br />
10<br />
5<br />
0<br />
1970<br />
1972<br />
1974<br />
1976<br />
1978<br />
1980<br />
1982<br />
1984<br />
1986<br />
1988<br />
1990<br />
1992<br />
1994<br />
1996<br />
1998<br />
2000<br />
2002<br />
2004<br />
2006<br />
2008<br />
2010<br />
2012<br />
AHTS > 10,000 BHP<br />
AHTS > 20,000 BHP<br />
Source: Clarksons / JGO Shipbrokers / Pareto estimates<br />
11
NO. OF VESSELS<br />
WORLDWIDE<br />
AHT S DE LIVE RY SCHEDULE<br />
91 vessels 10-15999 BHP & 99 vessels 16000+ B HP<br />
15<br />
14<br />
13<br />
12<br />
11<br />
10<br />
9<br />
8<br />
7<br />
6<br />
5<br />
4<br />
3<br />
2<br />
1<br />
0<br />
8<br />
7<br />
3<br />
2<br />
5<br />
3<br />
2 2<br />
2 3 6<br />
3<br />
2<br />
3 6 4<br />
1<br />
6 6 6<br />
2 6<br />
1<br />
1 1<br />
5<br />
4 4 4 4 2 4 4 4<br />
2 5 4 1 5<br />
4<br />
3 3 3 3 3<br />
2<br />
2 2 2 2 2 2 2 2 2<br />
1 1<br />
1<br />
1<br />
1<br />
1 1 1 1 1 1 1 1<br />
F MA M J J A S ON D J F MA M J J A S ON D J F MAM J J A SO ND J F M AM J J A SO ND J F M AM J J A S O<br />
2008 2009 2010 2011 2012<br />
10-15999 BHP 16000+ BHP Updated: 0 1/0 8<br />
12
Large AHTS to be preferred going forward<br />
- Meeting new and stricter requirements from clients and authorities<br />
<strong>Mosvold</strong> <strong>Supply</strong> VS 491 CD<br />
22 m breadth<br />
500 t<br />
7º tilting<br />
Conventional / older vessel<br />
17 m breadth<br />
400 t<br />
19º tilting<br />
13
140.000<br />
130.000<br />
120.000<br />
110.000<br />
100.000<br />
GBP/DAY<br />
90.000<br />
80.000<br />
70.000<br />
60.000<br />
50.000<br />
40.000<br />
30.000<br />
20.000<br />
10.000<br />
0<br />
NORTH SEA<br />
AHTS 16000+ BHP Spot Fixtures<br />
(Reported and Estimated)<br />
Full year 2005 average: GBP 25,840 / NOK 299,680<br />
Full year 2006 average: GBP 49,400 / NOK 572,980<br />
Year-to-date 2007 average: GBP 52,372 / NOK 607,511<br />
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51<br />
We e k in 2005/2006/2007<br />
NOK/DAY<br />
1.600.000<br />
1.500.000<br />
1.400.000<br />
1.300.000<br />
1.200.000<br />
1.100.000<br />
1.000.000<br />
900.000<br />
800.000<br />
700.000<br />
600.000<br />
500.000<br />
400.000<br />
300.000<br />
200.000<br />
100.000<br />
0<br />
Weekly Average 2005 Weekly Average 2006 Weekly A verage 2007<br />
Update d: 12/31/07<br />
14
North Sea supply vessels<br />
A HT S spot dayrates N ort h Sea<br />
North Sea supply - demand - utilisation<br />
1 500 000<br />
1 250 000<br />
100%<br />
95%<br />
300<br />
250<br />
95%<br />
88% 90%<br />
94%<br />
91%<br />
88% 88%<br />
92%<br />
95% 95%<br />
100%<br />
92% 90%<br />
80%<br />
NOK/d<br />
1 000 000<br />
750 000<br />
500 000<br />
90%<br />
85%<br />
80%<br />
Demand/supply<br />
200<br />
150<br />
100<br />
70%<br />
60%<br />
50%<br />
40%<br />
30%<br />
250 000<br />
75%<br />
50<br />
20%<br />
10%<br />
0<br />
1<br />
3<br />
5<br />
7<br />
9<br />
11<br />
13<br />
15<br />
17<br />
19<br />
21<br />
23<br />
25<br />
27<br />
29<br />
31<br />
33<br />
35<br />
37<br />
39<br />
41<br />
43<br />
45<br />
47<br />
49<br />
51<br />
53<br />
70%<br />
0<br />
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008<br />
0%<br />
W eek<br />
2007 2008 2008 spot rate assumptions Utilisat ion<br />
Average demand Average supply Average utilisation<br />
Source: Carnegie Research, ODS Petrodata, Fearnley <strong>Offshore</strong><br />
