Heavy Engineering Industries & Shipbuilding Co. (ksc) · KSE:SHIP
Heavy Engineering Industries & Shipbuilding Co. (ksc) — Q2 2024 Earnings Presentation
30 slides from Heavy Engineering Industries & Shipbuilding Co. (ksc)'s earnings presentation, Aug 14, 2024
Slide 1: Supplementary Disclosure Letter to Boursa Kuwait
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Slide 2: Supplementary Disclosure Form
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Slide 3: Disclosure Letter: Analyst Conference Held 14 August 2024
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Slide 4: Analyst Conference Transcript for Q2 2024 Financial Results
HEISCO HEAVY ENGINEERING INDUSTRIES & SHIPBUILDING CO. K.S.C (Public) ANALYST CONFERENCE TRANSCRIPT FOR THE FINANCIAL RESULTS for 2nd Quarter 2024 Wednesday 14/08/2024 HEISCO Participations: Mr. Abdulrazzaq Alothman — Corporate Director - General Affairs Mr. Joseph Mathew Corporate Director - Financ
Slide 5: Transcript: Introduction and Opening Remarks
Zeina Fares: Good afternoon, ladies and gentlemen. This is Zeina Fares speaking from EFG Research. I’d like to welcome you all today to HEISCO’s 2Q ‘24 earnings conference call. Today’s speakers are Mr. Abdul Razzaq Abdul Qader, Corporate Director of General Affairs; Mr. Waleed Attiya, Corporate Dir
Slide 6: Transcript: Financial Review
Joseph Matthew: Thank you, Waleed. Good afternoon, ladies and gentlemen. It’s a privilege and honor to present WR \RX WKH ¿QDQFLDOV RQ +(,6&2 :H¶OO EH WDONLQJ DW D FRQVROLGDWHG OHYHO XQOHVV RWKHUZLVH ,¶P required to go to the subsidiary Looking at the revenue, we have a slight drop in revenue compar
Slide 7: Transcript: Balance Sheet and Cash Flow
Slide 14. The current liabilities have jumped from 86,106. Increase in borrowings are 18 million, and contracts liabilities are 2. As I explained earlier, there was a capex of 4 million, end of service 3 million. That’s the main reasons there. 2QWKHFDVKÀRZFKDQJHLQZRUNLQJFDSLWDOGHFUHDVHGGXHWRLQFUHDVH
Slide 8: Transcript: Questions and Answers
With that, I’m ready to take questions, please. Zeina Fares: 7KHÀRRULVQRZRSHQIRUTXHVWLRQVVR\RXFDQXVHWKHUDLVHKDQGIXQFWLRQRUW\SH\RXUTXHVWLRQ WKURXJK WKH 4 $ ER[ :H KDYH RXU ¿UVW TXHVWLRQ FRPLQJ WKURXJK 0DEHO ³7KDQN \RX IRU WKH presentation. What is the average duration of projects being awarded?” Wale
Slide 9: Transcript: Questions on Revenue and Backlog
Joseph Matthew: Is the question on the reverse way? Okay, revenues. There is a slight decrease in revenue, which DWWKH¿UVWSRLQW,HPSKDVL]HGRQWKDWWKDWDVSHUSODQVZKDWZHZHUHH[SHFWLQJWKHSURMHFWVWR take in the new projects awarded is slightly delayed and moving to the next quarters. So there is a deviation
Slide 10: Transcript: Questions on Projects and Saudi Arabia
Zeina Fares: $QRWKHUTXHVWLRQFRPLQJLQIURP0RKDPPHG³:KHQZLOOWKHSURMHFWWKDWLVYDOXHGDWPLOOLRQ be signed?” Waleed Attiya: Oh, you are talking about the 176 million project. It is actually a consortium between HEISCO and IHI Japan. And see 176 million, which is published in stock exchange is a total value
Slide 11: Transcript: Regional Market Outlook
Waleed Attiya: 2ND\LQ.XZDLWOHWXVEHVSHFL¿FDERXWUHJLRQV,Q.XZDLWDWOHDVWZHKDYHDFXWWLQJHGJHRYHU our competitors because of the backlog. We have the liberty to be choosy and selective and not to compromise on the margins. Plus, our jobs currently, if you just see our roles on the specialized sector, espec
Slide 12: H1/Q2-2024 Virtual Summit
(AslLe) Has Cpaaut lh eling ABT! Ar righ! le linall aS pd HEAVY ENGINEERING INDUSTRIES & SHIPBUILDING CO. K.S.C (Public) HEISCO H1/Q2-2024 | Virtual Summit eT ey i si INVESTOR PRESENTATION
Slide 13: Agenda
Agenda Page 1 Disclaimer 3 2 Vision & Mission 4 3 About HEISCO 5 4 HEISCO’s Strategy 6 5 Performance Highlights 9 6 Financial Overview 10 7 Appendix 12 8 Q&A 17 2
Slide 14: Disclaimer
Disclaimer FORWARD - LOOKING STATEMENTS This information set out in this presentation and provided in the discussion subsequent thereto does not constitute an offer or solicitation of an offer to buy or sell securities. It is solely for use as an investor presentation and is provided as information
Slide 15: HEISCO's Vision and Mission
HEISCO’s Vision HEISCO will become the customer's first preferred Company for Shipbuilding, Ship Repair, Fabrication, Construction, Industrial Maintenance, Dredging and Offshore services inside Kuwait. HEISCO also aims to expand its business operations in Middle East and North Africa. HEISCO’s Missi
