Slide 1: FY 2012 Results
FY 2012 RESULTS 22nd February 2013 “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: Financials
Financials “Knots Ahead of the Rest”
Slide 4: Results Overview – FY 2012 vs. FY 2011
Results Overview – FY 2012 vs. FY 2011 Improved key performance indicators despite delay in FPSO awards +7.5% +8.7% +7.3% • New vessels and higher utilization in OSV segment • Higher margins from its FPSOs and new • Full year of Apache FPSO OSV vessels contract • New LukOil T&I contract • New LukOil
Slide 5: Revenue composition by business units
Revenue composition by business units Improved performance in established sectors +17.5% +14.3% Increase due to full year on Apache Contract (D1 award in 2011 is recorded as Increase in fleet size and utilisation part of share of results of JCE) +60.3% Completion of Sepat project in 2011. Increase d
Slide 6: Revenue composition by geographical %
Revenue composition by geographical % Malaysia based international company, expansion across key regions 6
Slide 7: Leverage and capitalisation
Leverage and capitalisation Financial capacity intact to undertake more projects Net Debt / EBITDA(1) Gearing ratio (1) Calculated based on annualised EBITDA 7
Slide 8: Order book
Order book As at 31 Dec 2012, the Group’s order book stood at RM7.0 billion compared to RM7.3 billion as at 30 Sep 2012. Upon expiration of the firm contract period, certain contracts contain extension options which are renewable on annual basis with a total potential contract sum of RM3.7 billion o
Slide 9: 2012 Business Review
2012 BUSINESS REVIEW “Knots Ahead of the Rest”
Slide 10: OSV – expanded the fleet
OSV – expanded the fleet 1 Positive: Entered Brazil with 3 contracts with Petrobras. (Image 1) Added five vessels to the fleet (2 x 3,000DWT PSVs, 2 X 12,000HP AHTS and 1 x Accommodation Work barge). (Image 2) 2 Signed LOI to build 4 x MPSVs (plus option for four more). (Image 3) Secured new contrac
Slide 11: FPSO – Execution excellence & proven delivery model
FPSO – Execution excellence & proven delivery model Positive: Operations – All three operating FPSOs achieved above 99% uptime and with zero LTI. Afren Energy Resources exercised the first of its annual extensions, effective 1 July 2013 for the Armada Perkasa. Armada Sterling - completed and deliver
Slide 12: T&I – Move to a Full Service Provider
T&I – Move to a Full Service Provider Armada Installer Secured EPIC contract worth USD200 mil Lukoil for work in the Caspian Sea. Contract to lay 15km of pipeline with Momentum Engineering in the Caspian Sea. Increased income and profit contribution despite lower utilization days from Petronas. Arma
Slide 13: Sector Outlook
SECTOR OUTLOOK “Knots Ahead of the Rest”
Slide 14: The leading indicators
The leading indicators Oil prices forecast to remain above USD100/barrel in 2013 and 2014. Production need to significantly increase into order to offset the decline in existing fields as well as cover the forecast demand increase to keep oil prices stable. Source: IEA 14
Slide 15: Feb 2014 NYMEX deliveries are firm
Feb 2014 NYMEX deliveries are firm Current NYMEX deliveries are trading in the USD96-98/barrel range. 96.67 Source: Bloomberg 15
Slide 16: Steel prices
Steel prices Good for our new-builds and new projects. Feb 2014 futures at similar levels. 623/t Source: Bloomberg 16
Slide 17: Second-hand tanker prices
Second-hand tanker prices Tankers prices reflective of steel – positive for conversions. Source: Fearnley 17
Slide 18: E&P capex outlook to 2014
E&P capex outlook to 2014 A sample of Majors, NOCs and independents indicates that expenditure in E&P will increase by an average of 10% over 2013 and 2014, Source: Pareto Sec, Oil Companies 18
Slide 19: Costs control will be critical
Costs control will be critical Capex and opex costs have effectively more than doubled over the last 10 years. Uptrend will continue. Source: IHS Cera 19
Slide 20: The View Ahead
THE VIEW AHEAD 1" ta BUMIARMADA aA 20
Slide 21: OSV – deeper, further, harsher
OSV – deeper, further, harsher Maintain a young, high specification, “green, safe and efficient” (GSE) fleet. Enhance our deepwater offering, service capability and competency. Rationalise the fleet across our Asia, Africa and Latin America markets. HIGH Steel on Water 2 Steel on Water 1 PSVs, MPSVs
Slide 22: FPSO – focus on larger projects
FPSO – focus on larger projects Technical competence, project execution and delivery capability and operational excellence. Larger, complex, technically challenging projects with higher barriers to entry. HIGH DEEPER, FURTHER, HARSHER BRAZIL NORTH SEA AFRICA ASIA LOW SMALL MEDIUM >500m LARGE <500m P
Slide 23: More FPSOs required going forward
More FPSOs required going forward Long-term demand for FPSO projects remains strong. Source: IMA Inc. 23
Slide 24: FPSO – limited capacity
FPSO – limited capacity Limited number of players with capability and capacity to undertake new projects. 24
Slide 25: FPSO – Global prospects
FPSO – Global prospects Enquest –Kraken PC Vietnam - Block 102/106 Premier–Catcher ENI – OML 245 Premier CRD Hess, Ghana NNPC - Okono/okphono Con Son JOC - Block 10 & 11.1 Tullow - Deepwater Tano Shell - Block H Hess - Belud Anandarko - Afren - Okwok Venus Yinka- Aje ENI/Vito - Sankofa Shell – E6 Ca
Slide 26: FPSO - Cluster 7, a positive start to 2013
FPSO - Cluster 7, a positive start to 2013 Field Details Cluster 7 field comprises of three fields B- 192, B-45 and WO-24, in water depths of 80 – 88 m. Cluster-7 field located about 210km off the western coast of Mumbai, India. Project Details Cargo Capacity: 510,000 bbls minimum MUMBAI HIGH Liquid
Slide 27: T&I – expansion into SURF
T&I – expansion into SURF Subsea, Umbilicals, Risers & Flowlines Services, competencies, leveraging on our value chain. Pull-through from FPSO/FPU projects. EPICC Subsea, (T&I FOCUS) Umbilicals, Risers and Flow-lines (SURF) Pipe-laying, Heavy- lift and Installation HAWK FPSO Installation INSTALLER A
Slide 28: Oil Field Services & Oil Field Development
Oil Field Services & Oil Field Development A “two-prong” approach : Malaysia RSC/EOR opportunities and Build a competency and capability in oil field services MALAYSIA INTERNATIONAL MARGINAL MARGINAL LEVERAGE FIELDS FIELDS FPSO OSV T&I BROWN BROWN FIELD FIELD Expansion NEW DOWN DOWN HOLE HOLE Acquir
Slide 29: Floating gas solutions - embryonic
Floating gas solutions - embryonic A new business built based on existing competencies with additional complimentary capabilities. EXISTING ADDITIONAL GAS CAPABILITIES SKILLS SOLUTIONS FSRU FSRU ENGINEERING ENGINEERING GAS GAS SPECIFIC SPECIFIC PROJECT PROJECT MANAGEMENT MANAGEMENT CAPABILITIES CAPA
Slide 30: BAB's longer term strategy
BAB’s longer term strategy To build an established global brand of offshore oilfield services. FPSO business to remain a key focus as a “hedge” for the overall business. OSV FPSO T&I OFS GAS Deep Medium Shallow E TS K AR M EW N Current NEW BI Z Future New 30
Slide 31: Q&A
Q&A N BP ¥ BUMIARMADA “Knots Ahead of the Rest”