Technipfmc Plc · NYSE:FTI
Technipfmc — Technip — Global E&P Investors Conference Call 2013
70 slides from Technipfmc's conference presentation, Apr 4, 2013
Slide 1: Technip & Floating LNG
Technip & Floating LNG A Breakthrough for Natural Gas Development Philip Hagyard, Senior Vice President LNG/GTL Business Unit Global E&P Investors Conference Call, April 4, 2013
Slide 2: Safe Harbor
Safe Harbor T his presentation contains both historical and forward-looking statements. These forward-looking statements are not based on historical facts, but rather reflect our current expectations concerning future results and events and generally may be identified by the use of forward-looking w
Slide 3: A World Leader Bringing Innovative Solutions to the Energy Industry
A World Leader Bringing Innovative Solutions to the Energy Industry A world leader in project management, engineering and construction for oil & gas, chemicals and energy companies Revenues driven by services provided to clients Onshore/Offshore and Subsea Over 36,500 people in 48 countries
Slide 4: A World Leader Bringing Innovative Solutions to the Oil & Gas Industry
A World Leader Bringing Innovative Solutions to the Oil & Gas Industry Subsea Onshore/Offshore Worldwide leadership Proven track record with customers & Unique vertical integration business partners R&D Engineering & construction Design & Project Management Project execution expertise
Slide 5: Natural Gas: a Good Combination of Compromises
Natural Gas: “a Good Combination of Compromises” Shares of World Primary Energy “Gas is the “lucky fuel”. It may not be ideal, and it might not be the first choice of policymakers, society or the media. That first choice is often renewable energy, Oil domestic coal or nuclear, depending on the polit
Slide 6: Mismatch Between Gas Reserves and Demand
Mismatch Between Gas Reserves and Demand 32% 2% 17% 27% 17% 5% 15% 4% 40% 13% 8% 3% 4% 5% 3% 5% % of proved gas reserves by region, including unconventional gas from CEDIGAZ 2012 Edition % of gas consumption by region from 2013 BP Energy Outlook 2030 Major gas trade movements LNG1 Major gas trade mo
Slide 7: Skill to Handle Wide Variety of Well Head Gas Compositions
Skill to Handle Wide Variety of Well Head Gas Compositions Non Associated Gas Associated Gas Undesirable / no value components Hydrocarbons Source: Gas compositions on a sample of projects done by Technip 7
Slide 8: Opportunities all Along the Gas Value Chain
Opportunities all Along the Gas Value Chain Onshore Liquefaction Oil Field Facilities inc. Shale oil Natural Qatar LNG Gas Pipeline Kupe, New Zealand Associated Gas Offshore Coal bed Liquefaction methane Gas Processing Methane (C1) Non- Associated Gas Prelude FLNG, Australia Gas Field Facilities inc
Slide 9: LNG, FLNG & GTL Investment Drivers
LNG, FLNG & GTL Investment Drivers LNG FLNG GTL High demand for LNG worldwide Ideal for reserves located far Economically attractive with an offshore in deep water increasing spread between oil and Marketing flexibility vs pipelines gas prices Economically attractive in areas Technology
Slide 10: All the know-how and talents to better manage projects, risks and interfaces
All the know-how and talents to better manage projects, risks and interfaces Onshore LNG Plant Offshore floating facilities Technip in Paris Subsea field development Floating LNG 10 Technip & FLNG
Slide 11: Leading Onshore LNG Player for Over 45 Years
Leading Onshore LNG Player for Over 45 Years In-depth technical know-how and EPC contractor Developed and use our own liquefaction process Camel, Algeria 1964 Built the first ever LNG plant 45 years ago in Algeria Introduced many concepts to the industry that are widely used today Delivere
Slide 12: Technip: Extensive Experience in Large FPSO's
Technip: Extensive Experience in Large FPSO’s FPSO's Installed or Planned by Year and Size 50 000 Built by FLNG 45 000 forecast Technip 40 000 Akpo N’Kossa 35 000 Topside Dry Weight: tons Girassol 30 000 Dalia 25 000 P-58 & P-62 20 000 Akpo FPSO, Nigeria, 320 x 60m, Largest ever 15 000 10 000 5 000
