Subsea 7 S.A. · OSL:SUBC
Subsea 7 — Lehman Brothers CEO Energy/Power Conference 2007
52 slides from Subsea 7's conference presentation, Sep 4, 2007
Slide 1: Subsea 7 Inc. Presentation
Subsea 7 Inc. Presentation Mel Fitzgerald, Chief Executive Officer, Subsea 7 Lehman Brothers - CEO Energy/Power Conference September 4, 2007 Subsea Partner of Choice www.subsea7.com 04.09.2007
Slide 2: Forward looking statement
Forward looking statement Certain statements contained in this presentation constitute “forward-looking information” within the meaning of Section 27A of the US Securities Act of 1933, as amended, and Section 21E of the US Securities Exchange Act of 1934, as amended. In order to utilize the “safe ha
Slide 3: Company Overview
Company Overview Subsea Partner of Choice www.subsea7.com 04.09.2007
Slide 4: Who we are
Who we are A company dedicated to pure play SURF (Subsea, Umbilicals, Risers and Flowlines) engineering and construction in the global oil and gas sector. Established in 2002 from the merger of Halliburton Subsea and DSND. Listed on the Oslo Stock Exchange (ticker SUB) since August 2005. Market capi
Slide 5: What we do
What we do Subsea Field Development Subsea Partner of Choice www.subsea7.com 04.09.2007
Slide 6: Exclusive focus on the SURF market
Exclusive focus on the SURF market Capex - Subsea Field Development - focus on high value deepwater markets •Major EPIC project management and engineering The $270m Lobito Tomboco project for Chevron in offshore Angola involved the reclamation and building of new spoolbase in Luanda. The coordinatio
Slide 7: Exclusive focus on the SURF market
Exclusive focus on the SURF market Capex - Subsea Field Development - focus on high value deepwater markets • Major EPIC project management and engineering •Up to 16” pipeline and riser system installation Pipeline installation by the Navica in the harsh North Sea waters for BP, West of Shetland. Su
Slide 8: Exclusive focus on the SURF market
Exclusive focus on the SURF market Capex - Subsea Field Development - focus on high value deepwater markets • Major EPIC project management and engineering • Up to 16” pipeline and riser system installation •Design, fabrication and installation of subsea structures Woodside Enfield Project comprised
Slide 9: Exclusive focus on the SURF market
Exclusive focus on the SURF market Capex - Subsea Field Development - focus on high value deepwater markets • Major EPIC project management and engineering • Up to 16” pipeline and riser system installation • Design, fabrication and installation of subsea structures •Tie-ins and commissioning The qu
Slide 10: Exclusive focus on the SURF market
Exclusive focus on the SURF market Capex - Subsea Field Development - focus on high value deepwater markets • Major EPIC project management and engineering • Up to 16” pipeline and riser system installation • Design, fabrication and installation of subsea structures • Tie-ins and commissioning Opex
Slide 11: Exclusive focus on the SURF market
Exclusive focus on the SURF market Capex - Subsea Field Development - focus on high value deepwater markets • Major EPIC project management and engineering • Up to 16” pipeline and riser system installation • Design, fabrication and installation of subsea structures • Tie-ins and commissioning Opex
Slide 12: Exclusive focus on the SURF market
Exclusive focus on the SURF market Capex - Subsea Field Development - focus on high value deepwater markets • Major EPIC project management and engineering • Up to 16” pipeline and riser system installation • Design, fabrication and installation of subsea structures • Tie-ins and commissioning Opex
Slide 13: Exclusive focus on the SURF market
Exclusive focus on the SURF market Capex - Subsea Field Development - focus on high value deepwater markets • Major EPIC project management and engineering • Up to 16” pipeline and riser system installation • Design, fabrication and installation of subsea structures • Tie-ins and commissioning Opex
Slide 14: Exclusive focus on the SURF market
Exclusive focus on the SURF market Capex - Subsea Field Development - focus on high value deepwater markets • Major EPIC project management and engineering • Up to 16” pipeline and riser system installation • Design, fabrication and installation of subsea structures • Tie-ins and commissioning Opex
Slide 15: Exclusive focus on the SURF market
Exclusive focus on the SURF market Capex - Subsea Field Development - focus on high value deepwater markets • Major EPIC project management and engineering • Up to 16” pipeline and riser system installation • Design, fabrication and installation of subsea structures • Tie-ins and commissioning Opex
Slide 16: Where we operate
Where we operate North and Central America region North Sea region Brazil region Africa region Asia-Pacific region Subsea Partner of Choice www.subsea7.com 04.09.2007
Slide 17: Clients
Clients Subsea Partner of Choice www.subsea7.com 04.09.2007
Slide 18: Financial highlights - 2006
