Welcome to DOF first quarter, { Foreign language}, second quarter presentation. We start with some highlights in the quarter. { Foreign language}.
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{ Foreign language} . Very good. We start all over again, yeah. This is DOF. Just at a glance, it's we operate 55 vessels globally, and from the map we see the biggest hubs we have in Brazil, North America and Asia and the Atlantic region. We are reporting in 4, 4 regions. And around 4,000 people working for us, a bit more and, and operating on all continents, and we have the backlog by end of quarter two was... { Foreign language} .
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{ Foreign language} , let's move on on this slide then. It's a bit technical problems here today, yeah. The quarter was the best quarter we have had so far in the DOF Group and, so that we reported on... { Foreign language} . We have to excuse you guys that are on the webcast. We have technical problems here on the presentation, so try to fix it.
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Okay, we go back again. Try again, I think I start on the... { Foreign language} . A small break again. We have still technical problems. { Foreign language} .
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Okay, we start again on the highlights for Q2. We had the highest EBITDA so far in the group history and a revenue of $3.5 billion and an EBITDA of close to $1.35 billion. It's a very strong quarter. EBIT, at $1.4 billion and net profit of close to $1.14 billion. It's a very good quarter for us and good performance, especially from the subsea side globally. Perhaps particularly strong in Brazil and the Atlantic region. Good earnings on the PSV fleet.
You could say the only negative was that we had a few not delivering as we expected in the Norskan fleet and also in Brazil, due to some dockings and some mobilization for new contracts. Order intake $1.6 billion. We also announced a big contract just after balance. In real life, it was $2.6 billion and then backlog now $20.8 billion plus the billion, so $21.8 billion. That gives us a very high visibility for second half 2023. Also, you know, very good visibility for 2024. We have around $9 billion in the book for 2024 already, and of course, we expect to build that a lot the next few months.
{ Foreign language} . Hilde Drønen, { Foreign language}. Okay, we are back again. I leave the details on the numbers to Hilde. She will comment on the segments and, so one and that we see here, we also have bought the Skandi Iceman, and we exercise an option we had, and we also have a slide on that later to explain why we did that. Next, this one is perhaps the most important slide in this presentation. It's sustainability and, and it's from, from emissions to, to equality and, and all aspects.
I, you know, the first here is that we, by Petrobras, of course, the our biggest clients, were also this year, or the end of last year, awarded the best operator. They have between 33 and 35 suppliers. We, we were awarded the best performing operator. It is, it's proved that we deliver quality globally. We have a high CDP score. We have, as you see on the right-hand side here, we, we have been 3 years in a row now, by Financial Times, awarded, got a letter from them, saying that they, they regard us one of the climate leader in, in, in Europe.
We do a lot of work on that side, also important is the, is the, you see the, the uptime on the fleet and the ROV, and, and, close to 100% for ROV and close to 98% for the, for the vessels. Of course, that is, also a sign that we, we operate, with very high quality. What are, what are we doing? In the old days, of course, we were, back in the 2000 and before 2005, we were a pure, ship owner. Since that, we have, we have built, a subsea services company globally. We, we have now, around 2,000 of our employees are, are working in, you know, with anything else than, than operating the boat. It's, 3, 4, 500 engineers.
It's, it's lots of ROV pilots, surveyors, and so on. They, what we do is we, we deliver projects. We deliver projects either on short projects, one month, two months, three months, or we, or we are doing IRM services, where we include all of our skills. We, we. You can say we make money in two pockets. We make money on the, on the boats, and then we make margins on, on the services. We make put on top and, and, and, we see, of course, that we generate more now than we, we did when we were a pure ship owner. Looking at this, we, we also see here on the this is new on this slide, we, we show the fair market value of the fleet.
As we say in the financial report, both values, margins and rates are continuing to go up, the fair market value for the fleet now is NOK 28.4 billion. So we are still priced very well below the value of the fleet. Due to the strong second quarter, and also, you know, the visibility and the backlog for second half, we have lifted the guidance for the year. We had the previous guidance of NOK 4.2-NOK 4.7, and we lift up now to NOK 4.5-NOK 4.75. We go to the next. Sometimes it move without me pushing. It's... This is just a few.
