Sbm Offshore Nv · EURONEXT:SBMO
Sbm Offshore Nv — Investor Presentation (November 2013)
45 slides from Sbm Offshore Nv's investor presentation, Nov 14, 2013
Slide 1: General Presentation, November 2013
General Presentation, November 2013 © SBM Offshore 2013. All rights reserved. www.sbmoffshore.com
Slide 2: Disclaimer
Disclaimer Some of the statements contained Should one or more of these risks or in this presentation that are not uncertainties materialize, or should historical facts are statements of underlying assumptions prove future expectations and other incorrect, actual results may vary forward-looking sta
Slide 3: Agenda: Who we are, where we are
Agenda Who we are, where we are Emerging Opportunities Our Strategy 3
Slide 4: No.1 FPSO Player Worldwide
No.1 FPSO Player Worldwide The Company Lease Fleet 4 Execution Centres 16 FPSOs 10 Shore Bases 2 FSOs 5 Representative Offices 1 Semi Sub 9,660 Employees 1 MOPU Financials in US$ billion Performance YE2012 2013 IFRS Revenue Guidance 4.3 167 years of FPSO operation 4 Directional¹ Backlog (as of 09/30
Slide 5: We Deliver Along the Full Product Lifecycle
We Deliver Along 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 p
Slide 6: YTD Q3 2013 in Context
YTD Q3 2013 in Context IR- 14/11/2013 ¹ Directional view is a non-IFRS disclosure, which corrects the non-cash effects on revenue and earnings introduced by IFRS finance lease accounting 6
Slide 7: H1 2013 Key Figures
H1 2013 Key Figures (in millions of US$) IR- 14/11/2013 *Restated for comparison purposes 7
Slide 8: YTD Q3 2013 Key Figures
YTD Q3 2013 Key Figures (in millions of US$) IR- 14/11/2013 *Restated for comparison purposes ¹ Directional view is a non-IFRS disclosure, which corrects the non-cash effects on revenue and earnings introduced by IFRS finance lease accounting 8
Slide 9: Q4 2013 Outlook
Q4 2013 Outlook • Continued strengthening of Balance Sheet post Rights Issue • No dividend over 2013 • Sale of non-core assets ongoing • 2013 IFRS revenue guidance: at least US$4.3 billion • US$3.3 billion in Turnkey • US$1.0 billion in Lease & Operate IR- 14/11/2013 9
Slide 10: FPSOs Cidade de Maricá & Cidade de Saquarema
FPSOs Cidade de Maricá & Cidade de Saquarema • Generation 3 FPSOs • Topside: 22,000 T • Accelerated award process • Delivery end 2015 and early 2016 Contracts executed IR –IR- 14/11/2013 14/11/2013 July 2013 10
Slide 11: FPSO Stones
FPSO Stones • 10 year lease contract • Optional extensions up to 10 years • World’s deepest disconnectable FPSO; 2,896 meters in GOM • Delivery date H1 2016 Contract executed IR –IR- 14/11/2013 14/11/2013 July 2013 11
Slide 12: Directional Backlog
Directional Backlog US$22.4 bn (as of June 30, 2013) Lease & Operate backlog: Directional¹ vs IFRS 1.4 1.2 Directional 1.0 IFRS in US$ bn 0.8 0.6 0.4 0.2 0.0 US$18.7 bn Turnkey backlog: Directional¹ vs IFRS 3.0 Directional 2.5 IFRS 2.0 in US$ bn 1.5 1.0 0.5 US$3.7 bn 0.0 H2 2013 2014 2015 Lease & Op
Slide 13: FPSO OSX 2 Delivered in September
FPSO OSX 2 • Turnkey sale • On time, on budget • No further financial exposure Delivered in September IR –IR- 14/11/2013 14/11/2013 July 2013 13
Slide 14: FPSO Cidade de Paraty
FPSO Cidade de Paraty • 20 year lease contract • On time, on budget • More than 65% local content • FPSO built in 34 months In production H1 2013 IR –IR- 14/11/2013 14/11/2013 July 2013 14
Slide 15: MOPU Deep Panuke
MOPU Deep Panuke • Well gas on platform • Partial day rate arrangement applies • Final stages commissioning and start-up In production H2 2013 IR –IR- 14/11/2013 14/11/2013 July 2013 15
