Slide 1: MODEC, Inc. 2022 Half-Year Financial Results Analysts Presentation
MODEC, Inc. 2022 Half-Year Financial Results Analysts Presentation August 12, 2022 1
Slide 2: Highlight / Market View & Outlook / Financial Results
Highlight Market View & Outlook Financial Results (Note) From the end of FY2021, the Company's consolidated financial results have applied International Financial Reporting Standards (IFRS) instead of the conventional Japanese GAAP. In addition, the currency unit has been changed to the US dollar in
Slide 3: FY2022 Half-Year: Highlights
FY2022 Half-Year : Highlights (Year-on-year Comparison） (UNIT:US$M) <Revenue> <Operating Income> <Profit from Charter business> 2,111 38.9 48.4 27.2 1,375 33.9 2021 1H 2022 1H 2021 1H 2022 1H 2021 1H 2022 1H ⚫ Revenue is lower as the construction work of MV32, MV33 is near its final stage. ⚫ Operati
Slide 4: FY2022 Half-Year: EPC(I) (as of June 2022)
FY2022 Half-Year：EPC(I) (as of June 2022) FPSO FPSO FPSO FPSO FPSO MIAMTE Almirante Barroso Anita Garibaldi Sangomar Bacalhau MV34 MV32 MV33 Client Eni Mexico Petrobras Petrobras Woodside Equinor Contract EPCI + Time Charter EPCI + Time Charter EPCI + Time Charter Purchase Contract EPCI + Short term
Slide 5: EPC(I) / Charter / O&M Period
As of July 2022 ◼ EPC(I) period ◼ Time Charter fixed period EPC(I) / Charter / O&M Period ◼ Time Charter option period ◼ O&M period 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 (*) 1 FPSO Bacalhau Equinor 2 FPSO Sangomar Woodside MV34 10y 3 32.5 FPSO Anita Garibaldi MV33 Pet
Slide 6: FY2022: Operation/Maintenance progress report
FY2022 : Operation/Maintenance progress report Gross Margin of Operation/Maintenance ⚫ Maintenance work progressed as planned. ⚫ We plan to continue operation and maintenance activities with infection prevention measures, although risks such as the resurgence of the new coronavirus infection remain
Slide 7: Establishment of JV for FPSO construction work
Establishment of JV for FPSO construction work ⚫ Concluded a contract with Toyo Engineering Corporation on August 5, 2022 for the establishment of a joint venture company engaged in the construction of FPSOs. ⚫ The companies have been collaborating in constructing FPSO oil and gas production facilit
Slide 8: Market View & Outlook
Highlight Market View & Outlook Financial Results 8
Slide 9: Crude oil & Natural gas price (WTI/Henry Hub)
FPSO/FSO & TLP Market Trends Crude oil & Natural gas price (WTI/Henry Hub) Although WTI temporarily dropped in the first half of 2020 due to a decline in crude oil demand triggered by the spread of the new coronavirus, recently there has been a supply shortage due to factors such as the prolonged in
Slide 10: Floating Production Systems Planned or Under Study
FPSO/FSO & TLP Market Trends Floating Production Systems Planned or Under Study The number of development offshore oil fields in Central and South America, Africa and Southeast Asia remains high. Projects in Planning Pipeline (Appraisal, Planning, and Bidding/Final Design) as of August 2022 World To
Slide 11: FY2022: Outlook
FY2022 : Outlook FY2022 earnings guideline keep unchanged Financial result in the first half of the year was healthy due to progress of Woodside Sangomar and Equinor Bacalhau, and recovery of change order. Going forward, although progress may slow down as the construction work is near its final stag
Slide 12: Financial Results
Highlight Market View & Outlook Financial Results
Slide 13: Revenue
Revenue EPC(I) Lease, Charter and O&M US$M 3,899 4,000 ⚫ Progress may slow down as 3,036 the construction work is near 3,000 2,736 its final stage 1,998 3,115 ⚫ Focus on awards for new 2,000 2,168 1,949 1,375 projects 1,093 1,000 934 904 868 786 783 440 0 2018 2019 2020 2021 2022 1H EPC(I)period Bac
Slide 14: Operating Profit / Profit Attributable to Owners of Parent
Operating Profit / Profit Attributable to Owners of Parent We secured profits in the first half of the year to end in profit for the first time since FY2018, although the impact of COVID-19 on the business still remains, such as delays in construction work. Operating Profit Profit Attributable to Ow
Slide 15: Equity in Earnings of Affiliates / Interest Income
Equity in Earnings of Affiliates / Interest Income Progressed smoothly without unexpected long-term shutdowns or impairment losses. Equity in Earnings of Affiliates Interest Income (Charter related) Equity in Earnings of Affiliates US$M Unusual items 100 40 36 37 Unusual repair 17 34 34 MV24 SWAP ca
Slide 16: Order Backlogs
Order Backlogs ⚫ Charter/O&M order backlog remains at a high level with long-term contracts ⚫ Order backlog for construction work will decrease due to progress in existing construction projects. Thus we focus on new project awards. EPC(I) Order backlogs for MODEC Group’s share in the Lease, Charter
Slide 17: Balance Sheet
Balance Sheet ⚫ The balance of cash and deposits remaining as working capital decreased due to changes in trade receivables/debts and contract assets/liabilities as the result of the progress of construction projects, ⚫ Due to the rise in U.S. interest rates, the minus of "Other components of equity
Slide 18: Thank you
Thank you