DOF Installer Financial Report Q3 2014

DOF Installer Financial Report
DOF INSTALLER ASA
financial report
Q3 2014
DOF Installer ASA
Alfabygget
N-5392 Storebø
NORWAY
Index
Financial Report 3rd quarter 2014 . . . . . . . . . . . . . . . . . . . . . . . . 4
Accounts 3rd quarter 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Statement of comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Statement of financial position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Statement of financial position (continued) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Statement of cash flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Statement of shareholder’s equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Key figures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Notes to the accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Note 1 General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Note 2 Segment reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Note 3 Events after balance date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Note 4 Net interest bearing debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Note 5 Transactions with related parties . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Note 6 Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Note 7 Shareholder information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Note 8 Financial income and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Supplemental information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Profit and loss accounts 5 last quarters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Balance sheet 5 last quarters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Financial Report Q3 2014
DOF Installer ASA
Financial Report 3rd quarter 2014
Headlines
During 3rd quarter 2014 Skandi Skansen has been
working for Subsea 7 and Skandi Hercules has been
conducting construction work in the Asia Pacific region
on charter to the DOF Subsea Group. Skandi Skolten
has been working for the DOF Subsea Group doing
construction work in the Atlantic region.
During the quarter DOF Installer ASA has entered
into an agreement for sale of one of its three sister
vessels to an international buyer.
Operation events
Skandi Skolten completed the subsea construction work on
the Banff re-instatement for Teekay in the beginning of June.
The vessel further mobilized on the Goliat project for ENI
and the completion of operations on offshore campaign for
WP2 - installation of upper line segments.
Skandi Skansen completed the third year of the Subsea 7 frame
agreements end August, thereafter the vessel has been working
in the anchor handler marked in the North Sea.
4
Skandi Hercules has worked on the Lundin Ikdam FPSO
installation in Malaysia in July and then continued on HMC
Wheatstone ICV project for Heerema/Chevron.
During the quarter DOF Installer sold one of its vessels, the
Skandi Skolten, to an international buyer. The delivery is
expected late 2014.
Statement of comprehensive income
Total operating income for the 3rd quarter of 2014 was NOK
75 million (vs. NOK 70 million in 3rd quarter 2013). EBITDA
was NOK 69 million (NOK 65 million) whilst EBIT amounted
to NOK 52 million (NOK 47 million) after depreciation of
NOK 17 million (NOK 18 million). Net financial loss was
NOK 53 million (NOK 23 million) including unrealized
loss on financial instruments of NOK 30 million, giving a
pre-tax loss of NOK 1 million (NOK 24million) and a loss
after tax of NOK 1 million (NOK 24 million).
Statement of financial position
Total assets were NOK 2 806 million (NOK 2 827 million)
where non-current assets amounted to NOK 2 683 million
(NOK 2 745 million). Total current assets amounted to NOK
124 million (NOK 82 million) of which NOK 66 million
(NOK 31 million) was cash and cash equivalents.
Total equity was NOK 1 282 million (NOK 1 215 million)
and non-current liabilities were NOK 1 223 million (NOK
1 385 million). Current liabilities amounted to NOK 270
million (NOK 193 million) of which NOK 184 million was
short portion of debt to credit institutions.
By 30th of September the book equity ratio was 45.7 %
whilst the value adjusted equity ratio was 49.1 %.
Statement of cash flows
Net cash flow from operating activities as per 30th of September
was NOK 115 million (NOK 99 million). Cash flow from
investing activities was NOK 37 million (NOK -8 million).
Cash flow from financing activities was negative NOK 137
million (NOK -137 million). Net changes in cash and cash
equivalents were NOK 15 million (NOK -46 million).
Shareholders
The number of outstanding shares is 33 931 000, with a book
value of NOK 37.79 per share. The value adjusted equity per
share as per 30th of September was NOK 43.08.
DOF Subsea AS owns 83.66 % of the shares, with the remaining
16.34 % of the shares held by 49 shareholders. Of that State
Street Bank and Trust Co. owns 4.43 %, MP Pension PK 1.50
%, Goldman Sachs Int. owns 1.47 %, Wimoh AS 1.24 %, Clipper
AS 1.08 % and Straen AS 1.08 %. The other shareholders own
less than 1.00 %.
Market outlook
The current spot market for large AHTS vessels has been
volatile and the Board of Directors expects a volatile market
for large AHTS vessels for the next twelve months.
