1Q 2014 Presentation - DEEP SEA SUPPLY Plc

1Q 14
DEEP SEA SUPPLY PLC
Presentation 12 May 2014
Highlights
- Revenues increased by 25% from last quarter
- Vessels operating expenses reduced
- 5 vessels delivered so far in 2014
- 1 AHTS and 4 PSV long term contracts commenced in 1Q 2014
- Improved utilization of AHTS fleet
- Expects to conclude purchase of the 10 PSVs in 2Q 2014 from PSV Holding Inc.
DEEP SEA SUPPLY PLC
Share price development and share turnover
Share price and total return since listing
40,00
40
Close Price
Total Return
35
35,00
30
30,00
25
25,00
3%
3%
Volume ( NOK M)
NOK per share
2%
20
15
20,00
15,00
1%
10
10,00
5
5,00
0
Oct-05
2%
1%
Apr-06
Oct-06
Apr-07
Oct-07
Apr-08
Oct-08
Apr-09
Oct-09
Apr-10
Oct-10
Apr-11
Oct-11
Apr-12
Oct-12
Apr-13
Oct-13
Apr-14
0,00
Deep Sea Supply
Plc
DOF ASA
Eidesvik Offshore
ASA
Farstad Shipping
ASA
Havila Shipping
ASA
Rem Offshore
ASA
Solstad Offshore
ASA
Siem Offshore AS
DEEP SEA SUPPLY Q1
0%
2014
Traded shares per month / Average shares outstanding (red line)
2014 average monthly volume and turnover velocity
3
DEEP SEA SUPPLY PLC
Income statement 1Q 2014
1Q 2014
1Q 2013
35 367
38 713
28 314
Vessel operating expenses
(15 224)
(19 374)
(15 150)
Other operating expenses
(2 852)
(Unaudited figures in USD 1,000)
Operating revenue
4Q 2013
(2 646)
(3 926)
Other gains/(losses)
463
149
336
Gain on sale
627
1 122
1 433
EBITDA
18 588
16 685
12 081
Depreciation
(7 416)
(2 747)
(7 686)
EBIT
11 172
13 937
4 395
136
174
186
Financial expenses
(7 278)
(6 319)
(4 002)
Net currency items
(6)
(899)
1 202
0
62
583
(7 148)
(6 982)
(2 031)
4 024
6 955
2 365
(4)
(10)
(31)
4 020
6 945
2 334
Financial income
Change in value of financial derivatives
Net financial items
Pre-tax result
Taxes
Profit for the period/year
Earnings per share
0,03
0,05
0,02
Earnings per share diluted
0,03
0,05
0,02
Cash flow per share 1)
0,03
0,04
0,01
1) Profit before taxes+depreciation-unrealized gain on currencies
*After sale of 50% of the Brazilian business to BTG Pactual, (and the establishment of DESS BTG), the result from the Brazilian operation has been incorporated
50% line by line in the income statements. The table below presents comparable underlying performance based on 100% of the freight revenue and operating
expenses for all vessels:
1Q 2014
1Q 2013
4Q 2013
Operating revenue
53 189
38 713
43 562
Vessel operating expenses
(23 120)
(19 374)
(23 259)
DEEP SEA SUPPLY Q1
2014
4
DEEP SEA SUPPLY PLC
Area of current operation
Office
PSV
AHTS
PSV DESS BTG
AHTS DESS BTG
DEEP SEA SUPPLY Q1
2014
5
DEEP SEA SUPPLY PLC
Cash flow statement
Period ended
Mar 14
Mar 13
Cash generated from operations
11 251
8 083
Net cash generated from operations
11 251
8 083
Acquisitions and upgrades of property, plant and equipment
(29 151)
(9 995)
Net cash (used in) investing activities
(29 151)
(9 995)
Interest and finance expenses paid
(6 683)
(5 445)
Proceeds from borrowings
27 000
10 000
Loans to related parties
(3 000)
0
Repayments of borrowings
(8 247)
(10 920)
9 070
(6 365)
Total changes in liquidity in the period
(8 830)
(8 277)
Cash and cash equivalents at beginning of period
42 976
40 423
Cash and cash equivalents at end of period/year
34 146
32 146
(Unaudited figures in USD 1,000)
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Net cash used generated from (used in) financing activities
DEEP SEA SUPPLY Q1
2014
6
DEEP SEA SUPPLY PLC
Balance sheet
(Unaudited figures in USD 1,000)
31.03.2014
31.12.2013
