DOF ASA
FINANCIAL REPORT
Q2 2016
Management reporting - accounts Q2 2016
RESULT
(MNOK)
Q2 2016
Q2 2015
YTD Q2 2016
YTD Q2 2015
2015
Operating income
2 439
2 778
4 621
5 299
10 809
Operating expenses
-1 684
-1 940
-3 135
-3 692
-7 439
Net profit from associated and joint ventures
2
-
3
-1
-26
Net gain on sale of tangible assets
3
138
74
363
375
Operating profit before depreciation EBITDA
760
976
1 563
1 968
3 719
Depreciation
-278
-304
-545
-574
-1 119
Impairment
-260
-262
-591
-262
-531
222
410
427
1 133
2 070
Operating profit - EBIT
Financial income
Financial costs
Net realised gain/loss on currencies
33
19
40
38
88
-304
-306
-598
-643
-1 290
-386
-90
-79
-226
-182
-139
44
-357
345
481
Unrealised finance costs
273
281
820
-106
-816
Profit (loss) before taxes
134
325
463
239
-335
-64
-105
-125
-24
11
70
219
338
215
-323
30.06.2016
30.06.2015
31.12.2015
Profit before unrealised finance costs
Taxes
Profit (loss)
BALANCE
(MNOK)
ASSETS
Intangible assets
Tangible assets
Non-current financial assets
Total non-current assets
Receivables
1 413
1 404
1 941
28 620
26 840
25 910
649
366
530
30 682
28 610
28 381
2 828
3 026
2 772
Cash and cash equivalents
1 667
1 951
2 220
Total current assets
4 495
4 976
4 992
-
-
477
4 495
4 976
5 469
35 177
33 586
33 850
6 380
6 592
5 172
79
130
121
23 000
19 361
22 946
5 717
7 503
5 350
28 797
26 994
28 417
Asset held for sale
Total current assets incl. asset held for sale
Total assets
EQUITY AND LIABILITIES
Equity
Non-current provisions and commitments
Non-current liabilities
Current liabilities
Total liabilities
Liabilities held for sale
-
-
260
Total liabilities incl liabilities held for sale
28 797
26 994
28 678
Total equity and liabilities
35 177
33 586
33 850
Net interest bearing liabilities
24 723
22 560
23 731
CASH FLOW
(MNOK)
Q2 2016
Q2 2015
YTD Q2 2016
YTD Q2 2015
2015
Net cash from operation activities
490
913
842
1 026
2 359
Net cash from investing activities
-1 625
-274
-2 433
-1 097
-1 766
Net cash from financing activities
993
-216
1 063
-780
-1 183
Net changes in cash and cash equivalents
-142
423
-528
-851
-590
1 799
1 522
2 220
2 695
2 695
10
5
-25
107
114
1 667
1 951
1 667
1 951
2 220
Cash and cash equivalents at start of the period
Exchange gain/loss on cash and cash equivalents
Cash and cash equivalents at the end of the period
Index
Financial report 2nd Quarter 2016
4
Accounts Q2 2016
10
Consolidated income statement
10
Condensed statement of comprehensive income
10
Consolidated statement of financial position
11
Consolidated statement of equity and Key figures
12
Cashflow13
Notes to the Accounts
14
Note 1 General
14
Note 2 Management reporting 15
Note 3 Segment information - management reporting
16
Note 4 Hedges
16
Note 5 Tangible assets
17
Note 6 Investment in associated and joint ventures
18
Note 7 Cash and cash equivalent
18
Note 8 Interest bearing liabilities
19
Note 9 Events after balance date
20
Note 10 Transaction with related parties
22
Note 11 Taxes
22
Note 12 Share capital and shareholders
22
Financial Report Q2 2016
DOF ASA
Financial report 2nd Quarter 2016
Group operating income for Q2 (management reporting)
totals NOK 2,439 million (NOK 2,778 million) and operating
profit before depreciation and amortisation (EBITDA) totals
NOK 757 million (NOK 838 million). EBITDA including
gain from sale of assets totals NOK 760 million (NOK 976
million). Operating profit (EBIT) is NOK 222 million (NOK
410 million), of which NOK 260 million (NOK 262 million)
is impairment loss during the period.
The Q2 operational result per segment is as follows:
Amounts in NOK mill
PSV
AHTS
CSV
Total
Operating income
247
416
1 777
2 439
-
-
3
3
and impairment - EBITDA
84
155
522
760
Depreciation
59
66
153
278
Net gain on sale of tangible assets
expected demanding market. The refinancing plan includes
restructuring of bond debt, refinancing of several bank
facilities, (excluding the Brazilian built fleet and the fleet
owned by DOF Subsea), and a rights issue. The refinancing
was completed in August, including conversion of three
outstanding DOF ASA bond loans to one Subordinated
Convertible Bond loan at price 50% of par value of the
existing bonds, equal to NOK 1,032.5 million, and acceptance
from 13 banks to participate in a five years loan facility of
NOK 3,800 million, giving reduced amortisation for the first
three years and amended financial covenants. A rights issue
of approx. NOK 1,060 million was completed in August, of
which parts of the proceeds have been used to repurchase
parts of the new convertible bond loan.
Operating result before depreciation
Impairment
55
78
127
260
-31
11
242
222
EBITDA margin
34 %
37 %
29 %
31 %
EBIT margin
-12 %
3%
14 %
9%
Operating result - EBIT
4
The average utilisation of the Group’s fleet during Q2 was
88%. The utilisation of the subsea fleet was 86%, the AHTS
fleet 85% and the PSV fleet 93%. The Group operated during
Q2 three (wholly and partly owned) vessels in the North
Sea spot market, and two vessels were partially in lay-up.
Several vessels have been in transit in connection with
demobilisation and mobilisation for new contracts.
DOF Subsea had ten vessels operating in the subsea project
market during the period, with a utilisation for this part
of the fleet of 93%. Two vessels within this segment were
chartered from external owners.
DOF Subsea was in July awarded a 5-year contract + 2x2
year options for Shell offshore Australia. The contract
includes charter of one multi-purpose vessel (MPSV) in
addition to subsea engineering services (IMR) to support
a FLNG facility on the Prelude field in Western Australia.
This contract award further strengthens DOF Subsea’s
position as a global supplier within the subsea engineering
market. DOF Subsea has additionally secured contracts with
Petrobras for Skandi Vitoria up until year-end 2016 and an
8 months contract for Skandi Niteroi.
The newbuild Skandi Acu owned by DOFCON Brasil (JV
owned 50/50 by DOF Subsea and Technip) commenced its
8-year contract with Petrobras on 13 August 2016.
DOF ASA has during first half year worked on an overall
refinancing plan to strengthen the Group’s liquidity in an
DOF ASA is an international Group of companies owning and
operating a fleet of PSVs, AHTS’ and Subsea vessels in addition
to several engineering companies offering services to the subsea
market. As of August the fleet comprises 67 vessels (wholly and
partly owned), of which three vessels are under construction due
for delivery in the period 2016 and 2017. The fleet comprises
vessels within the following segments: 20 AHTS, 19 PSVs and 28
Subsea. Further, the Group owns a fleet of 63 ROVs, in addition
to four ROVs under construction.
The Group operates the majority of its fleet on long-term contracts.
As of 30 June 2016 the nominal value of these contracts totals
approx. NOK 30.0 billion, in addition to options valued at approx.
NOK 33.5 billion. The total contract coverage is 79% for the 2nd
half of 2016 and 50% for 2017.
