Slides
Page 1
Floatel International March 2025 Floatel Victory at Peregrino. Brazil
Page 2
Important information and disclaimer THIS PRESENTATION IS NOT FOR RELEASE, PUBLICATION, OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, ITS TERRITORIES OR POSSESSIONS, AUSTRALIA, CANADA, JAPAN, OR SOUTH AFRICA, OR TO ANY RESIDENT THEREOF, OR ANY JURISDICTION WHERE SUCH DISTRIBUTION IS UNLAWFUL. THIS PRESENTATION IS NOT AN OFFER OR AN INVITATION TO BUY OR SELL SECURITIES. This presentation (the “Presentation”) has been produced by Floatel International Ltd. (the “Company” and together with its consolidated subsidiaries, the “Group”) for information purposes only. This Presentation does not constitute or form part of, and should not be construed as, any offer, solicitation, invitation, or recommendation to purchase, sell, or subscribe to any securities in any jurisdiction. By reading this Presentation or attending any oral presentation held in relation thereto, you will be deemed to have agreed to the restrictions and terms included herein and acknowledged that you understand the legal and regulatory sanctions attached to the misuse, disclosure, or improper circulation of the Presentation. This Presentation does not purport to contain all the information that may be required to evaluate any investment in the Company or any of its securities and should not be relied upon to form the basis of or be relied on in connection with any contract or commitment or investment decision whatsoever. The contents of this Presentation shall not be construed as financial, legal, business, investment, or other professional advice. This Presentation is intended only to present background information on the Group, its business, and the industry in which it operates and is not intended to provide complete disclosure upon which an investment decision could be made. To the best of the knowledge of the Company, the information contained in this Presentation is in all material respect in accordance with the facts as of the date hereof and contains no material omissions likely to affect its import. This Presentation contains information obtained from third parties. As far as the Company is aware and able to ascertain from the information published by that third party, such information has been accurately reproduced, and no facts have been omitted that would render the reproduced information to be inaccurate or misleading. Only the Company is entitled to provide information in respect of matters described in this Presentation. Information obtained from other sources is not relevant to the content of this Presentation and should not be relied upon. No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets, and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein. Accordingly, neither the Company nor any of its parent or subsidiary undertakings or any such person’s officers or employees (together, “Representatives”) accepts any liability whatsoever arising directly or indirectly from the use of this Presentation. By attending or receiving this Presentation, you acknowledge that you will be solely responsible for your own assessment of the Company, the Group, the market, and the market position of the Group and that you will conduct your own investigations and analysis and be solely responsible for forming your own view of the future performance of the Group's business and its current and future financial situation. This Presentation contains certain forward-looking statements relating to the business, financial performance, and results of the Company, the Group, and/or the industry in which they operate. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words “believes”, “expects”, “predicts”, “intends”, “projects”, “plans”, “estimates”, “aims”, “foresees”, “anticipates”, “targets”, and similar expressions. The forward-looking statements contained in this Presentation, including assumptions, opinions, and views of the Company or cited from third-party sources, are solely opinions and forecasts that are subject to risks, uncertainties, and other factors that may cause actual events to differ materially from any anticipated development. None of the Company or any of its Representatives provides any assurance that the assumptions underlying such forward-looking statements are free from errors, nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this Presentation or the actual occurrence of the forecasted developments. The Company assumes no obligation, except as required by law, to update any forward-looking statements included herein or to conform any forward-looking statements to our actual results. Neither the Company nor any of its Representatives has taken any actions to allow the distribution of this Presentation in any jurisdiction where action would be required for such purposes. The Presentation has not been registered