Non-current assets
Vessels cost
Construction contract
Equipment
Total property, plant and equipment
526 659
485 874
9 241
28 395
839
734
536 739
515 004
Deferred income tax
840
Other long term receivables
819
819
1 131
1 245
28 991
27 070
568 519
544 976
Investment in associates
CIRR deposit
Total non-current assets
840
Borrowings
31.03.2014
31.12.2013
313 520
299 182
CIRR loan
28 991
27 070
Deferred gain
13 385
14 114
Other long term payables
Financial derivatives
Total long term liabilities
Borrowings
CIRR loan
Trade and other payables
Deferred gain
Current assets
Inventories
(Unaudited figures in USD 1,000)
Liabilities
Loans from related parties
20
20
1 219
1 492
357 136
341 877
34 218
29 803
3 911
5 215
14 644
12 914
2 908
2 908
10 500
7 500
2 540
2 365
Loans to related parties
21 000
15 000
Total short term liabilities
68 181
58 341
Other short term receivables
18 127
20 364
Total liabilities
423 317
400 218
Net assets
261 513
257 220
CIRR deposit
3 911
5 215
Freight income not received
36 587
26 542
Shareholders equity
Cash and cash equivalents
34 146
42 976
Share capital, share premium and treasury shares
11 228
11 228
Retained earnings and other reserves
250 284
245 991
Total current assets
116 311
112 462
Total shareholders equity
261 513
257 220
Total assets
684 830
657 439
Total equity and liabilities
684 830
657 439
DEEP SEA SUPPLY Q1
2014
7
DEEP SEA SUPPLY PLC
Shareholders
The largest shareholders as per 07 May 2014 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%
DNB NOR MARKETS
NOR
4 465 788
3,51%
HOLBERG NORGE
NOR
2 515 000
1,98%
MORGAN STANLEY & CO
SWE
2 320 052
1,82%
FIRST GENERATOR
NOR
2 159 137
1,70%
JP MORGAN CHASE BANK
GBR
1 830 295
1,44%
UBS AG
GBR
1 722 663
1,35%
VERDIPAPIRFONDET DNB
NOR
1 670 000
1,31%
UTHALDEN A/S
NOR
1 575 000
1,24%
NORDEA BANK SVERIGE
SWE
1 505 404
1,18%
MORGAN STANLEY & CO S/A CLIENT EQUI.
USA
1 472 703
1,16%
CENTRA INVEST AS
NOR
1 421 643
1,12%
IRL
1 342 512
1,06%
PACTUM AS
NOR
1 325 000
1,04%
TOLUMA NORDEN AS
NOR
885 000
0,70%
DELPHI NORGE
NOR
800 000
0,63%
JP MORGAN CLEARING CORP.
USA
786 640
0,62%
VPF NORDEA SMB
NOR
719 682
0,57%
SNKADINAVISKA ENSKIL A/C CLIENT ACCOUNT
SWE
700 874
0,55%
SOLSTEN INVESTMENT FUND
Total 20 largest shareholders:
86 030 677
67,64%
Total other shareholders:
41 166 517
32,36%
127 197 194
100,00%
Total number of shares:
DEEP SEA SUPPLY Q1
2014
8
DEEP SEA SUPPLY PLC
Contract backlog
Contract backlog Deep Sea Supply fleet as per May 2014 (includes 50% of DESS BTG backlog)
Vessel Type
AHTS *
Vessels on Term Contracts
Value
10 of 14 Vessels
USD 90,7M
PSV **
14 of 18 Vessels
USD 108,7M
Total
24 of 32 Vessels
USD 199,4M
*Exluding Sea Weasel, which is owned by Malaysian J.V ** Includes Sea Falcon, Sea Flyer and Sea Tortuga which are on bareboat to DESS
Expected revenue from term contracts per quarter*
35 000
30 000
AHTS
25 000
20 000
PSV
(Figures in USD 1,000)
15 000
10 000
5 000
-
Q2 - 14
Q3 - 14
Q4 - 14
Q1 - 15
* Includes 50% of contract backlog in the Brazilian JV
DEEP SEA SUPPLY Q1
2014
9
DEEP SEA SUPPLY
Deep Sea Supply: Fleet list & charter status as per May 2014
2014
Vessel
Type
Bhp/Dwt
Year Built
Trading Area
Q1
Q2
Q3
Q4
AHTS Vessels
Sea Lynx
KMAR 404
15.000 BHP
1999
North Sea
Sea Bear
KMAR 404
15.000 BHP
1999
TBA
Sea Ocelot
Khiam Chuan
10.800 BHP
2007
Asia
Sea Eagle I
Khiam Chuan
12.000 BHP
2009
Malaysia
Sea Weasel*
Seatech P-729
6.500 BHP
2009
Malaysia
Sea Badger
Seatech P-729
6.800 BHP
2011
Asia
Sea Trout
VS 470MK II
3.250 DWT
