miclyn express offshore · 25 30. 35. 40 6 years total others tugs and barges. ... references to...

Miclyn Express OffshorePareto Conference Presentation , 10-11 September 2014

www.miclynexpressoffshore.com

1www.miclynexpressoffshore.com

Business Overview

Headquartered in Singapore, MEO has been operating through predecessor entities since the 1970s

MEO has a proven track record of operational and safety excellence

MEO has long-standing customer relationships with a high degree of repeat business

MEO’s operations are supported by a strong, experienced and incentivised management team leading a workforce of over 2,000 employees

MEO is a leading provider of Offshore Support Vessels with a strong presence across South East Asia, the Middle East and Australia

MEO charters a diverse portfolio of vessels to a wide range of customers operating across all phases of the offshore oil and gas cycle, namely: exploration, development and production

Core Segments

Strong fleet of 155 vessels, diversified geographically and across sectors

Other Segments

Offshore Support Vessels (OSVs)

Wide ranging applications across the entire upstream offshore oil and gas

cycle

Crewboats

Tugs & Barges

Offshore production support /

transportation of personnel and critical

supplies

Transportation of material for offshore

development and civil construction activities

Express Offshore Solutions (EOS)

Coastal Survey Vessels

Third Party Vessels

Vessels Applications / User Industries


Geographically Diversified Fleet

Superior services and operational excellence have cemented long-standing relationships with leading oil companies and service providers Relationships enhanced through investment in support infrastructure which helps to minimize downtime and enhance fleet reliability

Indonesia

Thailand

Saudi Arabia

United ArabEmirates

Bangladesh

Australia

Middle East39 Vessels30% of Total Fleet

South East Asia88 Vessels60% of Total Fleet

Australia(1)

13 Vessels10% of Total Fleet

Singapore

Qatar

No. of Vessels (as of June 2014)

SEA ME AUSUnder

construction Total

OSV 25 6 1 5 37

Crewboats 47 23 0 10 80

Tugs & Barges 16 10 8 - 34

Total 88 39 13(1) 15 155

Malaysia

Support centers Regional Offices Training CentersVessels Operating

Strong local presence through strategic support centres

Note: (1) Includes 4 CSVs in Australia

Brunei


Infrastructure in key operating regions enhances our ability to service customers Strong relationships with blue chip clientele

Recognised Operator with a Blue Chip Client Base

Chevron best contractor awards

Eleven awards to Miclyn Express

Offshore’s vessels

operating for > 3 years without

injury

Three awards to Miclyn Express

Offshore’s vessels

operating for >2 years without

injury

One award to Micyln Express

Offshore vessels

operating for Chevron for >1

year without injury

One award for best HAZOBS

Support bases in proximity to offshore fields in Indonesia Thailand, Malaysia, Saudi Arabia, Qatar, UAE and Australia

Dedicated training centers in Indonesia and Thailand to meet local crewing challenges

Closer regional interaction with customers


Business Strategy

● Well-positioned to benefit from shallow water offshore production growth

● Remain focused on South East Asia, Middle East and Australia, selectively enter into adjacent markets should opportunities arise

Focus on shallow water operations

● Minimum IRR of 15% on an unleveraged basis with a payback period of not more than five years for new investments

● Low asset concentration risk

A disciplined investment strategy

● Construct or purchase young OSVs and crewboat vessels based on identified customer demand in long-term charters

Vessel renewal and fleet expansion to meet identified customer demand

● Leverage relationships with core customers to cross-sell opportunities and expand relationships

Strengthen and grow customer relationships

● Apply operational best practices and maintain leading safety standards and procedures

Emphasis on safety, reliability and operational excellence

Continue to focus on shallow water operations, grow our business to be the provider of choice for our customers


Safety Is Our Number 1 Priority

Truly world class safety statistics

MEO boasts an enviable Health and Safety track record. The company accomplished 15+ million man hours without Loss Time Injury (LTI) in 2013, a truly world class performance statistic

Note: (1) As of FY2013A

15+ million man hours

without LTI (1)

Robust systems and process embedded in MEO’s culture:

Top core value

Dedicated and passionate HSQE team, stationed locally within each operating region

Top down approach; top management actively engages with crews and contractors on a regular basis

Job card system empowers all employees to stop work that they deem to be unsafe

Constantly shaping new and innovative campaigns to improve and deliver sustainable, safe operations


Highlights of last 12 months

Success in lifting forward orderbook from ~US$500m to ~US$750m

New appointment of Mr Venkatraman Sheshashayee (“Shesh”, ex Jaya) as Deputy CEO

Chevron award for two 85tn BP AHTS in Thailand (4+3 years), extension of strong relationship

Multiple contract wins in Kingdom of Saudi Arabia (crewboats and security vessels)

Entry into Brunei market with multi-vessels tender win for Brunei Shell Petroleum

