Mosvold%20Jackup%20Ltd. - PowerPoint PPT Presentation

Title: Mosvold%20Jackup%20Ltd.


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Mosvold Jackup Ltd.

• Cost efficient jackups tailor-made to meet
  Middle Eastern demand
• Pareto Offshore Seminar
• September 2006

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Table of contents

• Introduction
• Overview of Middle East market
• Corporate and project description
• Financials
• Investment considerations

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Why build a Rolls Royce when a BMW will do ?

• Middle East is the fastest growing jack-up market
  in the world
• More than 90 of acreage relevant for jack-ups
  can be drilled by 300ft units
• As evidenced by recent ME contracts, dayrates for
  a 27 year old 300ft jack-up on long term
  contracts have been secured at levels only 17
  below the most capable 350-400ft newbuilds
• Current all-in project price for the Mosvold
  units is 27 less than the last 350-400 ft
  newbuilds ordered

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Middle-East more oil reserves than the rest of
the world combined and 1/3 of global
offshore reserves
Source BP Statistical Review of World Energy
June 2006
Source OPEC
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Middle-East the fastest growing jack-up
region in the world
Source ODS Petrodata/Pareto Offshore
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Middle-East - 300ft units perfectly suited
- average waterdepth 115ft
ME definition Saudi, Qatar, UAE,
Bahrain, Oman, Iran and Egypt
Summary ME (ex Egypt) Today
61 Units by 07 75 Need by 08E 92 Source
ODS/Pereto Offshore
Today 9 JU Units by
end 07 9 JU Need by 08E 14 JU
Source ODS/Pareto Offshore
Today 19 JU Units by
end 07 25 JU Need by 08E 30 JU
Today 19 JU Units by
end 07 27 JU Need by 08E 30 JU
Source ODS/Pareto Offshore
Today 14 JU Units by
end 07 14 JU Need by 08E 18 JU
Source ODS/Pareto Offshore
Source ODS/Pareto Offshore
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Mosvold Jackup Ltd. (Cayman) - Summary

• Established by Mosvold Shipping Ltd. in April
  2006
• Listed on the OTC
• Turnkey construction contract with Maritime
  Industrial Services Co. Ltd. Inc. (Dubai UAE)
  for 22 jackups
• Turnkey contract price USDm 126, all-in delivered
  price USDm 143
• Delivery August 2008 and December 2008
• USD 90 million in Equity raised.
• Sufficient equity in place to allow for debt
  financing, for instance
• Bonds 20
• Bank loans 50

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Mosvold an experienced shipping and
offshore services group

• The Mosvold family has continuously been active
  in shipping since 1910
• First investment in offshore Part ownership of
  semi early 80ies
• Acquired 3 modern J/Us from Keyes Offshore in
  1989
• Mosvold Shipping was IPOd on the Oslo Stock
  Exchange in 1990
• Acquired 100 of Dual Drilling Co in 1990. Dual
  was a Dallas based worldwide drilling contractor
  owning 3 J/Us and 10 platform rigs
• Through Dual, acquired further 3 J/Us in 1993
  combined with raising new equity/bonds and
  listing of Dual on NASDAQ (Mosvold Shipping
  retained 60 of Dual)
• Dual merged with Ensco in 1996 with payment in
  shares. All shares distributed to Mosvold
  shareholders
• Board member Morten Borge was the CEO of Mosvold
  Shipping during the Dual Drilling Period he
  also served as Chairman of the Board of Dual
  Drilling in Dallas
• Mosvold initiated a J/U project 1H 2004 to build
  2 J/U (with 4 options) at PPL Shipyard and Keppel
  FELS in Singapore. The entire project sold to
  Awilco in 2004 and is the now the foundation of
  Awilco Offshore
• In 2005, Mosvold founded Mosvold Drilling (That
  contracted two Ultra Deep Water Drillships with
  Samsung) which was later acquired by SeaDrill

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Super M2 Main features

• Design Friede Goldman Super M2
• 300ft enhanced leg design
• Wrap around accommodation (around forward leg)
  opening for more deck space and more efficient
  accommodation facility
• Modular hull design
• 25,000ft drilling depth
• 110 person quarters capacity

Source Friede Goldman, Pareto Offshore
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Super M2
Increasing the capabilities of existing 300ft
units
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Status report

• Supervision team in place
• All vendor agreements completed by the yard,
  delivery dates are fixed
• Steel cutting commenced on hull number 1
• Progress according to schedule

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The yard - Maritime Industrial Services Co. Ltd.
Inc.

