Nautilus Marine Services PLC Shareholder Presentation
April 2017
Nautilus Marine Services PLC Investor Presentation
Forward Looking Disclaimer Some statements contained in this presentation or in documents referred to in it are or may be forwardlooking statements. Actual results may differ from those expressed in such statements, depending on a variety of factors. The Company will not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events, circumstances or unanticipated events occurring after the date of this presentation, except as required by law or by any appropriate regulatory authority. Nothing in this presentation or in documents referred to in it should be considered as a profit forecast. Past performance of Nautilus Marine Services PLC (formerly Global Energy Development PLC) or its shares is not a guide to future performance.
This presentation does not constitute, or form part of or contain any invitation or offer to any person to underwrite, subscribe for, otherwise acquire, or dispose of any shares in Nautilus Marine Services PLC or advise persons to do so in any jurisdiction, nor shall it, or any part of it, form the basis of or be relied on in any connection with or act as an inducement to enter into any contract or commitment therefore. No reliance may be placed for any purpose whatsoever on the information or opinions contained in this presentation or on its completeness and no liability whatsoever is accepted for any loss howsoever arising from any use of this presentation or its contents otherwise in connection therewith.
Any forward-looking information contained in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect, This presentation has been prepared in compliance and accordingly, actual results may vary. with English law and English courts will have exclusive jurisdiction over any disputes arising from or connected with this presentation.
Nautilus - Pathway of Change
What differentiates Nautilus as an investment?
100%
Companies trading on AIM1 – 973
Energy companies trading on AIM1 – 103
10%
Energy service companies trading on AIM1 – 7
Offshore energy service companies listed on AIM1 - 4
1%
0.4%
“Unique investment…..small niche”
¹ Source: AIM Summary Statistics / London Stock Exchange February 2017
Near Term Plans
0 to 3 months Close transaction of offshore vessels – completed.
Close on $10.5 million of new capital funding – completed.
Establish dock facilities accessing Gulf of Mexico – completed.
3 to 6 months Acquire or invest in commercialised niche offshore technologies
Assess and enhance current vessels
Watch for further decline in vessel pricing with banks and distressed companies
6 to 12 months Enhance operations personnel and expertise in the Company
Close further acquisitions of assets (vessels and/or ROV)
Become specialised service provider
Offshore Energy Services Massive Industry
Targeting a Niche Market Offshore energy services • A trillion $ global industry • More than 10,000 companies globally in the industry
Why the Gulf of Mexico1? • $32 billion contributed to U.S. economy • The highest concentration of offshore structures in the world • Production of 600 million barrels of oil annually from roughly 3% of the reserves in the Gulf of Mexico • Significant opportunities for acquisition/investment
¹ Source: NOIA America’s Offshore Energy Industry
• Gulf of Mexico utilisation rates have dropped 49% from 2013 to 20161
Decline in producer revenues affected offshore energy services
• 36% drop in day rates since 2013 driven by sharp drop in utilization across all vessel type1 Gulf of Mexico Day Rates by Vessel Type (US$ thousands per day)1 120 100
100
97
80
77
93 80 73
72
60 40
47
50
49
35
38
36
52 40
20 0 2012
2013 Air Dive
2014 ROVSV
4P SAT Dive
66 46
36
26
23
2015
2016
DP SAT Dive
“…domino effect led to currently distressed market conditions…….”
¹ Source: Wood McKenzie
What differentiates the Nautilus strategy?
Offshore Vessels and Assets
Commercialised Niche Technology
Specialised Service Provider
Near- term buying opportunity: window of time
Investment window is open near-term before prices and demand increase Nautilus has sufficient financial strength and working capital to survive a continued downturn in 2017 while we execute the strategy.
