DOLPHIN OFFSHORE ENTERPRISES INDIA LIMITED

1
DOLPHIN OFFSHORE ENTERPRISES (INDIA) LIMITED
ANALYSTS MEET MAY 15, 2009

2
SIGNIFICANT FACTORS / ISSUESDURING FY
2008 - 09
3
POSITIVE FACTORS

• WITH THE SUCCESSFUL COMPLETION OF THE ONGC 6
  CLAMP-ON PROJECT AND ONGC BBBLRP PROJECTS
  EXECUTED IN CONSORTIUMS, DOLPHIN IS QUALIFIED AS
  INDEPENDENT EPC CONTRACTOR WITH ONGC. THIS
  QUALIFICATION GIVES DOLPHIN A WIDER RANGE OF
  PROJECTS WHICH IT CAN BID FOR.
• AS INDEPENDENT EPC CONTRACTOR, DOLPHIN WINS ICP
  AND NQD REVAMP CONTRACTS AT A PRICE OF RS 315.37
  CRORES.

4
POSITIVE FACTORS

• RUPEE WEAKENED DURING THE YEAR RESULTING IN
  HIGHER REVENUES AND FOREIGN EXCHANGE GAINS, AS
  DOLPHIN IS A NET FOREIGN EXCHANGE EARNER.
• DOLPHIN IS ABLE TO DEPLOY ITS ASSETS AND SERVICES
  IN CHINA, MALAYSIA AND VIETNAM, ESPECIALLY DURING
  THE MONSOON PERIOD, WHEN COMPANYS ASSETS ARE
  TRADITIONALLY IDLE.

5
POSITIVE FACTORS

• DOLPHIN ENJOYS THE BENEFIT OF STABLE VESSEL RATES
  DUE TO LONG TERM CHARTER OF SEAMEC 1 AND ABOUZAR
  81.
• SALE OF DOLPHIN VESSELS AND TRANSFER OF ITS
  MARINE DIVISION TO ITS WHOLLY OWNED SUBSIDIARY,
  PROCYON OFFSHORE RESULTING IN PROFIT ON SALE OF
  ASSETS OF RS 3.00 CRORES AND DECREASE IN OVERHEAD
  COSTS, WHILE IMPROVING OPERATIONAL EFFICIENCY.

6
NEGATIVE FACTORS

• DELAYED AWARD OF THE ICP AND NQD CONTRACTS
  RESULTS IN LIMITED BILLINGS DURING THE YEAR.
• TUMBLING OIL PRICES LEADS TO DECREASE IN JOB
  OPPORTUNITIES OVERSEAS.
• INCREASING COMPETITION IN INDIA FROM FOREIGN
  COMPANIES NOW EYEING THE INDIAN MARKET, AS WELL
  AS FROM INDIAN COMPANIES NOW DESIROUS OF ENTERING
  THIS MARKET.

7
NEGATIVE FACTORS

• BAD DEBTS OF RS 39.64 CRORES WRITTEN OFF DURING
  THE YEAR.
• CHANGE ORDERS ON LT SHRC CONTRACT STILL NOT
  RESOLVED RESULTING IN HIGH INTEREST COSTS.

8
STAND ALONE FINANCIAL RESULTSFOR THE YEAR
ENDED MARCH 31, 2009
9
BALANCE SHEET AS AT MARCH 31, 2009
10
BALANCE SHEET(CURRENCY CRORES OF INDIAN
RUPEES)
11
BALANCE SHEET(CURRENCY CRORES OF INDIAN
RUPEES)
12
SHAREHOLDERS FUNDS (CURRENCY CRORES OF
INDIAN RUPEES)
13
SECURED LOAN FUNDS (CURRENCY CRORES OF
INDIAN RUPEES)
14
UNSECURED LOAN FUNDS (CURRENCY CRORES OF
INDIAN RUPEES)
15
FCCBS

• 0.5 FCCBS OUTSTANDING IS USD 12 MILLION. LISTED
  ON SINGAPORE STOCK EXCHANGE, BUT NOT BEING
  TRADED.
• CONVERSION PRICE CURRENTLY RS 225 PER EQUITY
  SHARE, PRIOR TO BONUS ISSUE. POST BONUS,
  CONVERSION PRICE IS RS 161.
• MATURITY DATE IS DECEMBER 22, 2010. YTM IS 6.5

16
FIXED ASSETS (CURRENCY CRORES OF INDIAN
RUPEES)
17
FIXED ASSETS

• DECREASE IN NET BLOCK DUE TO TRANSFER OF BLOCK OF
  VESSELS TO WHOLLY OWNED SUBSIDIARY, PROCYON
  OFFSHORE.
• PROFITS ON TRANSFER OF ASSETS FROM HOLDING
  COMPANY TO SUBSIDIARY IS EXEMPT FROM CAPITAL
  GAINS TAX.