Q2 Operations
The main part of the Group’s PSV and AHTS fleet operates on
firm contracts, while the Subsea fleet partly operates on firm
contracts and partly on subsea project contracts. In the project
market the utilisation of the vessels is affected by the market
and seasonal fluctuations. The project revenues represent 51%
of the Group’s total revenues during the period.
PSV
The PSV fleet includes 19 vessels, of which one vessel is partly
owned. The majority of the fleet operated in the North Sea on
firm contracts. In addition, the subsidiary Norskan Offshore Ltda.
operates four vessels for external owners in Brazil. The segment
has experienced high contract coverage and steady operation
during the quarter. Three of the vessels partly operated in the
spot marked with generally good utilisation, but low earnings.
Two vessels completed class docking during the period.
AHTS
The AHTS fleet includes 20 vessels in operation, of which the last
vessel was delivered in April and commenced on a 4-year contract
with Petrobras in May. 13 vessels operated on firm contracts in
DOF ASA
South America during the period; three vessels operated in the
North Sea/ Mediterranean and four vessels operated in Asia.
Five of the vessels are 50% owned through DOF Deepwater AS
and one vessel is owned through a minority share in Iceman
AS. In addition, Norskan Offshore Ltda. operates one vessel for
external owners in Brazil.
Two of the vessels in Asia commenced in May on two 120-day
contracts in India. The third vessel in this region operated in the
short-term market with low utilisation. One vessel completed in
June a rig move from Latin-America to India, and sailed thereafter
to Brazil for planned operation in this region. Two of the vessels
operating in Argentina completed their contracts in June and
thereafter sailed to Europe. No further employment has been
secured for these vessels. Skandi Vega started in May on a new
one-year contract for Statoil. One vessel operated in the North
Sea spot market with better revenues and utilisation compared to
previous quarter. The entire Brazil fleet has been on firm contracts
experiencing steady and good operation.
Financial Report Q2 2016
PLSVs carry Brazilian flag and are owned and operated through
a joint venture company together with Technip. DOFCON Brasil
took in April delivery on one newbuild (PLSV), Skandi Acu, which
commenced its 8-years contract with Petrobras 13th August. The
operation of the vessels on firm contracts has during the period
been influenced by vessels performing class-docking, and some
vessel being idle between contracts.
The Group’s subsea vessels on time charter contracts achieved
an average utilisation of 82% in Q2. The utilisation is lower
than in Q1 mainly due to class-docking and vessels off-hire
between contracts.
Average utilisation of the Fleet
SUBSEA
The Group owns a fleet of 25 subsea vessels in operation, in
addition to three vessels under construction owned through a
joint venture, DOFCON Brasil, (50/50 owned by DOF Subsea and
Technip). The revenues from the subsea operation include revenues
from both project contracts and firm contracts. The revenues from
the project contracts during Q2 amount to NOK 1,249 million of
an aggregate turnover of NOK 1,777 million within this segment.
The Group’s project activity is operated by the regions Atlantic,
Asia-Pacific (APAC), North America and Brazil. The overall
utilisation of the project fleet during the period was 92%. The
utilisation varied between the different regions during the quarter,
with the best utilisation and performance in APAC region. The
Atlantic region, and especially the North Sea and North-America
experienced higher activity than in Q1, mainly due to seasonal
variations. DOF Subsea had one vessel in Brazil, operating in the
short term market and where utilisation has been low.
DOF Subsea APAC have had three vessels operating in the project
market, with all three vessels operating on firm IMR contracts
(inspection, maintenance and repair); for Shell in the Philippines,
Chevron in Australia and OMV in New Zealand. In the Atlantic
region, DOF Subsea’s vessels conducted survey– and construction
work for amongst others BW Offshore, Teekay, Shell, Eni and
Maersk. In North America, DOF Subsea had three vessels in
operation, conducting survey- and construction work for FMOG
Noble, Husky and Chevron. One of the vessels operated on a
contract in Canada.
The subsea operation in Brazil is partly based on firm contracts
including lease of both vessel and ROV, and partly on project
contracts. The Group owns and operates nine subsea vessels in
Brazil, including five RSV vessels, two subsea vessels and two
PLSVs, of which most of the vessels are on firm contracts. The two
PSV
AHTS
CSV / Subsea
Main Items Interim Accounts Q2 – Financial Reporting
• Operating income totals NOK 2,364 million (NOK 2,648 million).
• Operating profit before depreciation and amortisation (EBITDA)
totals NOK 685 million (NOK 928 million).
• Gain from sale of assets totals NOK 3 million (NOK 95 million)
• Operating profit (EBIT) totals NOK 187 million (NOK 384
million).
• Total depreciation and impairment amount to NOK 498
million (NOK 544 million) of which NOK 232 million (NOK
262 million) is impairment loss.
• Net financial costs before unrealised gain/loss on foreign
exchange and change in fair value of financial instruments
totals NOK -329 million (NOK -337 million).
• Unrealised gain/loss on foreign exchange and change in fair
value of financial instruments totals NOK 271 million (NOK
-252 million).
• Pre-tax profit totals NOK 129 million (NOK 300 million).
• Net interest bearing debt as of 30 June is NOK 21,689 million
(NOK 20,705 million).
• Book equity including minority interests as of 30 June is NOK
6,380 million (NOK 6,592 million).
The Group uses hedge accounting for parts of the revenues
related to the Brazil operation. This operation is based on
long-term charter contracts in USD secured with debt in
corresponding currencies. The EBITDA effect in Q2 due to
the hedge accounting amounts to NOK -55 million (NOK -44
million), and the effect on OCI (other comprehensive income)
amounts to NOK 493 million (NOK 162 million).
Tax expense is based on best estimate.
5
Financial Report Q2 2016
DOF ASA
The Group’s total balance as of 30 June is NOK 31,756 million (NOK
31,560 million), of which vessels, newbuilds and subsea equipment
amounts to NOK 24,327 million (NOK 24,044 million). Unemployed
capital of NOK 20 million (NOK 2,097 million) relates to ROV/
subsea equipment under construction. Prepaid instalments on the
remaining newbuilds are included in investments in associated
companies and long-term receivables.
Cash flow from operational activity after payment of interest is
NOK 421 million (NOK 770 million) in Q2. Net cash flow from
investing activities is NOK -1,224 million (NOK -169 million)
and includes the delivery of one newbuild during the period.
Cash flow from financing activities totals NOK 568 million (NOK
-191 million).
Cash flow from Q2 2016
activities NOK -187 million (NOK -699 million).
Financing and Capital Structure
As of 30 June the Group’s remaining commitment for three
vessels under construction totals approx. USD 375 million. The
three newbuilds are owned by DOFCON Brasil and reported
under associated companies. All vessels are secured on long-term
contracts with Petrobras. Two of the vessels are under construction
in Brazil and one in Norway. Long term financing with BNDES is
secured for the Brazilian built vessels.
The Group’s short term portion of long term debt as of 30 June
is NOK 3,570 million (NOK 5,429 million), of which NOK 700
million is a bond loan (DOF09) with maturity in February 2017.
DOF09 was released in August after the restructuring of the
Company’s total bond debt. The remaining part of the short
term portion of long term debt, NOK 2,870 million, comprises
balloon payments of NOK 280 million, and normal amortisation
and drawn credit facilities.
There has been an appreciation of NOK and especially BRL against
USD during Q2, hence unrealised gain on foreign exchange has
reduced the total unrealised currency losses on the balance sheet
year to date considerably. The Group book equity is 20% (21%)
as per 30 June 2016.
