Slide 1: SBM Offshore N.V. Analyst Presentation Half-Year 2011 Results
SBM OFFSHORE N.V. ANALYST PRESENTATION Tony Mace (CEO) and Mark Miles (CFO) HALF-YEAR 2011 RESULTS
Slide 2: Disclaimer
Disclaimer Some of the statements contained Should one or more of these risks in this presentation that are not or uncertainties materialize, or historical facts are statements of should underlying assumptions future expectations and other prove incorrect, actual results may forward-looking statemen
Slide 3: Content
Content Half-Year 2011 Review Half-Year 2011 Financials Outlook page 3
Slide 4: Half-Year 2011 Review
(Ss fae Half-Year 2011 Review page 4
Slide 5: Key Figures Half Year 2011
Key Figures Half Year 2011 (In millions of US$) Turnover EBITDA EBIT 1,461 360 236 1,378 293 146 - 214 H1 2010 H1 2011 H1 2010 H1 2011 H1 2010 H1 2011 Net profit New orders Order portfolio 199 12,405 2,350 2,279 10,908 92 - 251 H1 2010 H1 2011 H1 2010 H1 2011 H1 2010 H1 2011 H1 2010 H1 2011 Underlyi
Slide 6: Highlights
Highlights Contracts awarded and supply phase started for OSX2 FPSO and for Shell’s Prelude FLNG and BP’s Quad204 Turrets FPSO Cidade de Paraty for the Lula Nordeste field in Brazil Twenty-year lease and operate contract signed US$ 1 billion Financing Facility secured Letter of Intent for Guara Nort
Slide 7: Yme - MOPUstor - Talisman – Norway
Yme - MOPUstor - Talisman – Norway Dispute on sums due upon sail away from Abu Dhabi Dispute on costs related to changed installation method Dispute on reimbursable basis in Norway New reimbursable agreement under which Talisman directs the work to complete the project Substantial increase of total
Slide 8: Deep Panuke - MOPU – Encana - Canada
Deep Panuke - MOPU – Encana - Canada Dispute on change orders and disruption claim Court case in Nova Scotia Increase of amount of work to complete in Canada Departure Abu Dhabi to suit transport vessel availability and installation weather window Proceedings for additional compensation continue pag
Slide 9: Current Portfolio
Current Portfolio 2006 2007 2008 2009 2010 2011 2012 2013 2014 Drilling Rig no.3 MOPU Yme MOPU Deep Panuke Turret Skarv FPSO Cachalote FPSO P57 FPSO Okha FPSO Aseng FPSO Baleia Azul FPSO Cidade de Paraty FPSO OSX2 FPSO Xikomba Turret FLNG Turret Quad 204 FPSO Guara Norte Difficult Projects Completed
Slide 10: Major Lease Projects in Execution
Major Lease Projects in Execution Singapore • 15 years lease and operate contract • Departure from Singapore to Equatorial Guinea is forecasted in Q3 • First oil expected before year-end 2011 Noble Energy – FPSO Aseng Singapore Singapore • 20 years lease and operate contract • Project loan for US$ 1
Slide 11: Major Lease Projects in Execution
Major Lease Projects in Execution Singapore • Relocation: 18 years lease and operate contract • Disconnected in April 2011 • First oil planned in Second Half of 2012 Petrobras – FPSO Espadarte • 2nd relocation contract for Petrobras Singapore Singapore • Relocation: 12 years lease and operate contra
Slide 12: Major Supply Projects in Execution
Major Supply Projects in Execution Singapore • Turnkey supply contract • OSX new client in Brazil • Engineering and procurement started • Singapore refurbishment and conversion OSX Brasil – FPSO OSX2 Australia • Turnkey contract • Disconnectable Turret • FPSO delivered to client Woodside - FPSO Okha
Slide 13: Major Supply Projects in Execution
Major Supply Projects in Execution TBA • Turnkey supply contract • Up to 15 years agreement • First FLNG project • 12 months FEED completed Shell - Turret FLNG- Prelude - Australia TBA • Turnkey supply contract • FEED completed • Similar to Skarv turret Woodside - FPSO Okha BP – Turret FPSO- QUAD 20
Slide 14: Major Projects in Execution
Major Projects in Execution Abu Dhabi Canada Delba - Drilling Rig Encana - Deep Panuke Norway Woodside - FPSO Okha Talisman - Yme page 14
