Group income for Q2 totalled NOK 1,581 million (NOK 1,521 million), with an operating result before depreciation (EBITDA) of NOK 495 million (NOK 485 million).
Utilization rate for the subsea fleet in Q2 was 91%, with 92% for the supply fleet.
The Group has added one new vessel to its fleet in Q2, in connection with DOF Subsea's purchase of the construction support vessel Skandi Constructor (ex "Sarah"). On 1 July, DOF Subsea took delivery of of Skandi Skansen.
One vessel, Geosounder, was sold in the second quarter. DOF also completed the sale of one new building (hull no. 081 at Cochin Shipyard). This transaction was completed in July.
In April, DOF signed an agreement for three 7‐year contracts for ConocoPhillips in the North Sea. Three new buildings have been contracted at STX OSV Norge in order to serve these contracts.
In July, DOF Subsea was awarded the contract for Goliat FPSO marine with Eni Norge. The contract has a total value of approximately NOK 300 million. In August, Skandi Niteroi was awarded a 4‐year contract for Petrobras.
In April, DOF Subsea completed the issue of a 5‐year bond loan totalling NOK 750 million.
DOF Installer has carried out an issue of NOK 200 million, comprising 10 million new shares. DOF Subsea owns approx. 84% of the shares in DOF Installer subsequent to the share issue.
DOF ASA is an international corporation involved in
the ownership and operation of a fleet comprising
supply and subsea vessels and engineering
companies providing services to the subsea market.
The Group has a modern fleet with an average age of
approximately 6 years. When adjusted for market
value, the average age is 3.5 years. As of August
2011, the fleet (partly/wholly owned) had 73 vessels
(including new buildings). The fleet is comprised as
follows: 20 AHTS, 24 PSV and 29 CSV. In addition, the
Group owns a fleet of 45 modern ROVs.
The main share of DOF ASA's fleet operates on long‐
term contracts. As of June, the financial nominal
value of these contracts totalled approximately NOK 21
billion, including options with a value of approximately
NOK 38 billion. Contractual coverage in 2011 is 87% with
69% for 2012.
Main items in the interim accounts for Q2
Operating income amounted to NOK 1,581
million (NOK 1,521 million).
Operating result before depreciation (EBITDA)
totalled NOK 495 million (NOK 485 million).
The operating result (EBIT) was NOK 215 million
(NOK 198 million).
Total financial costs before unrealised gain/loss
on foreign exchange were NOK 310 million (NOK
105 million).
Unrealised gain on foreign exchange totalled
NOK 86 million (loss of NOK 252 million).
The pre‐tax result was negative at NOK 9 million
(a loss of NOK 159 million).
Net interest‐bearing liabilities as of 30 June
2011 were NOK 17,039 million (NOK 13,157
million).
Prepaid instalments per vessel as of 30 June
2011 were NOK 2,334 million (NOK 3,354
million).
Book equity including minority interests as of 30
June 2011 was NOK 6,618 million (NOK 6,525
million).
Comments to second quarter operations
The supply fleet in the North Sea had a high utilization
rate for all vessels in the quarter. Two vessels, Skandi
Falcon and Skandi Sotra, have partly operated in in the
spot market with a utilization rate close to 100%. The
activity in Brazil continues to increase, with the addition
of new vessels to the fleet this quarter. Skandi
Commander arrived in Brazil in April and started on a 5‐
year contract with Petrobras mid May. The new building,
Skandi Emerald, arrived Brazil from Vietnam early May
and started on its contract for OGX in the same month. A
number of scheduled dry docks have been executed for
the Brazilian fleet in the second quarter. Together with
the transit of Skandi Commander and Skandi Emerald to
Brazil, these dry docks have resulted in a reduced
utilization rate for the fleet in the quarter. A weak USD
rate against the BRL has had a negative impact on the
EBITDA figures for parts of the Brazilian fleet.