6
Main Items Accounts Year to Date - Financial reporting
The Group’s operating income year-to-date totals NOK 4,439 million
(NOK 5,036 million). Revenues from the subsidiary DOF Subsea’s
project activity represent a considerable share of gross income,
49% (50%). Group operating profit before depreciation (EBITDA)
is MNOK 1,411 million (NOK 1,787 million), of which gain from
sale of assets is NOK 74 million (NOK 320 million). Operating
profit is NOK 377 million (NOK 996 million), and is influenced
by higher depreciation and impairment compared to the same
period last year, totalling NOK 1,034 million (NOK 791 million).
Net financial expenses year to date total NOK 67 million (NOK
-780 million), of which unrealised gain/loss on foreign exchange
on long term debt and change in fair value of financial instruments
totals NOK 790 million (NOK -46 million). The positive result
year to date is mainly due to a weakened USD against BRL and
partly against NOK.
The Group has year to date sold one vessel, compared to eight
vessels during the same period last year. The Group has taken
delivery of two newbuilds year to date, of which one vessel is
owned via an associated company. The Group took delivery of
two newbuilds during the same period last year.
Cash flow from operating activities year to date totals NOK 749
million (NOK 813 million). Net cash flow from investment activities
totals NOK -1,153 million (NOK -958 million), and from finance
The portion of long term debt secured with a fixed rate of
interest is approximately 65% of the total debt and includes
debt with fixed interest in BNDES.
Interest bearing debt 31.12.2015 - 30.06.2016
Vessels and equipment constitute approx. 77% of the Group’s
total assets. Broker estimates received as per June 2016 for
the Group’s vessels show a continued decline in fair market
values. This has, together with the Company’s own impairment
tests, resulted in an impairment of NOK 260 million in Q2 and
NOK 591 million year to date (including vessels owned through
associated companies).
The Group’s main financial covenants in existing loan agreements
are based upon minimum value adjusted equity ratio of 30% or
minimum 20% if the Group’s contract coverage is 70% or higher,
and a minimum cash covenant of NOK 500 million. As of 30 June,
DOF ASA
Financial Report Q2 2016
value adjusted equity ratio is 30%, and the Group reported free
liquidity of NOK 985 million. The Group is thus in compliance
with its financial covenants as of 30 June. As mentioned above,
new financial covenants have been agreed for the Group, to be
reported first time as per Q3 2016.
• A rights issue of in total NOK 1,060 million was completed in
August, of which NOK 209 million was utilised to repurchase
bonds in the SBC.
• The main effects of the Group’s balance of the above mentioned
transactions are summarised in Note 9.
Refinancing DOF ASA
Shareholders
As previously reported in the financial report for Q1 2016, in
order to be prepared for a period with a continued weak market,
the Board and management have been working on an overall
refinancing plan to secure the Company with satisfactory financing
and liquidity throughout an expected demanding period. There were no significant changes in the share structure during
the period. As of 30 June the Company had 3,470 shareholders.
The share price as of 30 June was 1.01 per share.
The refinancing plan was completed in August, and includes
conversion and cancellation of bond debt, refinancing part of
the Group’s secured debt and a rights issue. The following
transactions have been completed:
• Conversion of three bond loans DOF09, DOF10 and DOF11 to
a Subordinated Convertible Bond (“SBC”) at a price of 50% of
par value of the existing bonds. The Subordinated Convertible
Bond will have a 5-year tenor, zero coupon and no financial
covenants. The bondholders in the SBC may convert their
bonds to shares in the Company at NOK 1 per share through
the period. On the final maturity date the remaining bonds
in the SBCs will automatically be converted to shares in the
Company. As per 10 August, following the repurchase of bonds,
the outstanding amount under the SBC is approx. NOK 823
million. As per 15 August, NOK 137.5 million is converted
to shares hence net outstanding is reduced to NOK 686
million. The SBC and reduced par value of the three bond
loans imply a reduction of the Group’s net interest bearing
debt and increased equity of NOK 2,065 million. This will
take effect as from Q3.
• DOF Rederi has received credit approval from 13 banks
to participate in a new NOK 3,800 million loan facility to
refinance 27 vessels. The new facility has a 5-year tenor
including reduced instalment schedule for the first three
years of 75% compared to existing amortization. Amended
financial covenants are agreed upon, and mainly include
minimum liquidity of NOK 500 million for DOF Group
(excluding DOF Subsea AS), and a minimum consolidated
book equity of NOK 3,000 million. The aggregate market
value of DOF Rederi’s fleet should for the first three years
be minimum 100% of outstanding loans (LTV). Further,
the 50% owned company DOF Deepwater has entered
into agreements to reduce instalments with up to 75% for
the next three-year period, including amended financial
covenants. No changes have been proposed in the long term
funding for the Brazilian subsidiary Norskan Offshore Ltda.,
which is financed by BNDES and secured by the Brazilian
flagged vessels on firm contracts. Furthermore, no changes
have been proposed for financing of DOF’s 51% owned
subsidiary DOF Subsea AS. The new loan facility in DOF
Rederi will be signed during Q3.
The share price reduction reflects the resolution of the rights
issue at subscription price of NOK 1 per share, approved in
an extraordinary shareholders meeting on the 6 July. In the
same meeting it was decid ed to reduce the nominal value
of the shares to NOK 0.50 per share. The new shares in the
rights issue were registered on 5 August, resulting in substantial
changes in number of shares and ownership structure of the
Company. Following the rights issue there are issued 1,059,869,852
new shares in the Company, of which NOK 750,000,000 shares
are subscribed by Møgster Offshore AS. A SBC loan of NOK
823,640,482 has been placed with the option for the bond
holders to convert bonds to new shares at price of NOK 1
per share within a period of 5 years. As per 15 August, NOK
137,500,000 of the SBC were converted to shares by way of
issuance of NOK 137,500,000 new shares.
Following the conversion and the cancellation of the bonds
which were repurchased by the Company, the new outstanding
amount under the SBC is NOK 686,140,482, and the fully diluted
number of shares is NOK 1,994,561,682.
Following the completion of the rights issue and the
conversion of bonds, the ownership interest of Møgster
Offshore AS is 61.7%, and based on fully diluted shares
the ownership is 40.5%.
Employees
The Group employed as of 30 June 4,601 people including
hired staff. This is an increase of 218 persons since year-end,
mainly related to more vessels in operation and increased
number of hired staff due to higher project activity in the
period. The total reduction in number of staff over the last
12 months counts 566 people and is a result of the planned
cost cutting and reduced activity due to management of fewer
vessels. The marine personnel counts 2,715 people, while 1,590
people are employed within the subsea segment and 296 are
employed onshore conducting vessel management. The Group
has since year-end worked with continued focus on cost-cutting
measures, and has during Q2 agreed salary cuts with onshore
employees (excl. in Brazil) 5-15%.
Heath, Safety, Environment and Quality
There were not identified any significant HSEQ issues during Q2.
7
Financial Report Q2 2016
DOF ASA
Fleet
As per June the Group owns a fleet of 67 vessels (wholly/
partly owned) and has three vessels under construction. The
vessels under construction are three PLSVs, which are owned
by DOCON Brasil (owned 50/50 by DOF Subsea and Technip).
Under the awarded contract, DOF Subsea will provide project
management, engineering and integrated services for IMR programs
as well as a MPSV vessel and options for further vessels.