The Company’s vessels are on bareboat contracts and are
currently working in the spot AHTS market and in the subsea
market doing construction work for the DOF Subsea Group.
The Company has entered into an agreement for sale of one
of its three sister vessels to an international buyer. Delivery
to the new owners is expected late 2014.
The Board of Directors will continue working towards obtaining
long-term contracts on all of the Company’s vessels.
DOF Installer ASA
13th of November 2014
Contact information:
Mons S. Aase, Chairman
+47 916 61 012
DOF Installer ASA
Alfabygget
5392 Storebø
NORWAY
DOF Installer ASA
Financial Report Q3 2014
5
Financial Report Q3 2014
DOF Installer ASA
Amounts in NOK million
6
DOF Installer ASA
Financial Report Q3 2014
Amounts in NOK million
Accounts 3rd quarter 2014
Statement of comprehensive income
3Q 2014
3Q 2013
YTD 2014
YTD 2013
2013
Operating income
75
70
220
198
270
Total operating income
75
70
220
198
270
Other operating expenses
-6
-6
-18
-16
-24
Total operating expenses
-6
-6
-18
-16
-24
Operating profit before depreciation (EBITDA)
69
65
202
183
246
Depreciation
-17
-18
-51
-54
-72
Operating profit (EBIT)
52
47
151
129
174
Financial income
Financial expenses
Realized gain / loss on financial instruments
-
-
-
-
1
-25
-26
-75
-78
-104
2
2
-
1
1
Unrealized gain / loss on financial instruments
-30
3
-31
3
-
Net financial income / loss
-53
-23
-104
-73
-102
7
Profit / loss before tax
-1
24
46
56
72
-
-
-
-
-
-1
24
46
56
72
Cash flow hedges
-
-
3
1
3
Other comprehensive income, net of tax
-
-
3
1
3
-1
24
49
57
75
Tax expenses
Profit / loss for the period
Total comprehensive income for the period
Financial Report Q3 2014
DOF Installer ASA
Amounts in NOK million
Statement of financial position
30.09.2014
30.09.2013
31.12.2013
Vessels
2 683
2 745
2 733
Tangible assets
2 683
2 745
2 733
Non-current assets
2 683
2 745
2 733
50
48
45
8
3
1
58
51
46
Current receivables from group companies
Other current receivables
Total receivables
Unrestricted cash and cash equivalents
66
31
50
Cash and cash equivalents
66
31
50
124
82
96
2 806
2 827
2 829
Current assets
Total assets
8
DOF Installer ASA
Financial Report Q3 2014
Amounts in NOK million
Statement of financial position (continued)
Share capital
Share premium
Retained earnings
Total equity
30.09.2014
30.09.2013
31.12.2013
34
34
34
1 072
1 072
1 072
176
108
127
1 282
1 215
1 233
Financial non-current derivatives
31
33
34
Non-current provisions for commitments
31
33
34
Debt to credit institutions
1 223
1 385
1 359
Non-current liabilities
1 223
1 385
1 359
184
185
192
2
1
3
52
7
8
Short portion of debt to credit institutions
Trade payables
Current liabilities to group companies
Financial current derivatives
Current liabilities
32
-
-
270
193
203
9
Total liabilities
1 524
1 612
1 596
Total equity and liabilities
2 806
2 827
2 829
Financial Report Q3 2014
DOF Installer ASA
Amounts in NOK million
Statement of cash flows
30.09.2014
30.09.2013
31.12.2013
Profit before tax
46
56
72
Depreciation
51
54
72
-
1
1
-1
-4
-2
1
Change in trade receivables
Change in trade payables
Changes in other accruals
Unrealized gain / loss on financial instruments
Unrealized gain / loss on currency
Cash flow from operating activities
Net interest booked in profit / loss
Interest received
Interest paid
Net cash flow from operating activities (1)
Purchase of tangible assets
10
-7
-7
31
-3
1
-
-1
-1
121
96
144
75
76
100
-
-
1
-81
-73
-98
115
99
147
-12
-1
-5
Change in intercompany receivables / debt
38
-3
1
Cash flow from investing activities (2)
37
-8
-11
Instalments on non-current liabilities
-137
-137
-164
Cash flow from financing activities (3)
-137
-137
-164
Net change in cash and cash equivalents
15
-46
-28
Cash and cash equivalents at the beginning of the period
50
77
77
1
-
1
66
31
50
Exhange rate gain / loss on cash and cash equivalents
Cash and cash equivalents at the end of the period
DOF Installer ASA
Financial Report Q3 2014
Amounts in NOK million
Statement of shareholder’s equity
Equity at period start
Profit / loss for the period
Other comprehensive income
Total comprehensive income for the period
Equity at period end
30.09.2014
30.09.2013
31.12.2013
1 233
1 158
1 158
46
56
72
3
1
3
49
57
75
1 282
1 215
1 233
Key figures
11
30.09.2014