Slide 13: FLNG will use FPSO construction methods
FLNG will use FPSO construction methods Hull leaving dry dock Module installation and integration Akpo FPSO Dalia FPSO 13
Slide 14: FLNG: Onshore to Offshore Volume Optimization
FLNG: Onshore to Offshore Volume Optimization Onshore LNG: Yemen FLNG 14
Slide 15: Example of Floating LNG Layout
Example of Floating LNG Layout Cryogenic Export System Flare Liquefaction Power Generation & Utilities Connection with Pre-treatment Turret Storage Inside the Hull Control Room & Living Quarter Source: 2009 Technip R&D Study 15 Technip & FLNG
Slide 16: FLNG: Solving Marine Environment Challenges
FLNG: Solving Marine Environment Challenges Mechanical Offloading LNG between two vessels on the high seas Importing large quantities of high pressure feed gas on a floating facility Equipment and piping loads generated by motion LNG tank sloshing over 25 years without dry docking Maintena
Slide 17: FLNG: Leader with First Mover Advantage
FLNG: Leader with First Mover Advantage Shell Petronas 15 year frame agreement LNG capacity: 1.2 mtpa LNG capacity: 3.6 mtpa1 Offshore Malaysia Prelude FLNG in Australia Execution started in under construction June 2012 1 Million tones per annum 17
Slide 18: Shell Floating Liquefied Natural Gas Contracts
Shell Floating Liquefied Natural Gas Contracts Technip leader in a consortium with Samsung Jul. 2009 Master Agreement The design, construction and installation of multiple FLNG facilities over 15 years Jul. 2009 FEED launched for Generic FLNG Mar. 2010 FEED launched for Prelude FLNG Offshore W
Slide 19: Shell Prelude FLNG
Shell Prelude FLNG 488 x 74 meters 600,000 ton weight with tanks full 3.6 Mtpa LNG capacity Australia 1.3 Mtpa condensate production 0.4 Mtpa LPG production Total liquid production: 110,000 boe/day 200km from the nearest point on the mainland 200 - 250 meters water depth Prelude FLNG
Slide 20: Shell Prelude FLNG Status
Shell Prelude FLNG Status Prelude FLNG is being built in Geoje , South Korea in our partner’s shipyard One of the largest dry dock in the world A yard equipped with a 8,000 ton capacity floating crane First steel cutting of the hull started in October 2012 First steel cutting of the topsid
Slide 21: FLNG Opportunities in Australia
FLNG Opportunities in Australia Woodside Sunrise Conoco Barossa / Caldita PTTEP Cash Maple Shell Crux Conoco Poseidon GDF Suez Bonaparte Woodside Browse Shell Prelude Exxon Scarborough Northern Territory Queensland Western Australia South Australia New South Wales Victoria 21
Slide 22: FLNG: New Opportunities for Oil and Gas Producers
FLNG: New Opportunities for Oil and Gas Producers Cost optimization in areas with high construction costs Deeper and further offshore reserves Economics Pipeline too complicated or too long Insufficient reserves for dedicated onshore LNG plant Monetize associated gas rather than re-injecti
Slide 23: Tomorrow: Drivers for FLNG Global Prospects
Tomorrow: Drivers for FLNG Global Prospects Arctic Circle Remote Fields Canada Nearshore Offshore East Coast High cost of onshore Petronas FLNG, Malaysia construction Africa Better security offshore Asia / Pacifique Remote fields and deep water Many small fields Presence of subsea tr
Slide 24: Other Gas Monetization Topics: GTL is One
Other Gas Monetization Topics: GTL is One Shale gas revolution boosts the US market Important investments for Petrochemical plants, but also LNG and GTL Several IOCs are applying in the USA for LNG export and operation licences Many GTL facilities are being studied (FEED) and EPC projects sh
Slide 25: GTL: Alternative Solution to Monetize Gas, Mastered by Technip
GTL: Alternative Solution to Monetize Gas, Mastered by Technip “Ancillary” Utilities/Off-sites Process Units Process Units 25
Slide 26: Solid Track Record with a GTL Major: Sasol
