Sbm Offshore Nv · EURONEXT:SBMO
Sbm Offshore Nv — H1 2008 Earnings Presentation
25 slides from Sbm Offshore Nv's earnings presentation, Aug 20, 2008
Slide 1: Half-Year Results 2008 Analysts Presentation
HALF-YEAR RESULTS 2008 Analysts Presentation August 20, 2008 T. Mace, CEO and M. Miles, CFO
Slide 2: Disclaimer
DISCLAIMER Some of the statements contained in this presentation that are not historical facts are statements of future expectations and other forward- looking statements based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual
Slide 3: Summary
SUMMARY 2005 decision to grow the Company in buoyant conditions Several large contracts awarded 2005/2006 & delivered in 2008 Coincidental overheating of suppliers & yards Budget & schedule overruns affect 2007/2008 results Tighter bidding controls implemented Subsequent projects under c
Slide 4: 2005/2006 Projects
2005/2006 PROJECTS Equipment Long bid phase - escalating costs Long delivery - capacity overbooked Yard Growth in scope (late deliveries) - escalating costs Manpower constrained Schedule acceleration costs SBM manhours Engineering - most complex FPSO (Frade) Project team - extend
Slide 5: Enhanced Project Controls
ENHANCED PROJECT CONTROLS Bid Process: Quality of proposal - Technical definition / scope Back to back validity with suppliers / client Pass through of the costs / risks to client Confirmed yard capacity Contractual terms and conditions Execution Phase: Budget control - Cost Engineers -
Slide 6: Major Project Schedules
MAJOR PROJECT SCHEDULES 2004 2005 2006 2007 2008 2009 2010 Lease Petrobras - Capixaba Murphy - Kikeh ExxonMobil - Mondo ExxonMobil - Saxi Batuque Shell - BC-10 Murphy - Thunder Hawk Talisman - Yme Encana - Deep Panuke Petrobras - Cachalote Turnkey Chevron - Frade Rigs 1,2,3 Woodside - CWLH Petrobras
Slide 7: Current Order Portfolio
CURRENT ORDER PORTFOLIO Lease Shell – BC10 FPSO on lease for Shell in BC-10 field offshore Brazil Contract award: Q3, 2006 Completion: Q4, 2008 Murphy – Thunder Hawk Semi-Submersible oil & gas production facility in GOM Contract award: Q4, 2006 Completion: Q4, 2008 Talisman – Yme MOPUstor in Norwegi
Slide 8: Current Order Portfolio
CURRENT ORDER PORTFOLIO Lease Encana – Deep Panuke Mopu offshore Nova Scotia, Canada Contract Award: Q4, 2007 Completion: Q3, 2010 Petrobras – Cachalote Upgrade and relocation of Capixaba FPSO to Cachalote field, Brazil Contract award: Q2, 2008 Completion: Q4, 2009 8
Slide 9: Current Order Portfolio
CURRENT ORDER PORTFOLIO Turnkey Chevron – Frade Supply of an FPSO Contract award: Q2, 2006 Completion: Q4, 2008 Odebrecht - Delba – QGP Supply of Drilling Rigs x 3 Contract award: Q4, 2006 - Q1, 2007 Completion: Q2, 2009 – Q3, 2009 – Q1, 2010 Woodside – CWLH redevelopment Supply of an FPSO Contract
Slide 10: Current Order Portfolio
CURRENT ORDER PORTFOLIO Turnkey Petrobras – P57 Supply of an FPSO and three year operation. Contract Award: Q1, 2008 Completion: Q4, 2010 BP Angola Frame agreement for supply of FPSOs on a call off basis First Project Sanction: H2, 2009 Completion: 36 months after project sanction 10
Slide 11: Milestones First Half 2008
MILESTONES FIRST HALF 2008 FPSO Mondo started operation offshore Angola Contract with Petrobras for supply of the P-57 FPSO for Brazil Letter of Intent with Woodside for supply of an FPSO to replace the existing Cossack Pioneer, offshore Australia Contract for the upgrade and relocation of t
Slide 12: Financial Overview First Half 2008
