Murray & Roberts — Investor Presentation (June 2017)
37 slides from Murray & Roberts's investor presentation, Jun 26, 2017
Slide 1: Business Platform Presentations: Oil & Gas Platform – Peter Bennett
BUSINESS PLATFORM PRESENTATIONS Oil & Gas Platform – Peter Bennett 26 June 2017 ENGINEERED EXCELLENCE
Slide 2: Agenda
Business Overview Business Development and Key Opportunities External Market Outlook Appendix 1: Safety Performance Appendix 2: Australia & Asia Pacific Operations Appendix 3: Americas and EMEA Operations © Murray & Roberts 2017 | 2 ENGINEERED EXCELLENCE
Slide 3: Australian construction spending dominated by infrastructure; new trends emerging
Australian construction spending continues to be dominated by infrastructure spending: Few oil & gas operators are undertaking Greenfields projects in Australia, though expansions of existing projects are emerging. Mining companies are regaining the confidence required to invest in new project devel
Slide 4: Strategic Objectives
STRATEGIC OBJECTIVES Grow a fully integrated oil and gas EPC offering Domestic diversification into Build oil and gas commissioning, maintenance and brownfields Strategic complementary projects business initiatives markets Build water, power, transport and minerals Focus on building a profitable ord
Slide 5: Focused Business Model
FOCUSED BUSINESS MODEL ENGINEER CONSTRUCT OPERATE Project Offshore & Onshore Consultancy EPC/Construction Near Shore Marine Commissioning Brownfields Engineering Products & Services Engineering studies and Concept, FEED, Detailed EPC, D&C and Construct-only Import & Export Jetties & Onshore & Offsho
Slide 6: Regional Organisation Structure
REGIONAL ORGANISATION STRUCTURE CEO & Managing Director Peter Bennett Executive Assistant & Assistant Company Secretary Karen Duckworth CFO & Corporate Services EVP EVP Operations CH-IV Richard Simons BD/Tendering/Commercial Australia, Asia Pacific Raj Ratneser Philip Cave Booth Welsh Legal/Assuranc
Slide 7: Strategic Themes
STRATEGIC THEMES Clough’s strategy continues to evolve, reflecting changes in external market conditions. Clough’s strategy remains intact, though execution must be the focus: New oil and gas development capital is flowing to regional neighbours such as PNG and South East Asia, rather than Australia
Slide 8: Wheatstone Hook-up and Commissioning & Ichthys Hook-up and Pre-commissioning
WHEATSTONE HOOK-UP AND COMMISSIONING & ICHTHYS HOOK-UP AND PRE-COMMISSIONING © Murray & Roberts 2017 | 8 ENGINEERED EXCELLENCE
Slide 9: Engineered Excellence
© Murray & Roberts 2017 | 9 ENGINEERED EXCELLENCE
Slide 10: Opportunities and Risks
OPPORTUNITIES AND RISKS OPPORTUNITIES RISKS 1. Clients require contractors to accept 1. East Coast Australian state elevated risk in project delivery for governments, NSW in particular, lower margins. developing large infrastructure projects. 2. Smaller contract values, which still require the same
Slide 11: Pipeline Analysis
PIPELINE ANALYSIS Oil and gas business accounts for FY18 New Work Revenue by Sector majority of new work during FY18. Oil & Gas EPC / Metals & Mining and Infrastructure Comm, 33% divisions will be important contributors to revenue while oil Infrastructure 11% and gas markets remain in transition. Ot
Slide 12: Oil and Gas
OIL AND GAS Project: Tipton Expansion Project: Surat Basin Project: Pluto Water EPC Gathering Infrastructure Handling Module EPC Client: Arrow Energy Client: Shell Client: Woodside Scope: EPC for the Scope: Construction of Scope: Detailed design, expansion of the Tipton Gas Water and Gas Gathering p
Slide 13: Metals and Minerals
METALS AND MINERALS Project: North Galilee Water Project Project: Scheme Client: BHP Billiton Client: Fortescue Metals Client: Adani Coal Scope: The panel is focused Group Scope: Stage A – Belyando on delivering mostly Scope: Project involves the Junction Pipeline EPC brownfield, sustaining capital
Slide 14: Infrastructure
INFRASTRUCTURE Project: Batangas LNG Project: Papa LeaLea Project: HMAS Stirling Re- Terminal Marine Works Power Station development Client: JGC and Fluor Client: Kumul/Oil Search Client: DORIC Group Daniel (2 bids being Scope: EPC of 50MW Scope: EPCM for prepared) Power Station to be built infrastr
Slide 15: Engineered Excellence
© Murray & Roberts 2017 | 15 ENGINEERED EXCELLENCE
Slide 16: Global Oil & Gas
GLOBAL OIL & GAS Growth in Natural Gas Trade Natural Gas Demand by Sector Natural Gas Demand by Region • Global LNG markets are forecast to remain in over supply until at least 2021/2022, after which, supply/demand imbalances favour new developments. New supply is likely to come from USA, South East
Slide 17: Australian Infrastructure
AUSTRALIAN INFRASTRUCTURE 2017/18 Construction Outlook* Roads & Freeways $23 billion Telecommunications • All major construction work forecast to grow by 4.5%. Rail Projects • Australian Roads & Water & Sewerage Freeway growth forecast at $4.5 billion 21.9%. Other Civil • Water and Sewerage construc
Slide 18: Papua New Guinea
PAPUA NEW GUINEA • Papua New Guinea is re- emerging as an opportunity, due to significant resource endowments, low cost environment and access to export markets. • Clough is currently monitoring a number of high value opportunities. • Clough are assessing expanding existing in-country operations to