Of course, we do much more project than this, and it's just a few projects we have been executing, executing this quarter. Since we are in Bergen today, we perhaps we're gonna start with Skandi Iceman on the Hywind Tampen. Yeah, so, and I guess most of you know that the Hywind Tampen is the largest floating wind farm installed so far, and we did all the... You know, we had the T&I for the, let's say, for the tow out and installation of all the floating turbines. Yeah. That was finished this quarter, and of course, we are a bit proud of that.
We have a few slides on, on floating wind later on, and of course, it's a market that we, we believe it's towards the end of this decade, it's gonna be very interesting. Already now, we, we see that we, we are doing a lot of FEEDs and, and globally from, from the North Sea to Japan, to Korea, and U.S., and Australia. It's it looks like it's gonna be a very interesting global market for it going forward. We come back to that. We, we executed, we have two boats for Exxon in, in Guyana, and, and also have a slide on Guyana later on. It's a very interesting area, you know, perhaps the fastest-growing area, if you don't include Brazil globally.
We see we're gonna have a lot of growth in Guyana going forward. This is you see it's a green boat, but then with the DOF logo on, this is also, you know, left in here to explain that we, we, of course, we, the business model being a subsea service provider, of course, you, you can execute that from third-party boats as well. It's a boat we have on a 3-5-year charter, and we, we, we make a very nice margin on top by adding on the services. We, we, and of course, in Brazil, we, we are the largest, you know, market leader in what we call large anchor handlers. The largest fleet working for Petrobras.
We, we have, you know, the largest player in pipelay, together with our partner, TechnipFMC, and we, we are the market leader in, in, what we call IRM, which is inspection, repair and maintenance. The PIDF project is, is an example of that, is an inspection program where we, you know, where we have an revenue roughly $1 billion a year and, that project with very good margin. That's executed in this quarter, and then we, we have the Skandi Açu, and, she's a good example of how we run the business.
She started a year in, in down here in, for Beach in Australia, doing a T&I shelf project. Then she went to Israel, on for Chevron on the Leviathan field, did the same. Now she is in, in U.K. doing, doing a similar project for, for Ithaca. It's a snapshot on, of some of the projects we have been executing this quarter, yeah. We test... Oh. This is, this is done, you know, backlog, some of the contracts recently won and, and some of the projects.
Yeah. In 2000, so last year, 2022, we, we, we booked, 40, $14 billion of, of new backlog. Then so far this year, if you include, the one on the right-hand side here, the Skandi Açu, we, we have, booked, let's say 5, $5.5, $4 billion. This, what this tell us is that we have very few legacy contracts in, in, in the backlog now, meaning that, and of course, that's why we see the earnings are picking up, so we, we see margins, and rates on, on the, the, the, the work we booked in 2022 and 2023 are much higher than the, the work we booked before that. Yeah, so, so. We expect that trend to continue. Of course, we see...
You know, we, I spoke about Açu on the last slide. If you see the, the margins on the rate, we have on the Açu for this work we just announced, compared to the work she executed in Australia in first quarter, which was a contract we won in 2021. You could say that the, the, you know, the, the gross margin on that project has doubled, yeah. It's been moving fast, yeah. It's almost repricing it bid by bid, yeah. But we, we, we do believe that, you know, looking at the backlog and for, for the big tier one guys, we, we expect 2025 and 2026 to be really the hottest years, yeah. We could, we have and we did yesterday.
We had a choice either doing a 3-year contract in West Africa or this contract, and we decided this one because we expect the rates and margins to continue to pick up. This is just Skandi Vega is another example. She was announced, you know, in a bit earlier this year, and it's an anchor handler with Norway working here in the North Sea for Equinor. Another example where we see, you know, rates picking up, and of course, on that boat, we expect, you know, we have been earning roughly NOK 80 million a year in EBITDA, and we expect on the new contract to yield around NOK 130 million. It's just another example of where the market is going.