Financial highlights - 2006 Revenue +30% Net Profit +207% $1.287m $1.670m $138m $45m 2005 2006 2005 2006 EBITDA +60% Capex +157% $265m $265m $166m $103m 2005 2006 2005 2006 Subsea Partner of Choice www.subsea7.com 04.09.2007
Slide 19: Market Overview
Market Overview Subsea Partner of Choice www.subsea7.com 04.09.2007
Slide 20: SURF market: Capex 2007-2011 average annual spend forecast
SURF market: Capex 2007-2011 average annual spend forecast Robust market demand: • Traditional shallow water markets providing steady $3.6bn baseload of work • Growth in key deep water regions $3.3bn • Increasing deep water focus for drilling: evidence from i-Tech $2.6bn $3.5bn • Africa: $1.0bn Tota
Slide 21: SURF market: Opex
SURF market: Opex • Shallow water IRM – Subsea 7 has strong position in North Sea underpinned by long-term reimbursable contracts: • BP West of Shetland & Shell DSV & ROVSV – Woodside framework contract in Australia – Ageing field infrastructure underpins robustness of markets – Market currently tar
Slide 22: Vision and Business Focus
Vision and Business Focus Subsea Partner of Choice www.subsea7.com 04.09.2007
Slide 23: Our Vision
Our Vision We will be the Subsea Partner of Choice in the challenging and exciting global oil and gas industry We will build our business around a motivated and valued workforce We will be the recognised leader in safety and quality, delivering exceptional performance with appropriate technical solu
Slide 24: Towards the Vision
Towards the Vision Working towards the Vision, entails relentless pursuit of value delivery to our customers by focusing on our Teams and People, Asset Investment and Project Execution Subsea Partner of Choice www.subsea7.com 04.09.2007
Slide 25: Towards the Vision
Towards the Vision Working towards the Vision, entails relentless pursuit of value delivery to our customers by focusing on our Teams and People, Asset Investment and Project Execution Subsea Partner of Choice www.subsea7.com 04.09.2007
Slide 26: Skilled and experienced global workforce
Skilled and experienced global workforce Resourcing initiatives: - Improving engineering efficiency - Engineering conversion courses - Open new engineering offices - Recruitment from non-traditional resource areas - Local content – training initiatives - Graduate & technician recruitment Subsea Part
Slide 27: Towards the Vision
Towards the Vision Working towards the Vision, entails relentless pursuit of value delivery to our customers by focusing on our Teams and People, Asset Investment and Project Execution Subsea Partner of Choice www.subsea7.com 04.09.2007
Slide 28: Current Vessels
Current Vessels – Construction and Pipelay Lochnagar Kommandor Skandi Navica Subsea Viking Skandi Neptune Toisa Perseus Amazonia 3000 Current Vessels – Diving Support Pelican Rockwater 1 Rockwater 2 Toisa Polaris Current Vessels – ROV and Survey Support Kommandor Kommandor Seisranger Subsea Subsea 2
Slide 29: Towards the Vision
Towards the Vision $800m investment in new assets and equipment between 2006 – 2008. Will see 7 new vessels joining the fleet - increase our capacity and capability, in particular to service deep and ultra deepwater water markets. Will result in a rejuvenated fleet that will increase by 50% from 14-
Slide 30: New Vessels Entering Fleet
New Vessels Entering Fleet Delivery Programme Q1 - 07 Q2 - 07 Q3 - 07 Q4 - 07 Q1 - 08 Q2 - 08 Q3 - 08 Q4 - 08 Q1 - 09 Seven Seven Shell Oceans Seas Atlantic Normand Subsea 7 Skandi Normand Skandi Bergen* Seven Seven* O O W W N N Seven E E Sisters D D Vessel Owned Vessel Chartered Subsea Partner of C
Slide 31: New Vessels
New Vessels – Construction and Pipelay Seven Oceans Seven Seas Normand Seven Skandi Seven New Vessels – DSV’s and ROV SV’s $800m investment in new assets and equipment Seven Atlantic Normand Subsea 7 between 2006 – 2008 New Vessels – Multipurpose Seven Sisters Vessel Owned Vessel Chartered Subsea Pa
Slide 32: Towards the Vision
Towards the Vision Working towards the Vision, entails relentless pursuit of value delivery to our customers by focusing on our Teams and People, Asset Investment and Project Execution Subsea Partner of Choice www.subsea7.com 04.09.2007
Slide 33: Recently completed projects
Recently completed projects Projects Client Location Chinguetti Woodside Mauritania $140m Thunder Horse BP Gulf of Mexico $106m Lobito Tomboco Cabinda Gulf Oil Company (Chevron) Angola $270m Enfield Woodside North West Australia $100m Independence Hub Anadarko Gulf of Mexico $62m Addax Okwori Addax
Slide 34: Investment in Project Execution
Investment in Project Execution Business improvement initiatives: • Bids are bigger and technically very challenging – the Gateway team has been created to pool the best technical/commercial knowledge to win projects valued at $100m and above. Subsea Partner of Choice www.subsea7.com 04.09.2007
Slide 35: Investment in Project Execution