with or approved by any public authority, stock exchange, or regulated market. The distribution of this Presentation, as well as any subscription, purchase, sale, or transfer of securities of the Company, may be restricted by law in certain jurisdictions, and the recipient of this Presentation should inform itself about and observe any such restriction. Any failure to comply with such restrictions may constitute a violation of the laws of any such jurisdiction. None of the Company or any of its Representatives shall have any responsibility or liability whatsoever (in negligence or otherwise) arising directly or indirectly from any violations of such restrictions. IN RELATION TO THE UNITED STATES AND U.S. PERSONS, THIS PRESENTATION IS BEING FURNISHED ONLY TO INVESTORS THAT ARE “QIBs”, AS DEFINED IN RULE 144A UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT”). THE COMPANY’S SECURITIES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE U.S. SECURITIES ACT OR WITH ANY SECURITIES REGULATORY AUTHORITY OF ANY STATE OR OTHER JURISDICTION IN THE UNITED STATES, AND MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES, OR TO OR FOR THE ACCOUNT OR BENEFIT OF A U.S. PERSON, EXCEPT PURSUANT TO AN APPLICABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES LAWS. This Presentation speaks as of the date set out on the front page of this Presentation. There may have been changes in matters which affect the Company subsequent to the date of this Presentation. The information contained herein is subject to change, completion, or amendment without notice. Neither the delivery of this Presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date. The Company assumes no obligation, except as required by law, to update or correct the information included in this Presentation. This Presentation is subject to Norwegian law, and any dispute arising in respect of this Presentation is subject to the exclusive jurisdiction of Norwegian courts with Oslo District Court (Nw: Oslo tingrett) as the exclusive legal venue. 2
Page 3
Sept 2006 FI Ltd was established Mar 2010 Delivery of Floatel Superior Oct 2010 Delivery of Floatel Reliance Dec 2010 FI Ltd listed on the Oslo Stock Exchange Aug 2011 A group of shareholders agreed to take the company private Sept 2011 FI Ltd delisted from the Oslo Stock Exchange Feb 2012 Oaktree Capital Management acquires stake in FI Ltd Jun 2014 Floatel Group fully financed, TLB and new bank debt facility May 2007 The first vessel, Floatel Superior, ordered from Keppel FELS Nov 2007 Floatel Reliance ordered from Keppel FELS Sep 2016 Delivery of Floatel Triumph Nov 2013 Delivery of Floatel Victory Apr 2015 Delivery of Floatel Endurance 2006 2007 2010 2011 2012 2013 2014 2015 2016 2018 Mar 2021 Successful completion of comprehensive balance sheet restructuring Sep 2021 Relocation of head office to Norway 2021 Oct 2018 Refinancing of Floatel Group through bond issue listed on ABM, Oslo Exchange 2023 Mar 2023 Refinancing of revolving credit facility through bond issue listed on ABM, Euronext Oslo 2024 Mar 2024 Successfully placed a new senior secured bond issue of USD 350 million to refinance all existing outstanding bonds and general corporate purposes. Company history 3 2025 Feb 2025 USD 15 million tap issue was successfully placed.
Page 4
4 Keppel Group 49.9% Other investors 40.1% Management 10.0% Ownership structure
Page 5
Name Floatel Triumph Floatel Endurance Floatel Victory Floatel Superior Floatel Reliance Delivery 2016 2015 2013 2010 2010 Builder Keppel FELS Singapore* Keppel FELS Singapore* Keppel FELS Singapore* Keppel FELS Singapore* Keppel FELS Singapore* Status Operating Operating Operating Operating SOLD SUBJECT CONTRACT Flag Bermuda Bermuda Bermuda Bermuda Bermuda Beds / cabins 560 / 301 440 / 440 560 / 301 440 / 440 500 / 171 Station keeping DP3 DP3 DP3 DP3 DP2 North Sea / Norway capable / - / / - / - / - Current/next customer Inpex Vår Energi Equinor Equinor - Present location Australia Norway Brazil Norway Spain Modern fleet designed to meet all regulatory requirements 5 * Merged with Sembcorp Marine 2023, now called Seatrium Ltd
Page 6
Floatel Reliance 6 o The Board of Directors has decided to sell the Floatel Reliance o Prime reasons behind the decision to sell the vessel: o The vessel has been in lay-up since April 2016 and will require re-activation before resuming operations, the lead time for re-activation is predicted to be 8-10 months o The reactivation cost is considered too high to create shareholder value for Floatel International’s shareholders o The specification of Floatel Reliance does not align with Floatel International strategy to serve tier 1 customers and high- end DP 3 markets o The company has concluded an in principle agreement with a buyer, and the intention is to hand over Floatel Reliance to its new owner during the second quarter of 2025.
