Pareto Oil & Offshore Conference September, 2012

Transcription

1 Pareto Oil & Offshore Conference September, 2012

2 Disclaimer This presentation (the Presentation ) has been produced by Songa Offshore SE ("Songa" or the "Company") exclusively for information purposes. This Presentation includes forward-looking statements regarding Songa, including projections and expectations, which involve risk and uncertainty. Such statements are included without any guarantee as to their future realization. Although Songa currently believes that the expectations regarding the Company reflected in such forward-looking statements are based on reasonable assumptions, no assurance can be given that such projections will be fulfilled. Any such forward-looking statement must be considered along with the knowledge that actual events or results may vary materially from such predictions due to, among other things, political, economic, financial or legal changes in the markets in which Songa does business, and competitive developments or risks inherent to the Company s business plans. Many of these factors are beyond Songa s ability to control or predict. Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements. Accordingly, the Company does not accept any responsibility for the future accuracy of the forward-looking statements expressed in this Presentation or the actual occurrence of the forecasted developments. The Company does not intend, and does not assume any obligation, to update any such forward-looking statements as of any date subsequent to the date hereof. No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including, without limitation, projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, the Company does not accept any liability whatsoever arising directly or indirectly from the use of this Presentation. By receiving this Presentation, the recipient acknowledges that he will be solely responsible for its own assessment of the market and the market position of the Company and that he will conduct his own analysis and be solely responsible for forming his own view of the potential future performance of the businesses of the Company. This Presentation must be read in conjunction with the recent financial information, as well as other publicly disclosed information. Nothing in this Presentation, nor any other information provided to the recipient by the Company or any of its advisers constitutes, or may be relied upon as constituting, investment advice or any financial, tax or legal advice by such persons or anybody else.

3 Company profile Six floaters in operation Four harsh semisubmersibles under construction 2012 Jan Jun EBITDA: USD 99.7 million 2012 Jan Jun Net profit: USD 21.8 million Firm Contract Backlog: USD 7.0 billion Current market capitalization: USD 500 million Enterprise value: USD 1.6 billion

4 Highlights Completed capital raising Leading player on the NCS Strong relationship with Statoil Strong backlog with Tier 1 clients and partners Well balanced and positioned fleet Strong management team Equity raise of USD 110 million in April 2012 Bond issue of USD ~125 million in June 2012 Company fully funded until delivery of Cat-D newbuilds Positive market outlook with high barriers to entry and limited new supply to the market Recent discoveries underpin future growth in demand for drilling rigs Cat-D awards cementing leading market position Cat-D awards represent a transformation of the Company All Cat-D rigs on 8 year firm contracts plus options Statoil invested in the upgrades of Trym, Delta and Dee to improve quality and lifetime of the rigs Strong firm contract backlog exceeding USD 7.0 billion with Tier I clients Value of contract options of USD 8.7 billion with Statoil and Total Contract value and duration provide comfort for take out financing at delivery of the Cat-D units Healthy mix of operating units, units recently delivered and units under construction Attractive newbuilds catering for fleet renewal Existing NCS fleet recently upgraded and certified for the NCS Strong operational track-record Proven ability to secure long term contracts Unique relationship with Tier I clients 4

5 Current global presence and clients Norwegian North Sea Headquartered in Cyprus Trinidad /Cuba Malaysia Angola 5

6 Proven track record, design and technology Songa Dee Semisubmersible Norwegian North Sea Fleet Built: 1984 Modified: 2004 / 2012 Water depth: 1,800 feet Next main survey: Q Songa Trym Semisubmersible Norwegian North Sea Fleet Built: 1976 Modified: 1996 / 2002 / 2005 Water depth: 1,200 feet Next main survey: Q Cat-D Encourage HE semisubmersible Built: Delivery Q Water depth: 1,640 feet Moored / DP Cat-D Enabler HE semisubmersible Built: Delivery Q Water depth: 1,640 feet Moored / DP Songa Delta Semisubmersible Norwegian North Sea Fleet Built: 1981 Modified: 1996 / 2011 Water depth: 1,500 feet Next main survey: Q Cat-D Equinox HE semisubmersible Built: Delivery Q Water depth: 1,640 feet Moored / DP Cat-D Endurance HE semisubmersible Built: Delivery Q Water depth: 1,640 feet Moored / DP Songa Eclipse Semisubmersible UDW International fleet Built: 2011 Water depth: 10,000 feet Next main survey: 2016 Songa Venus Semisubmersible Midwater International fleet Built: 1975 Modified: 2005 / 2006 Water depth: 1,500 feet Next main survey: Q Songa Mercur Semisubmersible Midwater International fleet Built: 1989 Modified: 1999 / 2006 /2007 Water depth: 1,200 feet Next main survey: Q

7 Status - North Sea fleet upgrades All three rigs undergoing significant life enhancement upgrades in 2012 Dee upgrade completed in April 2012 Delta SPS completed December 2011 Delta upgrades 80% completed Trym SPS and upgrades in progress

