Sbm Offshore Nv · EURONEXT:SBMO
Sbm Offshore Nv — Sbm Offshore Nv Ord — Q2 2022 Earnings Presentation
47 slides from Sbm Offshore Nv's earnings presentation, Aug 4, 2022
Slide 1: Earnings Update
EARNINGS UPDATE August 4, 2022 ENERGY. COMMITTED.
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: Highlights
Highlights Ocean Infrastructure Transition New Energies 1H 2022 Financials Conclusion ENERGY. COMMITTED.
Slide 4: Creating value for all stakeholders
Creating value for all stakeholders ENERGY TRANSITION COMPANY REDUCE COSTS AND EMISSIONS DEVELOP COMPETITIVE FROM O&G PRODUCTION RENEWABLE ENERGY LIFECYCLE SOLUTIONS VALUE PLATFORMS OCEAN INFRASTRUCTURE TRANSITION NEW ENERGIES Strong backlog On-time delivery & Emissions reduction Digital reliable op
Slide 5: Highlights
Highlights STEADY DELIVERING POSITIVE NET-ZERO GROWTH BACKLOG OUTLOOK FUTURE ENERGY. COMMITTED. © SBM Offshore 2022. All rights reserved. www.sbmoffshore.com 5
Slide 6: Ocean Infrastructure
Highlights Ocean Infrastructure Transition New Energies 1H 2022 Financials Conclusion ENERGY. COMMITTED.
Slide 7: Delivering safe, sustainable and affordable energy
Delivering safe, sustainable and affordable energy AFFORDABLE LOWER EMISSIONS SAFE ~US$25-35 40% ~99% Low breakeven Below industry average Strong Historical Fleet of world-class GHG emissions intensity1 Uptime2 deep water reservoirs (1) 17kgCO2e/boe upstream GHG intensity from IOGP 2020 Environmenta
Slide 8: Reliable execution and delivery
Reliable execution and delivery FPSO delivery performance over the past 5 years (2018-2022)1 (> 120,000 barrel production capacity per day) Industry average delay: SBM Offshore units 1.7 years Lease and Operate units Turnkey units -0.5 0 0.5 1 1.5 2 2.5 3 First Oil Delay (Years)2 (1) 14 FPSOs in tot
Slide 9: Steady progress on execution
Steady progress on execution Percentage Expected 1 MILLION BARRELS PER DAY of completion1 First Oil Additional production capacity FPSO Sepetiba > 75% 2023 FPSO Prosperity > 50% < 75% 2023 STRATEGIC MITIGATING MEASURES Against inflation and COVID-19 impacts FPSO Almirante Tamandaré > 25% < 50% 2024
Slide 10: Fleet performance
Fleet performance 1.8 MILLION BARRELS PER DAY Installed capacity FPSOs LIZA DESTINY & LIZA UNITY exceeding their initial combined target production capacity 90% 1H22 FLEET UPTIME FPSO Cidade de Anchieta production restart planned in 2H22 ENERGY. COMMITTED. © SBM Offshore 2022. All rights reserved. w
Slide 11: Responsible recycling of Deep Panuke platform
Responsible recycling of Deep Panuke platform EU SHIP RECYCLING REGULATION Highest environmental and social standards IN-COUNTRY RECYCLING Reducing environmental footprint & investing in local communities LIFE BELOW WATER Reef balls installed to stimulate life below water around the decommissioning
Slide 12: Transition
Highlights Ocean Infrastructure Transition New Energies 1H 2022 Financials Conclusion ENERGY. COMMITTED.
