Slide 1: 2005 Annual Accounts Analysts Presentation
2005 ANNUAL ACCOUNTS ANALYSTS PRESENTATION AMSTERDAM / LONDON March 30, 2006 D. Keller, Managing Director & CEO / M. Miles, CFO
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: Company Structure
COMPANY STRUCTURE MONACO KUALA LUMPUR Single Buoy Moorings Single Buoy Moorings Asia THE NETHERLANDS HOUSTON Gusto BV SBM-Imodco Marine Structure Atlantia Offshore Consultants (MSC) NKI Group GustoMSC Inc. 3 (Divestment Intended)
Slide 4: Management Structure
MANAGEMENT STRUCTURE BOARD OF MANAGEMENT Didier Keller Mark Miles Managing Director Director & CEO CFO Dick van der Zee Francis Blanchelande Director Director COO FPSO Operations INVESTOR RELATIONS Hans Peereboom V.P. Investor Relations 4
Slide 5: Highlights 2005
HIGHLIGHTS 2005 • Net profit for 2005 of US$ 226 million, versus US$ 92 million in 2004 • Proposed dividend US$ 3.30 per share • Shipyard sale concluded, name change to SBM Offshore implemented • Exclusive focus on Oil and Gas activities has resulted in more transparency and predictability • Sanha L
Slide 6: Total Deepwater Field Development Capability
TOTAL DEEPWATER FIELD DEVELOPMENT CAPABILITY 6
Slide 7: Summary of Activities
SUMMARY OF ACTIVITIES • Design, build and install either on “sale” or on “own and operate” basis Floating Production and / or Storage and Offloading Systems (FPSOs / FSOs), Tension Leg Platforms (TLPs) and Semi-Submersible platforms for oil and gas production • Supply mooring systems for FPSOs / FSO
Slide 8: Major Completions 2005
MAJOR COMPLETIONS 2005 • Start-up of Sanha LPG FPSO for Chevron, Angola under an eight year lease and operate contract • Delivery of the disconnectable internal Turret Mooring system for the White Rose FPSO of Husky Oil, Newfoundland • Delivery of the disconnectable external Turret Mooring system fo
Slide 9: Highlights 2005: Sanha LPG FPSO
HIGHLIGHTS 2005 Start-up of Sanha LPG FPSO for Chevron, Angola On lease since May 8, 2005 9
Slide 10: Highlights 2005: Enfield Disconnectable Turret
HIGHLIGHTS 2005 Delivery of the Disconnectable Turret for the Woodside Enfield FPSO 10
Slide 11: Major Orders 2005
MAJOR ORDERS 2005 • Design and supply of a deep draft Semi-Submersible platform for the Independence Hub, Enterprise Products, Gulf of Mexico. • Eight year lease of an FPSO for the Kikeh Field, Murphy, Malaysia, in Joint Venture with MISC. • Deepwater Export Systems for BP’s Greater Plutonio field (
Slide 12: Orders for Kikeh Field Development
HIGHLIGHTS 2005 Orders for Kikeh Field Development for Murphy, Malaysia • Eight year lease of an FPSO • Supply and installation of the in Joint Venture with MISC GAP fluid transfer system 12
Slide 13: Order for Internal Turret for Petrobras P-53
HIGHLIGHTS 2005 Order for Internal Turret for the Petrobras P-53 FPU • The largest and most complex turret ever designed and built • Accommodates 75 flexible risers and the related piping, manifolding and swivel arrangements 13
Slide 14: Two Major Orders for Atlantia
HIGHLIGHTS 2005 Two Major Orders for Atlantia Semi-Submersible Hull SeaStar® TLP Independence Hub Neptune Field 14 Enterprise BHP Billiton
Slide 15: Key Financial Points 2005
KEY FINANCIAL POINTS 2005 • IFRS net profit US$ 226 million – up 146% from restated 2004 • Includes profit from FPSO Serpentina sale US$ 79.8 million • Dividend proposed – US$ 3.30 per share • EBITDA US$ 482 million; Cashflow US$ 433 million • Capital expenditure US$ 399 million • Net gearing down t