Slide 16: Core Projects on Track
Core Projects on Track (ol) operating lease (fl) finance lease (t) turnkey Legacy Project In Progress/On Schedule Completed/On Hire IR- 14/11/2013 16
Slide 17: SBM Lease Fleet Portfolio
SBM Lease Fleet Portfolio L&O Portfolio Average Duration: 14.5 years IR- 14/11/2013 17
Slide 18: Yme Resolution
Yme Resolution • Termination of existing agreements and arbitration procedures • Platform to be decommissioned by Talisman by 2016; transported and scrapped by SBM Offshore • All relevant costs have been provided for in 2012 • US$470 mln settlement contribution: Paid in full, March 2013 • Impact on
Slide 19: Recapitalisation
Recapitalisation • 10% Rights Issue at €10.07 per share in April 2013 • 97.7% take-up by existing shareholders • HAL at 13.5% shareholding following the Rights Issue and December 2012 Private Placement IR- 14/11/2013 19
Slide 20: Compliance
Compliance • April 2012, the Company announced it had initiated an internal investigation into potentially improper sales practices • This investigation is being carried out by outside counsel and forensic accountants under our Chief Governance and Compliance Officer • In active dialogue with the re
Slide 21: Divestment Update
Divestment Update • Sale and lease back of Monaco real estate • COOL™ hose technology sold • SBM Installer sold for US$180 million cash IR –IR- 14/11/2013 14/11/2013 July 2013 21
Slide 22: FPSO N'Goma Project Financing
FPSO N’Goma Project Financing • US$600 mln project loan secured • Maturity: 1 year pre completion / 7 years post completion fully amortised term loan • Weighted Average Cost of Debt: 4.7% Q3 2013 Financing Obtained IR –IR- 14/11/2013 14/11/2013 January 2013 22
Slide 23: Agenda: Emerging Opportunities
Agenda Who we are, where we are Emerging Opportunities Our Strategy 23
Slide 24: Demand for New Production
Demand for New Production Demand Growth vs. Field Depletion 100 90 80 Over 24 mln bbl/day = 2 x 2012 Saudi 70 Arabia production in million barrels per day 60 50 40 30 20 10 0 11 12 13e 14e 15e 16e 17e 18e 2011/12 Demand Existing Supply Offsetting decline (5% depletion rate) Meeting demand growth Spa
Slide 25: Oil Production Dynamics
Oil Production Dynamics Breakeven Oil Price • Deep and ultra-deep (IRR>10%) water breakeven costs are competitive • Average SBM Generation 3 FPSO production costs are below US$5/bbl Sources: IEA, CERA, Total, Goldman Sachs, Internal analysis IR- 14/11/2013 25
Slide 26: Capitalising on CAPEX
Capitalising on CAPEX Global Upstream CAPEX (in US$ mln) • Offshore Growth 400,000 CAGR 2012-15E: +20% 350,000 300,000 • Ultra-deep Water Growth 250,000 CAGR 2012-15E: +38% in US$ mln 200,000 • Onshore Growth 150,000 CAGR 2012-15E: +7% 100,000 50,000 0 2010 2011 2012 2013 E 2014 E 2015 E Total Onsho
Slide 27: Complexity Increasing
Complexity Increasing 24,000 Cd de Maricá Cd de Saquarema Cd de Ilhabela 20,000 Topsides Weight (ton) 16,000 Cd de Paraty Frade 12,000 P 57 N’Goma Aseng BC 10 Kikeh Saxi Cd de Anchieta Stones 8,000 Xikomba Cachalote Marlim Sul Mondo Falcon Brasil Capixaba Serpentina Espadarte 4,000 Kuito Rang Dong 0
Slide 28: Getting Complex
Getting Complex IR –IR- 14/11/2013 18/09/2013 1996 November 2012
Slide 29: A Pedigree of Innovation
A Pedigree of Innovation IR- 14/11/2013 29
Slide 30: Competitive Landscape: Awards won
Competitive Landscape FPSO market 2010-2013 YTD Awards 7 6 5 Awards won 4 3 2 1 0 0 50,000 100,000 150,000 Average production capacity (bbl/d) Engineering complexity Source: Internal Analysis – November 2013 IR- 14/11/2013 30