Contract coverage per 30.06.2016
One of DOFCON Brasil’s newbuilds will be delivered from a
Norwegian yard and two from a Brazilian yard. All vessels are
secured 8+8 years contracts with Petrobras. The newbuilds are
part of a series of four vessels, of which the first vessel, Skandi
Acu was delivered in April, and commenced its 8-year contract
with Petrobras 13th August. All newbuilds are equipped to operate
on ultra-deep water, two of the vessels will be equipped with
650-ton pipe-laying towers and two vessels will be equipped
with 350-ton towers.
DOF Subsea has per August one vessel hired in from external
owners; Harvey Deep-Sea, which is firm until August 2017. The
vessel is utilised for the DOF Subsea project activity in North
America. Normand Reach, was redelivered to Reach Subsea in July.
Newbuildings
Vessel
8
Yard
Delivery
Type
Contract
Financing
Skandi Buzios *
(NB 824)
Vard
Norway
2016
PLSV
8 yrs
Petrobras
Skandi Olinda *
(EP 09)
Vard
Norway
2017
PLSV
8 yrs
Petrobras
Loan agreement signed
with BNDES
Skandi Recife *
(EP10)
Vard
Brasil
2017
PLSV
8 yrs
Petrobras
Loan agreement signed
with BNDES
*) 50% ownership
New contracts
The Group’s fleet operates world-wide, with the most important
operational areas being the North Sea, Africa, Brazil and Asia/
Australia.
Contracts secured with start-up during Q2 include an 18-month
contract with Nexen Petroleum UK for Skandi Marstein, two
120-day contracts for Skandi Emerald and Skandi Giant for
Schlumberger in India, one 18-month contract for Geograph with
Petrobras. Furthermore, DOFCON Brasil and Norskan have been
awarded contracts with Petrobras, Skandi Vitoria for the remaining
part of 2016 and an 8-month contract for Skandi Niteroi. DOF
has secured extensions of the contracts with Maersk UK for
the remaining part of 2016 for Skandi Gamma, and until medio
January 2017 for Skandi Caledonia with Apache.
DOF Subsea was in July awarded a 5-year contract + two 2-year
options with Shell Australia to provide underwater services
and MPSV vessel to the Prelude FLNG facility. The Prelude
FLNG facility, the largest of its kind ever built, will produce
and store liquefied natural gas and will be located offshore
Western Australia.
Outlook
The global market has continued to be negative with declining
tendering activity in most regions. The North Sea has however
shown increased activity in the spot market this quarter mainly
due to seasonal variations. The contract awarded to DOF Subsea
at the Shell Prelude field confirms the Group’s market position
in this region and will be important in securing utilisation of
vessels and personnel going forward.
The Group’s backlog is approx. 65% for the next 12 months,
and all vessels under construction are secured on firm contracts.
The market is expected to remain challenging, which in due
course will increase the counter-party risk for the Group’s fleet.
The negative market development has in addition to the risk of
lower utilisation for the Group’s vessels also caused a decline
in values. The uncertainty related to market development is
considerably higher than normal and the change in value of the
Group’s vessels, equipment and investments in joint ventures
may result in further impairment of assets going forward.
The Group maintains its strategy to secure the fleet on long-term
contracts, and is actively working on securing firm employment
of as much of the fleet as possible. The Group will continue
its focus to reduce costs, including improved work processes.
The Board of Directors is satisfied that the Company has
concluded its comprehensive refinancing plan which has
strengthened the Group’s balance sheet, the financing and
liquidity through an expected demanding period. Based on the
assumption of a continued weak market it is expected that
the Group revenues and utilisation of the fleet will decline
going forward.
The Board of Directors expects the operational EBITDA for Q3
to be lower than the operational EBITDA for Q2. The Board
of Directors maintains its expectations for the full year 2016
regarding EBITDA as earlier reported.
DOF ASA
Declaration from the Board of Directors and the CEO
We declare that to the best of our knowledge the financial
statements for the period 1 January to 30 June 2016, are
prepared in accordance with IAS34 accounting standards for
interim reporting, and that the information provided gives a
true and fair view of the company’s assets, liabilities, profit and
loss, and overall financial position.
Financial Report Q2 2016
We also declare, that to the best of our knowledge the first
half 2016 report provides a true and fair overview of important
events during the accounting period and their influence on
the interim account, as well as the most significant risks and
uncertainties facing the Group during the following accounting
period, in addition to material transactions with related parties.
The Board of Directors of DOF ASA, August 16, 2016
Helge Møgster
Helge Singelstad
Kathryn Baker
Lars Purlund
Marianne Møgster
Mons S. Aase
Chairman
IR contacts:
Mons S. Aase, CEO
+47 91661012, [email protected]
Hilde Drønen, CFO
+47 91661009, [email protected]
DOF ASA
5392 Storebø
www.dof.no
Deputy Chairman
CEO
9
Financial Report Q2 2016
DOF ASA
Accounts Q2 2016
Consolidated income statement
(MNOK)
Note
Q2 2016
YTD Q2 2016
YTD Q2 2015
2015
Operating income
2 364
2 648
4 439
5 036
10 291
Operating expenses
-1 655
-1 920
-3 060
-3 648
-7 326
-28
104
-41
78
65
Net profit from associated and joint ventures
6
Net gain on sale of tangible assets
Operating profit before depreciation EBITDA
3
95
74
320
332
685
928
1 411
1 787
3 362
-1 041
Depreciation
5
-266
-282
-521
-529
Impairment
5
-232
-262
-513
-262
-500
187
384
377
996
1 822
39
23
51
44
99
-294
-293
-580
-612
-1 238
-74
-67
-195
-167
-332
244
156
581
-273
-869
Operating profit - EBIT
Financial income
Financial costs
Net realised gain/loss on currencies
Net unrealised gain/loss on currencies
Net changes in fair value of financial instruments
27
96
209
227
108
-58
-85
67
-780
-2 232
129
300
444
216
-410
-59
-81
-106
-1
87
70
219
338
215
-323
78
152
226
224
120
-8
67
112
-9
-444
-0.07
0.60
1.01
-0.08
-4.00
Q2 2016
Q2 2015
YTD Q2 2016
YTD Q2 2015
2015
70
219
338
215
-323
Net financial costs
10
Q2 2015
Profit (loss) before taxes
Taxes
11
Profit (loss) for the period
Profit attributable to
Non-controlling interest
Controlling interest
Profit and diluted profit per share ex non-controlling interest
Condensed statement of comprehensive income
(MNOK)
Note
Profit (loss) for the period
Items that will be subsequently reclassified to profit or loss
Currency translation differences
16
-14
-84
9
89
Cash flow hedge
4
368
134
741
-346
-979
Share of other comprehensive income of joint ventures
6
149
30
246
-132
-377
Items that not will be reclassified to profit or loss
Defined benefit plan actuarial gain (loss)
-
-
-8
-
13
Other comprehensive income/loss net of tax
533
151
896
-470
-1 253
Total comprehensive income/loss
603
370
1 233
-255
-1 577
Non-controlling interest
161
174
335
159
-60
Controlling interest
443
196
898
-414
-1 517
DOF ASA
Financial Report Q2 2016
Consolidated statement of financial position
(MNOK)
Note
30.06.2016
30.06.2015
31.12.2015
