Pareto World Wide Offshore AS - Pareto Project Finance

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PortfolioThe portfolio is highly robust, with most assets on long term contracts. There is only one newbuildingproject and assets on long term contracts make up 91% of the total exposure, and are well distributedacross the different offshore oil services segments.Investments and capitalPWWO’s portfolio consists of 12 projects which ownsstakes in 26 units. The average contract length is 4.6years and the contract coverage is 91%.The gross nominal value of the contract backlog isroughly NOK 858m and is more than sufficient tocover all debt service costs and projected operatingcosts. Total debt in the projects amounts to aroundNOK 414m. The backlog is primarily made up by solidcounterparts.PWWO had a cash holding of NOK 102m as of30.09.12. There are only minor capital requirements inthe underlying projects. However, the company hasmade an allocation for a dispute with Larsen Oil & Gasin connection with the Songa Eclipse. Overall, there isadequate capital available to make cash distributionsto shareholders and to consider value addinginvestments, should they arise.Charterparty Distribution based on NAVBareboat53%Timecharter38%Spot/Asset Play9%Segment Distribution based on NAVThe life cycle of PWWO expires 30 June 2014. Theunderlying projects are expected to yield good cashflow until then. Asset and/or portfolio sales will beconsidered at the opportune time to provideshareholders with the best possible exit values.Current market conditions indicate that exits should bemade as late as possible to maximize values.Seismic9%Subsea25%Tender Rig38%PSV/AHTS (Asia)10%The contracted cash flow is evenly spread across fivemain segments; rigs, supply, accommodation, seismicand subsea.Accommodation14%PSV/AHTS(Europe)4%Contracted cash flows will be more than sufficient tocover scheduled debt service through to 2015. Theprojects in PWWO’s portfolio also have a relativelysteep debt repayment profile, which gives theopportunity to refinance when financing conditionshave improved.Asset sales from the underlying investments areplanned upon the exit of existing contracts, which willprimarily take place from 2015 and onwards.Therefore, PWWO does not need to expose itself to thecurrent market conditions, where asset values are yetto reach their full potential.Charter hire backlog by counterpartAfrican OffshoreServices17%Reef Subsea28%Swiber10%RXT8%Total / CNR35%CGGV2%
Portfolio (continued)Project / company Contract Charterparty ChartererProportionof NAVBassdrill Alpha Ltd Nov-15 Timecharter Total / CNR 39,4 %Neptune Offshore AS May-15 Bareboat Reef / CGG Veritas 14,5 %ParBarge IS Jul-23 Bareboat African Offshore Services 10,5 %Neptune Subsea IS Feb-17 Bareboat Reef Subsea 10,1 %Vestland Seismic IS Sep-18 Bareboat Albatross Shipping Ltd. 7,1 %Bukhit Timah Offshore DIS Jul-20 Bareboat Swiber Offshore Marine Pte 5,4 %Asian Offshore III IS Spot/Asset play 4,8 %Offshore Accommodation IS Dec-21 Bareboat African Offshore Services 3,4 %Master and Commander IS Mar-18 Bareboat Wavefield Inseis ASA / CGG Veritas 2,0 %Carlisle Subsea IS Oct-15 Bareboat Hallin Marine Subsea International Ltd 1,4 %Iceman IS Spot/Asset play 1,2 %Equinox Offshore Accomodation Ltd Apr-13 Timecharter N/A 0,0 %600500400300PWWO - Cash flow composition vs debt service, NOKmCapex (-) / Sale of assets (+)Spot EBITDAContracted EBITDADebt servicePWWO - EBITDA compositionRigs14%2001000Oil Service64%Supply22%-1002012 YTD 2013 2014 2015 2016 - 2029450PWWO - Debt in projects, NOKmPWWO - Duration of contract backlog40035030015121212Sellers creditBank debt1-2 years22%250200150398 38636029812Later44%100500157302012 YTD 2012 2013 2014 2015 2016 - 20293-4 years34%
Page 1 and 2: Pareto World WideOffshore AS3rd qua
Page 3 and 4: Portfolio NewsPWWO is invested in a
Page 5: This Quarter’s Investment Review:
Page 9 and 10: The offshore oil services marketThe
Page 11 and 12: The offshore oil services marketThe
Page 13 and 14: Fund Management TeamPer-Christian N

Pareto World Wide Offshore AS - Pareto Project Finance

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