• Acquiring/investing in offshore service assets and commercialised, niche technologies
…In summary…
• Working towards become a provider of surveying, inspecting, repair and decommissioning services in the Gulf of Mexico • Ongoing economic recovery in the U.S. • Gulf of Mexico provides the largest concentration of offshore structures in the world • Potential for sector cross-over and international application
Appendix Corporate Structure:
Shares in issue: 36,112,187 (as at 31 December 2016)
Registered Office:
3 More London Riverside, London SE1 2AQ, United Kingdom
Nominated Adviser:
finnCap Ltd
Auditors:
RSM UK Audit LLP
Solicitors:
Norton Rose Fulbright
IR Adviser:
Abchurch
Appendix Executive Management:
John Payne, Director of Operations John Payne, Director of Operations, has more than 30 years’ experience in the international subsea sector. A qualified Master Mariner, Mr. Payne has held a number of senior business positions since coming ashore in 1999. He has gained his international experience within the subsea telecom, renewable and offshore subsea sectors and has held senior roles in Business Administration, Business Development and Service Delivery and more recently was interim Chief Executive to Hallin Marine before taking a senior role with specialist chemical provider Aubin Ltd. He has qualified as a Chartered Director and is a Fellow of the Institute of Directors with experience in operating in USA, Europe and Asia. Anna Williams, Director of Strategy and Business Development Anna Williams formerly served as Finance Director of Global Energy Development PLC from 2010 to 2016. She served as Chief Financial Officer for HKN, Inc. (formerly Harken Energy Corporation), a US publicly-listed company, from 2000 to 2010 and as International Finance Manager from 1996 to 2000. Prior to that, Ms. Williams began her career in public accounting work at Arthur Andersen & Co. She has also served on the Board of Directors and Audit Committee of an independent Canadian-listed oil and gas company. Ms. Williams is a Certified Public Accountant. Sarah B. Gasch, Finance Director
Sarah Gasch formerly served as Executive Vice President and Chief Operating Officer of HKN, Inc. and Chief Executive Officer of BriteWater International, Inc., a wholly-owned subsidiary of HKN from 2009 to 2016. During her tenure with HKN, she also served as Chief Financial Officer, Chief Accounting Officer, Corporate Secretary, and Controller. Prior to joining HKN, Ms. Gasch served as Vice President and Chief Accounting Officer for Green Hunter Energy, Inc., a public alternative energy company where she was responsible for the creation and management of the entire accounting and reporting organization from 2008 to 2009. Ms. Gasch also served as Financial Reporting Manager for Magnum Hunter Resources, Inc., a public oil and gas company from 2002 to 2005. Ms. Gasch began her career in public accounting.
Appendix US$ Thousands
Statement of Financial Position Total non-current assets Notes receivable Cash and cash equivalents Other current assets Total current assets Non-current liabilities Current liabilities Total liabilities Net assets
Year ended 31 December 2016
1,053 12,060 16,446 608 29,114 2,161 2,370 4,531 25,636
Year ended 31 December 2015
1,100 8,040 25,608 754 34,402 2,011 1,238 3,249 32,253
For more information please contact [email protected] www.nautilusmarineplc.com
Nautilus Marine Services PLC Investor Presentation
Forward Looking Disclaimer Some statements contained in this presentation or in documents referred to in it are or may be forwardlooking statements. Actual results may differ from those expressed in such statements, depending on a variety of factors. The Company will not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events, circumstances or unanticipated events occurring after the date of this presentation, except as required by law or by any appropriate regulatory authority. Nothing in this presentation or in documents referred to in it should be considered as a profit forecast. Past performance of Nautilus Marine Services PLC (formerly Global Energy Development PLC) or its shares is not a guide to future performance.
This presentation does not constitute, or form part of or contain any invitation or offer to any person to underwrite, subscribe for, otherwise acquire, or dispose of any shares in Nautilus Marine Services PLC or advise persons to do so in any jurisdiction, nor shall it, or any part of it, form the basis of or be relied on in any connection with or act as an inducement to enter into any contract or commitment therefore. No reliance may be placed for any purpose whatsoever on the information or opinions contained in this presentation or on its completeness and no liability whatsoever is accepted for any loss howsoever arising from any use of this presentation or its contents otherwise in connection therewith.
Any forward-looking information contained in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect, This presentation has been prepared in compliance and accordingly, actual results may vary. with English law and English courts will have exclusive jurisdiction over any disputes arising from or connected with this presentation.
Nautilus - Pathway of Change
What differentiates Nautilus as an investment?
100%
Companies trading on AIM1 – 973
Energy companies trading on AIM1 – 103
10%
Energy service companies trading on AIM1 – 7
Offshore energy service companies listed on AIM1 - 4
1%
0.4%
“Unique investment…..small niche”
¹ Source: AIM Summary Statistics / London Stock Exchange February 2017
Near Term Plans
0 to 3 months Close transaction of offshore vessels – completed.
Close on $10.5 million of new capital funding – completed.
Establish dock facilities accessing Gulf of Mexico – completed.