ASSETS
Deferred tax assets
936
887
1 341
Goodwill
409
425
436
1 345
1 313
1 777
Vessels
Intangible assets
5
22 942
20 492
21 604
ROV
5
867
946
943
Newbuildings
5
20
2 097
106
Machinery and other equipment
5
498
509
535
Tangible assets
5
24 327
24 044
23 188
Investment in associated and joint ventures
6
715
777
513
1 224
600
905
Other non-current receivables
Non-current financial assets
1 939
1 377
1 418
27 611
26 733
26 383
Trade receivables
2 026
2 121
2 112
Other receivables
677
832
589
2 703
2 953
2 701
Total non-current assets
Current receivables
Restricted deposits
457
576
520
Cash and cash equivalents
985
1 299
1 536
1 442
1 874
2 056
4 145
4 827
4 757
-
-
477
4 145
4 827
5 234
31 756
31 560
31 617
1 452
Cash and cash equivalents incl. restricted deposits
7, 9
Current assets
Asset held for sale
Total current asset incl. asset held for sale
Total Assets
EQUITY AND LIABILITIES
Paid in equity
1 452
1 452
Other equity
1 338
1 542
439
Non-controlling interests
3 590
3 599
3 281
6 380
6 592
5 172
1
47
42
44
53
44
Total equity
9
Deferred taxes
Pensions
Non-current provisions and commitments
Bond loan
Debt to credit institutions
8, 9
4, 8, 9
Derivatives
Other non-current liabilities
Non-current liabilities
Current part of bond loan and debt to credit institutions
8, 9
Accounts payable
Other current liabilities
Current liabilities
Liabilites held for sale
101
86
3 378
3 347
17 069
13 960
17 354
210
224
244
23
32
26
19 953
17 594
20 971
3 570
5 429
3 034
1 335
1 264
1 439
473
581
654
5 378
7 274
5 127
-
-
260
5 378
7 274
5 387
Total liabilities
25 376
24 968
26 445
Total equity and liabilities
31 756
31 560
31 617
Total current liabilities incl Liabilities held for sale
8
45
2 652
11
Financial Report Q2 2016
DOF ASA
Consolidated statement of equity
(MNOK)
Paid-in capital
Retained earnings
Currency translation
differences
Total
Non-controlling
interest
Total equity
1 452
158
282
440
3 281
5 172
982
-84
898
335
1 233
-
-25
-25
Balance at 01.01.2016
Total comprehensive income/loss
Transaction with non-controlling interests
Balance at 30.06.2016
1 452
1 140
198
1 338
3 590
6 380
Balance at 01.01.2015
1 452
1 774
182
1 956
3 458
6 866
-423
9
-414
159
-255
-
-18
-18
1 542
3 599
6 592
Total comprehensive income/loss
Transaction with non-controlling interests
Balance at 30.06.2015
1 452
1 351
191
Key figures
12
Q2 2016
Q2 2015
YTD Q2 2016
YTD Q2 2015
2015
EBITDA margin ex net gain on sale of vessel
1
29 %
31 %
30 %
29 %
29 %
EBITDA margin
2
29 %
35 %
32 %
35 %
33 %
EBIT margin
3
8%
15 %
8%
20 %
18 %
Cashflow per share (controlling interest)
4
1.64
3.10
3.18
5.59
10.17
Profit per share (controlling interest) *)
5
-0.07
0.60
1.01
-0.08
0.73
changes fair value of financial instruments (controlling interest)
6
-1.82
-0.92
-3.53
0.03
4.05
Return on net capital
7
5%
3%
-6 %
Equity ratio
8
20 %
21 %
16 %
Value adjusted equity
9
Profit per share ex. unrealised gain/loss on currencies and
30 %
32 %
33 %
Net interest bearing debt
21 689
20 705
21 765
Net interest bearing debt ex. unemployed capital
21 670
18 608
21 659
No of shares
111 051 348
111 051 348
111 051 348
111 051 348
111 051 348
Outstanding number of shares
111 051 348
111 051 348
111 051 348
111 051 348
111 051 348
*) Diluted number of share is the same as number of shares
1) Operating profit before net gain on sale of vessel and depreciation in percent of operating income.
2) Operating profit before depreciation in percent of operating income.
3) Operating profit in percent of operating income.
4) Pre-tax result + depreciation and impairment +/- unrealised gain/loss on currencies +/- net changes in fair value of financial instruments/average no of shares.
5) Result /average no. of shares.
6) Result + net unrealised currency gain/loss + net changes fair value of financial instruments)/average no of shares.
7) Result incl non-controlling interest/total equity
8) Total equity/Total balance
9) Equity adjusted for excess values from broker valuation/Total assets adjusted for excess values from brokers valuation.
DOF ASA
Financial Report Q2 2016
Cashflow
(MNOK)
Q2 2016
Q2 2015
YTD Q2 2016
YTD Q2 2015
2015
Operating result
187
384
377
996
1 822
Depreciation and impairment
498
543
1 034
791
1 541
-3
-95
-74
-320
-332
Gain/loss on disposal of tangible assets
Share of profit/loss from associates and joint ventures
28
-104
41
-78
-65
Changes in accounts receivables
-198
189
102
210
219
Changes in accounts payable
135
186
-128
72
247
33
-32
-13
-102
208
Changes in other working capital
Exchange rate effects on operating activities
Cash from operating activities
Interest received
Interest paid
Taxes paid
Net cash from operating activities
Payments received for sale of tangible assets
27
-10
-18
-48
-196
706
1 060
1 322
1 519
3 444
27
21
51
34
36
-299
-282
-585
-628
-1 248
-13
-29
-38
-112
-215
421
770
749
813
2 016
3
658
551
1 919
1 953
-1 127
-1 078
-1 356
-3 056
-3 901
Payments received for sale of shares
-
417
3
417
417
Purchase of shares
-
-
-
-
-
Received dividend
-
-
-
3
3
Purchase of tangible assets
Other investments
Net cash from investing activities
Proceeds from borrowings
Repayment of borrowings
Payments to non-controlling interests
Net cash from financing activities
Net changes in cash and cash equivalents
Cash and cash equivalents at the start of the period
Exchange gain/loss on cash and cash equivalents
Cash and cash equivalents at the end of the period
-101
-167
-351
-242
-431
-1 224
-169
-1 153
-958
-1 958
1 167
1 736
1 973
3 463
6 681
-573
-1 909
-2 134
-4 144
-7 299
-26
-18
-26
-18
-117
568
-191
-187
-699
-735
-236
409
-590
-844
-677
1 669
1 459
2 056
2 609
2 609
9
6
-24
109
124
1 442
1 874
1 442
1 874
2 056
13
Financial Report Q2 2016
DOF ASA
Notes to the Accounts
Note 1 General
DOF ASA (the “Company”) and its subsidiaries (together, the “Group”) own and operate a fleet of PSV, AHTS, subsea vessels and
service companies offering services to the subsea market worldwide.
The Company is a public limited company, which is listed on the Oslo Stock Exchange and incorporated and domiciled in
Norway. The head office is located at Storebø in the municipality of Austevoll, Norway.
These condensed interim financial statements were approved for issue on 16 August 2016. These condensed interim financial
statements have not been audited.
Basis of preparation
These condensed interim financial statements have been prepared in accordance with IAS 34, ‘Interim financial reporting’. The
condensed interim financial statements should be read in conjunction with the annual financial statements for the year ended 31
December 2015, which have been prepared in accordance with IFRS.
Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual profit or
loss.
Estimates
The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect
the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may
differ from these estimates.
14
In preparing these condensed interim financial statements, the significant judgements made by management in applying
the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the
consolidated financial statements for the year ended 31 December 2015, with the exception of changes in estimates that are
required in determining the provision for income taxes.