The Guyana one is, and I have a slide on that. You know, we, we are very proud that we... You know, Exxon is the largest oil company on the globe, and the hottest place for them is Guyana, and they chose DOF for delivering two very large subsea construction boats to support their activities, the field development, but also on the IRM side, in that region. Gamma is another example, is a PSV, where we, you know, where we saw the rate picking up with roughly GBP 5,000 a day from the old contract to the new contract, yeah. Which the new contract commenced May this year.
The, the RSVs we are in Brazil, it's, it's, it's another example, you know, they are and that's part of the reason why we, we, we are not happy with the, the Norskan performance in the quarter, because these boats are, have been mobilizing for the new contracts. They are going, getting on the new three-year contract as we speak. Of course, on them, you know, we, we, we expect to double the EBITDA margin compared to the old contracts. I can continue like that, but I, I'll finish the, you know, perhaps also showing the, the Geoholm contract here, which is an example of what is really achievable if you are lucky in this market, yeah.
On that, we, you know, we have had a market value of that by, by end of the quarter, around $16 million. We expect to stay on, so you see here, it's six months, but it, it's been extended now with another few, other few months. You know, we have, we have, more than a we have around 55% margin on that, yeah. Approximately nine months, you almost pay the whole boat, yeah. I'm not saying we can do that on every deal we do, but it's an example if, if you are a bit lucky that how the market is, especially in South America these days, yeah. We have the next one. I try to push. It's working now.
What is our strategy? It's, it's, it is to, you know, to be, you know, the, the largest player globally on, on, on subsea services, but not on the heavy-duty field developments, but on the, on the, on the smaller projects and on the IRM side. Here is an example of, you know, and, of course, the hottest market we see now, and I have a slide, the next slide is showing that is Brazil and Guyana, yeah. We, we see a fantastic growth in both areas. Then is offshore wind. Is floating offshore wind. Why are we saying that we gonna be a big player in that segment? That is due to, of course, our experience from oil and gas.
You know, whether you're more a floating offshore wind unit or you're more a floating FPSO rig, it's the same, same operation. You need the same type of fleet, you need the same type of competence, yeah? That's why we are putting a lot of effort globally into that. Building an organization now and, and, and of course, setting up in Korea and the places that is important to be. Next slide is showing here, so why have we, are we enthusiastic about Guyana and Brazil? The left-hand here is Guyana. Yeah, it's, so you see the production from 2020 to 2027, you know, it's going from 200,000 barrels a day to 1.2 million barrels a day, yeah.
It's a lot of growth, and it's a long-term plan, yeah. We expect this to continue beyond 2027 as well, you know. It's the discoveries in Guyana is like the pre-salt in Brazil, yeah. It's a huge discoveries, and every time they drill, they find a lot of oil, yeah. We expect that to continue, and we expect our relationship with Exxon will offer us a lot of opportunities in the region, yeah. Brazil, of course. You have to remember, we are market leader in IRM and in pipeline and in big anchor handlers in Brazil. Of course, this is all about FPSOs, and they should be moored.
They should be maintained where they are installed, of course, they all need flexible pipes to produce, yeah. Of course, the growth in Brazil is big. It's 18 FPSO during the next few years, and of course, we have a slide on that later on, on Petrobras needs going forward, and of course, it's, we expect, you know, a huge growth, and of course, a very strong market for all of our services and assets in Brazil. It looks good.
On the next one, it's showing that, you know, this is, you know, we met Petrobras, Sonangol Shipping, a few months back. Of course, this is from the one on the right-hand side here, from their own presentation. Showing they are going on tender for 170 boats, you know, going forward. Of course, this is done in all segments from PSVs to anchor handlers to pipe layers, or ROV boats, inspection boats, diving boats, and so on, yeah. We see that on this, on the left-hand side, this is just tenders ongoing at the moment.
It's, we are working now on pipeline tenders, so of course, we expect, you know, Petrobras was, were on tender last year, and they didn't manage to find 1 boat. They want to increase the fleet with 5 boats and did not end up with a single contract yet. We expect, you know, we expect all the vessels in Brazil in that segment to bring you, we also believe that they will try to secure more boats. They are on ROV tender, anchor handling tenders, and inspection work. We look forward to the fall, to see how these tenders will end up. We are optimistic. The next one is...