As projected, DOF Subsea had a higher level of activity
rate for DOF Subsea's total fleet, both TC and project
vessels, was 89% in April, 91% in May and 94% in
June. For the project fleet alone, utilization was 74%
in April, 74% in May and 81% in June. The main
reason for the low utilization in April and May was
the dry dockings and repositioning of 2 vessels. The
level of activity in Asia has been high. One new vessel
was added to the fleet in Asia during the second
quarter – Skandi Hercules – which sailed from the
North Sea and arrived in Asia at the start of May. This
vessel had a good utilization rate both in May and
June. The level of activity in Brazil has been high,
while the North Sea and Gulf of Mexico have seen a
low level of activity in the second quarter.
Comments to operations to date this year
Total income to date this year has been NOK 2,967
million (NOK 2,650 million), with EBITDA of NOK 869
million (NOK 823 million). Utilization rate of the fleet,
in particular the subsea fleet, has been higher in Q2
than in Q1, repeating the trend from last year. The
first quarter was impacted by the number of DOF
Subsea vessels in transit to new market regions and
the execution of a number of scheduled dry dockings.
Dry dockings in Q2 were mainly for the supply fleet in
Brazil. The Group has received delivery of three new
buildings to date this year, all of which have been
secured long‐term contracts. Moreover, DOF Subsea
has purchased a vessel in the second‐hand market
which, subsequent to delivery, has operated as a
subsea/project vessel. One older vessel was sold in
the second quarter. To date this year, DOF has
contracted three new buildings from STX OSV Norge
in connection with three long‐term contracts for
ConocoPhillips.
Depreciation
With effect from 1 January 2011, the DOF Group has
amended its depreciation estimate. In brief, the
amendment involves a reduced degree of
decomposition than with previous depreciation
estimates. Existing depreciation period is maintained
which implies expected useful life for each vessel.
Estimated residual value is 50% of original cost price
for the vessel. Vessels older than 20 years are based
on individual evaluations.
Financial result and tax, Q2
Norskan operates with BRL as functional currency.
Significant fluctuations between BRL and USD have a
considerable impact on the accounts, even though
Norskan has a limited degree of exposure to foreign
exchange as all long‐term contracts are hedged in the
same currencies as the operating and financial costs.
The financial result includes an unrealised gain on
foreign exchange of NOK 86 million, mainly related to
Brazil and generated from a weaker USD against BRL.
The tax cost is based on an estimate.
Balance sheet
The Group's net interest‐bearing debt, including
unemployed capital at the end of June, totals
approximately NOK 14,705 million. The increase in net
interest‐bearing debt this year mainly involves delivery
of three new buildings in the first quarter and the
purchase of one vessel in the second quarter. One of
these vessels is classified under new‐builds in the
balance sheet for June 2011, and is expected to start
operation in fourth quarter. The vessel is secured a long
term contract.
As of 30 June 2011, cash reserves totalled NOK 1,831
million.
Net cash flow from investment activities at the end of
Q2 was negative at NOK 2,050 million (negative at NOK
2,572 million) and net cash flow from financial activities
was NOK 885 million (NOK 1,534 million).
Financing and capital structure
In April, DOF Subsea issued a 5‐year bond loan of NOK
750 million, of which NOK 200 million is owned on the
company's accounts. Parts of the bond loan due in 2012
have been repurchased. The cash effect of this
transaction amounted to approx. NOK 400 million.
The DOF Group's remaining liabilities for vessels under
construction as of August are approximately NOK 6,350
million and apply to deliveries from the second half of
2011 to the end of 2013. Planned long‐term financing of
this new building program totals approximately NOK
6,100 million of which approx. NOK 4,500 million has
been secured by long‐term financing. The majority of
these vessels, for which financing has not yet been
agreed, have been secured long term contracts with
solid clients.
Shareholders
There were no significant changes in the company
shareholders during the quarter. As of 30 June 2011,
the company had 4,186 shareholders. The share price
as of 30 June 2011 was NOK 48.10 (NOK 42.30).
The fleet/business activities
DOF Subsea purchased Skandi Constructor in June
(former "Sarah") from Marin Subsea. This vessel is a
construction support vessel and is also equipped for
well intervention. Since take‐over date, the vessel has
operated on the subsea project market in the North
Sea. The vessel is scheduled to sail to West Africa in
September to work on projects.