DOF ASA
Financial Report Q2 2016
Note 2 Management reporting
Management
reporting
Q2 2016
Reconciliation
to equity
method
Financial
reporting
Operating income
2 439
-75
Operating expenses
RESULT
(MNOK)
Management
reporting
Q2 2015
Reconciliation
to equity
method
Financial
reporting
2 364
2 778
-129
2 648
-1 684
29
-1 655
-1 940
20
-1 920
Net profit from associated and joint ventures
2
-29
-28
-
104
104
Net gain on sale of tangible assets
3
-
3
138
-43
95
760
-75
685
976
-48
928
Depreciation
-278
12
-266
-304
23
-282
Impairment
-260
28
-232
-262
-
-262
222
-35
187
410
-25
384
33
6
39
19
4
23
-293
Operating profit before depreciation EBITDA
Operating profit - EBIT
Financial income
Financial costs
-304
10
-294
-306
13
Net realised gain/loss on currencies
-90
15
-74
-79
13
-67
Net unrealised gain/loss on currencies
246
-1
244
183
-27
156
Net changes in fair value of financial instruments
Net financial costs
Profit (loss) before taxes
Taxes
Profit (loss)
28
-
27
97
-2
96
-88
30
-58
-85
-
-85
134
-5
129
325
-25
300
-64
5
-59
-105
25
-81
70
-0
70
219
0
219
Management
reporting
30.06.2016
Reconciliation
to equity
method
Financial
reporting
Management
reporting
30.06.2015
Reconciliation
to equity
method
Financial
reporting
BALANCE
(MNOK)
ASSETS
Intangible assets
Tangible assets
Non-current financial assets
Total non-current assets
1 413
-68
1 345
1 404
-91
1 313
28 620
-4 294
24 327
26 840
-2 796
24 044
649
1 290
1 939
366
1 011
1 377
30 682
-3 071
27 611
28 610
-1 877
26 733
2 953
Receivables
2 828
-124
2 703
3 026
-73
Cash and cash equivalents
1 667
-225
1 442
1 951
-76
1 874
Total current assets
4 495
-349
4 145
4 976
-149
4 827
-
-
4 495
-349
4 145
4 976
-149
4 827
35 177
-3 421
31 756
33 586
-2 026
31 560
6 380
-
6 380
6 592
-
6 592
79
-35
45
130
-30
101
23 000
-3 047
19 953
19 361
-1 767
17 594
Asset held for sale
Total current assets incl. Asset held for sale
Total assets
-
-
EQUITY AND LIABILITIES
Equity
Non-current provisions and commitments
Non-current liabilities
Current liabilities
Total liabilities
Liabilities held for sale
5 717
-339
5 378
7 503
-229
7 274
28 797
-3 421
25 376
26 994
-2 026
24 968
-
-
-
-
Total liabilities incl. Liabilities held for sale
28 797
-3 421
25 376
26 994
-2 026
24 968
-
Total equity and liabilities
35 177
-3 421
31 756
33 586
-2 026
31 560
Net interest bearing liabilities
24 723
-3 034
21 689
22 560
-1 856
20 705
15
Financial Report Q2 2016
DOF ASA
Note 3 Segment information - management reporting
PSV
AHTS
CSV
Total
247
416
1 777
2 439
-
-
3
3
760
2 Quarter 2016
Operating income
Gain on sale of tangeble assets
Operating result before depreciation and impairment - EBITDA
84
155
522
Depreciation
59
66
153
278
Impairment
55
78
127
260
-31
11
242
222
301
400
2 076
2 778
-
96
42
138
Operation result - EBIT
2 Quarter 2015
Operating income
Gain on sale of tangeble assets
Operating result before depreciation and impairment - EBITDA
102
288
587
976
Depreciation
49
75
180
304
Impairment
12
140
110
262
Operation result - EBIT
40
72
297
410
16
Note 4 Hedges
The Group applies cash flow hedge accounting related to foreign exchange rate risk on expected highly probable income in USD,
using a non derivative financial hedging instrument. This hedging relationship is described below.
Cash flow hedge involving future highly probable income
The Group applies hedge accounting related to the cash flow hedging of expected highly probable income in USD, from its
operations in Brazil.
The cash flow hedges hedge a portion of the foreign currency risk arising from highly probable income in USD relating to time
charter contracts on vessels owned by the companies Norskan Offshore Ltda and DOF Subsea Navagacao Ltda.
The hedging instruments are portions of the companies’ long term debt denominated in USD. The risk being hedged in each
hedging relationship is the spot element of the forward currency rate of USD/BRL. The future highly probable income has
a significant exposure to the spot element as the spot element is the main part of the forward rate. The long term debt is
translated from USD to BRL at spot rate on the balance sheet date every reporting period.
The effective portion of changes in fair value of the instruments that are designated and qualify as cash flow hedges is recognised
in other comprehensive income. The gain or loss relating to the ineffective portion is recognised immediately in the income
statement.
Amounts accumulated in equity are reclassified to profit or loss in the periods when the expected income is recognised.
DOF ASA
Note 5 Tangible assets
Financial Report Q2 2016
Vessel and
periodical
maintenance
ROV
21 603
303
Newbuilds
Operating
equipment
Total
943
106
535
23 188
5
1 014
29
1 351
1 104
-
-1 104
-
5
2
7
Depreciation
-360
-93
-68
-521
Impairment loss
-513
Currency translation differences
805
6
4
22 942
867
20
2016
Book value at 01.01.2016
Addition
Vessel completed
-
Disposal
Reclassification
Book value at 30.06.2016
-
-513
815
498
24 327
Newbuilds
Operating
equipment
Total
At 31.12.2015 the vessel Skandi Protector was classified as asset held for sale. The vessel is sold in 1 Quarter 2016.
2015
Book value at 01.01.2015
Vessel and
periodical
maintenance
ROV
21 887
1 002
483
494
23 866
Addition
276
38
2 607
135
3 056
Vessel completed
970
-17
-1 599
-
Disposal
Reclassification
-970
-1 582
-
41
12
-53
Depreciation
-376
-99
-53
Impairment loss
-262
Currency translation differences
Book value at 30.06.2015
-528
-262
-462
-7
-23
3
-489
20 492
946
2 097
509
24 044
Asset held for sale
At 31.12.2015 the vessel Skandi Protector was classified as assets held for sale. The vessel was delivered to new owner in January 2016.
Impairment
Due to impairment indicators related to the Group’s activity in general, impairment testing has been performed in order to
calculate the recoverable amount for the Group’s vessels. Each vessel constitutes a separate cash generating unit, which is tested
separately for impairment. The recoverable amount is tested against each vessel’s book value. In the event that the calculated
recoverable amount is lower than book value of the vessel, impairment is made to reflect recoverable amount.
The Group has prepared value in use calculations to substantiate the received broker estimates. The value in use calculations
are based on estimated discounted cash flows before financial items and tax. Estimated cash flows are based on the Group’s
budgets per vessel for 2016, and forecasted earnings going forward. The cash flows per vessels are calculated based on the vessels
remaining useful lifetime. Historical income rates, operational -and capital expenditure related to periodical maintenance, in
addition to corresponding rate and expenditure levels for comparable vessels form the basis for the estimated cash flows. The
market is expected to remain weak during the next three years, and thereafter to normalise. For vessels on firm contracts it is
assumed that the vessels are employed on charter parties up until expiry of the contracts, and that rate levels thereafter are
reduced. Options have not been assigned any added value in the value in use calculations.
The cash flows used in the value in use calculations are discounted using a nominal average cost of capital after tax (WACC)
ranging from 6.10% - 6.85%. The value in use calculations are based on best estimate, and due to the current weak market, there
is a high level of uncertainty related to the estimates.
The impairment tests have resulted in impairment of vessels and equipment totaling NOK 232 million in 2nd quarter and NOK
513 million year to date 30.06.2016. The impairments are spread on 15 vessels.