Slide 19: North America
NORTH AMERICA • Midstream gas opportunities align to Clough’s strengths. • The emergence of USA gas export markets will drive future growth in LNG and Marine opportunities. • Canadian LNG market provides early stage marine opportunities. • Brownfields opportunities including de-bottlenecking and exp
Slide 20: New South Wales, Australia
NEW SOUTH WALES, AUSTRALIA • AU$ 15,7 billion in new major roads projects over the next five years. • Peak of construction operations to occur in 2019. • Projected 370% increase in tunnel lane kilometres. • Major investments in bridges and tunnelling projects, well suited to existing capabilities. •
Slide 21: Business Platform Presentations: Appendix
BUSINESS PLATFORM PRESENTATIONS Oil & Gas Platform – Peter Bennett Appendix ENGINEERED EXCELLENCE
Slide 22: Safety Performance
SAFETY PERFORMANCE Trend Trend Actual Actual Leading Measures Lagging Measures 12 M R 140 12 M R 0.26 MAE Verfication FYTD 143 LTIF FYTD 0.27 Checks M o nth 121 M onth 2.96 12 M R 158 12 M R 1.28 O&I’s FYTD 158 TRIF FYTD 1.10 M o nth 163 M onth 5.92 12 M R 218 12 M R 1.02 HazRep’s FYTD 218 HPIF FYTD
Slide 23: Engineered Excellence
© Murray & Roberts 2017 | 23 ENGINEERED EXCELLENCE
Slide 24: Year End June 2018
YEAR END JUNE 2018 • Wheatstone Hook-up and Commissioning • SHI – Ichthys Central Processing Facility Hook-up and Pre- commissioning • DSME – Ichthys Floating Production Storage Offloading Facility Hook-up and Pre- commissioning • Yara Maintenance Services • Arrow – Master Services Agreement • Mongo
Slide 25: e2o
e2o INPEX Ichthys Onshore Commissioning Torrens Island Power Station is located on LOCATION: Northern Territory CLIENT: INPEX Torrens Island, near Adelaide, South DURATION: 2014 – Current Australia and is operated by AGL Energy. It burns natural gas in eight steam turbines to INPEX Ichthys Onshore -
Slide 26: Current Engineering Projects
CURRENT ENGINEERING PROJECTS WOODSIDE CHEVRON INPEX QUADRANT Active Projects: Active Projects: Ngyjima Yin FPSO Slops Produced Water Active Projects: Permanent Solution Wheatstone ORM Project Support Secondments Active Projects: Offshore Operating Integrity Envelopes KGP MCGG Protection Relay Replac
Slide 27: Wheatstone HUC
WHEATSTONE HUC • Current scope is focussed on offshore commissioning of the Wheatstone Platform. • Scope growth throughout 2016 and 2017 has been important to revenue and earnings. © Murray & Roberts 2017 | 27 ENGINEERED EXCELLENCE
Slide 28: SHI – Ichthys Central Processing Facility
SHI – ICHTHYS CENTRAL PROCESSING FACILITY • Scope includes hook-up activities for the Ichthys Central Processing Facility. • Also providing technical support and assistance for pre- commissioning activities. • Facility has moored in the Ichthys field, offshore Western Australia. © Murray & Roberts 2
Slide 29: DSME – Ichthys Floating Production Storage & Offloading Facility
DSME – ICHTHYS FLOATING PRODUCTION STORAGE & OFFLOADING FACILITY • Scope includes hook-up activities for the Ichthys Floating Processing Storage and Offloading facility. • Also provides technical support and assistance for pre- commissioning activities. • Teams have mobilised to Korea and are provid
Slide 30: Yara Maintenance Services
YARA MAINTENANCE SERVICES TAN Plant Ammonia Plant Ammonia Plant: Ammonia plant commenced production in 2006, is one of the largest in the world and produces liquid ammonia for use locally and exported to Korea, Indonesia and other SE Asian markets via pipeline to Dampier port for export. Technical A
Slide 31: Engineered Excellence
© Murray & Roberts 2017 | 31 ENGINEERED EXCELLENCE
Slide 32: Clough Murray & Roberts
CLOUGH MURRAY & ROBERTS Full asset life cycle engineering, procurement and project management services for: Concept Pre-FEED FEED Detailed Design EPCM Small to medium EPC Carved out scope packages on major EPC projects Brownfields and O&M services Legend Offshore Oil & Gas Onshore Oil & Gas Import/E
Slide 33: Booth Welsh
BOOTH WELSH Operating through UK based businesses © Murray & Roberts 2017 | 33 ENGINEERED EXCELLENCE
Slide 34: CH•IV
CH●IV Pacific Northwest LNG– Owners Engineering Spectra – Access North East Pipeline Project FY18 • BP Mad Dog Phase 2 Hook-up and Commissioning. Eagle LNG – Jacksonville LNG FERC FEED • Freeport LNG Operations & Commissioning Support. Freeport LNG – Owners Engineering • Global expansion and growth
Slide 35: Clough Enercore
CLOUGH ENERCORE Focus on expansion of services and growth of existing operations. Providing additional support to global Clough group. LNG Plant Commissioning, Operations & Eng. -> AU$0.5 - 10 Mil Various LNG Developments Engineering and Consulting -> AU$0.1 - 5Mil TransCanada - AU$25Bil Near Term P
Slide 36: Engineered Excellence
1. This presentation includes certain various “forward-looking statements” within the meaning of Section 27A of the US Securities Act 10 1933 and Section 21E of the Securities Exchange Act of 1934 that reflect the current views or expectations of the Board with respect to future events and financial
Slide 37: Business Platform Presentations
BUSINESS PLATFORM PRESENTATIONS Oil & Gas Platform – Peter Bennett This presentation is available on www.murrob.com ENGINEERED EXCELLENCE
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