Slide 15: Remaining Duration of Lease Contracts
Remaining Duration of Lease Contracts Firm order portfolio on long term contracts with robust clients page 15
Slide 16: Underlying Performance
Underlying Performance Turnover increased by 6% for the first half of 2011 EBITDA increased by 23% for the first half of 2011 Net profit of US$ 199 million, more than doubled compared to last year Order intake increased by 3% for the first half 2011 to US$ 2,350 million (excluding LOIs for FPSOs Xik
Slide 17: Half-Year 2011 Financials
Half-Year 2011 Review Half-Year 2011 Financials page 17
Slide 18: Financial Overview First Half 2011
Financial Overview First Half 2011 P&L Total Group (in millions of US$) 30/06/11 30/06/10 Change Comment Turnover 1,461 1,378 6% 62% Turnkey Systems, 31% Lease & Operate, 7% Turnkey Services Gross Margin (128) 220 N/M Impairment charge of US$ 450m (%) (-8.8%) (16.0%) for Yme and Deep Panuke projects
Slide 19: Financial Overview First Half 2011 – Turnkey Systems
Financial Overview First Half 2011 Turnkey Systems (in millions of US$) 30/06/11 30/06/10 Change Comment Turnover 896 862 4% Noble Aseng FPSO, Petrobras Cidade de Paraty FPSO Gross Margin 165 90 83% Good results from recent projects (%) (18.4%) (10.4%) EBITDA 122 57 X 2.1 As above (% Margin) (13.6%)
Slide 20: Financial Overview First Half 2011 – Turnkey Services
Financial Overview First Half 2011 Turnkey Services (in millions of US$) 30/06/11 30/06/10 Change Comment Turnover 114 134 (15%) Slow start to the year Gross Margin 24 33 (27%) Low occupancy of installation (%) (21.0%) (24.9%) vessels during H1 2011 EBITDA 22 32 (31%) As above (% Margin) (19.3%) (23
Slide 21: Financial Overview First Half 2011 – Lease and Operate
Financial Overview First Half 2011 Lease and Operate (in millions of US$) 30/06/11 30/06/10 Change Comment Turnover 456 392 16% FPSO P-57 first oil in December 2010; Brazilian bonuses (particularly Capixaba, not earned in H1 2010) Gross Margin (317) 97 N/M Impairment US$ 450m on Yme (%) (N/M) (24.8%
Slide 22: Financial Overview First Half 2011 – Ratios Total Group
Financial Overview First Half 2011 Ratios Total Group (in millions of US$) 30/06/11 31/12/10 Change Comment Capital Expenditure 431 519 (12m) 52% Yme, Deep Panuke and Baleia 283 (6m) Azul projects Debt 2,294 1,815 26% Increased Revolving Credit Facility (RCF) to finance Capex Net Liquidities 99 103
Slide 23: Financing capacity
Financing capacity Net gearing increased, but within acceptable level Solvency ratio well above bank covenant level Principal parameter is Net Debt: EBITDA ratio Older project loans - use unadjusted EBITDA Revolving Credit Facility - uses adjusted EBITDA (finance leases, exceptionals) Newer project
Slide 24: Order Portfolio
Order Portfolio (in billions of US$) 2012 2013 1.6 2.2 2.0 Turnkey Systems Turnkey Services Lease & Operate Total 2011 1.0 0.2 0.4 1.6 2012 1.1 0.1 1.0 2.2 2013 1.1 - 0.9 2.0 Beyond 2013 0.3 - 6.3 6.6 Total 3.5 0.3 8.6 12.4 page 24
Slide 25: Outlook
Half-Year 2011 Review Half-Year 2011 Financials Outlook page 25
Slide 26: Short Term Prospects
Short Term Prospects Ghana UK Russia FPSO FPSO - Fram FPU (Gas) - Shtokman Tullow Oil Shell Gazprom Brazil Nigeria FPSO - Peregrino II Statoil DW CALM - Egina Total FLNG - Tupi Petrobras Indonesia FPSO - Siri FLNG - Masela Petrobras Inpex FPSO - Brasil FPSO - Marlim Sul Australia Petrobras FLNG - Ti
Slide 27: Financial Outlook 2011
Financial Outlook 2011 Turnover around 5% above 2010; fully secured from current backlog EBIT margin in Turnkey Systems solidly in 10% - 15% range; including impact from finance leases EBIT margin in Turnkey Services within 15% - 20% range Underlying EBIT in Lease & Operate above underlying 2010 lev
Slide 28: Q&A
SBM OFFSHORE N.V. Q&A