In addition, the impairment tests have resulted in impairment of vessel in joint ventures with NOK 28 million in 2nd quarter and
NOK 78 million year to date 30.06.2016 (50% share). The impairments are spread on 5 vessels, all owned by DOF Deepwater AS.
17
Financial Report Q2 2016
DOF ASA
Note 6 Investment in associated and joint ventures
The Company’s investment in associates and joint ventures as of 30.06.2016;
Joint ventures
Ownership
DOFCON Brasil AS with subsidiaries
50%
DOF Deepwater AS
50%
DOF Iceman AS
50%
Associated companies
Master & Commander
20%
PSV Invest II AS (Skandi Aukra)
15%
Iceman AS (Skandi Iceman)
20%
DOF OSM Services AS
50%
Canadian Subsea Shipping Company Ltd
40%
Effect of application of IFRS 11 on investments in joint ventures;
30.06.2016
Opening balance 1.1.2016
513
Profit (loss)
-41
Profit (loss) through OCI
18
246
Other
-3
Closing balanse 30.06.2016
715
See Note 2 regarding the presentation of the implementation of IFRS 11
Note 7 Cash and cash equivalent
30.06.2016
30.06.2015
31.12.2015
Restricted cash *)
457
576
520
Cash and cash equivalent
985
1 299
1 536
1 442
1 874
2 056
Total cash and cash equivalent
*) Including restricted cash related to non-current loan from Eksportfinans.
DOF ASA
Financial Report Q2 2016
Note 8 Interest bearing liabilities
Please see further information in Note 9 Events after balance date pro forma balance.
30.06.2016
30.06.2015
31.12.2015
Non-current interest bearing liabilities
Bond loan
2 652
3 378
3 347
Debt to credit institutions
17 069
13 960
17 354
Total non-current interest bearing liabilites
19 720
17 338
20 701
Current interest bearing liabilities
Bond loan
Debt to credit institutions
700
1 374
422
2 320
3 815
2 266
-
-
260
Liabilities held for sale
Utilised credit facilities
391
52
172
3 411
5 241
3 120
23 131
22 579
23 821
Total current interest bearing liabilities
Total interest bearing liabilities
Net interest bearing liabilities
Cash and cash equivalents *)
Total net interest bearing liabilities **)
1 442
1 874
2 056
21 689
20 705
21 765
*) Derivatives are not included in the net interest bearing liabilities. Comparable figures are restated.
**) A non-current loan has been provided by Eksportfinans and is invested as a restricted deposit in DNB. The loan is fully repaid in 2021. The cash deposit is
included in restricted deposits.
Out of current debt to credit institutions of NOK 2,320 million, the balloon payments amounts to NOK 280 million and normal amortization amounts to NOK
2,040 million (exluded accrued interest). The balloon is related to DOF Subsea and due date is at the end of 2016.
Current part of bond loan is related DOF ASA NOK 700 million with maturity in February 2017. The bond loan was released after the restructuring of the
Company’s total bond liabilities.
Installment- and
balloon profile *)
Q3 2016 Q4 2016 Q1 2017 Q2 2017
Bond loan
Q3- Q4
2017
2019
2020
Subsequent
Total
1 965
700
2 117
3 484
3 219
7 014
19 454
1 300
4 082
4 184
3 219
7 014
23 210
Share fixed
interest
49 %
Balance
30.06.2016
11 517
USD
80 %
11 175
GBP
28 %
439
Total
65 %
23 131
529
771
529
1 162
Overdraft facilities
Total ')
700
2 018
1 300
Debt to credit institutions
700
Total
current
debt
531
489
2 320
1 231
489
3 411
391
3 365
391
*) Amortised costs are excluded in the figures above.
Loan divided on currency and fixed interest
NOK
391
Covenants regarding non-current liabilities to credit institutions:
- The Group net asset value should be higher than 30% or higher than 20% if the contract coverage for the fleet is greather than 70%.
- The Group shall have available cash of least NOK 500 million at all times.
Per 30 June 2016 the value adjusted eguity ratio is 30% and free liquidity is NOK 985 million. The Group is in compliance with it’s financial covenants
as of 30 June 2016.
The company’s covenants are changed after refinancing of the debt, see note 9.
19
Financial Report Q2 2016
DOF ASA
Note 9 Events after balance date
Refinancing DOF ASA
DOF ASA has during Q2 worked on an overall refinancing plan to strengthen the Group’s liquidity in an expected demanding
market. The refinancing plan includes restructuring of bond debt, refinancing of several bank facilities, (excluding the Brazilian
built fleet and the fleet owned by DOF Subsea), and a rights issue.
The refinancing was completed in August, including conversion of three outstanding DOF ASA bond loans to one subordinated
convertible bond loan at price 50% of par value of the existing bonds, equal to NOK 1,032.5 million, and acceptance from 13 banks
to participate in a five years loan facility of NOK 3,800 million. The loan facility includes reduced amortisation for the three
initial years and amended financial covenants. The main new financial covenants are a minimum consolidated book equity of
NOK 3,000 million and a minimum liquidity, (excluding DOF Subsea), of NOK 500 million for DOF ASA on a consolidated basis.
A rights issue of NOK 1,060 million was completed in August, of which parts of the proceeds have been used to repurchase parts
of the new convertible bond loan. The impact on the balance sheet, net interest bearing debt and net instalment profile is shown
below.
Pro forma balance 30.06.2016 included refinancing and share issue
BALANCE
(MNOK)
20
30.06.2016
Changes
Pro forma
balance
30.06.2016
ASSETS
Intangible assets
Tangible assets
Non-current financial assets
Total non-current assets
1 345
-
1 345
24 327
-
24 327
1 939
-
1 939
27 656
-
27 656
Current receivables
2 703
-
2 703
Cash and cash equivalents 1)
1 442
826
2 268
Total current assets
4 145
826
4 971
-
-
-
4 145
826
4 971
31 756
826
32 582
6 380
2 882
9 262
45
-
45
19 953
-886
19 067
Asset held for sale
Total current asset incl. Asset held for sale
Total Assets
EQUITY AND LIABILITIES
Equity 2)
Non-current provisions and committments
Non-current liabilities 3)
Current liabilities 4)
Total liabilities
Liabilities held for sale
5 378
-1 170
4 208
25 376
-2 056
23 320
-
-
-
Total liabilities incl Liabilities held for sale
25 376
-2 056
23 320
Total equity and liabilities
31 756
826
32 582
Net interest bearing liabilities
21 689
-2 882
18 807
The following transactions are included in the proforma balance
1) Share issue NOK 1 060 million minus estimated transaction costs of NOK 24 million and repayment convertible bond loan NOK 209 million.
2) Share issues net NOK 1 036 million, net convertible bond loan NOK 824 million and net effect from restructuring of DOF09, DOF10
og DOF11, NOK 1 022 million.
3) Restructuring bond loan NOK -1 356 million and changed installment profile secured loans NOK 470 million.
4) Restructuring current part of bond loan NOK -700 million and changes secured loans NOK - 470 million.