FINANCIAL OVERVIEW FIRST HALF 2008 P&L Total Group In millions of US Dollars 30/06/08 30/06/07 Change Comment Turnover 1,497 1,388 8% 73% Turnkey, 27% Lease & Operate Gross Margin 176 220 Cost overruns on Turnkey; Mystras (20%) sale; Increasing Lease & Operate (%) (11.8%) (15.8%) contribution EBITDA
Slide 13: Financial Overview First Half 2008: Turnkey Systems & Services
FINANCIAL OVERVIEW FIRST HALF 2008 Turnkey Systems & Services In millions of US Dollars 30/06/08 30/06/07 Change Comment Includes Mystras sale US$ 60 mln. Turnover 1,088 1,055 3% Growing Services Gross Margin 41 120 Cost overruns – mainly Frade & Saxi Batuque FPSOs; (%) (3.8%) (11.4%) (66%) Includes
Slide 14: Financial Overview First Half 2008: FPSO Lease and Operate
FINANCIAL OVERVIEW FIRST HALF 2008 FPSO Lease and Operate In millions of US Dollars 30/06/08 30/06/07 Change Comment Kikeh and Mondo FPSOs full six Turnover 409 334 22% months; V.O.s Turkmenistan and OKHA; Trading Fleet Gross Margin 134 100 As above; High bonus levels; Low 34% operating costs; Relea
Slide 15: Financial Overview First Half 2008: Ratios Total Group
FINANCIAL OVERVIEW FIRST HALF 2008 Ratios Total Group In millions of US Dollars 30/06/08 31/12/07 Change Comment 551 (12 m) Yme MOPUstor, Thunder Hawk semi, BC-10 Capital Expenditure 516 x 2.4 FPSO 219 (6 m) Accelerating capex. New loans arranged for Long-Term Debt 1,526 1,149 33% Saxi Batuque and B
Slide 16: Expectations 2008
EXPECTATIONS 2008 FINANCIAL Full year 2008 forecast profit below original target by up to 20% (i.e US$ 225 million) Capital expenditure of US$ 1 billion Intention to maintain dividend at 2007 level (US$ 0.93 per share) ACTIVITIES Delivery of Frade, BC-10 and Thunder Hawk End of charters fo
Slide 17: Remaining Duration of Lease Contracts
REMAINING DURATION OF LEASE CONTRACTS 09/20 17
Slide 18: FPSO Prospects
FPSO PROSPECTS Nsiko Bonga SW UGE Bosi Shtokman Chevron Shell ExxonMobil ExxonMobil Gazprom Nigeria Nigeria Nigeria Nigeria Russia Carioca Petrobras Brazil BS-4 Shell Brazil HaiSu Trang TLJOC Papa Terra Vietnam Petrobras Brazil Benita Tupi Noble Energy Petrobras Equatorial Guinea Brazil Jupiter Petr
Slide 19: Non-FPSO Prospects
NON-FPSO PROSPECTS Semi-sub FSRU Turret FSO / Turret Big Foot (Components) Shtokman Bouri Chevron New York Gazprom ENI Libya TLP PONY HESS Semi-sub Semi / TLP K2 Malikai Anadarko Shell TLP Knottyhead Turret Nexen Cepu ExxonMobil Semi-sub TLP FSRU FSRU DW CALM Turret Jack Papa Terra Suapeto RSA Usan
Slide 20: FPSO Orders 2008
FPSO ORDERS 2008 LEASE Urugua/Tambau in Brazil for Petrobras - Modec (SBM no.3) Cachalote in Brazil for Petrobras - SBM Offshore Tupi in Brazil, Pilot for Petrobras - Modec (SBM no. 2) Jubilee in Ghana, for Tullow Oil - Modec (SBM no.3) Tupi in Brazil, EPS for Petrobras - BW Offshore Ath
Slide 21: Lease Contractors
LEASE CONTRACTORS Units in Operation or Under Construction 21 Status: August 15, 2008
Slide 22: SBM/Linde LNG FPSO
SBM/Linde LNG FPSO Floating Production, Liquefaction, Storage and Offloading Unit Generic design completed Yard slot under negotiation Pursuing prospects Competition: - Hoegh / CBI - Golar / LNGL - JGC / Modec - BW Offshore / Mustang - Flex LNG - Shell 22
Slide 23: New Technology
NEW TECHNOLOGY MoorsparTM Riser Buoy FourStarTM TLP LNG Hose Wave energy conversion systems 23
Slide 24: Strategy
STRATEGY Expand the lease business model to cover more products and geographical areas Develop a pole position in the gas sector and particularly offshore LNG Maintain a position of leader in the Group’s current markets Develop innovative technical solutions, in particular for deepwater tech
Slide 25: Questions and Answers
HALF-YEAR RESULTS 2008 Analysts Presentation August 20, 2008 QUESTIONS AND ANSWERS