13 may 2020 - awilco drilling · • the most efficient technical configuration to date •...
TRANSCRIPT
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Q1 2020 presentation
13 May 2020
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Agenda
1. Q1 financials
2. UK status
3. Newbuild status
4. Financing
5. Q&A
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1. Q1 Financials
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Q1 2020 Income Statement
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Condensed statement of comprehensive income
in USD thousands, except earnings per share
Q1 2020 Q1 2019
(unaudited) (unaudited)
Contract revenue - 8,972
Reimbursables - (23)
Other revenue 3 113
3 9,062
Rig operating expenses 4,857 6,253
Reimbursables - 2
General and administrative expenses 2,575 3,133
Depreciation 2,518 2,651
9,950 12,039
Operating loss (9,947) (2,977)
Interest income 371 533
Interest expense (7) -
Other financial items 258 142
Net financial items 622 675
Loss before tax (9,325) (2,302)
Tax expense (78) (50)
Net loss (9,403) (2,352)
Total comprehensive loss (9,403) (2,352)
Attributable to shareholders of the parent (9,403) (2,352)
Basic and diluted loss per share (0.17) (0.05)
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Q1 2020 Balance Sheet
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Condensed statement of financial positionin USD thousands
31.03.2020 31.03.2019
(unaudited) (unaudited)
Rigs, machinery and equipment 212 382 186 761
Right-of-use asset 1 337 -
Deferred tax asset 30 461
213 749 187 222
Trade and other receivables 259 9 075
Prepayments and accrued revenue 1 109 2 862
Inventory 4 695 4 809
Cash and cash equivalents 27 718 63 865
Current tax 0 340
33 781 80 951
Total assets 247 530 268 173
Paid in capital 218 905 198 719
Retained earnings 22 677 62 671
241 582 261 390
Trade and other creditors 2 459 1 213
Accruals and provisions 3 418 5 504
Current tax payable 71 66
5 948 6 783
Total equity and liabilities 247 530 268 173
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2. UK Status
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UK Status
• Contract signed with Petrofac for a three or four
well P&A program estimated at 100 days
• Commencement moved from 1 May to 25 May
2020, Opex covered in the period
• Contract signed with Serica Energy (UK) Ltd.
for a one well workover estimated at 70 days,
with commencement 15 September 2020
• Limited visibility of 2021 demand in the UK due
to oil price collapse and Covid-19, however
some attractive opportunities remain
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3. Newbuild Status
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Massive CS60 hull arriving in Singapore earlier this year
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Newbuild progress on Nordic Winter & Nordic Spring
Slow progress on Nordic Winter in
Singapore the last month due to
governmental Covid-19 restrictions
Progress on Nordic Spring
continues as per schedule
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The market has rapidly changed with Covid-19 and the fall in oil price
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• E&P companies are cutting 20-30% of their 2020 investment budgets
• Continued preference for Tier 1 rigs expected
• Reduced market supply expected due to cold stacking and attritionSource: Fearnley Offshore
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Contract Opportunities
• Customers now well familiar with our rig capabilities and operating concepts
• We offer significant savings for the customer on total well cost
• The most efficient technical configuration to date
• Groundbreaking ESG profile
• Undoubtedly well positioned for future long term drilling programs
• Currently discussing opportunities straight from delivery
• Only considering long term opportunities
o Could be one program or a combination of several programs
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NORDIC WINTER
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Digitalization and Service Integration is taken to a new level
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Unique features differentiating ourselves significantly from peers
directing
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ESG
15
- 40%
in 2021
340
1020
Will achieve the 2030
GHG ambition in 2021Each of our newbuilds creates
1360 jobs for Norwegian suppliers
(Direct jobs)
(Indirect jobs)
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Emission level and Fuel consumption: 45% lower than Tier 1 competitor rigs
~ 108
<60
Average for Tier 1 Competitor Rigs Awilco Drilling Rigs
NCS Emissions intensity(Tonnes CO₂ per day)
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Considerably greener than all the rest
Competitors units
Competitors units
- Incl. retrofit
solutions
Awilco Drilling
Newbuild
Closed Bus design V V V
Closed Bus design integrated with hybrid energy solution
X X V
Battery Package - Battery Power Class notation X V V
Hybrid solution fully designed and integrated into vessel Energy Management System & Power Management System
X X V
Intelligent vessel energy management system V V V
Basic Heat Recovery System V V V
Extended Heat Recovery System X X V
Tier III emission compliance X V V
Re-generation of energy from all main rig consumers X X V
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NORDIC WINTER
HIGHER
EFFICIENCY
LOWER
CARBON
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3. Financing
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Financing
• Exploring all viable financing alternatives for the remainder of 2nd instalment and the
take-out financing for Nordic Winter
• Capital to be raised only when required
• Financing structure will depend on term and value of rig contract
• Flexibility remains a key word in our case, which strengthens our position in these
unprecedented times
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Q&A
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