Is then part of the reason why are we optimistic over the market going forward? We, we have shown you that the demand side is picking up, and we have, we have shown South America, but it, it's more or less globally. We, we see the same in Norway. We, we see it starting to pick up in Asia-Pacific, and we see West Africa also picking up. Demand is picking up, but then what this slide is telling us is that the supply side, we believe, is gonna be flat. Meaning that utilization and rates and margins will continue to grow. Of course, why do we not believe that people will place orders for new boats?
It's a lot of reasons. Number one, most of the industrial players in this segment has been through a rough ride, yeah. None of them have cash, and they have big restrictions on investments. Number two, of course, is that we see new building prices are extremely high, yeah. Today, we, we expect, you know, a straight, 2,000 square meter PSV costing, 300 and something million in 13, 14, is now probably double, yeah. If you want to build a big anchor handler, you probably NOK 1.1 billion-NOK 1.2 billion. Of course, the race has to continue to pick up a lot before you even can defend doing it, yeah.
That's why we believe that, that, the market, the, the supply side will be very limited growth in. Yes, sir. This, I don't spend much time on this. What, how are we positioned towards our peers and competitors? We are... The main points of this one is that we are global, yeah. We execute projects globally from Canada to Australia, New Zealand. We are not executing the big projects. When TechnipFMC, Subsea 7 and those guys do a $1 billion project, we do perhaps a $50 million project in the offshore space, yeah. We have a much lower risk on execution. Let's say less than 5% of our revenue stems from a lump sum contract.
The, you know, the rest is direct. I leave it like that. This is then the backlog. With now the as at year quarter, I mentioned earlier, we, we have roughly $22 billion in, in backlog. For the rest of the year, we usually we have $5.3 billion. I, I don't know, perhaps that is 85%-90% of the expected revenue for second half. With, with the as at year, here, we have around $9 billion for, for, for, for 2024, meaning that we have around, perhaps around, between 65% and 70%, yeah. Of course, we expect that to be built...
With close to 70% back for 2024, you know, the uncertainty on 2024 will be, is already very low. You could say that we know that 2023 will be strong and that we almost know that 2024 will be a good year as well. As we said earlier in the presentation, the margins and the rates are higher than it used to be in the backlog. That's also why we see the earnings are picking up. Hilde, very pleased to welcome you.
Thank you. Thank you. As already said by Mons, we have a strong result this quarter. It's actually the highest EBITDA ever achieved in a quarter, so we are very happy about that. That is mainly due to increased activity, especially on a project in subsea, but it's also improved terms on new contracts and higher rates. We acquired two vessels in May, so they have been included in the result from May. We also had an incident on Skandi Buzios early June, and that has had minor impact on the quarterly result. Year to date, a very strong result compared to last year. We also decided to reverse impairment on four vessels, basically due to new contracts at improved terms and higher rates.
This 440 represent reversal impairment on four vessels. On the financial income, there are some non-cash transaction that's related to a certain transaction over approximately NOK 50 million with no cash impact. We also have a lower interest cost this quarter, that's due to lower margins on the refinanced facilities. There are minor currency impact in the quarter versus a high negative impact last year. The reason for that is that the BRL, which is important to us, has strengthened towards United States dollar, while the Norwegian krone has weakened. If you look at the taxes, there that includes slightly below NOK 80 million in withholding tax.
That's withholding tax we, we pay on contracts we have in the Guyana, West Africa, and in Angola. All in all, it's a long time I've seen that our profit was above $1 billion. Looking at the segments, as we reported in the first quarter report, we have changed the segments. These are the main subsidiaries, silos, where we did the refinancing, which was completed first quarter. Here you see DOF Subsea Group, which includes our 50% share in DOFCON. It's Norskan and it's DOF Rederi, and then Corporate. As I said, the main reason for the very good result this quarter, is high activity and continued good performance on projects in Brazil.
