3Q|12
Deep Sea Supply Plc
Presentation
14 November 2012
HIGHLIGHTS
• 3Q 2012 shows improved results in line with expectations
•4 vessels commenced long term charters in 3Q 2012 and another two
vessels in first part of 4Q
•Delayed commencement of long term contracts impacted negatively on
revenues for 3Q
•Focus on cost efficiency continues to show good results
• USD 367M order backlog from term contracts
•Disappointing North Sea Spot market but interesting opportunities in
other markets
3
3Q|12
SHARE PRICE DEVELOPMENT AND SHARE TURNOVER
Share price and total return since listing
Total Return
4,5 %
Traded shares per month / Average shares outstanding
40
35
NOK per share
30
25
20
15
10
5
0
Sep-05
4
Apr-06
Nov-06
Jun-07
Jan-08
Aug-08
Mar-09
Oct-09
May-10
Dec-10
Jul-11
Feb-12
Sep-12
60
4,0 %
50
3,5 %
3,0 %
40
2,5 %
30
2,0 %
1,5 %
20
1,0 %
10
0,5 %
0,0 %
Deep Sea
Supply PLC
DOF ASA
Siem
Offshore Inc.
Havila
Eidesvik
Farstad
Solstad
Shipping ASA Offshore ASA Shipping ASA Offshore ASA
REM
Offshore ASA
0
Average monthly volume in NOK million (light blue line)
Close Price
2012 YTD average monthly volume and turnover velocity
3Q|12
INCOME STATEMENT 3Q 2012
3Q 12
3Q 11
2Q 12
35 457
33 428
28 339
Vessel operating expenses
(16 913)
(16 739)
(15 042)
Other operating expenses
(2 681)
(2 493)
(2 762)
Other gains
143
107
164
Gain on sale
1 123
1 015
1 122
EBITDA
17 130
15 314
11 822
Depreciation
(8 614)
(7 049)
(6 662)
8 516
8 265
5 159
45
75
124
Financial expenses
(6 217)
(6 436)
(5 221)
Net currency items
676
(364)
(1 024)
50
11
47
(5 446)
(6 715)
(6 074)
3 070
1 551
(914)
(43)
(3)
(13)
3 027
1 549
(927)
0,02
0,02
0,09
0,01
0,01
0,07
(0,01)
(0,01)
0,05
(Unaudited figures in USD 1,000)
Operating revenue
EBIT
Financial income
Change in value of financial derivatives
Net financial items
Pre-tax result
Taxes
Total comprehensive income
Earnings per share
Earnings per share diluted
Cash flow per share 1)
1) Profit before taxes+depreciation-unrealized gain on currencies
5
3Q|12
INCOME STATEMENT YTD 2012
(Unaudited figures in USD 1,000)
Operating revenue
Vessel operating expenses
Operating lease
Other operating expenses
YTD 2011
85 206
83 787
(46 280)
(56 002)
0
(1 684)
(8 859)
(7 638)
Other gains
446
311
Gain on sale
3 368
27 827
EBITDA
Depreciation
EBIT
Financial income
33 882
46 601
(22 806)
(20 566)
11 075
26 035
175
261
Financial expenses
(16 926)
(19 656)
Net currency items
848
(4 555)
Change in value of financial derivatives
105
23
(15 798)
(23 927)
(4 723)
2 109
Net financial items
Pre-tax result
Taxes
Total comprehensive income
Earnings per share
Earnings per share diluted
Cash flow per share 1)
1) Profit before taxes+depreciation-unrealized gain on currencies
6
YTD 2012
(625)
(9)
(5 348)
2 101
(0,04)
(0,04)
0,14
0,02
0,02
0,21
AREA OF CURRENT OPERATION
7
Office
PSV
AHTS
3Q|12
CASH FLOW STATEMENT
YTD 2012
YTD 2011
Cash generated from operations
28 046
10 243
Net cash generated from operating activities
28 046
10 243
(83 069)
(48 093)
0
136 860
(83 069)
88 767
(15 876)
(17 628)
(Unaudited figures in USD 1,000)
Cash flows from operating activities
Cash flows from investing activities