Solid Track Record with a GTL Major: Sasol ORYX GTL Complex, Qatar, EPC UZGTL, Uzbekistan, FEED ORYX GTL Ltd.: JV between Qatar Petroleum & Uzbekistan GTL: JV of Uzbekneftegas , Sasol Sasol & Petronas Largest GTL train when awarded: 34,000 boe/d1 Capacity: 34,000 boe/d of GTL diesel, of
Slide 27: LNG, FLNG & GTL Local Execution Capabilities Supported by Centers of Expertise
LNG, FLNG & GTL Local Execution Capabilities Supported by Centers of Expertise Europe Know-how and solid track-records in LNG, FLNG & GTL USA LNG: Liquefaction and regasification India Offshore: Floating platforms Detailed engineering support Subsea: Major center Asia Pacific LNG & FLNG
Slide 28: Gas Related Market Environment
Gas Related Market Environment Arctic: remote areas with large reserves LNG North America: shale gas driven Gas plants LNG terminal conversion GTL Middle East: growing downstream Petrochemical Petrochemicals LNG imports Gas plants (new and upgrades) Africa: political uncertainties, L
Slide 29: Thank You
Ttechnip take it furthers
Slide 30: 5. Annex
5. Annex 30
Slide 31: Diversified & Balanced Customer Base
Diversified & Balanced Customer Base National Oil Companies International Oil Companies 31
Slide 32: Two Complementary Business Models Driving Financial Structure and Performance
Two Complementary Business Models Driving Financial Structure and Performance € million Subsea Onshore/Offshore Operating Operating Operating Operating Backlog Backlog Income1 Margin1 Income1 Margin1 8,201 6,050 603 498 16.8% 290 14.9% 274 7.1% 7.0% FY 11 FY 12 FY 11 FY 12 FY 12 FY 11 FY 12 FY 11 FY
Slide 33: 2012: Year of Growth
2012: Year of Growth Financials Achievements Revenue increased by 20%, to €8.2 billion Portfolio diversification maintained Operating margin(1) at 10% for the 4th year Technology and expertise driving order intake Net income of €540 million Global footprint strengthened and workforce exp
Slide 34: Fourth Quarter Subsea Highlights
Fourth Quarter Subsea Highlights € million Offshore main operations completed Revenue Vigdis NE field development, Norway 1,200 Jubilee 1A, Ghana 964 Main ongoing projects Boyla field development, Norway Goliat, Barents Sea 4Q 11 4Q 12 Golden Eagle, UK Operating Income1 BC-10 phase 2
Slide 35: Fourth Quarter Onshore/Offshore Highlights
Fourth Quarter Onshore/Offshore Highlights € million Upstream Asab 3, UAE Revenue Ichthys FPSO, Australia 1,050 1,100 Lucius Spar, Gulf of Mexico Hejre platform, Denmark Gas, LNG & FLNG 4Q 11 4Q 12 PMP, Qatar Prelude FLNG, Australia Operating Income1 Petronas FLNG 1, Malaysia 79 7.
Slide 36: FY 2012 Segment Financial Highlights
FY 2012 Segment Financial Highlights € million Onshore/Offshore Subsea Revenue Revenue 4,156 4,048 3,841 2,972 FY 11 FY 12 FY 11 FY 12 Operating Margin(1) Operating Margin(1) 7.1% 7.0% 16.8% 14.9% FY 11 FY 12 FY 11 FY 12 (1) from recurring activities 36
Slide 37: FY 2012 Order Intake & Backlog
FY 2012 Order Intake & Backlog € million Subsea order intake Order intake Backlog 6,050 Quad 204, UK 5,335 4,097 4,380 Greater Stella field development, UK Åsgard subsea compression, Norway Bøyla field development, Norway Jubilee phase 1A, Ghana FY 11 FY 12 FY 11 FY 12 GirRI project pha
Slide 38: A Solid Platform for Profitable Growth
A Solid Platform for Profitable Growth Backlog by Geography Backlog by Market Split Others 1% 2% Africa 9% 13% 16% 12% Petrochems 11% Refining / 14% 12% Heavy Oil 29% 12% Middle East 48% Gas / LNG / FLNG 37% 21% 42% Americas 18% Shallow Water(1) 11% Asia Pacific 12% 30% Deepwater(1) 23% >1,000 meter
Slide 39: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position € million (audited) Dec. 31, Dec. 31, 20111 2012 Fixed Assets 5,662.0 6,022.2 Construction Contracts – Amounts in Assets 588.0 454.3 Other Assets 2,711.8 2,815.2 Cash & Cash Equivalents 2,808.7 2,289.3 Total Assets 11,770.5 11,581.0 Shareholders’ Equity 3
Slide 40: Net Cash Position
Net Cash Position 3 Months € million 2012 Capital Expenditures: €519 m Net Cash Position as of 183.5 4% September 30, 2012 3% Others Cash Generated from / (Used in) Onshore/ 226.1 Operations Offshore 33% Change in Working Capital 3.2 Requirements Recurring 21% Capex(2) Capital Expenditures (161.3) M
