Worley Limited · ASX:WOR
Worley — WorleyParsons — Australian Resources, Energy & Utilities Conference 2009
28 slides from Worley's conference presentation, Jun 19, 2009
Slide 1: Australasian Energy – WorleyParsons
For personal use only 19 June 2009 Australian Resources, Energy & Utilities Conference Australasian Energy WorleyParsons Brian Evans – Managing Director, Hydrocarbons 19 June 2009
Slide 2: For personal use only
For personal use only 19 June 2009
Slide 3: Presentation Elements
19 June 2009 Presentation Elements For personal use only X Update on WorleyParsons X Energy & LNG Markets X Our Energy Customers X Global Project Trends & Challenges X Conclusions
Slide 4: Update on WorleyParsons
For personal use only 19 June 2009 Update on WorleyParsons Power Hydrocarbons Infrastructure & Minerals & Metals Environment
Slide 5: Operating Across an Asset's Lifecycle
19 June 2009 Operating Across an Asset’s Lifecycle For personal use only X Leading global professional services provider to the energy, resource, and complex process industries X WorleyParsons experience covers all five phases of the asset lifecycle
Slide 6: Customer Sector Groups
19 June 2009 Customer Sector Groups For personal use only Infrastructure Power Minerals Hydrocarbons & Environment & Metals Upstream Advanced Coal Coal Fixed Offshore Production Facilities Coastal & Marine Base Metals Floating & Deepwater Solutions Gas Turbine Based Water & Wastewater Coal Offshore
Slide 7: Geographic Expansion
19 June 2009 Geographic Expansion For personal use only 2002 37 offices 2004 52 offices 2006 94 offices 2008 118 offices Our global presence spans 37 countries
Slide 8: Revenue by Region and Sector
19 June 2009 Revenue by Region and Sector For personal use only X Revenue by sector (HY09) X Revenue by region (HY09) Infrastructure & Europe & Environment Minerals Africa 7% & Metals 13% Australia & 11% New Zealand Asia & 28% Power Middle East 9% 15% Americas 18% Canada Hydrocarbons 26% 73% A truly
Slide 9: Long Term Contracts and Asset Services
19 June 2009 Long Term Contracts and Asset Services For personal use only X Long term, asset service contracts are a key part of our business X Improve is a service focused on improving our customers’ business outcomes X It is a tailored service to meet the needs of individual sites 160 No of Improv
Slide 10: Capability Expansion
19 June 2009 Capability Expansion For personal use only Complete Subsea/Deepwater Capability X Sea Engineering (Jan 2007) X Intec Engineering (Apr 2008) X INTECSEA (Sep 2008) X Combined to maximize the synergies of the individual companies Total, Integrated Solutions X WorleyParsons and INTECSEA pro
Slide 11: Delivering Gas Solutions
19 June 2009 Delivering Gas Solutions For personal use only Deepwater Difficult Gas Arctic Sour Greenfield Onshore LNG Brownfield Offshore: Floating LNG (FLNG) LNG Re-Gasification Involved across all phases of Gas & LNG
Slide 12: Strategic Awards
19 June 2009 Strategic Awards For personal use only Denali Gas 7 CCRL Refinery ConocoPhillips Romania Refinery Kashagan Full Field Sakhalin-1 7 Treatment Plant Expansion, Improve Jasmine Contract, Improve Development 7 gas Arkutun Dagi Keystone Pipeline Liwan 3-1 System Expansion Shell Martinez Refi
Slide 13: Energy & LNG Markets
For personal use only 19 June 2009 Energy & LNG Markets
Slide 14: Energy Trends
19 June 2009 Energy Trends For personal use only Global Energy Demand Billion Tons Oil Equivalent Primary energy consumption X Global energy demand growth Billions of People Global population has reduced, however long-term fundamentals are unchanged X Demand for oil & gas will continue to be strong
Slide 15: Energy Mix by 2030
19 June 2009 Energy Mix by 2030 For personal use only X Reliance upon conventional sources such as oil, gas and coal will continue to increase X Unconventionals will be increasingly important to keep up with energy demand 18 000 Million Tons of Oil Equivalent 16 000 Other Renewables 14 000 Hydro 12
Slide 16: Gas Markets
19 June 2009 Gas Markets For personal use only X Gas will account for 22% of global energy use by 2030 (source EIA) and will be key in supporting global demand growth for cleaner energy Supply Demand Major sources of supply Major sources of demand growth include Australia, include Western Europe Mid
Slide 17: Australia and PNG LNG Footprint
19 June 2009 Australia and PNG LNG Footprint For personal use only Woodside ExxonMobil/Oil Search Sunrise PNG LNG INPEX Ichthys ConocoPhillips Shell Darwin LNG Prelude (operating) InterOil/Petromin PNG Woodside Liquid Niugini Gas (Elk 1&2) Browse Chevron Greater Gorgon Australia Pacific LNG (ConocoP
Slide 18: Our Energy Customers
For personal use only 19 June 2009 Our Energy Customers
Slide 19: A Wild Ride for Market Cap
19 June 2009 A Wild Ride for Market Cap For personal use only 2008 – a rollercoaster year for our customers Source: Bloomberg
Slide 20: Customer 2009 Capital Budgets
19 June 2009 Customer 2009 Capital Budgets For personal use only X Capital budgets for IOCs & NOCs vary compared to 2008 Majority allocated to Upstream 2009 Capital Budgets 40% 30% Change from 2008 20% 10% 0% -10% -20% NOC IOC -30% Top 15 HC Customer -40% 5 10 15 20 25 30 35 Capital Budget (US$ Bill
Slide 21: NOCs Increasingly Control World Reserves
19 June 2009 NOCs Increasingly Control World Reserves For personal use only Full IOC Access Reserves held by Russian 7% Co’s 16% NOC Reserves (limited equity 65% access) 12% NOC Reserves (equity access) IOC direct access to world reserves continues to shrink; many NOCs becoming more self-sufficient
Slide 22: Hydrocarbons Customer Base
19 June 2009 Hydrocarbons Customer Base For personal use only X We have a broad global multi-national hydrocarbons customer base and a comprehensive geographic presence to provide local services Integrated National Oil Companies Oil Companies (IOCs) Independents (NOCs) 50 – 60% 25 – 30% 15 – 20% Rev
Slide 23: Global Project Trends & Challenges
For personal use only 19 June 2009 Global Project Trends & Challenges
Slide 24: Project Environment Has Changed
19 June 2009 Project Environment Has Changed For personal use only X Significant increase in mega-projects (> $1 Billion) in last few years X Project Complexity Increases Difficult Oil: Unconventional sources & Politics More Consortia/JVs/Alliances between Owners and Contractors Remote geographic lo
Slide 25: Project Environment Has Changed (continued)
19 June 2009 Project Environment Has Changed (continued) For personal use only X Current Supply Trends Increased margin pressure Reduced equipment, steel, and labour costs Reduced delivery times Reduced workforce in some areas Have we reached the bottom yet?
Slide 26: Conclusions
For personal use only 19 June 2009 Conclusions
Slide 27: Conclusions
19 June 2009 Conclusions For personal use only X Currently, at or near bottom of supplier market; oil price is rebounding; gas pricing should recover, mid-term X But, strong pressure on margins is continuing, so far…. X Over the last few weeks, customers are beginning to talk about re-initiating som
Slide 28: Outlook
19 June 2009 Outlook For personal use only X Despite some projects and sectors being affected by the global economic crisis the outlook in other sectors remains positive. X We expect some recently announced contract awards, amongst the largest in the company’s history, will support earnings in the 2
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