Acquisitions and upgrades of property plant and equipment
Disposals of vessels and construction contracts
Net cash used in/generated from investing activities
Cash flows from financing activities
Interest paid
Proceeds from borrowings
90 001
28 212
Repayments of borrowings
(30 762)
(110 361)
43 363
(99 777)
(11 659)
(767)
Cash and cash equivalents at beginning of period/year
40 318
41 932
Cash and cash equivalents at end of the period/year
28 659
41 164
Net cash generated from/used in financing activities
Total changes in liquidity in the period/year
8
3Q|11
BALANCE SHEET
(Unaudited figures in USD 1,000)
30.09.12
31.12.11
Vessels cost
Construction contract
Equipment
Total property, plant and equipment
(Unaudited figures in USD 1,000)
639 444
554 935
0
17 659
737
643
640 180
573 237
Borrowings
461 082
403 299
36 995
37 790
Deferred gain
28 284
31 561
0
873
Long term tax liabilities
Other long term liabilities
Deferred income tax
670
308
Borrowings
Other long term receivables
913
647
CIRR loan
1 126
594
Trade and other payables
CIRR deposit
Total non-current assets
37 043
37 796
679 931
612 582
Deferred gain
Tax payable
Other short term liabilities
Total short term liabilities
Current assets
Inventories
Other short term receivables
CIRR deposit
31.12.11
CIRR loan
Total long term liabilities
Investment in associates
30.09.12
Liabilities
Non-current assets
2 949
5 062
12 132
6 468
Total liabilities
130
124
526 491
473 647
40 283
38 143
5 071
4 839
19 179
13 307
4 658
4 812
914
881
1 906
400
72 011
62 382
598 501
536 029
Shareholders equity
5 071
4 839
Freight income not received
25 757
29 475
Share capital, share premium and treasury shares
11 445
11 205
Cash and cash equivalents
28 659
40 318
Retained earnings and other reserves
144 551
151 510
Total current assets
74 566
86 162
Total shareholders equity
155 995
162 714
754 497
698 744
Total equity and liabilities
754 497
698 744
Total assets
9
3Q|12
SHAREHOLDERS
The largest shareholders as per 6th November 2012 registered in VPS
Citizen
No. of shares:
%
HEMEN HOLDING LIMITED
CYP
44 583 853
35,05%
SKAGEN KON-TIKI
NOR
12 229 431
9,61%
PERESTROIKA AS
NOR
6 350 000
4,99%
DNB NOR MARKETS
NOR
3 516 518
2,76%
HOLBERG NORGE
NOR
2 162 486
1,70%
SVENSKA HANDELSBANKEN
SWE
2 001 600
1,57%
UBS AG
GBR
1 672 800
1,32%
UTHALDEN A/S
NOR
1 575 000
1,24%
NORDEA BANK NORGE ASA
NOR
1 439 227
1,13%
DNB NOR SMB
NOR
1 420 000
1,12%
PACTUM AS
NOR
1 325 000
1,04%
CENTRA INVEST AS
NOR
1 201 643
0,94%
ANAXO CAPITAL AS
NOR
1 014 275
0,80%
TOLUMA NORDEN AS
NOR
962 931
0,76%
SOLSTEN INVESTMENT FUND
GER
900 000
0,71%
SKANDINAVISKA ENSKILDA
SWE
793 142
0,62%
MP PENSJON PK
NOR
658 800
0,52%
HUSTADLITT A/S
NOR
594 524
0,47%
BNP PARIBAS
FRA
580 000
0,46%
TD AMERITRADE CLEARING INC
USA
500 000
0,39%
Total 20 largest shareholders:
85 481 230
67,20%
Total other shareholders:
41 715 964
32,80%
127 197 194
100,00%
Total number of shares:
10
3Q|12
CONTRACT BACKLOG
Contract backlog Deep Sea Supply fleet*
Vessel Type
Vessels on Term Contracts as of 30.09.12
Contract backlog
AHTS
10 of 14 Vessels
USD 214M
PSV
9 of 9 Vessels
USD 153M
Total
19 of 23 Vessels
USD 367M
*Excluding Sea Weasel, which is owned by Malaysian J.V.