Slide 41: Steady Dividend Increase
Steady Dividend Increase Dividend per share (€) 2008 - 2012 (1) CAGR: +9% 1.68 1.58 1.45 1.35 1.20 2008 2009 2010 2011 2012 (1) Recommendation of Technip’s Board of Directors to be approved during the Annual General Meeting 41
Slide 42: Investment in Key Subsea Assets
Investment in Key Subsea Assets Plants 5 2007 New long-term charters 7, incl. 1 under construction North Sea Giant Vessels 18 2007 Newbuild vessel in Norway, delivery in 2014 33, incl. 5 under construction As of December 31, 2012 42
Slide 43: Onshore/Offshore Key Markets
Onshore/Offshore Key Markets Onshore Downstream Unique Position Expertise in Full Range of Offshore Facilities Petrochemical & Floating LNG Ethylene Refining Spar LNG & GTL Fixed platform Fertilizer FPSO 43
Slide 44: Subsea Vertical Integration: Customer Support from Concept to Execution
Subsea Vertical Integration: Customer Support from Concept to Execution Concept Execution Project Engineering & Procurement P R Upstream O Manufacturing Engineering J With E Flexible risers Rigid Pipeline Umbilicals C and flowlines Welding/Spooling Genesis1 T Pre-FEED* and FEED M Offshore
Slide 45: Delivering Best-for-Project Solutions Through Genesis
Delivering Best-for-Project Solutions Through Genesis Genesis: A wholly owned subsidiary of Technip Provide independent, early phase engineering support to concept selection Fixed and floating platform configuration and selection Subsea architecture development and component selection Prov
Slide 46: Commercial Alliance with Heerema
Commercial Alliance with Heerema 5-year worldwide alliance agreement combining capabilities for EPCI projects in ultra-deepwater Working together through ad-hoc JV, consortiums or subcontract arrangements to best answer client requirements Alliance effective immediately on an exclusive basis
Slide 47: Ultra-Deepwater Challenges
Ultra-Deepwater Challenges Deeper water and Vessels with higher tension pipe heavier pipes laying capacities Vessels with higher Heavier subsea equipment lifting/abandonment capacity Larger developments Increasing use of EPCI contracts with contracting interfaces requiring extensive project increasi
Slide 48: Helping Clients to Develop Ultra-deepwater Fields
Helping Clients to Develop Ultra-deepwater Fields Geographical footprint covers key subsea markets worldwide (engineering, sales & business development, yards, spoolbases, flexible & umbilical plants) Unique set of capabilities for ultra- Track record in engineering & project deepwater market: m
Slide 49: Our New Pipelay Vessels: Deep Orient & Deep Energy
Our New Pipelay Vessels: Deep Orient & Deep Energy Deep Orient Deep Energy 49
Slide 50: High Performing Fleet of 33 Vessels
High Performing Fleet of 33 Vessels1 Flexible-Lay & Construction Rigid Reel-Lay & Rigid S-Lay and Heavy Lift J-Lay 11 units 4 units 5 units Skandi Vitoria Skandi Niteroi G1200 G1201 Deep Blue Deep Sunrise Constructor 2000 Deep Pioneer Hercules Comanche Apache II Normand ST 2612 Progress Deep Orient2
Slide 51: Flexible Pipe Manufacturing Plants
Flexible Pipe Manufacturing Plants Flexi France Asiaflex Products Le Trait, France Tanjung Langsat, Malaysia Flexibrás Vitória, Brazil Port of Açu Açu, Brazil 51
Slide 52: Offshore Manufacturing & Logistic Bases
Offshore Manufacturing & Logistic Bases Mobile, Alabama, Orkanger, Norway USA Evanton, UK Port of Angra, Brazil Dande, Angola Carlyss, Louisiana, USA 52
Slide 53: Umbilicals Manufacturing Plants
Umbilicals Manufacturing Plants Duco Ltd Newcastle, UK Duco Inc Houston, USA Asiaflex Products Tanjung Langsat, Malaysia Angoflex Lobito, Angola 53
Slide 54: Providing Innovative Solutions for Offshore & Subsea Developments
Providing Innovative Solutions for Offshore & Subsea Developments Carbon Fiber Armor Integrated Production Electrically Trace Floating LNG Spars Flexible Pipe Bundle Heated Pipe-in-pipe Breakthrough: Solution for harsh Reduction of Improve flow Active insulation develop remote gas waters d