18
INVESTMENTS (CURRENCY CRORES OF INDIAN RUPEES)
19
CURRENT ASSETS(CURRENCY CRORES OF INDIAN
RUPEES)
20
LOANS AND ADVANCES

• LOANS AND ADVANCES HAVE INCREASED BY 60.37 DUE
  TO
• - INCREASE IN LOAN TO SUBSIDIARY RS
  16.00 CRORES.
• - DUE FROM SUBSIDIARY RS 7.90 CRORES
• - ADVANCES TO SUPPLIERS - RS 11.33 CRORES.

21
CURRENT LIABILITIES(CURRENCY CRORES OF
INDIAN RUPEES)
22
RATIOS
23
PROFIT AND LOSS ACCOUNT FOR THE YEAR
ENDED MARCH 31, 2009
24
PROFIT LOSS ACCOUNT(CURRENCY CRORES OF
INDIAN RUPEES)
25
PROFIT LOSS ACCOUNT(CURRENCY CRORES OF
INDIAN RUPEES)
26
EARNINGS PER SHARE(CURRENCY INDIAN RUPEE)
27
REVENUES

• MAIN CLIENTS OF THE COMPANY DURING THE YEAR WERE
  
• LEIGHTON - PRP PROJECT STILL ONGOING / IN
  PHASES
• ONGC - ICP REVAMP STILL ONGOING
• ONGC NQD REVAMP STILL ONGOING
• PUNJ LLOYD HEERA PROJECT IN PHASES

28
REVENUES

• NPCC DIVING SERVICES JOB COMPLETED
• OFFSHORE SUBSEA WORKS STILL ONGOING
• ONGC BBBLRP JOB COMPLETED.

29
OPERATING EXPENSES(CURRENCY CRORES OF INDIAN
RUPEES)
30
VESSEL CHARTER AND RELATED COSTS

• LESS THAN PROPORTIONATE INCREASE IN CHARTER COSTS
  AS SEAMEC 1 AND ABOUZAR 81 ARE UNDER LONG TERM
  CONTRACT.
• COST OF FUEL DURING THE YEAR HAS DECREASED.

31
EQUIPMENT RELATED EXPENSES

• EQUIPMENT RELATED EXPENSES HAS INCREASED BY
  33.33 DURING THE YEAR DUE TO THE FACT THAT THE
  COMPANYS SATURATION DIVING SYSTEMS SDS 01 AND
  SDS 02 WERE DEPLOYED THROUGH OUT THE YEAR,
  INCLUDING THE MONSOON PERIOD.

32
G A EXPENSES(CURRENCY CRORES OF INDIAN
RUPEES)
33
EMPLOYEE COSTS

• EMPLOYEE COSTS HAVE INCREASED BY RS 6.65 CRORES
  DUE TO INCREASE IN DIRECTORS REMUNERATION AND
  DUE TO INCREASE IN THE NUMBER OF PERMANENT
  EMPLOYEES DURING THE YEAR IN LIEU OF CONSULTANTS
  / CONTRACTORS.
• ACCORDINGLY LEGAL PROFESSIONAL FEES HAVE
  DECREASED BY 35.88

34
BAD DEBTS

• BAD DEBTS OF RS 39.64 CRORES MAINLY COMPRISE
  WRITE OFF OF DUES FROM IOEC OF RS 37.42 CRORES
  AND OTHER RECEIVABLES AWAITING APPROVAL OF CHANGE
  ORDERS.
• THESE AMOUNTS, IF ANY, WILL BE WRITTEN BACK AS
  AND WHEN RECEIVED

35
MISCELLANEOUS INCOME(CURRENCY CRORES OF
INDIAN RUPEES)
36
PROFIT MARGINS(AS A PERCENTAGE OF REVENUES)
37
PROFIT MARGINS

• GROSS OPERATING PROFIT MARGINS HAVE INCREASED DUE
  TO ABILITY TO MARKET ASSETS AND SERVICES AT
  HIGHER PRICES AND LONGER DURATIONS.
• NET PROFIT MARGINS HAVE INCREASED DUE BETTER
  CASHFLOWS RESULTING IN LOWER WORKING CAPITAL
  REQUIREMENTS.

38
DOLPHIN OFFSHORE ENTERPRISES (INDIA) LIMITED

• THANK YOU