Floatel International Ltd - Second Quarter 2020 Report and Presentation


The Group’s financial situation is unsustainable as liquidity is under pressure;
• The Company has stopped interest and amortization payments and discussions with secured creditors are ongoing, however the outcome of these discussions is uncertain.
• Forbearance agreement with an ad hoc group of 1st Lien Bondholders has been extended to August 31, 2020
• Payment agreement, where certain expenses in respect of Floatel Endurance are covered by proceeds in the blocked accounts, is operational,
• The vessels, which are on charter continue to operate as normal and it is business as usual for the Group’s operations.
• Independent review of business plan including a review of the assumptions made in assessing the valuation-in-use of our vessels completed
• Business plan, long-term market outlook and sustainable steady state profitability of the Group’s vessels has been updated in light of the independent review as well as the Coronavirus pandemic and its impact on oil and gas companies’ capital expenditure and maintenance spending
• As a consequence of the above new impairment assessments has been performed of the fleet, which resulted in aggregate impairment charges of approximately USD 398 million. Book value of vessels after the impairments is USD 779 million.

The COVID-19 pandemic has caused unprecedented impact on the global economy and the oil price, which in turn have material impact on the industry;
• The pandemic has resulted in many oil and gas companies announcing cuts in capital and project expenditure which creates negative impact on the demand for offshore accommodation services
• The Coronavirus lead to Ineos contract being postponed but has otherwise had limited impact on current contracts and operations
• Measures have been taken to safeguard the health and safety of clients, guests and workforce.

Commercial update;
• Contract with Equinor for Martin Linge extended to end January 2021 with Equinor having the option to extend the charter further
• Ineos FPS charter for Floatel Victory at the Unity platform in the UK suspended April 2021
• Agreement with Singapore authorities for Floatel Triumph to provide accommodation for healthy foreign workers in the fight against COVID-19, firm period ends October 2020
• Second quarter fleet utilization was 53% (57% for the comparable period last year)
• Total firm contract backlog (excluding options) is approximately USD 48 million as of June 30, 2020 and it was USD 56 million June 30, 2019

Financial Summary:
• Revenues for the second quarter were USD 23.0 million (38.9 for comparable period in 2019).
• EBITDA amounted to USD 7.1 million (15.9) and net result was USD -429.8 million (-13.2).
• Total assets June 30, 2020 amounted to USD 878 million (1,420).
• Cash and cash equivalents by June 30, 2020 were USD 49.4 million (95.2).
• The total book equity by June 30, 2020 amounted to USD -5.4 million (542.3).

Management will host a conference call August 25 at 14.30 CEST to present the results. Interested persons can dial-in 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.

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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