• Established in 1979
• Headquartered in the Jebel Ali Port near Dubai,
  United Arab Emirates
• In addition to top management and administrative
  staff, the headquarter houses the MIS Technical
  Services Division, which coordinates the
  management of operations and maintenance
  contracts
• Facilities in six different places near the
  Persian Gulf
• Mosvold Jackups to be delivered from the Sharjah
  Facility
• Wide range of capabilities, amongst these marine
  offshore structures
• Total workforce 2,500 (overall)
• Well established customer base
• ISO 9001 certified
• Reputation of on-time delivery

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Panoramic View of MIS Yard Facilities at Sharjah,
UAE

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MIS Sharjah Yard Facilities Layout

• PRODUCTION AREAS AND FACILITIES
• 142,000 Sq M Open Production Area
• Open / Covered Storage Area
• Camp For 500 Resident Craft Workers
• Sand Blasting Stress Relieving
• Furnaces

PLATE PROFILING
OPEN WAREHOUSE

• WORKSHOP EQUIPMENTS
• Hydraulic Plate Rolling Machines up to 118mm
  thickness.
• CNC Beam, Plate Pipe profiling machines
• 600 MT and 200 MT Hydraulic Brake Press, Shear
  Plate bending machine
• Two each 25 MT 5 MT overhead cranes servicing
  the entire workshop
• Machine shop equipment
• Submerged Arc Welding Stations

• RECEIVING AND LOADOUT FACILITIES
• 400 m long loadout jetty for sea access with a
  water depth of 8m, designed for heavy crossing
  loads.
• Loadout systems including dollies, skid beams,
  and rollers

ERCO
COVERED WORKSHOP
Main Fabrication Facilities 200,000 sq meters.
CAMP
COAST GUARD

• MOBILE, YARD, AND AUXILIARY EQUIPMENT
• 16 Nos. 45-230 T capacity Crawler cranes
• 11 Nos. Up to 45 T capacity cranes
• Forklift, Flat bed trailers, Low bed trailers
  (100T)

SHARJAH PORT AUTHORITY


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MIS has experience with all elements required
to build a jack-up

• Conversion of jackups to permanent production
  facilities
• Fabrication and supply of decks
• Fabrication and supply of early production
  facilities
• Major hull steel renewal
• Power system and cabling
• Mud systems
• Jacking system refurbishment
• Leg extensions
• Installation of living quarters
• Water treatment facilities
• Removal and reinstallation of cranes
• Steel repair and modifications for sub structure
• Upgrade of drilling equipment

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Mosvold Jackup - capex and funding

MOSVOLD JACKUP FUNDING SUMMARY Fig in USDm Per
Unit Total Turnkey contract price 126.0 252 Super
vision 3.5 7 OFE (Handling equipment/spares) 5.0 1
0 Contingencies 1.0 2 Capitalised interest costs
7.0 14 All-in/ready to operate
cost 142.5 285 GA, fees financing 4.0 8 Total
Funding Requirement 146.5 293 Bank
debt 150 Bond debt 60 Equity 90 Total Funding
Sources 300 Implied Cash Position at delivery
7 ) Ignoring cash flow from rig 1 until
delivery of rig 2

• USD 142.5m estimated delivered cost
• Incl. capitalised interest costs
• Total funding requirement of USDm 293
• Incl. GA, fees and financing costs
• USD 90m of equity raised in spring 2006
• USD 60m bond issue assumed in 2007
• USD 150m of bank debt assumed
• Last 2 yard instalments
• Representing approx 50 of all-in cost

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Pro Forma Mosvold Jackup key figures
(2 jackups)

• EV USD 305m YE 08E fully invested
• Value of 2 rig options ignored
• Market cap USD 111m (NOK 19 per share)
• Current JU market (USD 180-200,000/d) implying
  EV/EBITDA 2.8-3.2x
• P/E 1.3-1.6x

Source Pareto Offshore
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Shareholder information

• Number of shares issued 36,7 million
• Issue price (April 2006) NOK 19 per share
• Current share price NOK 18-19 range
• Mandatory bid level at 30 vs 40 standard
• 5 largest shareholders per August 31st 2006
• Percentage Name Acc type Country
• 29,01 Mosvold Investment L CO Mosvold
  Shipping CYM
• 12,20 Credit Suisse Securi (Europe)
  LTD/Firms
  GBR
• 6,92 Olympia Holding AS C/O Banque Invik
  SA
  NOR
• 6,37 Goldman Sachs Intern Equity nontreaty
  Cus NOM GBR
  5,45 Bear Stearns Security A/C Customer Safe KE
  NOM USA

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Why invest in Mosvold Jackup

• Most leveraged exposure to the fastest growing
  region for JUs in the world
• Tailor-made rigs for the Middle East
• Attractive construction price and early delivery
  make the rigs competitive
• Favourable options provide for additional
  financial leverage
• Construction at a reputable yard in the heart of
  the Middle East attracts attention from local
  operators and reduces mobilization cost/time
• Experienced manager with good track record
• Opportunistic approach to the investment