Slide 1: Half Year Results Presentation
Half Year Results Presentation For personal use only 25th February 2009
Slide 2: Agenda
For personal use only Agenda Overview & Highlights John Grill Financial Results David Housego Outlook John Grill 2
Slide 3: Operational Highlights
Operational Highlights For personal use only X Strong six month result X Solid pipeline in existing major projects and Improve brownfield projects X Major contracts secured BP GoM Offshore SAMREF Kashagan FFD ChemaWEyaat X Excellent cash flow result X Refinance X Starting to realise impact of operat
Slide 4: Financial Highlights
Financial Highlights For personal use only X Net profit of $197.5m, up 29.3% X Aggregated Revenue $3,259.6m X Half year EBITDA growth 34.7% X Operating cash flow $234.5m X Basic EPS up 28.9% to 81.6 cps X Interim dividend 38.0 cents per share (franked at 76%) X US$300m debt facility increase and ref
Slide 5: Operational Report
Operational Report For personal use only HY09 HY08 Change Revenue - $m 2,380.5 1,764.2 35% Hydrocarbons EBITDA - $m 277.2 205.7 35% Margin 11.6% 11.7% Revenue - $m 290.7 220.3 32% Power EBITDA - $m 35.6 32.0 11% Margin 12.2% 14.5% Revenue - $m 375.0 215.6 74% Minerals & Metals EBITDA - $m 53.5 34.1
Slide 6: Performance Overview – Hydrocarbons
Performance Overview – Hydrocarbons For personal use only Upstream X Tier one IOCs and NOCs maintained capital spend commitments X Successful capture of major upstream contracts Unconventional and LNG X A number of project deferrals and delays in oil sands and new deepwater projects X LNG EPCM proje
Slide 7: Performance Overview – Power
Performance Overview – Power For personal use only X Significant new contract awards including coal plants in Asia X Secured Owner’s Engineer for first USA commercial-scale, coal gasification with carbon capture plants X Development of long term relationships with two Original Equipment Manufacturer
Slide 8: Performance Overview – M&M and I&E
Performance Overview – M&M and I&E For personal use only Minerals and Metals XStrong result in half year XMajor Middle East projects continuing • Ma’aden • EMAL XBuilding sector reputation for large scale EPCM project delivery XStrong performance in waste gas energy recovery and contaminant removal
Slide 9: Material ASX Contracts
Material ASX Contracts For personal use only BP’s Gulf of Mexico Engineering and Project Management Services provider for offshore topsides facilities Commenced June 2008 for a four year term with option for extension Largest hydrocarbons Improve contract in USA – (300 personnel) Executed by Houston
Slide 10: Material ASX Contract - Improve
Material ASX Contract - Improve For personal use only Woodside North West Shelf Venture contract renegotiation Commenced renegotiation discussions for a four year extension to Transfield Worley for the delivery of capital works programs – through to 2013 - 5 LNG trains & 3 offshore platforms Additio
Slide 11: Other Contracts
Other Contracts For personal use only Shell Canada National Agreement Renewal of national agreement with WorleyParsons Canada Supporting the Sarnia and Edmonton facilities Contract extends through to November 2011 Colt commenced work on the sites 15 years ago ChemaWEyaat Petrochemical Complex Frame
Slide 12: Deferrals
Deferrals For personal use only A number of contracts previously announced have been deferred: X Suncor Energy Firebag Pads and Gathering EPCM X Suncor Energy Firebag Pads and Gathering fabrication X Moly Mines EPCM X Pilbara Iron Ore and Infrastructure Project Phase 2 expansion 12
Slide 13: Awards - Select
Awards - Select For personal use only X Power plant air emissions improvement X Colorado Governor’s Energy Office project - USA Environmental Studies - USA X Nucor heat recovery projects - China X Vale Serra Sul Mining Infrastructure X Wintershall Sour Gas Project - UK Study - Brazil X Tight gas fie