Investment in Project Execution Business improvement initiatives: • Bids are bigger and technically very challenging – the Gateway team has been created to pool the best technical/commercial knowledge to win projects valued at $100m and above. • The scale, technical challenges and attendant risks of
Slide 36: Investment in Project Execution
Investment in Project Execution Business improvement initiatives: • Bids are bigger and technically very challenging – the Gateway team has been created to pool the best technical/commercial knowledge to win projects valued at $100m and above. • The scale, technical challenges and attendant risks of
Slide 37: Investment in Project Execution
Investment in Project Execution Business improvement initiatives: • Bids are bigger and technically very challenging – the Gateway team has been created to pool the best technical/commercial knowledge to win projects valued at $100m and above. • The scale, technical challenges and attendant risks of
Slide 38: Investment in Project Execution
Investment in Project Execution Business improvement initiatives: • Bids are bigger and technically very challenging – the Gateway team has been created to pool the best technical/commercial knowledge to win projects valued at $100m and above. • The scale, technical challenges and attendant risks of
Slide 39: Investment in Project Execution
Investment in Project Execution Business improvement initiatives: • Bids are bigger and technically very challenging – the Gateway team has been created to pool the best technical/commercial knowledge to win projects valued at $100m and above. • The scale, technical challenges and attendant risks of
Slide 40: Recently awarded projects
Recently awarded projects Projects Client Location Block 18 LOF BP Angola $80m Hybrid Extension Petrobras Brazil $390m Jura West TOTAL North Sea $45m Vega Troll Norsk Hydro North Sea $340m Peregrino Norsk Hydro / Anadarko Brazil $115m BC-10 Shell Brazil $275m K3000 Petrobras Brazil $250m Tombua Land
Slide 41: Financial Overview
Financial Overview Subsea Partner of Choice www.subsea7.com 04.09.2007
Slide 42: Financial performance 2003 – 2006 (USDm)
Financial performance 2003 – 2006 (USDm) 1,800.0 29.8% growth 160.0 1,600.0 140.0 1,400.0 58.3% growth 120.0 100.0 1,200.0 12.2% growth 80.0 1,000.0 60.0 800.0 40.0 600.0 20.0 400.0 0.0 200.0 (20.0) 0.0 (40.0) 2003 2004 2005 2006 Revenue Net Income Subsea Partner of Choice www.subsea7.com 04.09.2007
Slide 43: Backlog at June 2007 and by Year of Execution
Backlog at 30 June 2007 and by Year of Execution By Contract Type Year of Execution $1,342m $1,626m $3,938m $931m $1,189m $768m $1,050m 4000 1200 458 3000 2,106 900 + 200% growth 271 2000 600 327 1,050 677 372 731 1000 300 660 1,832 441 970 949 30 June 2005 30 June 2006 30 June 2007 2007 2008 2009 2
Slide 44: Market Capitalisation and Shareholders
Market Capitalisation and Shareholders Market cap $3.4bn* Top ten shareholders* SIEM INDUSTRIES INC 33.4% Increase circa 100% UBS AG, LONDON BRANCH 11.9% CREDIT SUISSE SECURITIES 4.1% DNB NOR BANK ASA 3.9% 140 FIDELITY FUNDS-EUROP. GROWTH/SICAV 3.5% JP MORGAN CHASE BANK 3.4% DNB NOR BANK ASA 2% 100
Slide 45: Summary
Summary Subsea Partner of Choice www.subsea7.com 04.09.2007
Slide 46: Summary
Summary • Strong presence in growing deepwater markets; Market outlook strong for foreseeable future. • Experienced management team and highly skilled engineering and project management workforce. • Key focus on improving efficiency and project execution. • $800m investment programme in new vessels,
Slide 47: subsea partner of choice
subsea partner of choice
Slide 48: Back Up
Back Up
Slide 49: Asset Investment - New Vessels
Asset Investment - New Vessels Seven Oceans The new reeled rigid pipelay vessel Seven Oceans, with up to 400t tensioner and a 3,500t main reel, was delivered on schedule at the end of July 2007. Seven Seas The new flexible pipelay vessel Seven Seas, with 400t VLS, 400t J-lay 400/350t crane and 3,000
Slide 50: Asset Investment - New Vessels
Asset Investment - New Vessels Normand Seven The Normand Seven is a new vessel being equipped with an advanced flexible pipelay system capable of operating in water depths of 2,000m with a top tension capacity of 300t Available Q3 2007 Skandi Seven The Skandi Seven is a new construction vessel, comp
Slide 51: Asset Investment - New Vessels
Asset Investment - New Vessels Seven Atlantic The new DSV Seven Atlantic, built for the long term Shell underwater services contract, will be one of the largest and most capable DSVs in the world, featuring a state-of-the-art 24 man saturation diving system Available Q1 2009 Normand Subsea 7 The new
Slide 52: Asset Investment - New Vessels
Asset Investment - New Vessels Seven Sisters A new multipurpose Light Construction Vessel and ROV ship with DP2 and 140 te crane on long term hire will provide accommodation for up to 100 people. Available Q2 2008 Vessel Owned Vessel Chartered Subsea Partner of Choice www.subsea7.com 04.09.2007
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