Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Sembcorp Marine — FY2017 Earnings Presentation
25 slides from Singapore Exchange's earnings presentation, Feb 21, 2018
Slide 1: Corporate Presentation: 4Q/FY2017 Results Briefing
CORPORATE PRESENTATION 4Q/ FY 2017 results briefing – 21 February 2018 Aerial view of Tuas Boulevard Yard Phase I and II Aerial view of Phase I of Sembcorp Marine Tuas Boulevard 1 Yard AGENDA CEO Address CFO Financial Highlights 2 1
Slide 2: CEO Address: Macro environment, recovery in sight but risks remain
CEO ADDRESS CEO ADDRESS Macro Environment update Financial performance for 4Q/ FY 2017 Operations Review Outlook and Prospects 3 Macro environment – Recovery in sight but risks remain Global economic growth outlook improving, increased investments and consumption demand, pickup in manufact
Slide 3: Financial Performance; Sale of Jack-up and Semi-sub rigs
Financial Performance While the offshore oil and gas industry has begun to show signs of improvement, new order flow remained weak, while competition within the sector intensified. Despite difficult operating conditions, Sembcorp Marine remained profitable in FY2017. Net gearing improved with
Slide 4: Project deliveries in 2017
Project deliveries in 2017 FPSO Pioneiro de Libra Project: Conversion of shuttle tanker to an FPSO, including detailed engineering, installation and integration of topside modules, installation of external turret and power generation, accommodation upgrading as well as extensive piping and electrica
Slide 5: Project deliveries in 2017; Semi-sub crane vessel newbuild
Project deliveries in 2017 Pacific Class 400 premium jack-up rigs delivered to Borr Drilling Customer: Borr Drilling Delivery: 4Q 2017, 1Q 2018 Contract: Sale of 9 Pacific Class 400 premium jack‐up rigs to Borr Drilling 9 Ongoing Projects – Semi-sub crane vessel newbuild Heerema Semi-submersible Cra
Slide 6: Ongoing Projects: Crane Vessel and FSO Newbuild
Ongoing Projects – Semi-sub crane vessel newbuild Heerema Semi-submersible Crane Vessel – in end-4Q 2017 Project: Engineering and construction of a newbuild semi‐submersible crane vessel Customer: Heerema Offshore Services B.V. 11 Ongoing Projects – FSO Newbuild Maersk Culzean FSO Newbuild – in 4Q 2
Slide 7: Maersk Culzean Platform EPC Project
Maersk Culzean Platform EPC Project Project: Engineering, procurement, construction and onshore pre‐commissioning of Central Processing Facility plus 2 connecting bridges, Wellhead Platform and Utilities & Living Quarters Platform Topsides Customer: Maersk Oil North Sea UK 13 Operation: Culzean fiel
Slide 8: Higher value work at Repairs & Upgrades
Higher value work at Repairs & Upgrades REPAIRS & UPGRADES 15 Steady flow of vessels at Repairs & Upgrades REPAIRS & UPGRADES 16 8
Slide 9: Review of Operations – Projects in progress
Review of Operations – Projects in progress Good progress being made for ongoing projects in our order book. These include : • Engineering & construction of world’s largest semi-submersible crane vessel for Heerema; • Design & Construction of MODEC’s newbuild harsh environment Floating Storage and
Slide 10: Review of Operations – Repairs & Upgrades
Review of Operations – Repairs & Upgrades Repairs & Upgrades performed a total of 390 dry-dockings, repairs and upgrades in FY 2017. Revenue per vessel improved due to better vessel mix and more high value works. • A total of 16 cruise ship refits were completed in 2017, including the completion o
Slide 11: Orderbook developments in 2017
New Orders & Orderbook developments in 2017 21 On December 6, 2017 we announced the award of a US$490 million contract from Statoil Petroleum AS for the turnkey Engineering, Procurement and Construction of Hull and Living Quarters for a newbuild FPSO. Scheduled for completion in 1Q 2020, the FPS
Slide 12: Orderbook developments in 2017; Net orderbook at $7.58 billion
Orderbook developments in 2017 We have also signed an LOI with US-based SeaOne Caribbean (SeaOne) in 3Q 2017 for the design and construction of at least two large Compressed Gas Liquid carriers. FEED studies are currently in progress. We continue to make steady progress in the development of pro