2007
North Sea
Sea Angler
PSV UT 755 L
3.250 DWT
2007
W.Africa
Sea Witch
PSV UT 755 L
3.250 DWT
2008
W.Africa
Sea Falcon**
Ulstein PX 105
4.700 DWT
2013
North Sea
Sea Flyer**
Ulstein PX 105
4.700 DWT
2013
North Sea
Sea Tantalus**
STX 05-L CD
4.100 DWT
2013
North Sea
Sea Titus**
STX 05-L CD
4.100 DWT
2014
Asia
Sea Tortuga**
STX 05-L CD
4.100 DWT
2014
E. Africa
PSVs
*Sea Weasel owned 25% through Malaysian JV
**On Bareboat to DESS
Firm
Option
Spot
DEEP SEA SUPPLY Q1
2014
10
DESS BTG
DESS BTG: Fleet list & charter status as per May 2014
2014
Vessel
Type
Bhp/Dwt
Year Built
Trading Area
Q1
Q2
Q3
Q4
AHTS Vessels
Sea Tiger
KMAR 404
15.000 BHP
1999
Brazil
Sea Panther
KMAR 404
15.000 BHP
1999
Brazil
Sea Leopard
KMAR 404
15.000 BHP
1998
Brazil
Sea Cheetah
Khiam Chuan
15.000 BHP
2007
Brazil
Sea Jaguar
Khiam Chuan
15.000 BHP
2007
Brazil
Sea Fox
Seatech P-729
6.800 BHP
2011
Brazil
Sea Jackal
Seatech P-729
6.800 BHP
2011
Brazil
Sea Vixen
Seatech P-729
6.800 BHP
2011
Brazil
Sea Stoat
Seatech P-729
6.800 BHP
2011
Brazil
Sea Halibut
PSV UT 755 L
3.250 DWT
2007
Brazil
Sea Pike
PSV UT 755 L
3.250 DWT
2007
Brazil
Sea Bass
PSV UT 755 L
3.250 DWT
2008
Brazil
Sea Pollock
PSV UT 755 L
3.250 DWT
2008
Brazil
Sea Turbot
PSV UT 755 L
3.250 DWT
2008
Brazil
Sea Brasil
STX 09CD
4.700 DWT
2012
Brazil
Sea Forth
Ulstein PX 105
4.700 DWT
2013
North Sea
Sea Frost
Ulstein PX 105
4.700 DWT
2013
Australia
Sea Spark
Ulstein PX 105
4.700 DWT
2013
Malaysia
Sea Spear*
Ulstein PX 105
4.700 DWT
2014
East Africa
Sea Spider*
Ulstein PX 105
4.700 DWT
2014
Asia
Sea Springer*
Ulstein PX 105
4.700 DWT
2014
TBA
PSVs
Firm
Option
Spot
*Sea Spear delivered from Yard 07. 01.14 *Sea Spider deliveredfrom Yard 27. 01.14 *Sea Springer delivered from Yard 08 .04.14
DEEP SEA SUPPLY Q1
2014
11
DEEP SEA SUPPLY PLC
Age distribution current fleet and order book
AHTS
PSV
Vessel < 20 years: 24,70% of total fleet
Vessel < 30 years: 17, 50% of total fleet Vessel < 20 years: 17, 50% of total fleet
Vessel < 30 years: 13,70% of total fleet
400
350
300
200
150
100
50
20
14
20
15
20
16
74
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
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
19
73
19
72
19
71
19
70
19
69
19
19
68
0
19
No of units
250
DEEP SEA SUPPLY Q1
2014
12
DEEP SEA SUPPLY PLC
Rig and supply market
Supply vessels
Total fleet
AHTS
PSV
2903
1588
1315
Existing fleet
Orderbook
524
Average age
12,5
13,1
11,7
Jackups
Rig market
18%
158
Total fleet
Semis/drillships
Existing fleet
842
322
Orderbook
246
29%
101
10%
366
28%
520
31%
145
28%
Deliveries of OSV’s in 2014 vs 2013
1) YTD May 2013 total number of delivered vessels was:
Full year 2013 delivery of vessels was:
2) YTD May 2014 total number of delivered vessels was:
Est. Number of delivered vessels in 2014 based on 2013 ratio:
52 (PSV: 32 / AHTS: 20)
214 (PSV: 144 / AHTS: 70)
61 (PSV: 49 / AHTS: 12)
262 (PSV: 220 / AHTS: 42)
Vessel term utilization
- PSV (>3.000 DWT) currently 85% utilization globally vs 88% in May 2013
- AHTS (>10.000 BHP) currently 78% utilization globally vs 74% in May 2013
(The remaining 14% (PSV) and 23% (AHTS) is vessels trading in spot market, steaming, in yard or idle)
DEEP SEA SUPPLY Q1
2014
13
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
Storgaten 4
N-4876 Grimstad
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 Republica do Chile
230, 22o andar, 20031-170
Centro, Rio de Janeiro
RJ Brazil
www.deepseasupply.no

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