Sbm Offshore Nv · EURONEXT:SBMO
Sbm Offshore Nv — H1 2004 Earnings Presentation
35 slides from Sbm Offshore Nv's earnings presentation, Aug 31, 2004
Slide 1: Half Year Results 2004 Analysts Presentations
HALF YEAR RESULTS 2004 ANALYSTS PRESENTATIONS AMSTERDAM / LONDON AUGUST 31, 2004 v alu e e ati ng o gy c r h no l Tec Didier Keller : President and CEO Sjef van Dooremalen : Managing Director Shipbuilding Division Mark Miles: CFO Hans Peereboom : Investor Relations Manager 1
Slide 2: Current Company Structure
CURRENT COMPANY STRUCTURE Shipbuilding Offshore IHC Holland SBM Group SBM-IMODCO Merwede Shipyard Atlantia Offshore Other Activity IHC Gusto Engineering NKI Group Marine Structure Consultants (MSC) GustoMSC Ocean Design (GMOD) 2
Slide 3: Sale of the Shipbuilding Activities
SALE OF THE SHIPBUILDING ACTIVITIES (IHC HOLLAND / MERWEDE SHIPYARD) COMPLETED TO DATE • Solicitation of interest • Issue of information memorandum to interested parties • Receipt of non-binding proposals • Establishment of a shortlist • Decision to proceed with the sale process CURRENTLY ONGOING •
Slide 4: Company Structure End 2004
COMPANY STRUCTURE END 2004 SBM Group SBM-IMODCO IHC Gusto Engineering Atlantia Offshore Marine Structure Consultants (MSC) GustoMSC Ocean Design (GMOD) NKI Group (Divestment intended) 4
Slide 5: Future Management Structure
FUTURE MANAGEMENT STRUCTURE BOARD OF MANAGEMENT Didier Keller Mark Miles CEO CFO Dick van der Zee Francis Blanchelande Director Director COO FPSO Operations INVESTOR RELATIONS Hans Peereboom Investor Relations Manager 5
Slide 6: Shipbuilding
SHIPBUILDING HIGHLIGHTS FIRST HALF 2004 • Delivery of world largest cutter suction dredger J.F.J. de Nul • Delivery of 16000m³ hopper dredger Prins der Nederlanden for Boskalis • Order for two Ro-Pax ferries from Bornholmstrafikken • Completion of the closure of van der Giessen de Noord within exist
Slide 7: Offshore
OFFSHORE HIGHLIGHTS FIRST HALF 2004 FIRST OIL ON TWO NEW LEASED FPSO’s Okono FPSO for Agip Nigeria Marlim Sul FPSO for Petrobras January 14, 2004 June 7, 2004 7
Slide 8: Offshore
OFFSHORE HIGHLIGHTS FIRST HALF 2004 • Order for SBM for a Disconnectable Riser Turret Mooring from Woodside for the Enfield FPSO – Australia • Orders for SBM for CALM systems from Maoming / China, BP Amoco / Sharjah and Shell / Nigeria • Sale by SBM of the FPSO Jamestown DEVELOPMENTS SINCE MID YEAR
Slide 9: Offshore
OFFSHORE DEVELOPMENTS SINCE MID YEAR 2004 Placed order for a New Generation Deepwater Installation Vessel in Joint Venture with Solstad Main Particulars . Length Overall 124 m . Beam 28 m Dynamic Positioning . Class DP III Winch Crane A Frame . 500 T . 250 T . 250 T SBM owned Dynamic Installer (at s
Slide 10: Offshore
OFFSHORE DELIVERIES SECOND HALF 2004 / 2005 SANHA LPG FPSO Sail Away Far East - November 2004 Installation Offshore Angola - January 2005 Ready for First Gas - February 2005 10
Slide 11: Offshore
OFFSHORE DELIVERIES SECOND HALF 2004 / 2005 THREE DEEPWATER EXPORT SYSTEMS Bonga, SNEPCO, Nigeria Kizomba B, ExxonMobil, Angola Erha, ExxonMobil, Nigeria 11
Slide 12: Offshore
OFFSHORE DELIVERIES SECOND HALF 2004 / 2005 Disconnectable Internal Turret, White Rose, Husky Oil, Canada 12
Slide 13: Key Financial Points First Half 2004