Slide 13: Selective and disciplined in a favorable FPSO market outlook
Selective and disciplined in a favorable FPSO market outlook 13 12 11 10 10 9 9 9 avg. / year 7 2 1 7 13 3 4 8 1 2 3 1 2 1 2 1 11 '17 '18 '19 '20 '21 22 '23-25 SBM FPSO Awards Other FPSO awards Potential FPSO awards Potential FPSO awards Source: SBM Offshore market intelligence ENERGY. COMMITTED. ©
Slide 14: Committing to 2030 targets towards 2050 net-zero
Committing to 2030 targets towards 2050 net-zero NET-ZERO* -50% GHG ZERO ROUTINE MARKET READY SCOPE 1 & 2 INTENSITY FLARE*** NEAR-ZERO SCOPE 3** FPSO IN 2025 * Aiming for 100% sourcing of green energy by 2030 and considering investments in certified projects to offset against any residual GHG emissi
Slide 15: On track to deliver EmissionZERO FPSO, market ready for 2025
On track to deliver EmissionZERO® FPSO, market ready for 2025 MODIFY ELECTRIFY NULLIFY 15-40% reduction potential 40-80% reduction potential 80-100% reduction potential Implement available Increase electrification and Nullify residual emissions carbon reduction solutions develop carbon capture techn
Slide 16: Innovation powerhouse addressing the floating energy market
Innovation powerhouse addressing the floating energy market PROJECT FROM MANAGEMENT TO CONCEPT PRODUCT NH3 LARGE PROJECT ENGINEERING & SUPPLY FINANCINGS CHAIN H2 CAPABILITIES CO2 OPERATIONAL TECHNOLOGY EXCELLENCE DEVELOPMENT PIONEER ENERGY. COMMITTED. © SBM Offshore 2022. All rights reserved. www.sb
Slide 17: New Energies
Highlights Ocean Infrastructure Transition New Energies 1H 2022 Financials Conclusion ENERGY. COMMITTED.
Slide 18: Promising FOW market outlook
Promising FOW market outlook AMBITION TO BE TOP 3 TARGETING AT LEAST 2GW BY 2030 SELECTIVE & DISCIPLINED floating technology provider installed capacity or under construction targeting projects delivering value to all stakeholders 6-16GW potentially installed by 2030 Potential installed capacity (GW
Slide 19: Provence Grand Large, 25MW floating wind farm
Provence Grand Large, 25MW floating wind farm 1st MULTI-FLOATER PROJECT in Mediterranean sea with 3 floaters to be installed 1st TENSION LEG PLATFORM FLOATER worldwide with 8.4MW turbines installed ~10% OF TOTAL MW CAPACITY for FOW installed by 2023 ENERGY. COMMITTED. © SBM Offshore 2022. All rights
Slide 20: Offering competitive solutions with improved design embedding lessons learned
Offering competitive solutions with improved design embedding lessons learned FIRST FLOATERS DESIGN PILOT PROJECT UNDER CONSTRUCTION Designed for >30 PARTS MASS PRODUCTION Benefiting from STANDARDIZED SUPPLY CHAIN NEXT GENERATION FLOATERS FOR COMMERCIAL WIND FARMS <10 PARTS Ensuring the SHORTEST ASS
Slide 21: 1H 2022 Financials
Highlights Ocean Infrastructure Transition New Energies 1H 2022 Financials Conclusion ENERGY. COMMITTED.
Slide 22: Financial Highlights
Financial Highlights > US$31 BILLION 7% DIVIDEND YIELD2 Record backlog1 providing cash visibility up to 2050 ~US$180 million dividend paid in 2022 US$1.75 BILLION REVISED GUIDANCE ONE GUYANA record financing closed in record time EBITDA from around US$900 to above US$950 million (1) Reflects a pro-f
Slide 23: Directional Overview
Directional Overview1 Pro-forma backlog (US$ billions) Net debt (US$ billions) 29.5 31.1 5.4 5.3 FY 2021 1H 2022 FY 2021 1H 2022 Revenue (US$ millions) EBITDA (US$ millions) 1,763 501 Underlying 500 1,147 Underlying 426 1,072 1H 2021 1H 2022 1H 2021 1H 2022 (1) Directional reporting, presented in th
Slide 24: Turnkey Model