Slide 14: Awards - Deliver
Awards - Deliver For personal use only X Eastern Hub Mercury Removal – Water X FEED – Feed Stream Integration& LPG FEL 2/3 - Indonesia Export/ Loading Facilities - Qatar X Refinery WasteWater FEED - Qatar X Tangguh Development 2008 Engineering X 400 MW GT/CC power plant for Siemens Services - Indone
Slide 15: Awards - Deliver
Awards - Deliver For personal use only X Enbridge Christina Lake Fabrication - X GE Wind Turbine factory - China Canada X Qatar Petroleum LPG Export and X Senoko Power Stage II Repowering Loading Facility FEED - Qatar consultancy services - Singapore X NCP Petrochemical Complex Phase 4 - X Dow Chemi
Slide 16: Awards - Improve
Awards - Improve For personal use only X Dow Corning, ESA - China X BP Gulf of Mexico EPMS – USA X TransCanada OE agreement - Canada X Shell Martinez EPCM Services – USA X Kazakhmys Projects Alliance - X ENMAX MSA - Canada Kazakhstan X Allegheny GSA – USA X GUPCO, Gulf of Suez Alliance - Egypt X PG&
Slide 17: Performance Overview – HSE
Performance Overview – HSE For personal use only X Total Recordable Case Frequency Rate (TRCFR) improved 0.15 X Lost Workday Case Frequency Rate (LWCFR) steady 0.02 X Maintained momentum with our process of refreshing our management systems and engaging our people, contractors and suppliers in HSE i
Slide 18: Performance Overview – EconomicsTM
Performance Overview – EconomicsTM For personal use only X Significant increase in EcoNomicsTM projects across regions and markets X Over 1,000 senior professionals formally trained in EcoNomicsTM processes and tools X Key differentiator in securing a number of projects across all four sectors X Cus
Slide 19: Financial Results
For personal use only Financial Results David Housego 19
Slide 20: Financial Profile
Financial Profile For personal use only AUD $m HY09 % v HY08 % v 2H08 Aggregated revenue 3,259.6 38.0 28.4 EBITDA 354.5 34.7 9.4 EBITDA margin (%) 10.9 (0.2) (1.9) Net profit 197.5 29.3 3.3 Net profit margin (%) 6.1 (0.4) (1.4) Normalized EPS (cps) 1 87.8 26.9 4.3 Cash flow from operating activities
Slide 21: Change In Net Profit
Change In Net Profit For personal use only 300.0 16.8 1.7 (5.9) (2.4) 250.0 (7.6) 66.9 3.0 (27.7) 197.5 200.0 152.7 $m 150.0 100.0 50.0 0.0 HY08 Hydrocarbons Power Minerals & Infrastructure & Intangibles Corporate Net Interest Income Tax HY09 Metals Environment Amortisation Overhead X Tax rate 31.1%
Slide 22: Financial Ratios
Financial Ratios For personal use only EBITDA Margin % Net Profit Margin % 12.0 10.9 7.0 10.0 9.5 6.4 8.9 6.1 8.5 6.0 5.6 4.8 2004 2005 2006 2007 2008 HY09 2004 2005 2006 2007 2008 HY09 Normalized EPS 153.4 X Revenue mix – procurement up X Debtors provisioning 105.4 87.8 X Tax provision 66.9 X Overh
Slide 23: Cash Flow
Cash Flow For personal use only $m HY09 FY08 HY08 EBITDA less interest and tax paid 251.6 449.6 188.1 Working capital (17.1) (250.8) (76.5) Cash flow from operations 234.5 198.8 111.6 Property, plant & equipment 78.3 79.0 36.9 X Focus on billing cycle and cash collection resulted in strong operation
Slide 24: Liquidity & Gearing
Liquidity & Gearing * For personal use only Key Metrics Dec-08 Jun-08 Liquidity Summary $m Dec-08 Jun-08 Gearing ratio 32.8% 31.4% Loan & OD facilities 1,545.4 1,094.0 Facility utilization 64.0% 67.3% Less: facilities utilized (988.8) (735.9) Average cost of debt 5.4% 6.1% Available facilities 556.6
Slide 25: Refinance
Re finance For personal use only X US$300m increase & re finance Debt Profile Post Refinance 600 • 1yr revolver US$60m 30.5% 30.4% 500 • 3yr term US$80m 400 $ millions • 3yr revolver US$160m 300 10.5% 15.6% 13.0% 200 X Replaces syndicated and bilateral 100 debt of US$190m & AUD$115m 0 X Weighted ave
Slide 26: Outlook
For personal use only 26 John Grill Outlook