KEY FINANCIAL POINTS FIRST HALF 2004 • Net profit US$ 53.8 million versus US$ 34.2 million in 2003 ¾ Shipbuilding losses in 2003 - return to profitability in 2004 ¾ Increasing number of lease FPSOs in service ¾ Sale of FPSO Jamestown • EBITDA up to US$ 180 million mainly due to growing lease fleet •
Slide 14: Financial Overview Mid 2004
FINANCIAL OVERVIEW MID 2004 TOTAL GROUP 30/6/2004 30/6/2003 Movement Comment Slow order intake 2003/2004 and Value of Production 794 1,109 (315) lower capex Stable total but greater share of Turnover 658 671 (13) lease fleet EBITDA 180.0 126.3 53.7 Growing lease fleet EBIT 86.5 54.2 32.3 Growing lea
Slide 15: Financial Overview Mid 2004
FINANCIAL OVERVIEW MID 2004 SHIPBUILDING 30/6/2004 30/6/2003 Movement Comment Value of Production 238 301 (63) Slow market for dredgers and closure of van der Giessen Turnover 279 260 19 Delivery of hopper dredger versus large ferry in 2003 EBITDA 15.3 (2.9) 18.2 Return to profitability EBIT 9.8 (8.
Slide 16: Financial Overview Mid 2004
FINANCIAL OVERVIEW MID 2004 OFFSHORE 30/6/2004 30/6/2003 Movement Comment Value of Production 561 808 (247) Lower capex Lower turnkey deliveries but Turnover 384 411 (27) growing lease revenues EBITDA 166.7 132.1 34.6 Growing lease fleet EBIT 78.7 65.1 13.6 Growing lease fleet % x Turnover 20.5% 15.
Slide 17: Financial Overview Mid 2004
FINANCIAL OVERVIEW MID 2004 TOTAL GROUP 30/6/2004 30/6/2003 Movement Comment Investment Fixed Assets 112 269 (157) Slowing FPSO investments Long-Term Debt 1,360 1,125 235 At the top Net Liquidities 183 75 108 Healthy level Net Debt 1,177 1,050 127 2003 Profit warning and slow Share Price € 38.23 44.
Slide 18: Forecast Full Year 2004
FORECAST FULL YEAR 2004 • Net profit around US$ 100 million (US$ 91.6 million in 2003 excluding exceptional provision for van der Giessen) ¾ Offshore division “flat” net profit ¾ Shipbuilding returns to profitability • Expected loss on sale of shipbuilding activities not included • Assumes shipbuild
Slide 19: New IFRS Accounting Standards
NEW IFRS ACCOUNTING STANDARDS • Implementation Ongoing, Main Issues are: ¾ Depreciation - Straight Line Method to be adopted Î2005 charge will be higher than under current policy ¾ Contract Work in Progress - Percentage of Completion Method to be adopted ÎProgressive profit recognition ¾ Derivatives
Slide 20: Offshore Activities
OFFSHORE ACTIVITIES • Design, build, own and operate Floating Production and/or Storage and Offloading Systems (FPSO’s / FSO’s) under long-term lease contracts • Supply and install FPSO’s / FSO’s under turnkey contracts • Supply and install mono column Tension Leg Platforms (TLP’s) and Semi- submers
Slide 21: FPSO's in Operation / Under Construction
FPSO’s IN OPERATION / UNDER CONSTRUCTION Contractor Owned 43 Oil Company Owned 66 TOTAL 109 COVERS A LARGE VARIETY OF UNITS • Converted tankers / purpose built barges • Spread moored / weathervaning • Oil production rates from 15,000 to 250,000 barrels / day • Oil storage from 100,000 to 2,000,000 b
Slide 22: FPSO Lease Contractors
FPSO LEASE CONTRACTORS 14 12 10 8 6 4 2 0 SBM Modec Bluewater PGS Prosafe Bergesen Maersk Others(*) (*) Others: Bumi Armada, Frontier Drilling, Fred Olsen, Trenergy, Exmar Leased FPSO’s in operation or under construction : Total 43 22
Slide 23: FSO Lease Contractors
