deepocean · brief introduction to deepocean ... imr2 and surf power cables and umbilicals pipeline...

July 2014

DeepOcean

DeepOcean Presentation - Pareto Conference – Oslo – 10 September 2014 by Bart Heijermans - CEO

www.deepoceangroup.com 1

Cliff diving into the Norwegian fjords of Kragerø

Navigating through crowded waters

Could have been worse….

Temporary softening due to demand growth slow down and oversupply of assets

Brief introduction to DeepOcean – a subsea services company


A leading provider of integrated subsea services

Focused on the lower risk subsea service niches with inherent day-

rate nature of contracts

Revenues predominantly exposed to end-user OPEX budgets

A market leader in diverless subsea IMR in the Greater North Sea

A global leader of trenching services

Recognised global brand for relentless customer focus and

operational excellence having operated in the sector since the

1990s

Survey &

Seabed Mapping Seabed Intervention Subsea Installation IMR Decommissioning

Service lines



Company overview

Note: (1) Walker1 not included in vessel overview

Owned vessels: 7

Long term charters: 12

+2 charters starting in

2016

Edda Freya (SURF)

Interconnector

vessel (Maersk)

35 ROVs

5 ROVs ordered for

delivery in 2014/2015

5 ploughs

7 jet trenchers

4 mechanical cutters

Human Resources (1) ROVs Trenchers & Ploughs Vessels(1)

1,360 employees

235 full time agency

personnel / contractors

10 offices in 6 countries

YTD turnover 3.2%(2)

Notes:

1) As of 30-June-2014

2) Higher turnover in Mexico

and Brazil

Other Assets

Module handling

systems

Geotechnical rig

Excavators / dredgers

ROV tooling

1 (+1) AUV

Ownership

Private Company

Financial Investors

Largest owner ~16%

of shares

2013 Financials

$609 million revenue

$95 million Adj.

EBITDA

13% ROCE

Neg. net debt (YE)

$74 million CAPEX


Confidential – Not for Public Dissemination

Current Fleet


(1) Walker1 is excluded

Arbol Grande

Deep Endeavour

Edda Flora Edda Fauna Edda Fonn Deep Vision Volstad Surveyor

Northern Wave

Volantis

Maersk Recorder

Rem Forza

Office locations

Northern Commander

Northern Supporter

Long term ROV operations on:

North Sea Giant

Normand Ferking

CBO Isabella

Atlantic Challenger

Rem Ocean

Havila Phoenix

Chartered

Owned

Deep Helder

14

14

14

Go Pegasus

14

Tau

14


Navigation through crowded waters

Diverless IMR Operations

Too many companies call themselves IMR contractors. Chartering a PSV or a ROVSV

with a rented ROV doesn’t make you an IMR Contractor…

Subsea IMR and pipeline inspection

Need ingenuity and fast track problem solving capabilities

> 1500 vessel days per year and >500 call-offs (projects) per year

3000 - 5000 km of pipeline inspected annually

Approximately 60-70 (75-80% are engineers) persons in the

Haugesund office are supporting IMR operations

One of our dedicated IMR vessels, Edda Fauna, with a third party IMR vessel

Scale squeeze FPSO Thruster

Replacement Module Handling Brace installation


Diverless IMR Operations Replacement of Veslefrikk flexible risers

YME Platform weld NDT Orman Lange diverless hot-tap

Selection of IMR projects


Pipeline Validation

IMR2

IMR


LOFS / PRM

Cable installation for BP

Selection of Construction and Seabed Intervention Projects


Trenching in German sector

Renewables

Installation and burial of ~535km of cables and

umbilicals on Snorre PRM project


Laser and Sonar Survey by ADUSDEEPOCEAN

Selection of Survey and Decommissioning projects Costa Concordia GASSCO

Petrobras

Survey Diverless decommissioning



Secured first long term AUV

contract

Use of ADUSDeepOcean’s

visualization technology

Geotechnical work for oil & gas

and renewable customers

AUV Operations Wind farm IMR Geotechnical Services

New developments


Edda Freya to be delivered in

1Q2016

Vessel with 7000 te. carousel to

be delivered in 1Q2016

Technip – DeepOcean JV

received award from Statoil for

new 5 year contract

IMR2 and SURF Power cables and umbilicals Pipeline Repair System (PRS)


Strong long-term drivers, but short-term visibility reduced as projects are pushed out in time

Muted overall sentiment for offshore oil services, as evidenced by e.g. seismic majors trading

at all-time low since the global financial crisis after having reported weak Q2 and reduced

guidance

Focus on cut-backs in E&P spending (Statoil, Total and Shell most vocal) and greater capital

discipline among oil companies has continued resulting in project delays and margin pressure

contractors. Unlikely that any contractor won’t be impacted by this development

Worry that less mature companies with low backlog will pursue volume with irrational pricing

and drive down margins. While this is unsustainable in the long-term, it can harm the whole

industry on the shorter-term

Contractors taking more risk on CAPEX projects in oil & gas and renewable segments

Sale of properties by majors to independents in Greater North Sea resulting in temporarily

lower level of activity

Large PSV and AHTS vessel owners are looking at deploying these vessels in subsea market

Industry Developments




Hot, Floating

and Crowded Why we need consolidation and how it can renew

our industry…

Challenges

Too many tier 2 subsea contractors

Potential to be squeezed by:

Oil & gas producers / Utilities

Tier 1 contractors

Peers

Financial sponsors seeking to exit at some stage

Consolidation is needed

Our plan for navigating through crowded waters

Focus on niche areas

Control cost and maintain a healthy balance

sheet

Align the company with customers and offer

quality services to lower cost

Operational excellence

The Sequel….

More subsea wells

Increased demand for construction, IMR and

decommissioning

Bigger and more complex subsea structures

Need for larger and more capable vessels

More pro-active and critical maintenance

requirements

Ageing Infrastructure

Increased requirements for IMR and replacement

scope

Focus on IOR (Increased Oil Recovery)

Installation, IMR and change-out of subsea

production systems

Well P&A and intervention (downhole IMR)

Permanent Reservoir Monitoring (PRM)

Electrification projects

Renewables

Increase in number of Offshore wind farms

Growing market for IMR and remedial trenching

West European Grid

New interconnector power cables

Strong believer in underlying subsea trends



Join the discussion on LinkedIn:

www.linkedin.com/company/deepocean

Follow DeepOcean Group on Twitter

@deepoceangroup

www.deepoceangroup.com

http://www.youtube.com/deepoceanonline

Q&A



deepocean · brief introduction to deepocean ... imr2 and surf power cables and umbilicals pipeline...

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