Continued fleet expansion program, 21 vessels under construction

Growing number of contract backed capital deployment opportunities

Acquisition of Uniwise Towage in Thailand

Company delisted from ASX by CHAMP, Headland Capital and Management

Debut SGD 200m Bond raised to fund privatisation

USD 315m bilateral facility raised with DBS

Sale of Shipyard, non-core asset


55.3

72.0

96.889.2

101.0

71

8084 84

80

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

0

10

20

30

40

50

60

70

80

90

FY10 FY11 FY12 FY13 FY14

US

$mU

tilis

atio

n (%

)

EBITDA (pre disposals) Utilisation

Strong Earnings Growth in past 5 years


5 59

161

1111

36

76

117

12

27 27

11

0

5

10

15

20

25

30

35

40

<3 months 3 months - 1 years 1 - 3 years 3 - 6 years > 6 years

Total Others Tugs and Barges

Note: (1) Only includes contracts of core businesses, data as of 30 June 2014; (2) Total contracted revenues backlog include US$277m from core businesses and US$40m from other businesses. Total extension options backlog include US$122m from core businesses and US$14m from other businesses.

● 70% of our charter contracts are 1 year or longer with extension options● Average length of contracts is 3.4 years for OSVs and 3.7 years for crewboats● Chevron, Saudi Aramco and the PTT Group are MEO’s legacy customers for 15 to 30 years● Contracted revenues and tenor of charters reflect customers’ perception of the quality and utility of our fleet● Total contracted and options backlog of US$209m for FY 2015

Contracted Revenue with High Earnings VisibilityN

umbe

r of C

ontr

acts

Contract Value US$3.1m US$15.5m US$63.4m US$324.0m US$42.0m

Total Contracted Revenues and Options Backlog: US$730m(2)

Tenor of Vessel Charter Contracts(1)

Long term contracts across the fleet provide high degree of earnings visibility


Loan package refinanced by DBS;

US$150m Term Loan

US$100m RCF

US$ 50m CAPEX facility (undrawn)

US$15m FX/BG facilities

Minority shareholders bought out with proceeds of S$200m bond raising

S$200m bond hedged to US$ (US$159m equivalent)

Acquisition of Uniwise Towage for US$18.9m

Further investment in new vessels against disciplined investment criteria (minimum 15% unlevered IRR)

Strong contract backlog (>US$700m) to support future operating cashflows; ability to service debt and continue investment in new assets

Note:

1 FY14 EBITDA, excluding the impact of one-off adjustments relating to privatisation and disposal of shipyard2 FY13 EBITDA, excluding the US$4.6m Iran provision3 Net Debt / (Net Debt + Equity)

14.6 19.3

70.2 26.0

335.3 317.1

148.9 139.2

6.8 18.9 6.9 68.7

16.6 1.7 0.2

-

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

450.0

500.0 FY14 FY13

Net Debt (US$m) 373.8 199.3

Net Debt / EBITDA 3.91 2.52

Gearing (%)3 47.3% 34.3%

Well Funded, Strong Cash Delivery

Ability to service new debt package and fund growth


Solid execution capability

Financial capacity to fund growth

Well positioned in a growing industry

Attractive pipeline of opportunities

Proven Operational Excellence

Strong balance sheet

Summary

Clear strategy for future growth


Reliance on Third Party Information

The views expressed here contain information that has been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. This presentation should not be relied upon as a recommendation or forecast by Miclyn Express Offshore Limited (“Miclyn Express Offshore”).

Forward Looking Statements

Some of the information contained in this document may constitute forward-looking statements that are subject to various risks and uncertainties. Nothing in this document is a promise or representation as to the future. Statements or assumptions in this document as to future matters may prove to be incorrect. Miclyn Express Offshore does not make any representation or warranty as to the accuracy of such statements or assumptions. You acknowledge that circumstances may change and the contents of this document may become outdated as a result. You also acknowledge that no audit or review has been undertaken by an independent third party of the assumptions, data, results, calculations and forecasts contained in or referred to in this document. You should make your own independent assessment of the information.

No Warranties

We makes no warranty, express or implied, nor assumes any responsibility in its contents for its accuracy, completeness, its use for any general of particular purpose, nor that such items or use of such items would not violate or infringe rights of others.

No Offer of Securities

Nothing in this release should be construed as either an offer to sell or a solicitation of an offer to buy or sell Miclyn Express Offshore securities in any jurisdiction.

Pro-Forma Financial Information

References to pro forma financials exclude any exceptional items. A reconciliation to statutory financials is contained within the prospectus, available at our website www.miclynexpressoffshore.com.

Important notice and disclaimer

http://www.miclynexpressoffshore.com/


Contact

For further enquiries, please contact:

Adam Clayton

Corporate Finance and Group Commercial Head

Miclyn Express Offshore

Tel: +65 6829 6122

Mob: +65 8298 5155

www.miclynexpressoffshore.com

http://www.miclynexpressoffshore.com/

miclyn express offshore · 25 30. 35. 40 6 years total others tugs and barges. ... references to...

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