Slide 16: About HEISCO
About HEISCO We are determined to provide complete service to our customers in Shipbuilding, Ship Repair, Fabrication, Construction, Industrial Maintenance, Dredging, and Offshore works. We are committed to achieving sustained growth by meeting our customers' schedules and quality requirements. We w
Slide 17: HEISCO's Strategy
HEISCO’s Strategy • Establishing a Private Limited Company for Engineering and Design in Chennai, India, to enhance our ability to support the group’s expanding business activities and to serve various clients in the region. Currently, we are in the final stages of securing office premises and facil
Slide 18: HEISCO's Strategy
HEISCO’s Strategy • SABIC has approved HEISCO KSA Branch as a Service Provider and Advanced Prequalification for the categories, Manufacturing Equipment, Heat Exchanger and Tank Maintenance, and Scaffolding services. • Saudi Electricity Co. has approved HEISCO KSA branch for Mechanical works (Pumps)
Slide 19: HEISCO's Strategy
HEISCO’s Strategy • As per BAPCO’s requirement, We intend to establish a workshop facility in Bahrain or find a suitable local company who can rent out its fabrication/ manufacturing facilities, provided we are awarded with a project. • HEISCO and GD have registered with Oman Tender Board aiming to
Slide 20: Performance Highlights - Consolidated
PERFORMANCE E HIGHLIGHTS S - CONSOLIDATED D KD’ Million REVENUE NET PROFIT EBITDA EPS љ-2% ј42% ј28% ј42% 65.94- H1-2024 3.50- H1-2024 6.98- H1-2024 19.42 - H1-2024 66.99- H1-2023 2.47- H1-2023 5.44- H1-2023 13.69 - H1-2023 ASSETS EQUITY LIABILITIES BORROWINGS ј8% љ-3% ј15% ј22% 198.34- H1-2024 71.9
Slide 21: Financial Overview - Consolidated
FINANCIAL OVERVIEW - CONSOLIDATED KD’ Million 65.94 66.99 3.5 6.98 2.47 5.44 REVENUE NET PROFIT EBITDA H1-24 H1-23 H1-24 H1-23 H1-24 H1-23 33.77 30.68 1.95 1.75 3.81 3.31 REVENUE NET PROFIT EBITDA Q2-24 Q2-23 Q2-24 Q2-23 Q2-24 Q2-23 10
Slide 22: Breakdown of Revenue by Business Line - Consolidated
BREAKDOWN OF REVENUE BY BUSINESS LINE - CONSOLIDATED KD ’000 BUSINESS LINE Q2-24 Q2-23 Q2-24 Q2-23 % Change INDUSTRIAL, OIL & GAS 24,748 27,406 80.6% 81.1% -9.7% SHIPYARD 2,193 2,299 7.1% 6.8% -4.6% OFFSHORE 3,749 4,070 12.2% 12.1% -7.9% TOTAL REVENUE 30,690 33,775 100% 100% -9.1% Q2--24 Q2--23 12.2
Slide 23: Common Size Analysis - Statement of Income
COMMON SIZE ANALYSIS-STATEMENT OF INCOME - CONSOLIDATED H1-24 H1-23 Q2-24 Q2-23 H1-24 H1-23 Q2-24 Q2-23 Revenue 65,942,896 66,999,870 30,689,910 33,775,508 100.00% 100.00% 100.00% 100.00% Cost of sales (59,754,014) (62,260,434) (27,713,759) (30,776,757) -90.61% -92.93% -90.30% -91.12% Gross Profit 6
Slide 24: Ratio Analysis - Consolidated
RATIO ANALYSIS - CONSOLIDATED PROFITABILITY H1-24 H1-23 CHANGE FY-23 Gross Profit % 9.39% 7.07% јϮ͘ϯϭй 7.92% EBIT % 6.67% 5.10% јϭ͘ϱϳй 6.42% EBITDA % 10.59% 8.12% јϮ͘ϰϳй 9.79% Net Profit Margin -% 5.31% 3.68% јϭ͘ϲϯй 4.84% ROA 1.85% 1.45% јϬ͘ϰϭй 3.95% ROE 4.87% 3.55% јϭ͘ϯϭй 9.61% ROCE 4.81% 3.71% јϭ͘
Slide 25: Financial Position / Cash Flow - Consolidated
FINANCIAL POSITION / CASH FLOW - CONSOLIDATED Consolidated Statement of Financial Position as at 30 June 2024 Consolidated Statement of Cash Flow - 30 June 2024 Kuwaiti Dinars Kuwaiti Dinars H1-24 FY-23 H1-24 H1-23 NON-CURRENT ASSETS 78,399,155 77,449,867 PROFIT FROM OPERATIONS 3,500,795 2,466,944 C
Slide 26: Common Size Analysis - Financial Position (Assets)
COMMON SIZE ANALYSIS - STATEMENT OF FINANCIAL POSITION - CONSOLIDATED ASSETS H1-24 H1-23 FY-23 H1-24 H1-23 FY-23 Non Curent Assets Right–of-use-assets 1,439,608 329,206 1,898,896 0.73% 0.18% 1.03% Property, plant and equipment 74,071,635 67,953,787 72,400,692 37.35% 37.77% 39.38% Investment securiti
Slide 27: Common Size Analysis - Financial Position (Equity and Liabilities)
COMMON SIZE ANALYSIS - STATEMENT OF FINANCIAL POSITION - CONSOLIDATED EQUITY AND LIABILITIES H1-24 H1-23 FY-23 H1-24 H1-23 FY-23 Equity Share Capital 18,024,152 18,024,152 18,024,152 9.09% 10.02% 9.80% Statutory reserve 10,946,089 10,946,089 10,946,089 5.52% 6.08% 5.95% General reserve 10,780,757 10
Slide 28: y ee,
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Slide 29: Thank You
THANK YOU 18
Slide 30: HEISCO Shipyard and Oil & Gas contact details