During the first quarter, DOF Subsea took delivery of
the new building Skandi Niteroi, which is owned
50/50 with Technip. In the third quarter, the vessel is
in progress to be completed as a pipe‐laying vessel
and is expected to start its a long‐term contract with
Petrobras.
In June, DOF Rederi contracted three vessels: 2 with
STX MRV 05 design and one with STX MRV 05 ROV
design. All vessels are scheduled for delivery in Q4
2012 and shall be utilised for contracts with
ConocoPhillips. DOF Subsea has signed a contract for
ROV services for one of the vessels.
In July, DOF delivered one newbuilding to a
subsidiary of Hitec Vision. The vessel is a PSV of STX
PSV 09 design. She is the first vessel in a series of two
from Cochin Shipyard in India. The impact of this sale
on the accounts will occur in the third quarter.
The DOF Group is planning to take delivery of the
following 7 new buildings in 2nd half year 2011:
DOF Subsea took over Skandi Skansen 1st July.
DOF Subsea is also planning to take over Skandi
Singapore at the end of August. Skandi Singapore is a
diving vessel and will primarily operate in Asia.
The Group's supply segment took delivery of Skandi
Saigon on 10th August. This vessel is a 16,000 BHK
anchor handling vessel built at the STX yard in
Vietnam.
Skandi Saigon's sister vessel, Skandi Pacific, is
scheduled for delivery in November.
Skandi Hawk, a large PSV also equipped for subsea work,
is scheduled for delivery in Q4.
Skandi Feistein, the first of 5 new buildings planned for
long‐term contracts with ConocoPhillips, is scheduled for
delivery in November.
The last new building scheduled for delivery this year is
Skandi Amazonas. This is a large anchor handling vessel,
currently under construction in Brazil. Delivery of the
vessel is scheduled in December.
Market/new contracts
The Group’s fleet mainly operates in the North Sea,
West Africa, Brazil and Asia/Australia.
Subsea
In August, a long‐term contract was signed with
Petrobras for Skandi Niteroi. One vessel, Skandi
Commander, arrived in Brazil in the second quarter and
started on its RSV contract for Petrobras in second half
of May. Estimated start‐up of the third RSV contract is
January 2012.
DOF Subsea Asia has had a high level of project‐related
activity in the quarter and is expecting a busy second
half and that include the arrival of Skandi Hercules and
the delivery of Skandi Singapore from the yard in August.
Skandi Hercules has achieved a very strong market
position and has enjoyed a high utilization rate since its
arrival, with good coverage for the second half of the
year. Skandi Singapore, scheduled for delivery in Q3, is
expected to start operations in September.
In July, DOF Subsea was awarded the contract for Goliat
FPSO. The contract, signed with Eni Norge, has an
approximate value of NOK 300 million and duration from
2011 to 2013. This contract represents an important
step forward for DOF Subsea, following the company's
strategy to be the leading operator within the mooring
and installation market.
Supply
During the quarter, DOF was awarded three 7‐year
contracts with ConocoPhillips, scheduled for start‐up in
Q4 2012. These involve supply, stand‐by and ROV
services. In total, DOF has won 5 long‐term contracts
with ConocoPhillips to date this year, all of which in the
Norwegian sector.
The spot market in the North Sea in Q2 has been good
for PSV vessels and variable for AHTS vessels.
As of the end of June, 261 vessels were operating in
the North Sea market, of which 61 vessels on the
North Sea spot market.
Outlook
DOF has a high contractual coverage for its supply
fleet and a low rate of uncertainty regarding earnings
from supply.
DOF Subsea has secured satisfactory contractual
coverage for its project fleet in Q3 and also started
operations with new vessels.
Currently it is expected that the earnings for the
Group will increase in the second half compared with
the first half of the year.
Declaration of the Board of Directors and CEO We declare that, to the best of our knowledge, the half‐
yearly accounts for the period 1 January to 30 June 2011
have been prepared in accordance with IAS 34 – Interim
reports, and that the information in the accounts
provides a correct illustration of the company’s assets,
liabilities, financial position and result as a whole. We
also declare that, to the best of our knowledge, the half‐
yearly report provides a correct overview of significant
events during the accounting period and their impact on
the half‐yearly accounts, the most central risk and
uncertainty factors faced by the Group during the next
accounting period and of significant transactions with
closely related parties.