FSO LEASE CONTRACTORS • Distribution of Contractor owned and oil Company Owned FSO’s similar to the FPSO picture • Limited number of FPSO lease contractors also lease and operate FSO’s: - SBM (3 units) - Prosafe (2 units) - Modec (1 unit) - Bergesen (1 unit) - Fred Olsen (1 unit) • Increasing number
Slide 24: Current SBM Lease Fleet
CURRENT SBM LEASE FLEET FPSO FPSO FPSO FPSO FSO Zafiro Yoho Okono Aquila P-A FSO FSO Yetagun Nkossa II FPSO Rang Dong FPSO Roncador FPSO FPSO Marlim Sul Tantawan LPG FPSO FPSO FPSO FPSO Sanha Espadarte Xikomba Kuito TOTAL DAILY REVENUES 24 : >US$ 1.5 MILLION
Slide 25: Remaining Duration of Lease Contracts
REMAINING DURATION OF LEASE CONTRACTS = Initial Lease Period = Confirmed Extension Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Contract FPSO's Start 03/05 AQUILA, Agip, Italy (FPSO Firenze) 1997 02/07 08/08 TANTAWAN, ChevronTexaco, Thailand (Tantawan Explorer) 1997 09/08 RANG DO
Slide 26: Outlook Remainder 2004 / Full Year 2005 Lease Prospects
OUTLOOK REMAINDER 2004 / FULL YEAR 2005 LEASE PROSPECTS FPSO FPSO Tiof Bosi Woodside ExxonMobil Nitrogen FPU Cantarell FPSO (EPS) Pemex Bombay High ONGC FPSO Espirito Santo II FPSO Petrobras Kikeh Murphy FPSO FPSO Stybarrow Espadarte Sul BHP Petrobras FPSO FSO Maari Campos Basin OMV Petrobras FPSO G
Slide 27: Lease Business Principles
LEASE BUSINESS PRINCIPLES • Invest only on the basis of contracts in hand, except for the acquisition of existing tankers suitable for conversion into an FPSO • Obtain firm commitments for lease periods (ideally) in excess of five years • Put interest rate swap in place upon contract award • Finance
Slide 28: Outlook Remainder 2004 / Full Year 2005 Engineering / Supply Prospects
OUTLOOK REMAINDER 2004 / FULL YEAR 2005 ENGINEERING / SUPPLY PROSPECTS Deepwater Export System FPSO Deepwater Export System FPSO Mooring Aparo/Bonga SW Akpo Agbami ChevronTexaco/Shell Total ChevronTexaco TLP Tower Soft Yoke BHP Peng Lai Shenzi ConocoPhillips GAP Internal Turret Kikeh Murphy P-53 Pet
Slide 29: SBM's Competitive Edge
SBM’s COMPETITIVE EDGE • Flexibility in execution – 3 engineering centres – all construction outsourced • Unique in-house competence to design, supply, install and operate complete, complex FPSO’s • Own deep and ultra deepwater installation vessels for turnkey projects • Vast experience on converted
Slide 30: Total Deepwater Field Development
TOTAL DEEPWATER FIELD DEVELOPMENT 30
Slide 31: Gravity Actuated Pipe FPSO DTU
GRAVITY ACTUATED PIPE FPSO DTU GAP 31
Slide 32: The LNG Chain / Role for SBM
THE LNG CHAIN / ROLE FOR SBM LNG PRODUCTION export via port or jetties • Onshore export via offshore terminal • Offshore, Floating LNG Production, Storage and Offloading Unit LNG TRANSPORTATION • Long-term charters for dedicated routes • Very limited spot market LNG REGASIFICATION import via port or
Slide 33: Offshore LNG Import / Export Terminals
OFFSHORE LNG IMPORT / EXPORT TERMINALS 33
Slide 34: Floating Storage and Regasification Unit (FSRU)
FLOATING STORAGE AND REGASIFICATION UNIT (F S R U) 34
Slide 35: Outlook
OUTLOOK SHORT TERM • Increased bidding activity in the first half of 2004 should result in further order intake in the remainder of the year MEDIUM TERM • Number of identified projects, both for lease and engineering / supply prospects, should lead to a satisfactory activity level in 2005 / 2006 • G