Turnkey Model TURNKEY ACTIVITIES TURNKEY ACCOUNTING Turnkey Gross Margin (SBM Offshore FPSO shares) (Research & Development) (Overheads) = Turnkey Directional EBITDA Margin generated from BOT/L&O phase IFRS underlying Gross Margin 17% 1 18% 2018 - 2021 1H 2022 (1) Average Underlying IFRS Gross Margi
Slide 25: 1H 2022 Sources and Uses of Cash and Liquidity
1H 2022 Sources and Uses of Cash and Liquidity Directional, US$ millions Working Capital (operating) Group liquidity (US$ billions) Cash from Operations Debt drawdowns Other 0.5 Sources of cash 469 81 305 34 0.8 1.0 Uses of cash 395 69 49 178 471 Net cash Debt repayment Tax Growth Undrawn RCF (inclu
Slide 26: Debt enables growth
Debt enables growth Directional, US$ billions Net debt / Backlog ratio Debt to be fully repaid by long term contracts 20% 40 Historical Range 14% – 20% Residual 28 15% 30 L&O duration Years 31.1 29.5 10% 20 20.7 21.6 Residual project 17 17.1 16.8 Years 14.8 5% debt maturity 10 1 4.0 5.3 5.3 3.1 2.7
Slide 27: c. 30 years of net cash flow visibility from L&O and BOT
c. 30 years of net cash flow visibility from L&O and BOT Directional, US$ millions 2 L&O and BOT net cash translated in EUR/share3 US$31.1 b Pro-forma 28 26 backlog1 24 TK, 2.0 900 BOT, 4.4 800 Average L&O net cash p.a. after tax 700 US$315 million until 2050 6% 7% 8% 600 Discount rate 500 400 L&O,
Slide 28: Capital Allocation & Shareholder Returns Model
Capital Allocation & Shareholder Returns Model US$ millions US$31.1 b Pro-forma Growth backlog1 c. US$9.5 billion net cash + 800 Dividend = 600 + 400 Acceleration Growth Accelerated equity cash flow 200 Lower debt Higher debt Share - Repurchase Net Cash Backlog New Equity Y0 Y1Y1 Y2Y2 YnYn Original
Slide 29: 2022 Revised Guidance
2022 Revised Guidance DIRECTIONAL EBITDA Above 950 million US$ DIRECTIONAL REVENUES Around 3.2 billion US$ LEASE & OPERATE Around 1.7 billion US$ TURNKEY Above 1.5 billion US$ The Company highlights that the direct and indirect impact of the pandemic and the war between Russia and Ukraine could cont
Slide 30: Conclusion
Highlights Ocean Infrastructure Transition New Energies 1H 2022 Financials Conclusion ENERGY. COMMITTED.
Slide 31: SBM Offshore – an Energy Transition Company
SBM Offshore – an Energy Transition Company MORE VALUE LESS GHG EMISSIONS Returns Net Zero Capital & cost discipline Taking actions in line with intermediate targets towards 2030 Operational Performance Renewables Focus on project execution and operations Develop Competitive FOW Lifecycle Solutions
Slide 32: Appendix
APPENDIX ENERGY. COMMITTED.
Slide 33: Delivering safe energy
Delivering safe energy Total Recordable Injury Frequency Rate1 1.40 1.20 SUSTAINED SAFETY PERFORMANCE 1.00 0.80 0.60 OVERCOME CHALLENGING 0.40 ENVIRONMENT due to high workload and ongoing COVID-19 pandemic 0.20 0.00 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1H 2022 Oil Ma
Slide 34: Sustainable Development Goals 2022 targets
Sustainable Development Goals 2022 targets ENERGY. COMMITTED. © SBM Offshore 2022. All rights reserved. www.sbmoffshore.com 34
Slide 35: Floating Offshore Wind - Tension Leg Platform Key Benefits
Floating Offshore Wind - Tension Leg Platform Key Benefits Reduced Low motion and Turbine friendly seabed footprint counter pitch concept Concept O&M scalability optimization Higher output1 Lower cost2 (1) AEP (Annual energy production) (2) LCOE (Levelized cost of energy) ENERGY. COMMITTED. © SBM Of
Slide 36: Financial performance per segment
Financial performance per segment Directional, US$ millions Lease and Operate Turnkey Underlying Revenue Underlying EBITDA Revenue EBITDA 909 827 Underlying 854 752 531 Underlying 527 456 321 16 9 1H 2021 1H 2022 1H 2021 1H 2022 1H 2021 1H 2022 1H 2021 1H 2022 “Other” EBITDA 1H 2021 US$(40) million