The Board of Directors for DOF ASA, 17 August 2011
Helge Møgster Helge Singelstad Oddvar Stangeland
(Chairman of the Board)
Wenche Kjølås Britt Mjellem Mons Aase
(CEO)
IR
contact
persons:
Mons
S
Aase,
CEO
+47
91661012
[email protected]
Hilde
Dr
ø
nen,
CFO
+47
91661009
[email protected]
DOF
ASA,
NO
‐
5392
Storeb
ø
,
www.dof.no
THE
GROUPS
SUMMARIZED
PROFIT
AND
LOSS
ACCOUNT
(MNOK) Note Q2 2011 Q2 2010 Acc Q2 2011 Acc Q2 2010 2010 Operating income 2 1 581 1 521 2 967 2 650 5 462 operating expenses vessels 2 1 086 1 036 2 097 1 828 3 753
Operating profit before depreciation EBIT 2 495 485 869 823 1 709
Depreciation 4 279 287 542 524 1 166
Write‐down 0 ‐ 7 ‐ ‐
Operating profit ‐ EBIT 215 198 321 299 543
‐ ‐ ‐ ‐ ‐ Net profit from associated companies ‐0 1 1 2 ‐5
Financial income 143 53 208 131 178
Unralized profit/ loss on currencies 86 ‐252 196 ‐340 83
Financial costs ‐453 ‐159 ‐816 ‐353 ‐1 000 Net financial costs ‐224 ‐357 ‐410 ‐560 ‐743
Pre‐tax profit ‐9 ‐159 ‐90 ‐261 ‐200
Taxes 8 6 50 ‐24 20 15
Result ‐15 ‐208 ‐66 ‐281 ‐215
Profit attributable to Non‐ controlling interest ‐8 ‐58 ‐56 ‐85 ‐75
Controlling interest ‐4 ‐150 ‐10 ‐196 ‐140
COMPREHENSIVE STATEMENT (MNOK) Note Q2 2011 Q2 2010 Acc Q2 2011 Acc Q2 2010 2010 Currency translation differences 14 ‐88 ‐76 ‐38 90
Other income and costs ‐5 ‐1 25 ‐1 ‐1
Other comprehensive income 9 ‐88 ‐50 ‐38 89
Total comprehensive income ‐6 ‐297 ‐116 ‐320 ‐126
Total comprehensive income attrubutable to Non‐ controlling interest ‐9 ‐78 ‐70 ‐75 ‐72
Controlling interest 3 ‐219 ‐126 ‐245 ‐54 KEY FIGURES
Q2 2011 Q2 2010 Acc Q2 2011 Acc Q2 2010 2010
EBITDA margin 1) 31 % 32 % 29 % 31 % 31 %
EBIT margin 2) 14 % 13 % 11 % 11 % 10 %
Cashflow per share 3) 2,03 4,17 2,89 6,62 9,70 Profit per share ex. non‐controlling interest 4) ‐0,07 ‐1,65 ‐0,11 ‐2,15 ‐1,53 Profit per share ex. unrealized loss/gain 5) ‐1,11 0,48 ‐2,88 0,65 ‐3,27
Return on net capital 6) 0 % ‐5 % ‐2 % ‐7 % ‐5 %
Equity ratio 7) 24 % 28 % 24 % 28 % 25 %
Net interest bearing debt 17 039 13 157 17 039 13 157 15 469
Net interest bearing debt ex. unemployed capital 14 705 9 803 14 705 9 803 13 544
No of shares 91 037 975 91 037 975 91 037 975 91 037 975 91 037 975
Face value per share 2 2 2 2 2
1 (Operating pro fit befo re depreciatio n in percent o f o perating inco me) 2 (Operating pro fit in percent o f o perating inco me)
3 (Result incl. mino rity share ex unrealized gain/lo ss o n currencies/average no o f shares)
4 (Result ex mino rity share)/average no . o f shares
5 (Result befo re taxes + depreciatio n + unrealized lo ss o n currencies + mino rity)/average no o f shares
6 (P ro fit after taxes in percent o f bo o ked equity) 7 (Equity/to tal capital)
THE GROUPS'S SUMMARIZED BALANCE SHEET (MNOK) Note 30.06.2011 30.06.2010 31.12.2010 ASSETS Deferred taxes 13 0 29 Goodwill 469 451 478 Intangible assets 482 451 506
Vessel and equipments 20 626 16 051 19 707
Newbuildings 2 334 3 354 1 925
Tangible assets 22 960 19 405 21 632
Investment in affiliated companies 114 57 71
Investments in shares 9 9 9
Other non‐current receivables 267 147 205
Financial assets 390 213 285