Source: Carnegie Research<br />
PSV spot dayrates N ort h Sea<br />
500 000<br />
100%<br />
NOK/d<br />
400 000<br />
300 000<br />
200 000<br />
100 000<br />
95%<br />
90%<br />
85%<br />
80%<br />
75%<br />
Current fleet of North<br />
Sea supply vessels is at<br />
266 units, +3 w/w.<br />
0<br />
1<br />
3<br />
5<br />
7<br />
9<br />
11<br />
13<br />
15<br />
17<br />
19<br />
21<br />
23<br />
25<br />
27<br />
29<br />
31<br />
33<br />
35<br />
37<br />
39<br />
41<br />
43<br />
45<br />
47<br />
49<br />
51<br />
53<br />
Week<br />
2007 2008 2008 spot rate assumptions Utilisation<br />
70%<br />
Source: Carnegie Research, ODS Petrodata, Fearnley <strong>Offshore</strong><br />
15
Consolidation opportunities ahead<br />
- Fragmented market creates room for consolidation<br />
- New, large AHTS in favor<br />
Source: Petrodata / Platou / Farstad / Pareto<br />
16
Investor friendly and cost-effective company set up<br />
<strong>Mosvold</strong> Shipping Holding owned by founders, which owns 22.9% of <strong>Mosvold</strong> <strong>Supply</strong><br />
No employees in <strong>Mosvold</strong> <strong>Supply</strong><br />
Corporate governance in accordance with public company guidelines (incl. 30% mandatory offer threshold<br />
prior to listing)<br />
No corporate tax (pay only local tonnage tax)<br />
Management agreement with <strong>Mosvold</strong> Management (100% owned by <strong>Mosvold</strong> Shipping Holding )<br />
Fixed price mgmt contract (G&A/accounting/reporting) of USD 42,500 per vessel per month<br />
- 12 months cancellation period<br />
<strong>Mosvold</strong> Management responsible for construction and building supervision at estimated cost of USDm 1.2 per vessel<br />
(may be subcontracted to reputable technical manager)<br />
Post-delivery commercial vessel fixture commission of 1.25%<br />
USDm 2 project development costs first 2 vessels + 1% commission on shipbuilding contracts<br />
1% commission on sale of vessel(s) or change of control in <strong>Mosvold</strong> <strong>Supply</strong> (> 30%)<br />
Corporate set-up:<br />
<strong>Mosvold</strong> Shipping Holding Limited<br />
Cyprus<br />
22.9%<br />
<strong>Mosvold</strong><br />
Management Ltd<br />
<strong>Mosvold</strong> <strong>Supply</strong> <strong>Plc</strong><br />
Cyprus<br />
100%<br />
100%<br />
<strong>Mosvold</strong> <strong>Supply</strong> I<br />
<strong>Mosvold</strong> <strong>Supply</strong> II<br />
<strong>Mosvold</strong> <strong>Supply</strong> III<br />
<strong>Mosvold</strong> <strong>Supply</strong> IV<br />
17
List of shareholders as per 28. February 2008<br />
No. of shares<br />
% of total<br />
<strong>Mosvold</strong> Shipping Holding Limited<br />
Morgan Stanley & Co Client Equity acc.<br />
Deutche Bank AG Lon SA<br />
Credit Suisse Sec. Europe Ltd.<br />
Cheyne Global Catalyst Fund LP<br />
Ole Teigen<br />
Bjørgvin AS<br />
Otto Investment Limited<br />
Saga Shipping and Trading SA<br />
Frode Teigen<br />
Total 10 largest<br />
Others<br />
Total<br />
6 206 594<br />
3 483 700<br />
2 369 600<br />
1 965 500<br />
1 811 300<br />
1 540 000<br />
1 388 000<br />
1 098 800<br />
874 400<br />
749 600<br />
21 487 494<br />
5 012 506<br />
26 500 000<br />
23,42 %<br />
13,15 %<br />
8,94 %<br />
7,42 %<br />
6,84 %<br />
5,81 %<br />
5,24 %<br />
4,15 %<br />
3,30 %<br />
2,83 %<br />
81,08 %<br />