Page 7
J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A Floatel SUPERIOR ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## Ineos Unity Vår Energi Ringhorne Equinor Åsgard Undisclosed AkerBP Yggdrasil (Munin) UK Norway Norway North Sea Norway Floatel VICTORY ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## Chevron Anchor Equinor Peregrino USA Brazil Floatel ENDURANCE ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## AkerBP Skarv Vår Energi Jotun Cenovus WWR Undisclosed AkerBP Yggdrasil (Hugin) AkerBP add. Option Norway Norway Canada North Sea Norway Norway Floatel TRIUMPH ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## Shell Shearwater Inpex Ichthys Undisclosed Shell Prelude UK Australia Australia Australia Date: - FIRM WORK/OPTION - LOI/LOI option March-25 Vessel 2024 2025 2026 2027 2028 o Floatel Endurance – LOI for Undisclosed client in 2026 will expire end-March 2025 o Floatel Triumph – LOI for Undisclosed client in 2025/2026 will expire mid-March 2025 Present fleet commitment – March 2025 7
Page 8
2025 51% 2026 20% 2027 29% 2028 0% 2029 0% 0 100 000 200 000 300 000 400 000 500 000 600 000 700 000USD THOUSAND Firm backlog Option backlog Backlog distribution 2025-2027 including option work Backlog as reported in Q4 2024 report (excluding values for LOI). If the LOIs materialize into contracts, the firm backlog at the end of end of December would be approximately $404 million. Firm Backlog as per 1 March 2025 is USD 344 million. Floatel International Back-log end of December 2024 Firm order book $338 million, option work $154 million 8
Page 9
Asia; 3% Australia; 13% Brazil; 23% Norway; 37% UK; 18% USA; 6% Statoil/ Equinor; 36% Petrobras; 16% Chevron; 10% BP; 10%ENI/Vår Energi; 6% Inpex; 6% Shell; 3% Total; 3% o 12,100 operating days executed since company became operational 2010, whereof 55% performed in the North Sea region o 58% operating alongside bottom fixed installations, 42% alongside floating production facilities o Fleet breakdown percentage (off-hire) since Sept 2016 to date approx. 0.26% The preferred choice in harsh environment Geographical split Geographic split and Customer based on executed work to date Customer base – 8 largest customers account for 90% of our business Proven track-record 9
Page 10
Market Fundamentals Floatel Superior at Ringhorne 10
Page 11
China Yard 10% Brazil 35% Asia 0% North Sea 30% GOM 20% Other Regions 5% Source: Company analysis based on public market information Floatel stands out with modern, high specification rigs 11 Brazil 38% Asia 6% North Sea 25% GOM 31% Other Regions 0% Brazil 44% Asia 0% North Sea 31% GOM 25% Other Regions 0% 0 5 10 15 20 25 30 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 PRS PRS S. D. Floatel Cotemar CIMC POSH MMM FOE COSL Pemex Alyar Okeanos Supply Situation now – reduced supply through older vessels exiting the market, global supply expected to be reduced to 17 vessels (if suspended deliveries will be delivered) GLOBAL SEMI-SUB ACCOMMODATION FLEET SIZE (INCL. NB) SEMI-SUBMERSIBLE ACCOMMODATION VESSELS Scrapping candidates “Lay up” or “To be scrapped” = vessel laid up with no future backlog GEOGRAPHICAL LOCATION OF THE SEMI-SUB FLEET (TODAY) Vessel name Owner Status DP Delivery year Safe Nova Prosafe Suspended delivery DP3 TBA Safe Vega Prosafe Suspended delivery DP3 TBA Safe Eurus Prosafe In Service DP3 2019 OOS Tiradentes CIMC In Service DP3 2018 Floatel Triumph Floatel In Service DP3 2016 Safe Notos Prosafe In Service