30.09.2013
31.12.2013
2.13
Profit per share¹
1.36
1.64
Profit per share excl. unrealized currency loss / gain²
2.28
1.55
2.13
Cash flow per share³
0.18
-1.36
-0.83
Cash flow from operating activities per share before interest and tax⁴
3.55
2.83
4.24
EBITDA margin⁵
92.0 %
92.2 %
91.1 %
EBIT margin⁶
68.6 %
65.0 %
64.4 %
3.6 %
4.6 %
5.9 %
Equity ratio⁸
45.7 %
43.0 %
43.6 %
Value adjusted equity ratio9
Return on net capital⁷
49.1 %
45.0 %
45.8 %
Book equity per share10
37.79
35.80
36.34
Value adjusted equity per share11
43.08
38.83
39.71
33 931 000
33 931 000
33 931 000
1
1
1
No. of shares
Face value per share
1) Result / average number of shares
2) Result excl. unrealized currency gain / loss / average number of shares
3) Changes in cash and cash equivalents / average number of shares
4) Changes in cash and cash equivalents from operating activities before interest and tax / average number of shares
5) Operating profit before depreciation / operating income (excl. profit from sale of non-current asset)
6) Operating profit / operating income (excl. profit from sale of non-current asset)
7) Profit after tax / booked equity
8) Book equity / total capital
9) Value adjusted equity / value adjusted total capital
10) Booked value of equity / no. of shares
11) Value adjusted equity / no. of shares
Financial Report Q3 2014
DOF Installer ASA
Notes to the accounts
Note 1 General
This interim report has been prepared in accordance with the standard for interim reporting (IAS34).
Amendments to the standards and their interpretation may result in amended figures.
The accounting principles and calculation methods applied for the last annual accounts published have been applied to this
document.
In Q3 2014 accrued interest expenses of NOK 20 million (NOK 21 million in Q3 2013) were reclassified from other current
liabilities to short term portion of debt to credit institutions, comparable figures are restated accordingly.
The Quarterly report is unaudited.
Note 2 Segment reporting
Skandi Skolten, Skandi Hercules and Skandi Skansen are all operating in the AHTS and subsea project market.
12
Note 3 Events after balance date
The company has entered into an agreement for sale of one of its three sister vessels to an international buyer. Delivery to the
new owners is expected late 2014.
DOF Installer ASA
Financial Report Q3 2014
Amounts in NOK million
Note 4 Net interest bearing debt
30.09.2014
30.09.2013
31.12.2013
Debt to credit institutions*
1 232
1 396
1 369
Total non-current interest bearing debt
1 232
1 396
1 369
164
164
164
40
-
-
204
164
164
1 436
1 560
1 533
Debt to credit institutions*
Current liabilities to group companies
Total current interest bearing debt
Total non-current and current interest bearing debt
Cash and cash equivalents
Net interest bearing debt
66
31
50
1 370
1 529
1 483
*) Non-current interest bearing debt in the Statement of financial position includes amortized cost. Amortized costs and accrued
interest expenses are excluded in the figures above.
Non-current liabilities to credit institutions
13
DOF Installer ASA long-term financing agreements include the following covenants:
- The Company shall have value adjusted equity to value adjusted assets of 25 %.
- The Company shall have positive liquidity at all times.
- The Company shall have positive working capital at all times, working capital does not include short term portion of debt
to credit institutions.
- The fair value of the Company’s vessels shall always be at least 110-125 % of the outstanding loan amount.
In addition to the above-mentioned financial covenants, the guarantor (DOF Subsea AS) on a consolidated basis should fulfill
the following covenants:
- The Group shall have value adjusted equity to value adjusted assets of at least 25 - 30 %.
- The Group shall have a minimum book equity of NOK 3 000 million.
- The Group shall have free cash of minimum NOK 400 million.
DOF Installer ASA and DOF Subsea AS are in compliance with all covenants.
Financial Report Q3 2014
DOF Installer ASA
Note 5 Transactions with related parties
Description of transaction with related parties is described in the Annual Report for 2013. There are no major changes
in type of transactions between related parties.
Note 6 Taxes
Taxes are estimated.
