Sbm Offshore Nv · EURONEXT:SBMO
Sbm Offshore Nv — Investor Day (September 2014)
25 slides from Sbm Offshore Nv's investor day presentation, Sep 19, 2014
Slide 1: Introductory Remarks
Introductory Remarks Bruno Chabas Chief Executive Officer September 19, 2014 © SBM Offshore 2014. All rights reserved. www.sbmoffshore.com
Slide 2: Disclaimer
Disclaimer Some of the statements contained in this presentation that are not historical facts are statements of future expectations and other forward-looking statements based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual
Slide 3: Agenda
Agenda 1H 2014 Review Macro View Outlook 3
Slide 4: 1H 2014 in Review
1H 2014 in Review 99% IFRS Directional(1) 0.06 Fleet Revenue Revenue LTIFR US$1,729 mn Uptime Up 29% N’Goma Kikeh US$1.85 bn Floating brownfield lifting project extension completed financing Solutions delivered US$21.5 bn US$240 mn IFRS 10 & 11 Brazil Directional(1) settlement Backlog provision IR -
Slide 5: Delivering the Full Product Lifecycle
Delivering the Full Product Lifecycle Engineering Procurement 50 years of industry firsts Integrated supply chain Leading edge technology Global efficiencies Local sourcing Product Life Extension Construction Leader in FPSO relocation Strategic partnerships World class after sales Unrivalled project
Slide 6: No.1 FPSO Player Worldwide
No.1 FPSO Player Worldwide The Company Lease Fleet 5 Execution Centres 10 FPSOs; 4 FPSOs under construction 10 Operational Shore Bases 2 FSOs 5 Representative Offices 1 Semi Sub 10,983 Employees 1 MOPU Financials in US$ billion Performance 1H2014 2014 Directional(1) Guidance 3.3 251 years of operati
Slide 7: Agenda
Agenda 1H 2014 Review Macro View Outlook 7
Slide 8: The Need for Development
The Need for Development Supply Side Picture World Oil Supply & Demand 100 • From 2013 to 2025, world oil demand increases from 91.4 mn to 99.1 mn bbls/d 80 • Growth of unconventional oil supply just meets growth in global oil demand at best Million b/d Conventional crude oil 60 OPEC + Non-OPEC, inc
Slide 9: The Middle East Answer?
The Middle East Answer? Long-run Oil Price Expectations Is the Risk Priced in? • The long-run price expectations have increased since the beginning of the year – Suggests incremental supply is not expected from the Middle East • The short-term price has declined over the past two months – Suggests g
Slide 10: Growth of Cost Inflation
Growth of Cost Inflation Global Unit Costs Increasing Deterioration of Profitability Reserve Additions Stayed Flat Global Oil faces the efficiency challenge IR - 19/09/2014 Source: Bernstein Research June 5&10, July 23, 2014; Goldman Sachs, July 1, 2014. 10
Slide 11: Enduring Appeal of Deepwater
Enduring Appeal of Deepwater The Next Phase of the Cycle Deepwater Project Costs • Three key supply growth buckets Marine Transportation 5% U.S. Shale Oil Plateau by 2020 FPSO Iraq Outlook uncertain 12% Deepwater Secular growth story • Deepwater is the most important growth area Subsea – High volume
Slide 12: What's Changed?
What’s Changed? 2000-2012 2013 & Beyond Rapid growth in the Deepwater frontier Experience from past (complex) projects Technology & local capabilities stretched to Improved upfront project scoping / more the limit; poorly developed supply chain front-end engineering; avoid re-scoping Tight offshore
Slide 13: Industry Dynamics
Industry Dynamics Industry Cyclicality Contractor & Client Relationship 3 A New Way Forward Share Risk, Limit Upside • Seek opportunities for collaboration 2.5 – Foster long-term relationships • Maximize efficiencies 2 – Integrate the supply chain Profitability – Leverage strengths of contractor and
Slide 14: FPSO Awards
FPSO Awards Historical and Estimated Awards 2014-2015 Commentary 16 Market Estimates • 10-14 awards per year 14 13 12 12 12 SBM’s View 10 • 12 awards in 2014 and 13 awards in 2015 10 – 8 awarded through 15/09/2014 8 7 • 17 awards remaining through the end of 2015, 6 – 11 have begun the tender phase
Slide 15: The Award Cycle
The Award Cycle Discoveries Over Past 6 Years Avg. Years: Discovery to Sanction Onshore 2 6 0-500 5 Water Depth (Meters) 7 500-1,000 2 2 1,000-1,500 0 6 1,500-2,000 22 3 2,000+ 5 22 Gas (bn boe) Oil (bn bbl) 50% of elephant discoveries have been in Project sanction delays increasing along deep/ultra
Slide 16: Pre-Award Activity
Pre-Award Activity 16 15 Ex: Carryover of 2 14 projects from 2010 13(1) to 2011 (across all project types) 12 10 10 10 8 7 6 4 2 0 2011 2012 2013 2014E 2015E Turret ITT FPU FEED/ITT Petrobras ITT Previous Year Carryover Apart from Petrobras tenders, generally all FEED/ITT work is (partially) compens
Slide 17: Competitive Landscape
Competitive Landscape Small Conversions – Large Conversions – <60,000 bbls / day 80,000-150,000 bbls / day Newbuilds – >200,000 bbls / day IR - 19/09/2014 17
Slide 18: FPSO Market
FPSO Market Suppliers View Client View Cost pressure NOC/IOCs Niche Customer Player Proximity Supplier overcapacity Commodity Suppliers seeking market share Heavy R&D/unique technology Commodity market pricing Limited number of players and awards Unsustainable Highly tailored and expensive products
Slide 19: Addressing the Challenge
Addressing the Challenge Defining the Problem SBM’s Approach • Longer project award lead times 1. ENGAGE • Increasing pricing pressure – Acknowledge the issues and seek to address them FPSOs viewed as a commodity – We understand their pain More competition o Competitors seeking market share or – Str
Slide 20: Agenda
Agenda 1H 2014 Review Macro View Outlook 20
Slide 21: Directional Backlog
Directional(1) Backlog (US$ billions) US$ 21.5 bn (as of June 30, 2014) 1H14 Revenue Lease & Operate Backlog Remaining Backlog 1.5 1.0 0.5 0.0 $19.4 bn 2016 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Turnkey Backlog 1H14 Revenue
Slide 22: Scheduled for Delivery
Scheduled for Delivery • Vessel arrived at offshore site in Angola • Lifting campaign completed at Paenal • Delivery expected in 3Q14 FPSO N’Goma (12 year L&O contract) • Topside integration completed at Brasa yard • Vessel has left the quayside • Delivery expected in 4Q14 Cidade de Ilhabela (20 yea
Slide 23: Floating Solutions
Floating Solutions Current: Focus on top-end segment • FPSOs • Turret Moorings • Turnkey Sale or Lease & Operate Future: Leverage core competencies • Floating LNG (FLNG) • Semisubmersible & TLP production units IR - 19/09/2014 23
Slide 24: 2014 Guidance
2014 Guidance • Directional(1) Revenue guidance confidently reiterated: US$3.3 billion Turnkey: US$2.3 billion Lease & Operate: US$1.0 billion • As the market develops, the Company will adapt accordingly Demand-driven management of fixed cost structure Further develop core competencies to position S
Slide 25: Q&A
Q&A © SBM Offshore 2014. All rights reserved. www.sbmoffshore.com © SBM Offshore 2014. All rights reserved. www.sbmoffshore.com