DP3 2016 Posh Arcadia POSH In Service DP3 2016 Floatel Endurance Floatel In Service DP3 2015 Safe Boreas Prosafe In Service DP3 2015 Safe Zephyrus Prosafe In Service DP3 2015 Atlantis Cotemar In Service DP3 2015 Neptuno Cotemar In Service DP3 2015 Posh Xanadu POSH In Service DP3 2014 Floatel Victory Floatel In Service DP3 2013 Floatel Reliance Floatel (sold) Lay up DP2 2010 Floatel Superior Floatel In Service DP3 2010 Safe Concordia Prosafe (sold) In Service DP2 2005 Safe Scandinavia Prosafe Lay up No DP 1984 Safe Caledonia Prosafe In Service DP2 1982 Iolair Cotemar In Service DP2 1982 Active Semi Fleet with future backlog (16 vsls) Total Semi Fleet including new buildings (20 vsls)
Page 12
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 0 2 4 6 8 10 12 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025E 2026E 2027E 2028E Utilisation Rig Years North Sea - Committed North Sea - New Work predicted Semi-sub fleet (12m/yr) Utilisation (r.a.) 1 2 5 32 2 0 5 10 15 20 25 2025 2026 2027 2028 Current Tendering Declined Identified opportunies North Sea market 2008 – 2028 (incl. Canada) 12 NORTH SEA SUPPLY/DEMAND – EXECUTED CONTRACT AND PREDICTED NEW WORK * Supply post 2025 pending which vessel returns to the North Sea (F. Victory/ S Zeph/ S Boreas) and prediction that some older vessels will exit the market * Vessel/Year 2024 2025 2026 2027 Floatel SUPERIOR 1 1 1 1 Floatel VICTORY USA/Brazil Brazil Brazil/N.S Brazil/N.S Floatel ENDURANCE 1 1 1 1 Floatel TRIUMPH 1 Australia Australia Austr./N.S Safe Caledonia 1 1 1 Active? Safe Scandinavia Coldstacked Coldstacked Scrapped? Scrapped? Safe Boreas 1 Australia Australia North Sea? Safe Zephyrus Brazil Brazil Brazil Brazil Total NS Semi-sub 5 3 3-4 2-5 North Sea active semi-sub fleet assumed 2024-2027 Prospects & Tendering North Sea
Page 13
1 14 9 5 2 2 3 7 0 5 10 15 20 25 2025 2026 2027 2028 Current Tendering Declined Identified opportunies 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0 5 10 15 20 25 30 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025E 2026E 2027E 2028E Utlisation Rig Years Contracted work New work Global Fleet (Incl. North Sea vsls) Floatel vsls yrs contracted Utilisation (r.a.) Global market 2008 – 2028 (including North Sea) 13 GLOBAL SUPPLY/DEMAND – EXECUTED CONTRACTS AND PREDICTED NEW WORK * * Supply post 2025 based on the prediction that some older vessels will exit the market 0 2 4 6 8 10 12 Brazil accommodation fleet since 2011 (excl new work) Semi-submersible Other vessels Prospects & Tendering Global (incl. North Sea)
Page 14
Day-rate development & Brent Oil 14 HISTORICALLY OBSERVED DAY-RATES (INITIAL CONTRACTS, FIRM PERIOD) – NORTH SEA & ROW 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0 50 000 100 000 150 000 200 000 250 000 300 000 350 000 400 000 Utilisation USD per Day Contract Award date North Sea Fixtures ROW Fixtures North Sea utilisation (12m/yr) Global utilisation (12m/yr) Rate Development and Brent Oil since 2017 0 30 000 60 000 90 000 120 000 150 000 180 000 210 000 240 000 270 000 0 20 40 60 80 100 120 140 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Jan-24 Jan-25 Jan-26 Vessel Day Rate USD BRENT USD per Barrel Brent Oil Average dayrate N.S (r. axis) High N:S (r. axis) Low N.S (r. axis) Average dayrate ROW (r. axis)
Page 15
Going forward Floatel Triumph in transit 15
Page 16
