Aker Solutions Asa · OSL:AKSO
Aker Solutions Asa — Q2 2020 Earnings Presentation
28 slides from Aker Solutions Asa's earnings presentation, Jul 15, 2020
Slide 1: 2Q 2020
2Q 2020 Fornebu, July 15, 2020 Luis Araujo and Ole Martin Grimsrud 2020 © Aker Solutions
Slide 2: Agenda | 2Q 2020
Agenda | 2Q 2020 Answers Questions Introduction Financials Q&A Session Luis Araujo Ole Martin Grimsrud Luis Araujo CEO Chief Executive Officer Chief Financial Officer Ole Martin Grimsrud CFO 2020 © Aker Solutions Second-Quarter Results 2020 July 15, 2020 Slide 2
Slide 3: Main Developments
Main Developments First delivery of vertical subsea trees to Equinor Working from home ■ Managing the COVID-19 ■ Strong project execution ■ Market activity on the pandemic ■ Key deliveries to Castberg, Norwegian continental Troll, Lingshui and Mero 1 shelf boosted by ■ Oil prices increased ■ Brent s
Slide 4: Key Figures | 2Q 2020
Key Figures | 2Q 2020 Revenue EBITDA Order Intake Order Backlog 5.4 NOK BILLION 232 NOK MILLION 7.0 NOK BILLION 26.9 NOK BILLION Excl. special items 8 700 7 40 7 600 6 6 30 500 5 5 400 4 4 20 300 3 3 200 2 2 10 1 100 1 0 0 0 0 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 2Q 19 3Q 19 4
Slide 5: New Orders
New Orders Equinor Equinor Aker BP Subsea production system for Subsea production system for Maintenance & modifications the Breidablikk project Askeladd Vest development work offshore Norway Husky Energy Subsea 7 Norcem Asset integrity management Umbilicals contract for King's EPC agreement for ful
Slide 6: Continued Demand for Early-Phase Capabilities
Continued Demand for Early-Phase Capabilities ■ Awarded 47 front-end contracts in 2Q, resulting in a total of 89 won to date in 2020 1H 2020 1H 2019 ■ Eight of these have led on to 89 74 FEED studies Total ■ Five have led on to front-end studies full projects ■ 20 of the 89 studies were related to r
Slide 7: Market Update and Outlook
Market Update and Outlook Increased activity on the Norwegian continental shelf Potential New Projects on the following tax relief agreement. Norwegian Continental Shelf Low-Carbon Projects ■ Electrification ■ Wind for oil Alke Kobra East Gekko Tommeliten Alpha International Breidablikk La
Slide 8: Agenda | 2Q 2020
Agenda | 2Q 2020 Answers Questions Introduction Financials Q&A Session Luis Araujo Ole Martin Grimsrud Luis Araujo CEO Chief Executive Officer Chief Financial Officer Ole Martin Grimsrud CFO 2020 © Aker Solutions Second-Quarter Results 2020 July 15, 2020 Slide 8
Slide 9: 2Q 2020 | Income Statement
2Q 2020 | Income Statement NOK million 2Q 2020 2Q 2019 1H 2020 1H 2019 2019 ■ Second quarter revenue decreased by 29% Revenue 5,361 7,525 11,871 14,781 29,263 year-on-year EBITDA 232 623 381 1,257 2,244 ■ Mainly driven by Field Design, as previously EBITDA margin 4.3% 8.3% 3.2% 8.5% 7.7% guided foll
Slide 10: 2Q 2020 | Cashflow and Financial Position
2Q 2020 | Cashflow and Financial Position ■ Working capital1 at NOK 920 million Debt Maturity Profile2 NOK million ■ Cashflow from operations at NOK 48 million 6,000 Drawn debt Undrawn revolving credit facility ■ Cashflow from investments at minus NOK 156 million 4,000 ■ Net interest-bearing debt2 o
Slide 11: Projects
Projects ■ Lower activity driven by Field Design following the ■ EBIT margin1 of 1.8% vs 4.5% a year earlier record activity last year and impacts of Covid-19 ■ Strong order intake of NOK 6.3 billion, equal to ■ Revenue down 33% year-on-year to NOK 4.1 billion 1.6x book-to-bill ■ EBITDA margin1 of 6
Slide 12: Projects | Subsea Projects | Field Design
Projects | Subsea Projects | Field Design ■ Activity driven by continued progress on ongoing projects ■ Normalized activity as previously guided, following record and impacts of Covid-19 year in 2019 ■ Revenue down 19% year-on-year to NOK 1.9 billion ■ Revenue down 41% year-on-year to NOK 2.2 billio
Slide 13: Services
Services ■ Topside brownfield maintenance activity impacted by ■ EBIT margin1 of 4.9% vs 9.8% a year earlier COVID-19, activity more resilient within Subsea Lifecycle Services ■ Order intake of NOK 0.6 billion, equal to ■ Revenue down 15% year-on-year to NOK 1.3 billion 0.5x book-to-bill ■ EBITDA ma
Slide 14: Order Backlog Gives Reasonable Visibility