Slide 13: Harnessing Innovation for Sustainability
Harnessing Innovation for Sustainability To ensure long-term competitiveness, Sembcorp Marine has embarked on several partnerships to leverage on innovation for sustainable growth. We have forged joint industry collaborations with DNV GL, A*STAR’s Singapore Institute of Manufacturing (SIMTech) a
Slide 14: Human Resources; Singapore Yards
Human Resources During 2017, we continued to implement cost-management strategies to enhance productivity and optimise our headcount. These include reduction in manpower cost through wage cuts and wage freeze, productivity improvement measures to enhance competitiveness, and right sizing, re-tra
Slide 15: Brazil; Cashflow and Liquidity Management
Brazil The Company made an announcement to the SGX on 30 March 2015 relating to allegations of illegal payments in connection with contracts entered into in Brazil by certain subsidiaries of the Company. The Company disclosed in the announcement that the Company had initiated an internal investi
Slide 16: Final Dividend and Outlook
Final Dividend To recognise our valued shareholders for their loyalty and support, the Board of Directors is recommending a final cash dividend of 1.0 cent per share, which is scheduled to be paid on 11 May 2018. Including the interim dividend of 1.0 cent per share, total dividend payout is 2.0
Slide 17: CFO Presentation: Performance Highlights
CFO Presentation Earnings Performance Financial Position 33 Performance Highlights Key highlights: For the 12 months to December 31, 2017: Turnover totalled $2.39 billion compared with FY 2016’s $3.54 billion. Gross profit of $61 million on earnings recognition of ongoing projects and delive
Slide 18: Financial Highlights; Financial Review: Revenue
FINANCIAL HIGHLIGHTS Group ($ million) 4Q 2017 4Q 2016 % change FY 2017 FY 2016 % change Turnover 655.0 829.9 (21) 2,387.4 3,544.8 (33) Gross (Loss)/ Profit (48.2) 34.7 n.m. 60.5 292.8 (79) EBITDA 4.4 120.2 (96) 213.4 384.3 (44) Operating (Loss)/ Profit (43.6) 67.1 n.m. 20.5 225.3 (91) (Loss)/Profit
Slide 19: Financial Review: Net Profit; Turnover by Segments
Financial Review: Net Profit 37 Business Review: Turnover by Segments Turnover ($ million) 4Q 2017 4Q 2016 % change FY 2017 FY 2016 % change Rigs & Floaters 407 496 (18) 1,098 1,887 (42) Repairs & Upgrades 120 110 9 471 460 3 Offshore Platforms 110 200 (45) 732 1,116 (34) Other Activities 18 24 (24)
Slide 20: Core Business: Rig Building and Floaters
Core Business: Rig Building 39 JACK UP RIGS SCHEDULE • Rig building revenue was $454 million in FY 2017 mainly due to revenue reversal from termination of jack-up rigs with original First rig delivered to Borr Drilling No. of completed rigs delivered in 1 customer. In Oct 2017, the group sold 9 jack
Slide 21: Core Business: Offshore Platforms and Repairs & Upgrades
Core Business: Offshore Platforms 41 • Offshore Platforms revenue declined 34% YOY to $732 million in FY 2017 due to fewer projects on hand. Delivered two projects in FY17. • 1 projects in work-in-progress stage and 1 in planning stage. REVENUE – OFFSHORE PLATFORMS No. of ($ MILLION) Offshore Platfo
Slide 22: Capital, Gearing & ROE; Cashflow
CAPITAL, GEARING &ROE Group ($ million) Dec-17 Dec-16 % change Shareholders' Funds 2,478 2,562 (3) Net Debt 2,799 2,938 (5) Net Working Capital 1,546 1,270 22 Return on Equity (ROE) (%) 0.6 3.1 (81) Net Asset Value (cents) 118.7 122.6 (3) Return on Total Assets (ROTA) (%) 1.1 1.8 (39) 43 CASHFLOW Gr
Slide 23: New Contracts Secured; Net Order Book FY2017
New Contracts Secured (Product ) - FY 2017: $ 2.74 billion) 45 Net Order Book – FY2017 :$7.58 billion 46 23
Slide 24: Net order backlog by division and product type
Net order backlog by division and product type 2016 – Total $7.84 billion 2017 – Total $7.58 billion Offshore Offshore Platforms Platforms 11% 3% Floaters 20% OFFSHORE OFFSHORE Floaters PLATFORMS PLATFORMS 16% 3% 11% Drillships Drillships Jackup RIGS & Jackup 57% 3% 58% RIGS & 14% FLOATERS FLOATERS
Slide 25: Forward-looking statements disclaimer
This presentation may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative exam