3 to 6 months Acquire or invest in commercialised niche offshore technologies
Assess and enhance current vessels
Watch for further decline in vessel pricing with banks and distressed companies
6 to 12 months Enhance operations personnel and expertise in the Company
Close further acquisitions of assets (vessels and/or ROV)
Become specialised service provider
Offshore Energy Services Massive Industry
Targeting a Niche Market Offshore energy services • A trillion $ global industry • More than 10,000 companies globally in the industry
Why the Gulf of Mexico1? • $32 billion contributed to U.S. economy • The highest concentration of offshore structures in the world • Production of 600 million barrels of oil annually from roughly 3% of the reserves in the Gulf of Mexico • Significant opportunities for acquisition/investment
¹ Source: NOIA America’s Offshore Energy Industry
• Gulf of Mexico utilisation rates have dropped 49% from 2013 to 20161
Decline in producer revenues affected offshore energy services
• 36% drop in day rates since 2013 driven by sharp drop in utilization across all vessel type1 Gulf of Mexico Day Rates by Vessel Type (US$ thousands per day)1 120 100
100
97
80
77
93 80 73
72
60 40
47
50
49
35
38
36
52 40
20 0 2012
2013 Air Dive
2014 ROVSV
4P SAT Dive
66 46
36
26
23
2015
2016
DP SAT Dive
“…domino effect led to currently distressed market conditions…….”
¹ Source: Wood McKenzie
What differentiates the Nautilus strategy?
Offshore Vessels and Assets
Commercialised Niche Technology
Specialised Service Provider
Near- term buying opportunity: window of time
Investment window is open near-term before prices and demand increase Nautilus has sufficient financial strength and working capital to survive a continued downturn in 2017 while we execute the strategy.
• Acquiring/investing in offshore service assets and commercialised, niche technologies
…In summary…
• Working towards become a provider of surveying, inspecting, repair and decommissioning services in the Gulf of Mexico • Ongoing economic recovery in the U.S. • Gulf of Mexico provides the largest concentration of offshore structures in the world • Potential for sector cross-over and international application
Appendix Corporate Structure:
Shares in issue: 36,112,187 (as at 31 December 2016)
Registered Office:
3 More London Riverside, London SE1 2AQ, United Kingdom
Nominated Adviser:
finnCap Ltd
Auditors:
RSM UK Audit LLP
Solicitors:
Norton Rose Fulbright
IR Adviser:
Abchurch
Appendix Executive Management:
John Payne, Director of Operations John Payne, Director of Operations, has more than 30 years’ experience in the international subsea sector. A qualified Master Mariner, Mr. Payne has held a number of senior business positions since coming ashore in 1999. He has gained his international experience within the subsea telecom, renewable and offshore subsea sectors and has held senior roles in Business Administration, Business Development and Service Delivery and more recently was interim Chief Executive to Hallin Marine before taking a senior role with specialist chemical provider Aubin Ltd. He has qualified as a Chartered Director and is a Fellow of the Institute of Directors with experience in operating in USA, Europe and Asia. Anna Williams, Director of Strategy and Business Development Anna Williams formerly served as Finance Director of Global Energy Development PLC from 2010 to 2016. She served as Chief Financial Officer for HKN, Inc. (formerly Harken Energy Corporation), a US publicly-listed company, from 2000 to 2010 and as International Finance Manager from 1996 to 2000. Prior to that, Ms. Williams began her career in public accounting work at Arthur Andersen & Co. She has also served on the Board of Directors and Audit Committee of an independent Canadian-listed oil and gas company. Ms. Williams is a Certified Public Accountant. Sarah B. Gasch, Finance Director
Sarah Gasch formerly served as Executive Vice President and Chief Operating Officer of HKN, Inc. and Chief Executive Officer of BriteWater International, Inc., a wholly-owned subsidiary of HKN from 2009 to 2016. During her tenure with HKN, she also served as Chief Financial Officer, Chief Accounting Officer, Corporate Secretary, and Controller. Prior to joining HKN, Ms. Gasch served as Vice President and Chief Accounting Officer for Green Hunter Energy, Inc., a public alternative energy company where she was responsible for the creation and management of the entire accounting and reporting organization from 2008 to 2009. Ms. Gasch also served as Financial Reporting Manager for Magnum Hunter Resources, Inc., a public oil and gas company from 2002 to 2005. Ms. Gasch began her career in public accounting.
Appendix US$ Thousands
Statement of Financial Position Total non-current assets Notes receivable Cash and cash equivalents Other current assets Total current assets Non-current liabilities Current liabilities Total liabilities Net assets
Year ended 31 December 2016
1,053 12,060 16,446 608 29,114 2,161 2,370 4,531 25,636
Year ended 31 December 2015
1,100 8,040 25,608 754 34,402 2,011 1,238 3,249 32,253
For more information please contact [email protected] www.nautilusmarineplc.com