Order Backlog Gives Reasonable Visibility 2Q 2020 Order Backlog by Execution Date NOK billion Order Backlog and Intake Development NOK billion Potential additional revenue from existing agreements Order backlog Order intake 30 Projects backlog Services backlog 9.7 7.0 20 5.3 4.9 3.2 29.5 27.4 1.8 25
Slide 15: Financial Guidance
Financial Guidance Revenue and Margin Balance Sheet and Cashflow ■ First half 2020 with unprecedented impacts of the COVID- ■ Working Capital likely to fluctuate with large project work 19 pandemic combined with steep decline in oil demand and expected to trend around the NOK 1.0 billion level and c
Slide 16: Agenda | 2Q 2020
Agenda | 2Q 2020 Answers Questions Introduction Financials Q&A Session Luis Araujo Ole Martin Grimsrud Luis Araujo CEO Chief Executive Officer Chief Financial Officer Ole Martin Grimsrud CFO 2020 © Aker Solutions Second-Quarter Results 2020 July 15, 2020 Slide 16
Slide 17: Additional Information
Additional Information 2020 © Aker Solutions Second-Quarter Results 2020 July 15, 2020 Slide 17
Slide 18: Special Items
Special Items NOK million, (Gain) / Loss Special items (EBITDA) 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FY 2019 1Q 2020 2Q 2020 Restructuring 5 31 (3) 39 3 10 12 46 70 155 117 Non-qualifying hedges (4) (3) (1) (11) (2) (4) 5 1 0 10 (8) (Gain) loss sale of PPE - - - (50) - - -
Slide 19: Income Statement
Income Statement NOK million Income statement consolidated 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FY 2019 1Q 2020 2Q 2020 Revenue 6,254 6,541 6,954 25,232 7,256 7,525 7,134 7,348 29,263 6,510 5,361 Operating expenses (5,815) (6,078) (6,471) (23,422) (6,622) (6,902) (6,581) (
Slide 20: Balance Sheet – Assets
Balance Sheet – Assets NOK million Assets 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 Property, plant and equipment 2,977 2,905 3,044 2,945 2,916 3,031 3,065 3,235 2,905 Intangible assets 5,646 5,596 5,686 5,690 5,578 5,669 5,710 5,589 5,423 Right-of-use assets - - - 4,18
Slide 21: Balance Sheet – Liabilities and Equity
Balance Sheet – Liabilities and Equity NOK million Liabilities and equity 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 Total equity attributable to the parent 6,828 6,849 7,502 7,241 7,044 7,355 7,134 7,411 6,532 Non-controlling interests 28 45 106 107 123 110 97 78 78 Tot
Slide 22: Cashflow
Cashflow NOK million Cashflow 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FY 2019 1Q 2020 2Q 2020 EBITDA 439 463 483 1,810 634 623 553 434 2,244 149 232 Change in cashflow from operating activities (121) (506) (370) (890) (937) (568) (726) 306 (1,925) (449) (184) Net cashflow fro
Slide 23: Split Per Segment
Split Per Segment NOK million Revenue 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FY 2019 1Q 2020 2Q 2020 Projects 4,862 5,211 5,608 19,920 5,952 6,015 5,627 5,658 23,253 5,119 4,058 Services 1,337 1,277 1,324 5,096 1,299 1,503 1,549 1,645 5,995 1,386 1,281 Other 58 72 78 298 42
Slide 24: Split Per Segment
Split Per Segment NOK million NCOA 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 Projects (1,540) (1,067) (1,141) (262) (66) 502 (239) 27 91 Services 646 633 693 908 936 896 844 909 479 Other (521) (591) (306) (398) (139) (71) 176 117 351 NCOA (1,415) (1,024) (753) 248 731
Slide 25: Split Per Segment – Excluding Special Items
Split Per Segment – Excluding Special Items NOK million EBITDA (excl. special items) 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FY 2019 1Q 2020 2Q 2020 Projects 328 373 348 1,371 478 475 455 372 1,780 305 268 Services 173 190 194 692 187 210 174 169 740 78 126 Other (60) (70) (4
Slide 26: Projects | Subsea and Field Design
Projects | Subsea and Field Design NOK million Revenue 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FY 2019 1Q 2020 2Q 2020 Subsea 2,084 2,079 2,042 8,162 2,439 2,343 2,171 2,309 9,262 2,349 1,895 Field Design 2,810 3,170 3,551 11,814 3,512 3,680 3,450 3,362 14,004 2,770 2,164 Eli
Slide 27: 2020 © Aker Solutions
2020 © Aker Solutions
Slide 28: Copyright and Disclaimer
Copyright and Disclaimer Copyright Copyright of all published material including photographs, drawings and images in this document remains vested in Aker Solutions and third party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any for