Floatel International Ltd – First Quarter 2021 Interim Report, Presentation and Annual Report 2020

Highlights:
The Group completed its comprehensive balance sheet restructuring March 24, 2021 and the Group thereby;
• Secured a fully consensual deal among all key stakeholders, including shareholders, First Lien Bondholders, Second Lien Bondholders, and the Bank Vessel Facility lenders.
• retained its fleet of five operating vessels while substantially reducing its debt by USD 610 million.
• enhanced its liquidity position by securing a new USD 100 million revolving credit facility and reducing its debt service.
• record a gain of USD 577.8 million related forgiveness of indebtedness and accrued interest net of advisory fees and administrative expenses resulting in restored book equity of USD 423.2 million as of March 31, 2021
• has a post restructuring indebtedness of USD 200 million in two 1st Lien Bond issuances and USD 100 million revolving credit facility
• has a new shareholder constituency where Keppel retain 49.9% ownership, former 1st lien Bondholders now own 40.1% and management 10%.
• exit its restructuring process well positioned to tender for new business as the market recovers thanks to its significantly deleveraged and well capitalized balance sheet.

The situation has stabilised in the quarter after the material impact COVID-19 and oil price development had on the global economy and the industry in 2020, because of agreed oil production cuts and the development of vaccine;
• Generally limited impact on current contracts and operations.
• The main impact is from travel restrictions and quarantine requirements interfering with crew and site team changes as well as servicemen visits and thus causing increased operating expenses.
• Measures in place to safeguard the health and safety of clients, guests, and workforce.

Commercial update;
• The Group has been awarded a contract with start in June 2021 for Vår Energi on the Norwegian continental shelf for a period of three months plus options thereafter with Floatel Superior being the nominated vessel.
• Two contracts awarded by Equinor for execution in 2022 on the Norwegian continental shelf. One at Breidablikk with a start date in April 2022 for a period of four to six months and one for Johan Sverdrup Phase II project, also starting around April 2022 for a period of five to eight months.
• Contract with Equinor for Martin Linge extended to June 29, 2021 with Equinor having the option to extend the charter beyond that date.
• Letter of intent from an undisclosed client received mid-April to charter Floatel Triumph under a medium-term contract for execution in Q3/Q4 2021.
• First quarter fleet utilization was 23% (20% for the comparable period last year).
• The total firm contract backlog (excluding options) is approximately USD 82 million as of March 31, 2021 and it was USD 36 million March 31, 2020.

Updated impairment assessment recorded in the 2020 Annual Report;
• Updated impairment assessments performed in accordance with IFRS in connection with the preparation of the 2020 Annual Report.
• As a result, aggregate impairment charges of USD 479.4 million (USD 30.3 million in 2019) were recorded in the Annual Report with an interim impairment charge taken in the Q2-2020 interim report.
• The recoverable amount was identified by calculating value in use resulting in a revised aggregate fleet net book value of USD 673.2 million as of December 31, 2020.

Q1-2021 Financial Summary;
• Revenues for the first quarter were USD 15.4 million (USD 20.5 million for comparable period in 2020).
• EBITDA before restructuring effects amounted to USD -3.1 million (USD 2.5 million) and net result was USD 550.5 million (USD -29.3 million).
• Total assets March 31, 2021 amounted to USD 749 million (USD 760 million as of December 31, 2020).
• Cash and cash equivalents as of March 31, 2021 were USD 32.7 million (USD 36.7 million).
• The total book equity as of March 31, 2020 amounted to USD 423.2 million (USD -153 million).

Management will host a conference call May 3 at 15.00 CEST to present the results. Interested persons can register using the details provided on the website www.floatel.bm. A replay will be available for 21 days following the presentation by using the link provided on the website after the conference call.

For further information, please contact:

Peter Jacobsson, CEO, Floatel International AB
Tel: +46 31 352 07 00; Mob: +46 76 856 36 18
Tomas Hjelmstierna, CFO, Floatel International AB
Tel: +46 31 352 07 00; Mob: +46 70 261 09 01

Download Q1-2021 Report
Download Q1-2021 Presentation
Download Annual Report 2020