That's include the PIDF, already mentioned by Mons, but it's also other contracts with very good terms achieved during the quarter and also first half. We also have increased activity in the Atlantic region substantially this quarter. Hywind Tampen is one example, where they also did a project in the Med. They also continued with very good performance on a project in Angola. We also see the increased activity in America, where the Guyana project is the main project. We also see increased activity in what they do in US Gulf. This region also cover a contract that we have in Canada. It's a 10-year contract that started in 2017. In the Asia Pacific region, we see a stable activity.
The utilization achieved for this activity, it was 92%. Then we have the PLSV fleet, which is basically the DOFCON JV. There we suffered from 20 days of fire on the Skandi Buzios in June. The rest of the fleet had good performance and high utilization. All in all, 90% for the DOFCON fleet. On the Skandi Buzios, as we said in the report, We do not expect that vessel to come back on hire this this year. And she has 90 days loss of hire insurance, the third quarter will not be impacted by the off-hire, the fourth quarter will be. Norsk an, we had variable utilization of the fleet.
Still, we are much better result compared to previous year, and the simple reason for that is new terms and higher rates on the new contracts. The utilization is only 75%, and that's mainly due to one vessel being idle two months. She will also be idle partly of the third quarter, but she will start on a contract in September. We do expect the result for Norsk an to be, to improve, because during first half, we have, we have done a lot of mobilization for the new contracts that Mons showed here. We also have some other contracts which had start up in, in, in July. Looking at DOF Rederi, that includes also the Skandi Iceman vessel.
They had very good co-performance this quarter, mainly due to very good earnings on Iceman, but also the other vessels, Skandi Vega, two big anchor handlers, and good spot earnings on three PSVs. Here we achieved a utilization of 90%. Here you see where we did the reversal of payment. That's two vessel in DOF Rederi and two vessels in DoF Subsea. If you look at the cash flow, you see that the net cash from operating activities is $475.71 million versus $693 million. It's actually lower than previous year. The underlying cash flow is actually very good, but this quarter, it has been impacted by high receivable towards end of the period.
That's because we completed a lot of projects in late June, Hywind Tampen is one example, and also several others, where we did the invoicing towards end of the quarter. We have a lot of outstanding, not due revenue towards end of the quarter, and approximately close to NOK 1 billion has been paid already. We have cash-wise, higher interest payment this quarter, because we had standstill agreements with no interest payment last year. The net cash from investments, that include the normal maintenance, docking, and mobilization to new contracts, but it also include the net cash on the Skandi Hera and Darwin investment. The reason why it shows as a net cash impact is because we bought the company that owned these two vessels.
That when we consolidated that company from May, and that's why it show as a net cash flow. Because the price of the vessel is above approximately NOK 560, and a new loan that we took over was around NOK 400 million. Net paid on borrowing is, that's a normal debt service on the old facilities, new facilities. The first the first maturity on the new facilities is in January 2026. That proceeds is from the share issue we did in June. That does not include the greenshoe option of approximately 1.8 million shares that was done in July.
Cash at the end of period is NOK 3.6 billion. Also worth mentioning that a large portion of that, approximately NOK 1.2 billion, is restricted, and the reason for that is that the money from the share issue was made available in July. That's why it's shown as restricted. There are also restricted cash on the new facilities to cover CapEx going forward. Looking at the balance sheet, and if you, if I compare to the the quarter last quarter, you see that the tangible assets, meaning the vessels, have increased, and that's due to we reversed some previous impairment, but the main reason is the acquisition of Skandi Hera and Skandi Darwin.
The deferred tax mainly include the DOFCON and the Brazilian activity. On the non-current assets, that has increased during the year, and that's because we lease external vessels. We have some prepaid contract costs, and there is a tax claim in Brazil, which we won. Receivables, and here you see, as I explained on the cash flow, the increase in receivables due to project invoiced late in the period. I already mentioned restricted cash and increased activity. Looking at the equity, of course, we are happy to see that the equity is growing, of course, and part of that is the capital raise. The main reason is, of course, the good results through first half and through the, this quarter.