Slide 31: FPSO Awards in Review
FPSO Awards in Review Source: Internal Analysis - August 2013 IR- 14/11/2013 31
Slide 32: FPSO Market Outlook
FPSO Market Outlook Field developments requiring FPSOs over the next 3 years More than 50 FPSO project awards anticipated SBM will focus on ~20 projects to obtain targeted share North America Other 1 Asia 3 3 4 2 Africa 1 5 South America 2 5 2 8 Lease 4 Sale 14 Lease or Sale Source: Internal Analysi
Slide 33: Agenda: Our Strategy
Agenda Who we are, where we are Emerging Opportunities Our Strategy 33
Slide 34: FPSO Core Product Focus
FPSO³ The Company has refocused its FPSO product line on core FPSO products and associated services. By focusing on core products with FPSO historically good margins, whilst improving execution standards and project risk profiles, the Company believes it will return to delivering FPSO superior finan
Slide 35: Improving Risk/Reward Balance
Improving Risk/Reward Balance • Unsustainable historic industry returns • SBM recent steps: Discipline in tendering Attractive niche position Not a commodity product Excellent operations (99% uptime) IR –IR- 14/11/2013 18/09/2013 January 2013 35
Slide 36: 2013 Restoring Pride
2013 Restoring Pride Closure of legacy Strengthened projects balance sheet Selective bidding Directional1 reporting policy Investment in Reshaped organisation technological edge Still in Transformation Process IR- 14/11/2013 ¹ Directional view is a non-IFRS disclosure, which corrects the non-cash ef
Slide 37: Appendix
Appendix © SBM Offshore 2013. All rights reserved. www.sbmoffshore.com
Slide 38: Project Direction - Context
Project Direction - Context • SBM Offshore seeking to provide analysts and investors with clarity on business performance above and beyond statutory IFRS disclosure • SBM Offshore’s business model combines turnkey sales, construction and lease and operate projects, making it a challenge to model • I
Slide 39: Operating Lease vs Finance Lease
Operating Lease vs Finance Lease IR- 14/11/2013 39
Slide 40: Operating Lease vs Finance Lease
Operating Lease vs Finance Lease IR- 14/11/2013 40
Slide 41: Directional - The Way Forward
Directional - The Way Forward • Turnkey segment becomes a pure construction business. Revenue and Gross Margin consist of: • Direct sales contracts (FPSO OSX 2, Turrets for Prelude, Quad 204 and Ichthys) • Sales to JV partners (FPSO Cdd de Ilhabela, FPSO N’Goma, FPSO Cdd de Maricá and Saquarema) • L
Slide 42: Turnkey P&L
Financial Overview June 30, 2013 Turnkey P&L (in millions of US$) *Restated for comparison purposes Directional¹ IFRS • Revenue up 29% reflecting high activity • Revenue up 43% reflecting high activity levels levels on FL contracts • EBIT margin 15% vs 7% in H1 2012 • EBIT margin 14% vs 8% in H1 201
Slide 43: Lease & Operate P&L
Financial Overview June 30, 2013 Lease & Operate P&L (in millions of US$) *Restated for comparison purposes Directional¹ IFRS • Revenue up 14%, mainly Anchieta • Revenue up 13%, mainly Anchieta • EBIT affected by US$300 mln charges • EBIT affected by US$300 mln charges (Yme, Deep Panuke) (Yme, Deep
Slide 44: Group P&L
Financial Overview June 30, 2013 Group P&L (in millions of US$) *Restated for comparison purposes • Directional¹ revenue up 24% • US$270 mln charge for Yme settlement and US$30 mln Deep Panuke charge • Directional¹ EBIT(excluding Yme and Deep Panuke charges) up 69% IR- 14/11/2013 ¹ Directional view
Slide 45: Group Ratios
2013 Group Results Group Ratios (in millions of US$) *Restated for comparison purposes IR- 14/11/2013 45