Sbm Offshore Nv · EURONEXT:SBMO

Sbm Offshore Nv — Barclays Conference September 2013

31 slides from Sbm Offshore Nv's conference presentation, September 2013

  1. Slide 1: Barclays Conference, September 2013

    Barclays Conference, September 2013 © SBM Offshore 2013. All rights reserved. www.sbmoffshore.com

  2. 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

  3. Slide 3: Agenda

    Agenda Who we are, where we are Emerging Opportunities Our Strategy 3

  4. Slide 4: SBM Offshore No.1 FPSO Player Worldwide

    SBM Offshore 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 8,507 Employees 1 MOPU Financials in US$ billion Performance YE2012 2013 IFRS Revenue Outlook 4.3 167 years of FPSO operations 4 Directional* Backlog

  5. 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

  6. Slide 6: H1 2013 Key Figures

    H1 2013 Key Figures (in millions of US$) IR- 09/09/2013 *Restated for comparison purposes 6

  7. Slide 7: Directional Backlog

    Directional Backlog US$22.4 bn Lease & Operate backlog: Directional¹ vs IFRS 1.4 1.2 Directional 1.0 IFRS in US$ 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 & Operate Turnkey IR- 09/0

  8. Slide 8: SBM Lease Fleet Portfolio

    SBM Lease Fleet Portfolio L&O Portfolio Average Duration: 14.5 years IR- 09/09/2013 8

  9. Slide 9: H2 2013 Outlook

    H2 2013 Outlook • Continue strengthening Balance Sheet post Rights Issue • No dividend over 2013 • Sale of non-core assets ongoing • Contracts executed for FPSO Cidade de Maricá, FPSO Cidade de Saquarema and FPSO Stones • Delivery of Deep Panuke and FPSO OSX 2 • Updating 2013 IFRS revenue guidance t

  10. Slide 10: Agenda

    Agenda Who we are, where we are Emerging Opportunities Our Strategy 10

  11. Slide 11: Understanding Global Market

    Understanding Global Market IR- 09/09/2013 11

  12. Slide 12: Understanding Our Clients

    Understanding Our Clients Production vs. E&P Spending 600 • Cash Flows situation of CAGR 14.1% clients 500 • Cost of new 400 developments Index 300 • IOCs vs. NOCs 6.8% 200 • Delays in project 1.8% sanctions due to 100 increasing field complexity 0 E&P Spending (volume) E&P Spending (nominal) Oil &

  13. Slide 13: 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

  14. Slide 14: 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- 09/09/2013 14

  15. Slide 15: What's Happening?

    What’s Happening? Trends in Giant Field Discoveries 25,000 • Remote discoveries favorable for FPSOs 20,000 • Exponential technology demand 15,000 in mln bbls • High end of FPSO 10,000 market: production capacity above 5,000 100,000 bl/day 0 Onshore 0-500 500-1000 1000-1500 1500-2000 2000+ Water Dept

  16. Slide 16: Capitalising on CAPEX

    Capitalising on CAPEX Global Upstream CAPEX (in US$ mln) 400,000 • Offshore Growth 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

  17. Slide 17: Regional Opportunities

    Regional Opportunities Top 380 Giant Fields: Ultra-deep Water CAPEX • Growth located in: 80,000 North America 70,000 Africa 60,000 Latin America 50,000 in US$ mln 40,000 30,000 20,000 10,000 0 2013E 2014E 2015E 2016E 2017E 2018E 2006 2007 2008 2009 2010 2011 North America Latin America 2012 Africa A

  18. Slide 18: SBM Record in Serving Depth Trend

    SBM Record in Serving Depth Trend Year of first oil 0 1996 2001 2006 2011 2016 Kuito Serpentina -500 Mondo Saxi Espadarte Marlim Sul Aseng Frade -1,000 Water Depth (m) Xikomba Cd de Anchieta Brasil P 57 N’Goma Kikeh Cachalote -1,500 BC 10 -2,000 Cd de Paraty Cd de Ilhabela Cd de Marica Cd de Saquare

  19. Slide 19: Scale and Complexity

    Scale and Complexity Turrets – Swivel stack size Swivel stack size in meters Source: Internal Analysis - August 2013 IR- 09/09/2013 19

  20. Slide 20: Getting Complex

    Getting Complex IR09/09/2013 IR- – 09/09/2013 1996 November 2012

  21. Slide 21: FPSO Awards in Review

    FPSO Awards in Review Source: Internal Analysis - August 2013 IR- 09/09/2013 21

  22. Slide 22: FPSO Market 2010-2013 YTD Awards

    Supply side FPSO Market 2010-2013 YTD Awards Converted FPSOs only 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 – September 2013 IR- 09/09/2013 22

  23. Slide 23: 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

  24. Slide 24: Agenda

    Agenda Who we are, where we are Emerging Opportunities Our Strategy 24

  25. Slide 25: FPSO

    FPSO³ The Company has refocused its FPSO product line on core FPSO products and associated services. FPSO By focusing on core products with historically good margins, whilst improving execution standards and project risk profiles, the Company believes it will return to delivering FPSO superior finan

  26. Slide 26: 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-09/09/2013 09/09/2013 July 2013 26

  27. Slide 27: Improving Risk/Reward Balance

    Improving Risk/Reward Balance Current Focus: Consultations with clients Improving standard terms and conditions in the industry contracting practice IR –IR-09/09/2013 09/09/2013 July 2013 27

  28. Slide 28: 2013 Restoring Pride

    2013 Restoring Pride Closure of legacy Strengthened projects balance sheet Selective bidding Directional reporting policy Investment in Reshaped organisation technological edge Still in Transformation Process IR- 09/09/2013 28

  29. Slide 29: Local Content: Competitive Advantage

    Local Content: Competitive Advantage Brazil: In-country presence since 1968 First FPSO in 1997 Brasa yard key asset for SBM Stake in biggest floating crane in Latin America Over 2,700 employees IR IR -IR- – 09/09/2013 07/08/2013 09/09/2013 August 2013 29 29

  30. Slide 30: Local Content: Competitive Advantage

    Local Content: Competitive Advantage Angola: In-country presence since 1968 First FPSO in 1999 Paenal yard key asset for SBM: biggest crane in West Africa Over 1,400 employees IR IR -IR- – 09/09/2013 07/08/2013 09/09/2013 August 2013 30 30

  31. Slide 31: Q&A Session

    Q&A Session © SBM Offshore 2013. All rights reserved. www.sbmoffshore.com 31

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