Slide 16: Financial Overview 2005 Total Group
FINANCIAL OVERVIEW 2005 TOTAL GROUP In millions of US Dollars 31/12/2005 31/12/2004 % Comment Movement FPSO Serpentina sale; Turnover 1,519 1,069 42 All activities growing Gross Margin 363 243 49 FPSO Serpentina sale; (%) (23.9%) (22.7%) All activities growing EBITDA 482 371 30 FPSO Serpentina sale;
Slide 17: Financial Overview 2005 Turnkey Systems & Services
FINANCIAL OVERVIEW 2005 TURNKEY SYSTEMS & SERVICES In millions of US Dollars 31/12/2005 31/12/2004 % Comment Movement FPSO Serpentina sale; Turnover 935 536 74 Higher general activity Gross Margin 183 90 FPSO Serpentina sale; 102 (%) (19.6%) (16.9%) Atlantia contribution; Services EBITDA 135 39 FPSO
Slide 18: Financial Overview 2005 FPSO Lease and Operate
FINANCIAL OVERVIEW 2005 FPSO LEASE AND OPERATE In millions of US Dollars 31/2/2005 31/12/2004 % Comment Movement Turnover 585 533 10 Marlim Sul, Sanha Gross Margin 180 153 18 Marlim Sul, Sanha; Bonuses; (%) (30.8%) (28.7%) Operating cost savings EBITDA 347 323 7 Marlim Sul, Sanha; (% Margin) (59.3%)
Slide 19: Financial Overview 2005 Total Group
FINANCIAL OVERVIEW 2005 TOTAL GROUP In millions of US Dollars 31/12/2005 31/12/2004 % Comment Movement Capital Expenditure 399 237 68 FPSO investments up Accelerating debt servicing; Long-Term Debt 949 1,285 (26) FPSO Serpentina sale Net Liquidities 145 145 - Still comfortable level Net Debt 805 1,1
Slide 20: Outlook 2006
OUTLOOK 2006 FINANCIAL • Net Profit US$ 165 million • EBITDA US$ 460 million • Capital Expenditure US$ 525 million ACTIVITIES • Start of operation of the Extended Well Test system for Petronas, Caspian Sea, Turkmenistan (March 2006) • Start of operation of the FPSO Capixaba for Petrobras at Golfinho
Slide 21: New Major Orders Since Beginning 2006
NEW MAJOR ORDERS SINCE BEGINNING 2006 Orders from ExxonMobil for the lease and operation of two FPSOs for the Mondo and Saxi-Batuque fields in the Kizomba ‛C’ area offshore Angola: • Fifteen year lease contracts between Esso Angola Exploration and Sonasing (Sonangol / SBM Joint Venture) • Upfront pa
Slide 22: Worldwide FPSO Fleet
WORLDWIDE FPSO FLEET Total in Operation or Under Construction : 133 with SBM Offshore involvement (Turnkey or Mooring System) : 42 Oil Company Owned 74 Contractor Owned 59 0 10 20 30 40 50 60 70 80 COVERS A LARGE VARIETY OF UNITS • Converted tankers / purpose built barges or cylinders • Spread moore
Slide 23: From Simple to Complex
FROM SIMPLE TO COMPLEX “Simple” FPSO VI, 1986 “Complex” 23 Espadarte FPSO, 2000
Slide 24: FPSO Lease Fleet
FPSO LEASE FLEET In Operation or Under Construction : 59 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 SBM Modec Bluewater Prosafe PGS Bergesen Maersk Sevan Saipem Others 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 24 Others include : Bumi Armada, Frontier Drilling, Fred Olsen, Tanker Pacific, Trenergy, Exmar,
Slide 25: SBM's Competitive Edge
SBM’s COMPETITIVE EDGE • Cumulative experience of 120 years of FPSO/FSO operation • All required engineering disciplines available within the Company • Large pool of experienced project managers • Flexibility with three (shortly four) execution centres • Construction outsourced • Own ultra deepwater
Slide 26: SBM's Lease Business Approach