8 SONGA DELTA Year Life Enhancement Scope Drill String Compensator Antilock to bottom, & Upgrade Drilling Control System AOC to Songa Management. Closure of Non Conformancies Shale Shaker replacement and work environment enhancement New Helideck, helifuel system and added accommodation capacity Em. Distributon Board New Air Compressor Upgrade of Main engine and Emergency generator systems Fire Central Upgrade Remote operated Isolation bottles XT Guiding and stacking System Anchor Winches upgrades BOP Modifications Blisters installation for VDL increase Under deck structure steel replacements Installation of 10T constant tension winch Improved BOP and riser handling system

9 SONGA TRYM 2012 SPS plus 10 Year Life Enhancement SCOPE AOC to Songa Management. Closure of Non Conformancies. Drill String Compensator Anti lock to bottom Oil Based Mud DW brake system Choke & Kill manifold Standpipe replacements CCTV upgrades Living Quarter Upgrade & Renewal Port Crane Replacement Valves & pipe Mud syst. Starboard Crane replacement VDL upgrades 4 x Blisters with 2 ea New crane foundations 5- yearly SPS, Hull & Drilling Systems (DNV) New SCR system 10 ea Anchor winches upgrades SIMP, 4 new WT Doors, Dust cyclones, Lifeboat hooks, ROPS, POD Reels Slip joint double seal, Air tuggers, Work platforms

10 Cat D new building program Low Execution Risk Proven shipyard (DSME) Proven design and equipment x 4 Shipyard contract mirror operating specifics DSME responsible for design and operating criteria 100% compliance with NCS regulations Sound Economics based on long term contracts USD 40 mill mobilization fee payable at delivery in Korea Average clean day rates USD 435,000 for four units Average shipyard cost per unit USD 567 mill Robust operating contract Opex control and protection Project Financing Estimated Total Project cost USD 2.5 bill USD 1.2 bill in export guarantees USD 5.1 bill in revenues with USD 2.9 bill in EBITDA over 8 years High quality revenues with AA rating counterpart Asset life years

11 Contract Status Firm backlog of USD 7.0 bill and USD 8.7 bill from options

12 Operating capabilities Songa Fleet quarterly utilization % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q Solid client base with major international oil companies

13 NADL Maersk Songa Transocean Fred Olsen Energy COSL Rowan Odfjell Drilling Saipem Diamond Offshore Stena Ocean Rig # of units Leading market position in the North Sea Supply side Norway - Drilling Tight market for floaters Unit Manager Built Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 8 COSL Pioneer COSL 2010 Bredford Dolphin Dolphin Ocean Vanguard Diamond Offshore Spitsbergen Transocean 2010 Transocean Winner Transocean 1983 Stena Don Stena 2001 Borgland Dolphin Dolphin West Alpha NADL 1986 Polar Pioneer Transocean Scarabeo 5 Saipem 1990 Transocean Arctic Transocean 1986 Bideford Dolphin Dolphin 1975 Searcher Transocean West Navigator NADL Barents Transocean 2009 Deepsea Atlantic Odfjell Drilling 2009 Leader Transocean 1987 Deepsea Bergen Odfjell Drilling 1983 West Venture NADL Songa Trym Songa Offshore 1976 Songa Delta Songa Offshore 1980 Songa Dee Songa Offshore 1984 Scarabeo 8 Saipem 2012 Floaters Jack-ups COSL Innovator COSL 2011 Contract Option The North Sea market remains tight with limited new supply Source: ODS Petrodata, Managers reserach 13

14 NCS: New discoveries and unopened areas will drive investments and demand USDbn Oil & Gas and pipe investments in Norway Growth expected from unopened areas Havis & Skrugard Apr 11 & Jan' m BOE Largest discovery in the Barents Sea since Goliat in 2000 Potential additional upside estimated to up to 250m BOE Operator: Statoil (50%) Owners: Eni (30%), Petoro (30%) Water depth: 370m Reservoir depth: 1,250m Norwegian Sea (Northern) Arctic Ocean Barents Sea E 2012E Decline from producing assets - Increasing life of existing fields Johan Sverdrup, Aug 11 1,700-3,300m BOE Aldous estimated to 900 1,500m BOE Combined with Avaldsnes potential of 1,700 3,300m BOE, second largest NCS discovery Operator (Aldous): Statoil (40%) Owners (Aldous): Petoro (30%), Det norske oljeselskap (20%), Lundin (10%) Water depth (Aldous): 112m Reservoir depth (Aldous): 1,900m Norwegian Sea Unopened areas (Major areas) Examples of recent major discoveries Veslefrikk Varg Statfjord Gullfaks Ekofisk Draugen North Sea Brage Latest year of reported production as of 2009 Latest year of reported production as of 2002 Latest year of reported production as of Source: Statistics Norway, Norwegian Petroleum Directorate, Statoil press releases 14

15 Midwater Backlog Per Marketed & Competitive Rig Midwater Rigs By Region Historical Midwater Dayrates Source: IHS-Petrodata / ISI

16 Debt overview Loan Balance Interest Maturity Syndicate USD 768 M Libor % Oct 2015 Pre-delivery loan, Cat-D 1&2 USD 50 M Libor % Mar 2014 Bond 2015 (750 NOKm) USD 125 M 9.10% June 2015 Bond 2016 (1400 NOKm) USD 234 M 11.48% Nov 2016 Pre-delivery facility, Cat-D 3&4 USD 222 M At delivery Total: USD 1,399 M Blended Interest: 5.4%

17 EBITDA US$ Millions Actual Consensus estimates

18 Thank You!