Looking at the long-term debt, that has increased, and that's due to FX, because the Norwegian krone has weakened towards US dollar. Approximately 80% of our loan is drawn in dollar, and that's a pretty good match to the revenue we have in the group. The current portion of the debt that represent normal amortization, and it also included two new facilities on the Hera and Darwin. As mentioned, the first maturity is in January 2026. If you look at the debt, and how that is developing, the next three year, three years, and especially that, we have a maturity in January 2026 on the new facilities.
That does not include the facilities that we have in Brazil, and that includes Norskan and DOFCON mainly, because there we have longer, long maturity, and the maturity is beyond January 2026. It's a favorable financing because it's a fixed rate through the entire period, and it's a long duration. I think the last facility is due in 2033. But what we try to show here on these columns is that if you use a stable EBITDA of NOK 4.5 billion, and here you see how the debt is developing, and you see also that on the refinanced facilities, that's mainly in DOF Subsea and DOF Rederi, partly Norskan, the amortization is very low.
The last column that you see in brackets here, that is the cash sweep, where we assume the earnings of $4.5 billion. That's so the debt will actually be reduced at that level. That's what we expect. If you see the light blue, that's the DOFCON facility, that is. No, sorry, if you see the light blue, that is the debt that we have to be refinanced in January. The gray is that, that is debt that has maturity beyond January 2026.
To summarize, we actually have good control of our debt and how that is developing going forward, and we are not concerned about the refinancing that we have to do late 2025. Also worth mentioning that on the new facilities, we have pretty good terms. The last one, I will do this quite quick, but here you see development in the revenue, you see development in margin. Of course, it's very good to see that, especially the last columns, where you see that the equity is normalized, the current, non-current debt is normalized. The net interest-bearing debt by end of this quarter is NOK 15.5 billion.
On the guidance, as you saw, we decided to increase the guidance to $4.2-$4.7. We achieved an EBITDA of $3.8 and now $4.6 the last 12 months. We will pay approximately $1 billion in interest costs, and the scheduled repayments is approximately $1.4 billion. The maintenance CapEx is previous guiding is $800 million-$1 billion, and we know now that we are in the lower end of that guidance. This give you a picture on what kind of deleveraging capacity we have in the group. I give the word to you, Mons.
Yeah. We have only a few slides left, and I guess the slide Hilde just showed, perhaps was the most interesting slide, you know, with the, so the, the capacity to, to, to repay debt down, and of course, then, this cash to equity, and we are talking about then that's gonna be pretty high the next few years. Why did we buy these boats? When, when the main goal here is to repay the debt, and of course, that is because we had very favorable options on those boats. Skandi Hera, we had an agreement with a bank to buy it for outstanding debt. That was around NOK 300 million. By the quarter, now the broker values are NOK 448 million.
That, that's the, the reason why we did, and, and of course, also had high earnings on her, so, 58 million in EBITDA in, in, first half, and of course, then, if you multiply that with two, of course, it's, you know, it's a multiple less than 3. It was a good deal, deal, deal for the group. Skandi Iceman, more or less the same, we, we, you know, we have, we paid, net after cash, you know, around NOK 300 million for her, and then, of course, the same EBITDA, around 60. It's not that we are going continue to buy boats at market prices, but, but we had to use these options since they were so much in the money for us.
And, uh, then, uh, to summarize, uh, quickly on the outlook, uh, as we say, we're due to a strong, uh, first half and, and, uh, very high backlog for, for second half, we, we, we increase our guidance to four point five to four, four point seventy-five billion for, for the year. We have a strong backlog here, here it says twen- twenty point eight, adding, uh, what we have won after, you know, we are probably around twenty-two. Uh, so we have a very good visibility for second half 2023 and, and, uh, starting to get a very good visibility for, for 2024. And, uh, markets are very active, uh, globally. And as we said, perhaps the hottest places today are, uh, Brazil, followed by Guyana, but also then, then, uh, very active in, in other, other regions and more or less globally.
The supply side are flat, meaning that, we, we expect, the trend on rates, margins, and asset values to continue in a positive direction. As you understand, we are, happy with the second quarter, and we are looking forward to, to, to the future, yeah, and, I think we deserve it after the, the oil crisis. Thank you very much.