Bumi Armada Bhd. · MYX:ARMADA
Bumi Armada Bhd — Q3 2014 Earnings Presentation
27 slides from Bumi Armada Bhd's earnings presentation, Nov 20, 2014
Slide 1: Q3 2014 Presentation
Q3 2014 Presentation 20th November 2014 “Knots Ahead of the Rest”
Slide 2: Disclaimer
Disclaimer This document may contain statements of future expectations and other forward-looking statements based on management's and/or other information providers’ current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance, or e
Slide 3: Q3 2014 Financials
Q3 2014 Financials “Knots Ahead of the Rest”
Slide 4: Key takeaways
Key takeaways Q3 Net Profit increased 9.9% from RM98.4 mil to RM108.1 mil. YTD Net Profit shed 20.9% from RM342.9 mil to RM271.3 mil Q3 EBITDA increased 1.9% from RM262.6 mil to RM267.5 mil. YTD EBITDA shed 2.5% from RM772.4 mil to RM753.3 mil YTD 2014 EBITDA margins of 44.4% as compared to 50.9% in
Slide 5: Results Overview – Q3 2014 vs. Q2 2014 (in RM’mil)
Results Overview – Q3 2014 vs. Q2 2014 (in RM’mil) Revenue +7.9% 636.5 590.1 EBITDA Net Profit +1.9% +9.9% 108.1 262.6 267.5 98.4 Q2 2014 Q3 2014 Q2 2014 Q3 2014 Q2 2014 Q3 2014 Higher revenue from: Higher EBITDA in line with higher • FPSO contribution from Armada 15/06 , contribution offset by: • L
Slide 6: Results Overview – YTD 2014 vs. YTD 2013 (in RM’mil)
Results Overview – YTD 2014 vs. YTD 2013 (in RM’mil) Revenue +11.8% 1,695.5 Net Profit 1,516.3 EBITDA 342.9 -20.9% -2.5% 772.4 753.3 271.3 YTD 2013 YTD 2014 YTD 2013 YTD 2014 YTD 2013 YTD 2014 Lower EBITDA after accounting for: • Operating infrastructure cost in line Higher revenue from: with growth
Slide 7: Revenue composition by business units – Q3 2014 vs. Q2 2014 (in RM’mil)
Revenue composition by business units – Q3 2014 vs. Q2 2014 (in RM’mil) Performance in established segments driven by the underlying activities FPSO OSV 231.4 +2.2% 236.5 +6.6% 163.1 153.0 Q2 2014 Q3 2014 Q2 2014 Q3 2014 Higher FPSO Armada 15/06, Armada Claire O&M and Higher overall vessel utilisati
Slide 8: Revenue composition by business units – YTD 2014 vs. YTD 2013 (in RM’mil)
Revenue composition by business units – YTD 2014 vs. YTD 2013 (in RM’mil) Performance in established segments driven by the underlying activities FPSO OSV +14.2% 663.6 581.0 466.1 +1.3% 472.3 YTD 2013 YTD 2014 YTD 2013 YTD 2014 FPSO Armada 15/06, Armada Kraken and new tanker Mt Ulysses contribution,
Slide 9: Revenue composition by geographical %
Revenue composition by geographical % Malaysia based international company continued expansion across key regions YTD 2014 YTD 2013 2% 5% 13% 4% 13% 30% 25% 52% 56%
Slide 10: Leverage and capitalisation
Leverage and capitalisation Financial capacity intact to undertake more projects with rights issue completed Net Debt / EBITDA(1) Gearing ratio(2) 4.5x 4.0x 4.0x 3.9x 5.1x 4.9x 4.8x 3.5x 3.4x 4.3x 4.4x 4.0x 3.0x 3.2x 2.5x 2.0x 2.3x 1.9x 1.5x 1.4x 1.0x 1.1x 1.0x 0.9x 0.9x 0.7x 0.5x 0.0x 2008 2009 201
Slide 11: Order book as at 30 September 2014
Order book as at 30 September 2014 Quality firm backlog remains intact at RM21.8 bn (Q2: RM21.7 bn) As at 30 September 2014, the Group’s order book stood at RM21.8 bn compared to RM21.7 bn as at 30 June 2014. Upon expiration of the firm contract period, certain contracts contain extension options wh
Slide 12: Leading Indicators
Leading Indicators “Knots Ahead of the Rest”
Slide 13: Oil prices expected to firm going forward
Oil prices expected to firm going forward Bank Research Source; Bloomberg, Bank and Company Reports 13
Slide 14: Shale Oil: Lots of projects at the current level
Shale Oil: Lots of projects at the current level Source: Goldman Sachs Research 14
Slide 15: OPEC: Weak oil prices hurts members too
OPEC: Weak oil prices hurts members too Source: Goldman Sachs Research 15
Slide 16: FPSO activity expected to remain strong
FPSO activity expected to remain strong Source: Goldman Sachs Research 16
Slide 17: Tankers
Tankers • Days of vessel bargains are numbered. Tanker market is beginning to show signs of recovery. • Sector has already seen a short rebound in rates for Aframax vessels in Q1 2014. VLCC touted to be next as supply and fleet replenishment decreases. • Prices of 10-year old VLCC’s have risen 30-40
Slide 18: Steel Prices – 1 year historical price
Steel Prices – 1 year historical price Source: Bloomberg 18
Slide 19: Market Overview
Market Overview “Knots Ahead of the Rest”
Slide 20: Malaysian O&G Index & Crude Oil Price
Malaysian O&G Index & Crude Oil Price Malaysia O&G Stocks Have Been Historically Correlated With Oil Price, But Not Exclusively So Malaysia Oil & Gas Crude Oil Price (US$/bbl) World GDP YoY Growth (%) Event Oil Prices O&G Companies 140 6 1 2 3 4 5 1 Recovery period with Gradual recovery in Trending
Slide 21: Operational Overview
Operational Overview “Knots Ahead of the Rest”
Slide 22: Operational Highlights: FPSO
Operational Highlights FPSO Armada Sterling II undergoing hook-up to the Cluster-7 field off the coast of Mumbai. Conversion work well underway for Armada Kraken and Armada 15/06 with no major delay in the schedule. Armada Claire achieved first oil in Balnaves field, Australia. Finalising contract f
Slide 23: Operational Highlights: OSV
Operational Highlights OSV Current fleet rationalisation efforts have begun to show results. Secured new charters in West Africa and Latin America. Increased overall OSV utilisation to 74%; up 2% from preceding quarter. Reduced the financial impact of old/unprofitable vessels eating into the profits
Slide 24: Operational Highlights: T&I
Operational Highlights T&I Armada Hawk performing the installation of Armada Sterling II at the Cluster-7 field. Armada KP1, shallow water pipelay barge, submitted major bids in India. Armada Condor secured new spot charter in Congo with Boskalis (Shell). Construction of new shallow water barge 20%
Slide 25: Operational Highlights: OFS and Gas
Operational Highlights OFS Currently bidding on well enhancement service jobs in Malaysia and West Africa. Gas Development & Technology At advanced stage of negotiations for BAB’s first FSRU project. Commenced studies for a converted FLNG. Lost Ophir Energy FLNG FEED award. 25
Slide 26: Order book as at 30 September 2014
Order book as at 30 September 2014 Quality firm backlog remains intact at RM21.8 bn (Q2: RM21.7 bn) As at 30 September 2014, the Group’s order book stood at RM21.8 bn compared to RM21.7 bn as at 30 June 2014. Upon expiration of the firm contract period, certain contracts contain extension options wh
Slide 27: Thank You
Thank You “Knots Ahead of the Rest”