16 Expansion through asset optimization and strategic M&A o Maintain and modernize existing fleet o Focus on delivering high-quality service by maintaining and modernizing the current fleet o Invest in upgrades and technological advancements to ensure fleet efficiency and competitiveness o Our current fleet will have limited availability in the coming years o Multiple recent requests from tier 1 customers for high-end DP 3 markets declined due to lack of availability o Additionally, we have been approached by clients wanting to discuss potential for shorter jobs between our current commitments o We are in an excellent position to develop the company to meet these demands – thanks to the stable order book, solid capital structure with recent debt extension to 2029 and the vast experience of our employees, we can pursue accretive expansion o Explore mergers or acquisitions with other players to consolidate the market within our segment o Diversify the fleet to meet requests outside of the core market – still serving tier 1 customers on high-end DP 3 markets o Expand our scope to cover a larger portion of the value chain connected to clients’ projects o Our aim is to be best in class within our market to enhance shareholder value through strategic positioning and operational excellence
Page 17
Health, Safety & Environment (HSE) 17 Floatel Endurance at AkerBP Skarv, Norway
Page 18
0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 TRIR (Total Recordable Injury Rate) Total Recordable Injury Rate = (Work Related Fatalities + Lost Time Injuries + Restricted Work Cases + Medical Treatment Cases) * 1,000,000 / Working hours Last 12 months 3 incidents recorded last 12 months, 2 MTC (hand injury) and 1 LTI (eye injury) Floatel International – TRIR statistics since 2011 18 0,00 0,50 1,00 1,50 2,00 2,50 3,00 3,50 4,00 4,50 5,00 Target 2024: ≤ 1,45 February 2025: 3,53 1 2 Note: Target 2025 not decided
Page 19
Floatel Triumph, Shell Shearwater, UK Financial Overview 19
Page 20
20 Asset values and Interest-bearing debt Fleet valuation and loan-to-value Loan to value ($365m bonds) 76% 65% 27% $365m $483m $563m $1 353m Construction costGroup debt Broker values Book values Senior secured bonds Revolving Credit Facility Broker values Vessel Low Mid High Book value Construction cost Floatel Endurance $118m $140m $162m $164m $380m Floatel Superior $105m $123m $142m $128m $350m Floatel Triumph $93m $112m $130m $140m $312m Floatel Victory $90m $108m $127m $131m $311m Total $407m $483m $560m $563m $1,353m Interest-bearing debt $ 30m $ 30m $ 30m $30m $245m 2025 Senior secured bonds o $365m Senior secured bonds after $15m tap mature in April 2029 and $15m semi-annual amortization starting April 2025 o $25m Revolving credit facility matures December 2027 ($3m drawdown in June 2024, repaid in September 2024) o Coupons • Bonds = 9.75% • RCF = SOFR + 4.50% Revolving Credit Facility 2026 2027 2028 2029
Page 21
21 0 10 20 30 40 50 60 70 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 MUSD -60% -40% -20% 0% 20% 40% 60% -10 -5 0 5 10 15 20 25 30 35 40 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 MUSD EBITDA Margin Estimated capex schedule Detailed capex split ($m) 2024 2025E 2026E SPS 4.5 6.3 6.5 Thrusters 10.7 0.8 14.8 Maintenance capex 12.5 5.1 12.0 Mid-life capex 1.0 0.0 1.1 Total 28.6 12.2 34.4 Quarterly financial performance Revenue by quarter EBITDA and margin (%) by quarter Upcoming Capex and quarterly financial performance $ 1,5m $ 0,6m $ 8,2m $ 11,8m $ 0,2m $ 10,3m $ 5,9m $ 8,6m $ 4,1m $ 8,8m $ 2,0m $ 11,8m 2025E 2026E2024 $34.4m $28.6m $12.2m Endurance Superior VictoryTriumph