Non‐current assets 23 832 20 069 22 423
Accounts receivables 1 189 1 100 1 051
Other current receivables 972 610 933
Current receivables 2 161 1 710 1 984
Restricted deposits 5 866 966 948
Cash and cash equivaltents 5 966 869 1 696
Cash and cash equivalents incl. restricted deposits 1 831 1 835 2 645
Currrent assets 3 992 3 545 4 629
Total Assets 27 825 23 614 27 053
EQUITY AND LIABILITIES
Share capital 182 182 182
Share premium fond 678 678 678
Other equity 3 074 2 938 3 118
Non‐controlling interests 2 684 2 726 2 750
Equity 6 618 6 525 6 728
Deferred taxes 360 336 402
Other provisions and derivates 67 186 90
Non‐current provisions and commitments 428 522 493
Bond loan 3 153 684 2 754
Debt to credit institutions 13 561 9 777 13 085
Other non‐current liabilities 484 556 600
Non‐current liabilities 17 198 11 017 16 438
Debt to credit institutions 7 1 466 4 257 1 876
Accounts payable 438 358 415
Other current liabilities *) 1 676 935 1 103
Current liabilities 3 580 5 550 3 393
Total liabilities 21 206 17 089 20 325
Total equity and liabilities 27 825 23 614 27 053
*) Other current liabilities includes an overdraft facilities draw on a newbuild delivered in first quarter. A long‐term loan has been drawn for this newbulid in third quarter.
EQUITY STATEMENT Paid‐in capital Retained earnings Currency translation differences Total Non‐ comtrolling interest Total equity Balance at 01.01.2011 860 2 701 417 3 118 2 750 6 728 Result /loss for the year ‐10 ‐10 ‐56 ‐66 Other comprehensive income 13 ‐49 ‐36 ‐14 ‐50 Share issues ‐ Transaction with non‐conrolling interests 6 6 Balance at 30.06.2011 860 2 703 368 3 071 2 686 6 618 Balance at 01.01.2010 860 2 841 330 3 171 2 777 6 809 Result /loss for the year ‐196 ‐196 ‐85 ‐281 Other comprehensive income ‐68 ‐68 30 ‐38 Share issues ‐ ‐ Transaction with non‐conrolling interests 35 35 Balance at 30.06.2010 860 2 645 262 2 907 2 757 6 525 CASH FLOW STATEMENT
(MNOK) Acc Q2 2011 Acc Q2 2010 2010 Profit before taxes ‐90 ‐261 ‐200 Profit/loss on disposal of tangible assets 1 ‐37 ‐37 Depreciation and write offs of tangible assets 549 524 1 166 Changes in accounts receivables 195 136 184 Changes in accounts payable 23 142 198 Foreign exchange gain/losses ‐192 209 ‐83 Changes in other working capital ‐142 ‐20 ‐122 Share of profit/loss from assosiates ‐1 ‐2 5 Cash from operating activities 343 690 1 112
Interest income/cost 470 285 814
Interest received 44 23 58
Interest paid ‐443 ‐347 ‐827
Tax paid for the period ‐45 ‐2 ‐73 Net cash from operating activities 368 649 1 084 Payments received fro sale of tangible assets 12 240 460 Purchase of tangible assets ‐1 957 ‐2 813 ‐5 708 Payments received for sale of shares 0 0 0 Purchase of shares and associates ‐44 0 ‐19 Payments received /purchase of other non‐current
receivables ‐61 0 ‐85
Net cash from investering activities ‐2 050 ‐2 572 ‐5 352 Proceeds from borrowings 2 675 5 415 10 718 Repayment fo borrowings ‐1 797 ‐3 912 ‐6 070 Payments from non‐conrolling interests 7 32 41
Equity payments received 0 0 0