DOF ASA
Financial Report Q2 2016
NET INTEREST BEARING LIABILITIES (Pro forma)
(MNOK)
30.06.2016
Changes
Pro forma
30.06.2016
2 652
-1 356
1 296
Non-current interest bearing liabilities
Bond loan
Debt to credit institutions
17 069
470
17 539
Total non-current interest bearing liabilities
19 720
-886
18 834
Current interest bearing liabilities
Bond loan
Debt to credit institutions
700
-700
-
2 320
-470
1 850
Liabilities held for sale
Overdraft facilities
Total current liabilities
Total non-current and current liabilities
-
-
391
391
3 411
-1 170
2 241
23 131
-2 056
21 075
Net interest bearing liabilities
Cash and cash equivalents
Net interest bearing liabilities
New installment and balloon
profile *)
Bond loan
Debt to credit institutions
Overdraft facilities
Total
Q3 2016 Q4 2016 Q1 2017 Q2 2017
Total
current
debt
Q3-Q4
2017
2018
1 442
826
2 268
21 689
-2 882
18 807
2019
2020
Subsequent
Total
-
-
-
-
-
-
1 300
-
-
-
1 300
360
674
424
392
1 850
814
1 629
3 207
2 564
9 389
19 454
-
391
-
-
391
-
-
-
-
-
391
360
1 064
424
392
2 241
814
2 929
3 207
2 564
9 389
21 145
*) Amortised costs are excluded in the figures above.
New contracts
DOF has secured extension with Maersk for Skandi Gamma until end 2016 and for Skandi Caledonia with Apache North Sea Ltd
until mid-January 2017.
The newbuild Skandi Acu owned by DOFCON Brasil (JV owned 50/50 by DOF Subsea and Technip) commenced its 8-year contract
with Petrobras on 13 August 2016.
DOF Subsea is awarded a 5-year contract with 2 two-years options to provide underwater services and a MPSV-vessel to the
Prelude FLNG facility.
21
Financial Report Q2 2016
DOF ASA
Note 10 Transaction with related parties
Transactions with related parties are governed by market terms and conditions in accordance with the “arm’s length principle”.
The transactions are described in the Annual report for 2015.
There are no major changes in the type of transactions between related parties.
Note 11 Taxes
Taxes per 30 June 2016 are a preliminary estimate.
Note 12 Share capital and shareholders
Largest shareholders as of 30.06.2016
22
Name
MØGSTER OFFSHORE AS
No. shares
Shareholding
Voting shares
51,22 %
56 876 050
51,22 %
PARETO AKSJE NORGE
8 173 058
7,36 %
7,36 %
MP PENSJON PK
1 197 595
1,08 %
1,08 %
MOCO AS
1 094 184
0,99 %
0,99 %
VESTERFJORD AS
1 027 650
0,93 %
0,93 %
NORDNET LIVSFORSIKRING AS
1 005 710
0,91 %
0,91 %
KANABUS AS
1 004 684
0,90 %
0,90 %
FORSVARETS PERSONELLSERVICE
997 421
0,90 %
0,90 %
PARETO AS
994 000
0,90 %
0,90 %
THE NORTHERN TRUST CO,
807 668
0,73 %
0,73 %
SKANDINAVISKA ENSKILDA BANKEN AB
676 830
0,61 %
0,61 %
VERDIPAPIRFONDET ALFRED BERG NORGE
635 758
0,57 %
0,57 %
ENERGY INVESTORS AS
629 384
0,57 %
0,57 %
NETFONDS LIVSFORSIKRING AS
547 361
0,49 %
0,49 %
DICHESBUEN AS
540 000
0,49 %
0,49 %
SIGFISK AS
500 000
0,45 %
0,45 %
IMAGINE CAPITAL AS
423 098
0,38 %
0,38 %
BKK PENSJONSKASSE
413 000
0,37 %
0,37 %
NORDNES
400 000
0,36 %
0,36 %
CITIBANK, N,A,
350 163
0,32 %
0,32 %
Total
78 293 614
70,50 %
70,50 %
Total other shareholders
32 757 734
29,50 %
29,50 %
111 051 348
100 %
100 %
Total no of shares
Ownership structure and number of shares has been changed with effect from 5th August 2016.
DOF ASA
ARGENTINA
SINGAPORE
5392 Storebø
DOF Management Argentina S.A.
DOF Subsea Asia Pacific Pte Ltd
NORWAY
Peron 315, piso 1, Oficina 6-b
460 Alexandra Road
Phone: +47 56 18 10 00
1038 - Buenos Aires
# 15-02
Fax:
ARGENTINA
PSA Building, 119963
Phone: +5411 4342 4531
SINGAPORE
[email protected]
Phone: +65 6561 2780
Alfabygget
+47 56 18 10 06
[email protected]
Fax:
+65 6561 2431
NORWAY
AUSTRALIA
[email protected]
DOF Subsea AS
DOF Management Australia
DOF Management Pte Ltd
Thormøhlensgate 53 C
Level 1, 441 South Road
460 Alexandra Road
5006 Bergen
Bentleigh, Vic. 3204
# 15-02
NORWAY
AUSTRALIA
PSA Building, 119963
Phone: +47 55 25 22 00
Phone: +61 3 9556 5478
SINGAPORE
Fax:
Mobile: +61 418 430 939
Phone: +65 6868 1001
+47 55 25 22 01
[email protected]
Fax:
+65 6561 2431
DOF Subsea Australia Pty Ltd
DOF Subsea Norway AS
5th Floor, 181 St. Georges Tce
Thormøhlensgate 53 C
Perth, Wa 6000
5006 Bergen
AUSTRALIA
DOF Subsea UK Ltd
NORWAY
Phone: +61 8 9278 8700
Horizons House
Phone: +47 55 25 22 00
Fax:
81-83 Waterloo Quay
Fax:
[email protected]
+47 55 25 22 01
+61 8 9278 8799
[email protected]
UNITED KINGDOM
Aberdeen, AB11 5DE
UNITED KINGDOM
BRAZIL
DOF Management AS
Phone: +44 1224 614 000
Fax:
+44 1224 614 001
Alfabygget
NorSkan Offshore Ltda
5392 Storebø
Rua Lauro Müller, 116 - Offices 2802 to
NORWAY
2805 - Botafogo - Rio de Janeiro - RJ
DOF (UK) Ltd
BRAZIL - CEP: 22290-160
Horizons House
Thormøhlensgate 53 C
Phone: +55 21 2103-5700
81-83 Waterloo Quay
5006 Bergen
Fax:
Aberdeen, AB11 5DE
NORWAY
[email protected]
+55 21 2103-5717
[email protected]
UNITED KINGDOM
Phone: +44 12 24 58 66 44
Phone: +47 56 18 10 00
DOF Subsea Brasil Serviços Ltda
Fax:
Fax:
Rua Fiscal Juca, 330
[email protected]
+47 56 18 10 06
[email protected]
+44 12 24 58 65 55
Q: W2 – L: 0001
Loteamento Novo Cavaleiros
USA
Vale Encantado – Macaé/RJ
ANGOLA
BRAZIL - CEP: 27933. 450
DOF Subsea USA Inc
DOF Subsea Angola
Phone: +55 22 2123-0100
5365 W. Sam Houston Parkway
Rua Ndumduma 56/58
Fax:
N Suite 400, Houston
Caixa postal 2469, Miramar
[email protected]
+55 22 2123-0199
Luanda, Republic of Angola
Phone/Fax:+244 222 43 28 58
USA
CANADA
+244 222 44 40 68
Mobile:
+244 227 28 00 96
DOF Subsea Canada
+244 227 28 99 95
26 Allston Street, Unit 2
E-mail: [email protected]
Texas 77041
Phone: +1 713 896 2500
Fax: +1 713 726 5800
Mount Pearl, Newfoundland
CANADA, A1N 0A4
Phone: +1 709 576 2033
Fax:
+1 709 576 2500
[email protected]
[email protected]
DOF ASA
Alfabygget
5392 Storebø
NORWAY
www.dof.no