Note 7 Shareholder information
Name
No. shares
Shareholding
Voting shares
28 386 835
83.66 %
83.66 %
1 501 800
4.43 %
4.43 %
MP PENSJON PK
508 190
1.50 %
1.50 %
GOLDMAN SACHS INTERNATIONAL EQUITY
498 359
1.47 %
1.47 %
WIMOH INVEST AS
420 000
1.24 %
1.24 %
CLIPPER A/S
366 100
1.08 %
1.08 %
STRAEN A/S
364 915
1.08 %
1.08 %
DOF SUBSEA ASA
14
STATE STREET BANK & TRUST COMPANY
AUDLEY A/S
225 750
0.67 %
0.67 %
EUROMAR LQ AS
220 700
0.65 %
0.65 %
METEVA AS
210 000
0.62 %
0.62 %
SKANDINAVISKA ENSKILDA BANKEN AB
179 000
0.53 %
0.53 %
SUNDT AS
140 000
0.41 %
0.41 %
VERDIPAPIRFONDET ALFRED BERG NORGE
137 200
0.40 %
0.40 %
LANDE UTVIKLING AS
75 000
0.22 %
0.22 %
SLETHEI AS
69 500
0.20 %
0.20 %
HOLMEDAL
60 000
0.18 %
0.18 %
BARQUE AS
56 500
0.17 %
0.17 %
BYGGEVIRKSOMHET AS
56 000
0.17 %
0.17 %
HELLAND A/S
Total
Other shareholders
Total number of shares
56 000
0.17 %
0.17 %
33 531 849
98.82 %
98.82 %
399 151
1.18 %
1.18 %
33 931 000
100.00 %
100.00 %
DOF Installer ASA
Financial Report Q3 2014
Amounts in NOK million
Note 8 Financial income and expenses
3Q 2014
3Q 2013
YTD 2014
YTD 2013
2013
Interest income
-
-
-
-
1
Financial income
-
-
-
-
1
-24
-25
-72
-76
-101
-1
-1
-3
-2
-3
-25
-26
-75
-78
-104
Interest expenses
Other financial expenses
Financial expenses
Realized gain / loss on derivative financial instruments
-
-
-
-
-
Realized gain / loss on currencies
2
-
1
1
2
Realized gain / loss on financial instruments
2
-
1
1
2
-29
3
-31
2
-1
-
-
-
1
1
Unrealized gain / loss on financial instruments
-30
3
-31
3
-
Net financial income / loss
-53
-23
-104
-73
-102
Unrealized gain / loss on derivative financial instruments
Unrealized gain / loss on currencies
15
Financial Report Q3 2014
DOF Installer ASA
Amounts in NOK million
Supplemental information
Profit and loss accounts 5 last quarters
3Q 2014
2Q 2014
1Q 2014
4Q 2013
3Q 2013
Operating income
75
73
72
72
70
Total operating income
75
73
72
72
70
Other operating expenses
-6
-6
-6
-9
-6
Total operating expenses
-6
-6
-6
-9
-6
Operating profit before depreciation (EBITDA)
69
67
66
63
65
Depreciation
-17
-17
-17
-18
-18
Operating profit (EBIT)
52
50
49
45
47
-25
-25
-25
-26
-26
2
-
-
1
-
Unrealized gain / loss on financial instruments
-30
-3
2
-3
3
Net financial income / loss
-53
-28
-24
-28
-23
-1
23
25
17
24
Financial expenses
Realized gain / loss on financial instruments
16
Profit / loss before tax
Tax expenses
Profit / loss for the period
-
-
-
-
-
-1
23
25
17
24
DOF Installer ASA
Financial Report Q3 2014
Amounts in NOK million
Balance sheet 5 last quarters
3Q 2014
2Q 2014
1Q 2014
4Q 2013
3Q 2013
Tangible assets
2 683
2 699
2 720
2 733
2 745
Total non-current assets
2 683
2 699
2 720
2 733
2 745
Receivables
58
60
61
46
51
Cash and cash equivalents
66
38
60
50
31
124
98
120
96
82
2 806
2 797
2 840
2 829
2 827
3Q 2014
2Q 2014
1Q 2014
4Q 2013
3Q 2013
Subscribed equity
1 106
1 106
1 106
1 106
1 106
Retained earnings
176
177
152
127
108
1 282
1 284
1 258
1 233
1 215
Total current assets
Total assets
Total equity
17
Financial non-current derivatives