Expected revenue from term contracts per quarter
(Figures in USD 1,000)
AHTS
PSV
40000
35000
30000
25000
20000
15000
10000
5000
0
11
Q2 - 12
Q3 - 12
Q4 - 12
Q1 - 13
Q2 - 13
FLEET LIST & CHARTER STATUS AS PER NOVEMBER 2012
Vessel
Type
Bhp/Dwt
Year Built
Trading Area
AHTS Vessels
2012
Q3
2013
2014
Q4
Sea Lynx
KMAR 404
15000 BHP
1999
North Sea
North Sea Spot
Sea Bear
KMAR 404
15000 BHP
1999
North Sea
North Sea Spot
Sea Tiger
KMAR 404
15000 BHP
1999
North Sea
North Sea Spot
Sea Panther
KMAR 404
15000 BHP
1999
Brazil
Statoil
Sea Leopard
KMAR 404
15000 BHP
1998
Brazil
BP
Sea Cheetah
Khiam Chuan
15000 BHP
2007
Brazil
Petrobras
Sea Jaguar
Khiam Chuan
15000 BHP
2007
Brazil
Petrobras
Sea Ocelot
Khiam Chuan
10800 BHP
2007
Asia
Sea Eagle I
Khiam Chuan
12000 BHP
2009
Asia
Murphy Oil
Sea Weasel
Seatech P-729
6500 BHP
2009
Malaysia
Petronas Malaysia
Sea Fox
Seatech P-729
6800 BHP
2011
Brazil
Sea Jackal
Seatech P-729
6800 BHP
2011
Brazil
Sea Badger
Seatech P-729
6800 BHP
2011
Asia
Sea Vixen
Seatech P-729
6800 BHP
2011
Brazil
Sea Stoat
Seatech P-729
6800 BHP
2011
Brazil
Sea Trout
VS 470MK II
3250 DWT
2007
North Sea
EnQuest
Sea Angler
PSV UT 755 L
3250 DWT
2007
W.Africa
ENI Congo
Sea Halibut
PSV UT 755 L
3250 DWT
2007
Brazil
Petrobras
Sea Pike
PSV UT 755 L
3250 DWT
2007
Brazil
Petrobras
Sea Bass
PSV UT 755 L
3250 DWT
2008
Brazil
Petrobras
Sea Pollock
PSV UT 755 L
3250 DWT
2008
Brazil
Petrobras
Sea Turbot
PSV UT 755 L
3250 DWT
2008
Brazil
Petrobras
Sea Witch
PSV UT 755 L
3250 DWT
2008
W.Africa
ENI Congo
Sea Brasil
STX 09CD
3250 DWT
2008
Brazil
Vanco
Malaysia
Petrobras
Petrobras
Gazflot
Petrobras
Petrobras
PSV’s
12
BP
Firm
Option
Spot
AGE DISTRIBUTION CURRENT FLEET AND ORDER BOOK
AHTS
300
PSV
Vessel > 20 years: 27,6 % of total fleet
Vessel > 20 years: 19,3% of total fleet
Vessel > 30 years: 10,6 % of total fleet
Vessel > 30 years: 9,2% of total fleet
250
150
100
50
Source: ODS Petrodata
13
20
12
20
13
20
14
20
15
20
16
0
19
68
19
69
19
70
19
71
19
72
19
73
19
74
19
75
19
76
19
77
19
78
19
79
19
80
19
81
19
82
19
83
19
84
19
85
19
86
19
87
19
88
19
89
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
9
20 9
00
20
0
20 1
0
20 2
03
20
0
20 4
05
20
06
20
0
20 7
08
20
09
20
10
20
11
No of units
200
3Q|12
THE RIG AND SUPPLY MARKET
Supply vessels
Existing fleet
Total fleet
AHTS
2648
PSV
1552
436
Average age
12,5
13
11,9
Jackups
Rig market
16%
140
1096
Orderbook
Total fleet
Semis/drillships
Existing fleet
775
301
Orderbook
186
24%
94
9%
296
481
31%
92
Source: ODS Petrodata
Deliveries of OSVs in 2012 vs 2011
1)YTD November 2011 total number of delivered vessels was:
Full year 2011 delivery of vessels was:
149 (PSV: 51 / AHTS: 98)
195 (PSV: 67 / AHTS: 128)
2) YTD November 2012 total number of delivered vessels was:
Est number of delivered vessels in 2012 based on 2011 ratio:
138 (PSV: 68 / AHTS: 70)
182
Vessel Utilization:
•
PSV (>3.000 DWT) currently 86% utilization globally
• AHTS (>10.000 BHP) currently at 75% utilization globally
(The remaining 14% (PSV) and 25% (AHTS) is vessels trading in spot market, steaming, in yard or idle)
14
27%
19%
presis 360
COMPANY ADDRESSES
Cyprus
Deep Sea Supply Plc
John Kennedy Ave., Iris House, 7th Floor, Office no.740B
Limassol 3100
Cyprus
Deep Sea Supply Management (Cyprus) Ltd
P.O.Box 53340
CY-3302 Limassol
Cyprus
Norway
Deep Sea Supply Management AS
Tromøyveien 22
N-4841 Arendal
Norway
Singapore
Deep Sea Supply Management (Singapore) Pte.Ltd.
10 Hoe Chiang Rd
#19-03/04/05 Keppel Tower
Singapore 089315
Brazil
Deep Sea Supply Servicos Maritimos LTDA
Avenida Presidente Wilson
231, sala 1.403.
Cep:20030-021 Rio de Janeiro
RJ Brazil
www.deepseasupply.no