Slide 27: Outlook - Operational
Outlook - Operational For personal use only X Continued focus on operating cash flow and reduction in operational costs X Focus remains on major IOCs and NOCs X Increased focus on Improve services across sectors X Anticipated shift in services sought remains in our area of capability strength X EcoN
Slide 28: Recent IOC Indications
Recent IOC Indications For personal use only “While the current oil prices pose some challenges for the industry globally, we expect our activities and operations to proceed as planned and don’t expect delays.” Olivier Lazare, New Business Development VP “The lower oil price really doesn’t alter ver
Slide 29: Outlook - Hydrocarbons
Outlook - Hydrocarbons For personal use only X Upstream outlook is positive X IOCs and NOCs investing through cycle X Non conventional upstream outlook is mixed • With LNG positive • Oilsands challenging X Downstream outlook unabated for Middle East, South America and Singapore but weaker in OECD co
Slide 30: Outlook - Power
Outlook - Power For personal use only X Anticipate modest growth X Customer uncertainty on technology and carbon remains X Europe, South America and the Middle East provide opportunities for growth X Fuel choice uncertainty delaying activity in the US X Winning significant study contracts for solar
Slide 31: Outlook – Minerals and Metals
Outlook – Minerals and Metals For personal use only X Significant curtailment of capital expenditure across the industry – particularly Australia, FSU X Select activities will remain in demand X Opportunities for growth in Middle East, Africa and South America X Maintaining close engagement with all
Slide 32: Outlook – Infrastructure & Environment
Outlook –Infrastructure & Environment For personal use only X Outlook is mixed X Economic stimulus funding programs in US and Australia provide opportunities X Opportunities still exist in several emerging markets X Maintain focus on ports & harbour, environmental services, remediation and water man
Slide 33: Outlook – EcoNomicsTM
Outlook – EcoNomicsTM For personal use only X EcoNomics™ continues to be an important differentiator particularly as the world moves toward emissions or carbon trading X Opportunities in energy usage reduction and improved plant efficiency will be enhanced by the increasing focus of developed countr
Slide 34: Outlook
Outlook For personal use only Looking ahead for the remainder of this year in these uncertain times is difficult. The company has taken a number of significant initiatives to position itself appropriately for these conditions. Despite some projects and sectors being affected by the global economic c
Slide 35: Appendices
For personal use only 35 Appendices
Slide 36: FX Translation Impact
FX Translation Impact For personal use only Aggregated Revenue HY09 Movement in Major Currencies 110.0 Asia & 105.0 Middle East 100.0 Australia & 15% 95.0 New Zealand 90.0 28% Europe & 85.0 Africa 80.0 75.0 13% 70.0 65.0 60.0 Americas 55.0 Jul-08 Nov-08 Jan-09 Sep-08 Canada 18% 26% USD GBP CAD X FX
Slide 37: Gearing Ratio Reconciliation
Gearing Ratio Reconciliation For personal use only Gearing Ratio Total Gearing $m Net Debt Equity Ratio June 08 649.9 1,416.5 31.4% FX impact 249.6 254.1 Underlying change in net debt (37.3) - Profit - 197.5 Dividend paid - (114.7) Other - 13.9 December 08 862.2 1,767.3 32.8% 37
Slide 38: Global Reach
Global Reach For personal use only Approximately 31,700 personnel | 114 offices | 37 countries 38
Slide 39: Contractual Acronyms
Contractual Acronyms For personal use only EDS – Engineering and Design Services E&P – Engineering and Procurement EPC - Engineering, Procurement and Construction EPCM – Engineering, Procurement and Construction Management ESA – Engineering Services Agreement ESP – Engineering Services Provider FEED