Slide 37: Pro-forma Backlog and borrowings repayment
Pro-forma Backlog1 and borrowings repayment Directional, US$ billions 2 TK, 2.0 Pro-forma Directional L&O and BOT backlog Turnkey (1) Backlog is the undiscounted revenue over the firm portion of the contracts. The backlog at HY 2022 reflects the following key Backlog 4.0 assumptions: the FPSO Liza D
Slide 38: Group P&L and underlying items
Group P&L and underlying items Directional, US$ millions Group P&L Directional underlying items US$ millions 1H 2021 1H 2022 Variance US$ millions 1H 2021 1H 2022 Impact P&L Revenue 1,072 1,763 691 Deep Panuke termination fee (75) - Revenue Underlying Revenue 1,147 1,763 616 Subtotal Revenue impact
Slide 39: Turnkey and Lease and Operate P&L
Turnkey and Lease and Operate P&L Directional, US$ millions Turnkey Comments US$ millions 1H 2021 1H 2022 Variance Prosperity, Sepetiba, Almirante Tamandaré, Alexandre de Ongoing Projects Gusmão, ONE GUYANA and other various business including Revenue 321 909 588 Provence Grand Large Gross Margin 50
Slide 40: 1H 2022 Sources and Uses of Cash and Liquidity
1H 2022 Sources and Uses of Cash and Liquidity Directional, US$ millions L&O 527 Turnkey 16 Other (43) EBITDA 500 Working Capital Cash December 2021 1,059 Deferred income (31) (operating) Cash variation (274)1 Cash from Operations Debt drawdowns Other Partners share of excess cash (307)2 Cash June 2
Slide 41: Balance Sheet
Balance Sheet Directional, US$ millions Comments on variation US$ millions FY 2021 1H 2022 Variance Progress on main FPSO projects partially compensated by depreciation and Property, plant & equipment and Intangibles 7,234 7,574 340 45% divestment on Almirante Tamandaré and Alexandre de Gusmão Incre
Slide 42: Lease qualification and consolidation methods as of 30 June 2022
Lease qualification and consolidation methods as of 30 June 2022, IFRS 10 & 11 Assets Lease Contract Type SBM Share % Directional IFRS FPSO N’Goma FL 50% Proportional Equity FPSO Saxi Batuque FL 50% Proportional Equity FPSO Mondo FL 50% Proportional Equity FPSO Cidade de Ilhabela FL 75% Proportional
Slide 43: External loans and borrowings
External loans and borrowings Directional, US$ millions Net book value as of June 30, 2022 Full Amount IFRS Directional PROJECT FINANCE FACILITIES DRAWN FPSO Cidade de Paraty 135 135 85 FPSO Cidade de Anchieta 221 221 221 FPSO Cidade de Ilhabela 785 785 589 FPSO N’Goma 292 - 146 Normand Installer 25
Slide 44: Group net debt and borrowings
Group net debt and borrowings Directional, US$ millions Net debt Undrawn facilities + cash 6,500 754 4,500 5,401 5,349 478 2,500 1,000 500 (1,500) 1H 2022 FY 2021 1H 2022 Undrawn RCF Net cash Undrawn project debt Net cash Project debt Lease liabilities Average cost of debt1 1H 2022 borrowings and le
Slide 45: All covenants are satisfied
Revolving Credit Facility Covenants Key financial covenant 1H 2022 Definition1 Solvency ratio > 25% 30% IFRS Tangible net worth divided by total tangible IFRS assets Interest cover ratio > 4.0 6.5 Directional Underlying EBITDA divided by net interest payable Represents maximum theoretical lendin
Slide 46: Lease and Operate portfolio
Lease and Operate portfolio 2006 2016 2022 2026 2036 2046 1st Oil Vessel Name Client Country date FPSO Serpentina (1) MEGI E.GUINEA 2003 04/2017 08/2022 FPSO Kikeh PTTEP MALAYSIA 2007 08/2007 01/2028 01/2031 Initial Lease Period 01/2008 12/2023 12/2027 Contractual Extension Option FPSO Mondo EXXONMO
Slide 47: Energy. Committed.
ENERGY. COMMITTED.