31
33
33
34
33
Non-current provision for commitments
31
33
33
34
33
Other non-current liabilities
1 223
1 278
1 305
1 359
1 385
Total non-current liabilities
1 223
1 278
1 305
1 359
1 385
184
190
185
192
185
86
12
60
11
8
270
202
245
203
193
Total liabilities
1 524
1 513
1 582
1 596
1 612
Total equity and liabilities
2 806
2 797
2 840
2 829
2 827
Short portion of debt to credit institutions
Other current liabilities
Current liabilities
DOF Management Pte Ltd
GLOBAL HQ
AUSTRALIA
DOF Subsea AS
DOF Subsea Australia Pty Ltd
PSA Building, 119963
Thormøhlensgate 53 C
5th Floor, 181 St. Georges Tce
SINGAPORE
5006 Bergen
Perth, Wa 6000
Phone: +65 6868 1001
NORWAY
AUSTRALIA
Fax:
Phone: +47 55 25 22 00
Phone: +61 8 9278 8700
Fax:
Fax:
460 Alexandra Road# 15-02
+47 55 25 22 01
+61 8 9278 8799
+65 6561 2431
UNITED KINGDOM
[email protected]
[email protected]
NORWAY
DOF Management Australia
Exchange No.1, 62 Market St. Aberdeen
Level 1, 441 South Road
AB11 5PJ, UNITED KINGDOM
DOF Subsea Norway AS
Bentleigh, Vic. 3204
Phone: +44 1224 614 000
Thormøhlensgate 53 C
AUSTRALIA
Fax:
5006 Bergen
Phone: +61 3 9556 5478
[email protected]
NORWAY
Mobile: +61 418 430 939
DOF Subsea UK Ltd
Phone: +47 55 25 22 00
Fax:
+47 55 25 22 01
+44 1224 614 001
DOF Subsea S&P UK Ltd
BRAZIL
[email protected]
Exchange No.1, 62 Market St. Aberdeen
AB11 5PJ, UNITED KINGDOM
DOF Subsea Brasil Serviços Ltda
Phone: +44 1224 614 000
SEMAR AS
Macae address:
Fax:
Oksenøystein 12
Rua A1, numero 35
[email protected]
1366 Lysaker
Vale Encantado - Macaè - RJ
NORWAY
BRAZIL
CSL Engineering
Phone: +47 67 12 40 06
Rio address:
Geo House, Commerce Street
Fax:
Rua Lauro Muller,
Aberdeen AB11 5FN
116 Salas 2802 a 2805,
UNITED KINGDOM
Torre do Rio Sul - Botafogo
Phone: +44 1224 285 566
DOF Management AS
22290-160, Rio de Janeiro, R.J.,
Fax:
Alfabygget
BRAZIL - CEP: 27910-000
[email protected]
5392 Storebø
Phone: +55 22 2123-0100
NORWAY
Fax:
+47 67 12 40 06
[email protected]
+55 22 2123-0199
[email protected]
Thormøhlensgate 53 C
5006 Bergen
+44 1224 614 001
+44 1224 285 599
DOF (UK) Ltd
Geo House, Commerce Street
Aberdeen AB11 5FN
CANADA
NORWAY
UNITED KINGDOM
Phone: +44 12 24 58 66 44
Phone: +47 56 18 10 00
DOF Subsea Canada
Fax:
Fax:
26 Allstone Street, Unit 2
[email protected]
+47 56 18 10 06
[email protected]
Mount Pearl, Newfoundland
CANADA, A1N 0A4
ANGOLA
+1 709 576 2500
[email protected]
Rua Ndumduma 56/58
Caixa postal 2469
USA
Phone: +1 709 576 2033
Fax:
DOF Subsea Angola
+44 12 24 58 65 55
DOF Subsea USA Inc
5365 W. Sam Houston Parkway
Suite 400, Houston, Texas
SINGAPORE
Miramar Luanda
77041, USA
Phone: +1 713 896 2500
REPUBLIC OF ANGOLA
DOF Subsea Asia Pacific Pte Ltd
Fax: Phone: +244 222 43 28 58
460 Alexandra Road# 15-02
[email protected]
Fax:
PSA Building, 119963
+244 222 44 40 68
Mobile: +244 227 28 00 96/
SINGAPORE
Phone: +65 6561 2780
+244 277 28 00 95
[email protected]
Fax:
+65 6561 2431
[email protected]
+1 713 984 1612
DOF Installer ASA
Alfabygget
N-5392 Storebø
NORWAY
Report design: DOF Corporate Communication Department