Annual MM Gulf Ship Finance
Growing pain in an growing OSV industry?
Managing Director DVB Bank SE
9 March 2011
• European Company (SE), listed on the Frankfurt Stock Exchange, with
market capitalisation of c. EUR 1.14bn (Nov 10)
• 95% owned by DZ Group, the largest co-operative banking group in
• Rated A for long term debt and A1 for short term debt by Standard &
• Over 500 professionals, all specialising in transport finance
• Over 500 clients worldwide, all active in the transport sector
• EUR 18.4bn (USD 25.1bn) loan book (Sep 2010)
• Net profit of EUR 98.0m YTD 2010 vs. EUR 56.9m YTD 2009
• Return on equity before tax of 16.9%
• Basel II core capital ratio of 15.5%
Global Presence Through 13 Offices
New York New York
Structured Asset Financing
Advisory and M&A
Asset & Market Research
DVB’s Global Offshore Support Group
Offshore Support Group
Advisory and M&A
Shipping / Offshore Investment Fund
S&P and Newbuild Finance
Mergers & Acquisitions (M&A)
Sale & Leasebacks, Acquisition Finance
and Mezzanine Finance
Debt & Equity Capital Raisings
Sale & Leasebacks
Ability to finance Mexican and Brazilian flag
Valuations & Fairness Opinions
Structured Equity and Mezzanine Finance
Overview of the Offshore Support Sector
Offshore Support Market
Subsea & Construction
• Anchor Handling Tug (AHT)
• Diving Support Vessel (DSV)
• Float on / Float off (Flo / Flo)
• Jack-up Platforms
• Seismic Survey Vessel (SSV)
• Anchor Handling, Tug &
• Lay Support Vessel
• Lift on / Lift off (Lo / Lo)
• Semisubmersible Platforms
• ROV Support Vessel
• Roll on / Roll off (Ro / Ro)
• Mono-hull Vessels
• Electro Magnetic Survey
• Lay Barge
• Semi-submersible Heavy Lift
• Accommodation Barges
• Platform Supply Vessel (PSV)
• Crew Boat
• Stand-by Vessel
• Emergency Response Rescue
• Utility Vessel
Supply & Anchor Handling
• Reel Lay Vessel
• Well Intervention Vessels
• Derrick Barge
• Pipe Carrier
Right now – still recovering
Cycle trough was Q2 2010, however..
Growth in E&P spending
We’re back on trend but there are leads..
Above 100 again
Capacity is 40% down but improving
Unfunded NB capex?
yes but less so
Is equity available?
Always, but things have changed a bit..
2011 worse year ever..
Focus on large PSVs, subsea, seismic,
accommodation units – DEEP WATER
How’s the public markets doing – an important indicator
Any IPOs out there?
The Middle East OSV players – keeping track?
Growth is elsewhere
Local focus while market is increasingly
regional or global
Age limitations on vessels & equipment
A fragmented market with many small to
mid cap companies
Enough capital to replenish old fleet?
Or just stay local with aging vessels?
Vessel CAPEX – current state of affairs
Mid size to large PSVs
Small to mid size AHTSs
NBs, yard terms
Large AHTS, subsea, CVs
Attractive: 10/90 or 5X4 + 80: Challenge is LC
No debt no equity
No employment no
Fast Expanding OSV players - crisis no obstacle?
Thank you for your attention!