Net cash from financing activities 885 1 534 4 689 Net changes in cash and cash equivalents ‐797 ‐390 421 Cash and cash equivalents at the start of the period 2 645 2 214 2 214 Exchange gain/loss on cash and cash equivalents ‐17 11 10 Cash and cash equivalents at the end of the period 1 831 1 835 2 645
Notes to the Condensed Financial statements
Note 1 General
Note 2 Segment informasjon
Operating income and EBITDA per segment
Operating Income Acc Q2 2011 Acc Q2 2011 2010
PSV 358 393 747
AHTS 476 452 877
CSV 2 133 1 805 3 837
Total 2 967 2 650 5 462
EBITDA Acc Q2 2011 Acc Q2 2011 2010
PSV 136 132 270
AHTS 200 194 370
CSV 533 497 1 069
Total 869 823 1 709
Note 3 Events after balance date
DOF completed the sale of one new building (hull no. 081 at Cochin Shipyard). This transaction was completed in July. DOF Subsea was awarded the contract for Goliat FPSO marine with Eni Norge in July. The contract has a total value of approximately NOK 300 million In August, Skandi Niteroi was awarded a 4‐year contract for Petrobras.
Note 4 Depreciaiton
With effect from 1 January 2011, the DOF Group has amended its depreciation estimate. In brief, the amendment involves a reduced degree of decomposition than with previous depreciation estimates. Existing depreciation is maintained which implies expected useful life for each vessel. Estimated residual value is 50 % of original cost price for the vessel. Vessels older than 20 years are based on
individual evaluations.
Note 5 Cash and cash equivalent
30.06.2011 30.06.2010 31.12.2010
Cash and cash equivalent 966 966 948
Restricted cash 866 869 1 696
Total cash and cash equivalent 1 831 1 835 2 645
Note 6 Transaction with related parties
Transactions with realated parties are governed by market terms and conditions inaccordance with the "arm's length principle".
Note 7 Current part of non‐current debts
Current part of non‐current debts amounts to NOK 1 466 million at 30.06.2011.
Note 8 Taxes
Taxes per 30 June 2011 are an estimate.
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.
The interim report has not been audited and should be read in the context of the annual report for 2010. The Financial statement are unaudited.
SHARE CAPITAL AND SHAREHOLDERS Largest shareholders as of 30.06.11
Name No. shares Shareholding Voting shares
MØGSTER OFFSHORE AS 46.210.050 50,76 % 50,76 % ODIN NORGE 6.033.952 6,63 % 6,63 % PARETO AKSJE NORGE 4.955.692 5,44 % 5,44 % SKAGEN VEKST 4.827.873 5,30 % 5,30 % PARETO AKTIV 2.248.939 2,47 % 2,47 % MP PENSJON PK 1.845.600 2,03 % 2,03 % ODIN OFFSHORE 1.731.563 1,90 % 1,90 % PARETO VERDI 1.204.898 1,32 % 1,32 % VESTERFJORD AS 873.650 0,96 % 0,96 % KANABUS AS 801.684 0,88 % 0,88 % NORDEA BANK NORGE ASA MARKETS 758.217 0,83 % 0,83 % MUSTAD INDUSTRIER AS 640.000 0,70 % 0,70 %
DNB NOR SMB 550.000 0,60 % 0,60 %
HOLBERG NORGE 515.550 0,57 % 0,57 %
MOCO AS 498.100 0,55 % 0,55 %
PACTUM AS 400.000 0,44 % 0,44 % CITIBANK N.A. NEW YORK BRANCH 370.565 0,41 % 0,41 % FORSVARETS PERSONELLSERVICE 356.200 0,39 % 0,39 % ODIN NORGE II 352.940 0,39 % 0,39 % ODIN MARITIM 339.800 0,37 % 0,37 %
Total 75.515.273 82,95 % 82,95 %
Total other shareholders 15.522.702 17,05 % 17,05 % Total no of shares 91.037.975 100 % 100 %