SBM’s LEASE BUSINESS APPROACH • Invest only on the basis of contracts in hand, except for acquisition of existing tankers for conversion into an FPSO • Convert only quality tankers excluding “early” double hulls using high tensile steel (late eighties, early nineties) • Obtain commitments for firm l
Slide 27: SBM Lease Fleet
SBM LEASE FLEET FPSO FSO FPSO FPSO MOPU/FSO Falcon Nkossa II Aquila Turkmenistan Okono FSO FPSO P-A Roncador FSO Yetagun FPSO Marlim Sul FPSO Rang Dong FPSO Golfinho FPSO Kikeh FPSO Espadarte FPSO FPSO FPSO FPSO FPSO LPG FPSO Tantawan Mondo Saxi-Batuque Xikomba Kuito Sanha 27
Slide 28: Remaining Duration of Lease Contracts
REMAINING DURATION OF LEASE CONTRACTS = Balance of Initial Lease Period = Confirmed Extension Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2022 2023 FPSOs TANTAWAN, Chevron, Thailand (Tantawan Explorer) 1997 08/08 AQUILA, Agip, Italy (FPSO Firenze) 1998 12/07 RANG DONG, JVPC, Vie
Slide 29: Production Start First Quarter 2006
PRODUCTION START FIRST QUARTER 2006 Extended Well Test System Petronas - Turkmenistan Mobile Offshore Production Unit Saparmirat Türkmenbaşy MOPU Floating Storage & Offloading Vessel 29 Oguzhan
Slide 30: Production Start Second Quarter 2006
PRODUCTION START SECOND QUARTER 2006 FPSO Capixaba - Golfinho Field Petrobras - Brazil 30
Slide 31: FPSO Prospects
FPSO PROSPECTS L = Lease S = Sale LS = Lease or Sale Skarv Bonga SW Usan Bosi Song Doc BP Shell Total ExxonMobil Truong Song Norway S Nigeria L Nigeria S Nigeria LS Vietnam L Urugua Gumusut Petrobras Brazil L Shell Malaysia L Canapu Petrobras Gendalo Brazil L Chevron Indonesia LS Frade Chevron Bukit
Slide 32: Non-FPSO Prospects
NON-FPSO PROSPECTS L = Lease S = Sale LS = Lease or Sale MOPU STOR Turret FSRU Drilling Barges FSRU Yme Skarv Cyprus Kashagan (Components) Talisman L BP S EAC L Agip S New York Shell S Turret Korchagin Semi-Sub Lukoil S Telemark Helix LS FSO Rang Dong Semi-Sub JVPC LL Thunder Hawk Murphy L Turret Su
Slide 33: Turnkey Supply
TURNKEY SUPPLY Backlog Major Orders 2005 2006 2007 2008 Enterprise - Independence Hub - Semi Submersible Hull Agip KCO - Kashagan - Compression Barges BP - Greater Plutonio - DW CALM Chevron (Daewoo) - Agbami - FPSO Mooring Murphy - Kikeh - GAP Petrobras - P53 - Internal Turret BHPP - Neptune - SeaS
Slide 34: Offshore Contracting Services
OFFFSHORE CONTRACTING SERVICES New Generation Deepwater Installation Vessel “NORMAND INSTALLER” LOA 123.65 m Breadth 28 m Min Draught 5.70 m Speed 16.8 knots Cargo Capacity 3,400 t Total Generated Power 23 MW 34
Slide 35: SBM Gas & Power
SBM GAS & POWER Inshore LNG Terminals “GAS LINKTM” “TWIN SOFT QUAY MOORING” 35
Slide 36: SBM Gas & Power
SBM GAS & POWER Floating Storage and Regasification Unit (FSRU) “Small” capacity FSRU based on the conversion of an LNG carrier “Large” capacity FSRU based on a new built barge 36
Slide 37: Competition
COMPETITION Terminals Floating F(P)SO F(P)SO TLP Turret Gas Lease Supply Supply Supply Facilities SBM Offshore Modec Saipem Technip Bergesen Tanker Pacific Prosafe Sevan Korean Yards Chinese Yards Bluewater Sofec 37 APL
Slide 38: Strategy
STRATEGY • Grow the Group organically with yearly average double digit EPS increase • Develop innovative technical solutions, in particular for deepwater technology and in the gas sector • Expand the product line • Expand the lease business model to other products and geographical areas • Increase t