18,92 %<br />
100,00 %<br />
18
Confidential<br />
<strong>Mosvold</strong> – an experienced shipping and offshore services group<br />
The <strong>Mosvold</strong> family has continuously been active in shipping since 1910 .Has owned and operated<br />
vessels in many segments (tankers, dry bulk, reefers and passenger ferries.<br />
First investment in offshore: Part ownership of semi early 80ies<br />
Acquired 3 modern J/Us from Keyes <strong>Offshore</strong> in 1989<br />
<strong>Mosvold</strong> Shipping was IPO‘d on the Oslo Stock Exchange in 1990<br />
Acquired 100% of Dual Drilling Co in 1990. Dual was a Dallas based worldwide drilling contractor<br />
owning 3 J/Us and 10 platform rigs<br />
Through Dual, acquired further 3 J/Us in 1993 combined with raising new equity and listing of Dual on<br />
NASDAQ (<strong>Mosvold</strong> Shipping retained 60% of Dual)<br />
Dual merged with Ensco in 1996 with payment in shares. All shares distributed to <strong>Mosvold</strong><br />
shareholders<br />
<strong>Mosvold</strong> initiated a J/U project 1H 2004 to build 2 J/U (with 4 options) at PPL Shipyard and Keppel<br />
FELS in Singapore. The entire project sold to Awilco in 2004 and is the now the foundation of Awilco<br />
<strong>Offshore</strong><br />
<strong>Mosvold</strong> is managing the construction of two semi-submersible baredecks at the Russian yard<br />
Sevmash. The baredecks are sold to Saipem and Sea Dragon <strong>Offshore</strong> with forward delivery<br />
<strong>Mosvold</strong> founded <strong>Mosvold</strong> Drilling Ltd. in 2005 (2x Ultra Deep Water Drillships on order with Samsung,<br />
acquired by Sea Drill)<br />
<strong>Mosvold</strong> founded <strong>Mosvold</strong> Jackup Ltd. in 2006 (2x 300 ft Jackups on order at MIS), sold to Sea Wolf<br />
<strong>Mosvold</strong> with innovative approach taking advantage of yard market potential, eg. MIS and Sevmash<br />
<strong>Mosvold</strong> with proven track record demonstrating opportunistic approach and shareholder value<br />
creation<br />
19
<strong>Mosvold</strong> <strong>Supply</strong> <strong>Plc</strong> Earnings Scenarios (Fully Invested)<br />
Pareto 11E 3yr Avg* 2007 Real*<br />
Day Rates NOK/day 275 000 490 000 607 500<br />
USD/day 50 000 78 526 103 669<br />
Utilisation 100 % 100 % 100 %<br />
Daily opex ($10 000) ($10 000) ($10 000)<br />
No of vessels 4,0 4,0 4,0<br />
PROFORMA P&L<br />
Vessel EBITDA USDm 58 100 137<br />
SG&A " (2) (2) (2)<br />
EBITDA " 56 98 135<br />
Depreciation (25yr) " (14) (14) (14)<br />
Operating profit " 43 84 121<br />
Net financials fully invested (yr1) " (19) (19) (19)<br />
Net Profit (after tax) " 24 65 102<br />
Cash Earnings " 37 79 116<br />
Maintenance capex " (2) (2) (2)<br />
Free cash flow (pre debt amortisation) " 35 77 114<br />
Free cash flow (post debt amortisation) " 24 66 103<br />
EPS NOK 4,9 13,6 21,2<br />
Share price NOK 14,0 14,0 14,0<br />
No of shares (fully invested) mill 26,5 26,5 26,5<br />
Market capitalisation USDm 67 67 67<br />
Net debt fully invested " 311 311 311<br />
Enterprise Value " 378 378 378<br />
EV/EBITDA 6,7 3,9 2,8<br />
P/E 2,8 1,0 0,7<br />
RoE (on mkt cap) 35,1 % 96,8 % 151,3 %<br />
FCF yield (pre debt amortisation) 11 % 25 % 37 %<br />
Net interest bearing debt/EBITDA 5,5x 3,2x 2,3x<br />
EBITDA/Net interest 3,0x 5,2x 7,1x<br />
* Platou 2007 <strong>Offshore</strong> Report<br />
20