Slide 55: Differentiating Technologies: 2012 Industry and Technip Firsts
Differentiating Technologies: 2012 Industry and Technip Firsts Subsea Onshore & Offshore Islay electrically traced heated pipe- Petronas FLNG 1 in-pipe Contract award to design the 1st Malaysian FLNG, the second FLNG in the world after Shell Prelude FLNG World 1st ETH-PIP installed in the No
Slide 56: Acquisition of Stone & Webster Process Technologies
Acquisition of Stone & Webster Process Technologies Acquisition completed on August 31, 2012 Cash consideration of ~€225 million Perimeter excludes Toronto and Baton Rouge sites and all legacy EPC contracts retained by Shaw Cost synergies (notably premises, IT) approximately €7 million, with
Slide 57: Technology Strength Diversifies Our Revenue
Technology Strength Diversifies Our Revenue Process Technologies Licenses Process Design / Engineering Proprietary Equipment Licensed proprietary technologies Process design packages / Design, supply and installation of chosen at early stage of projects engineering to guarantee plant critical
Slide 58: Stone & Webster Process Technologies: Enhanced Portfolio of Downstream Technologies
Stone & Webster Process Technologies: Enhanced Portfolio of Downstream Technologies Business Domains Technologies and Skills Cryogenic separation LNG Cooperation with Air Products and Chemicals, Inc. (APCI) GTL Exclusive co-developer of Sasol Fischer Tropsch reactor technology Steam reformer
Slide 59: Worldwide Organization Dedicated to Downstream Technologies
Worldwide Organization Dedicated to Downstream Technologies Milton Keynes Cambridge Zoetermeer Beijing Claremont Paris Rome Houston Abu Dhabi Mumbai Kuala Lumpur / Singapore Operating centers Associated operating centers Sales offices Technip Stone & Webster Process Technology Team of ~1,200 peo
Slide 60: Technip Stone & Webster Process Technology Leading Position in Growing Markets
Technip Stone & Webster Process Technology Leading Position in Growing Markets Strong Track Record Recent Key Projects ~35% installed capacities with ~120 references CP Chem cracker, USA S&W Ethylene ~25% of licensing over the past 10 years Braskem Comperj petrochemical complex, Brazil Bra
Slide 61: A Unique Worldwide Footprint
A Unique Worldwide Footprint Orkanger Evanton Oslo Pori Aberdeen Stavanger St. Petersburg St. John’s Newcastle Milton Keynes Warsaw London The Hague Calgary Cambridge Le Trait Düsseldorf Paris Lyon Rome Los Angeles Weymouth Ashgabat Barcelona Athens Seoul Houston Baghdad Mobile Cairo Al Khobar New D
Slide 62: Africa: Local Partner With Commitment to Long-term Presence
Africa: Local Partner With Commitment to Long-term Presence Technip in Africa Assets & Activities ~750 people Engineering & project management 1st office founded in 1995 centers Cairo Umbilical manufacturing plant: Angoflex, Angola Spoolbase: Dande, Angola Logistic base: Port Harcourt, N
Slide 63: Asia Pacific: Dedicated Assets for High Potential Market
Asia Pacific: Dedicated Assets for High Potential Market Assets & Activities Technip in Asia Pacific Engineering & project management centers ~8,500 people Flexible/umbilical manufacturing plant: Asiaflex, Founded in 1982 Malaysia, 1st and only one in Asia Logistic base: Batam, Indonesia
Slide 64: Middle East: Largest Engineering Capacity in the Region
Middle East: Largest Engineering Capacity in the Region Assets & Activities Technip in Middle East Engineering & project management ~2,300 people centers Founded in 1984 Wide range of services: from conceptual and feasibility studies to lump sum turnkey projects Baghdad Construction method
Slide 65: North America: Solid Reputation With Enhanced Portfolio of Downstream Technologies
North America: Solid Reputation With Enhanced Portfolio of Downstream Technologies Assets & Activities Engineering & project management centers with North America Subsea, and Onshore/Offshore capabilities ~3,900 people Spoolbases Mobile, Alabama Founded in 1971 Carlyss, Lousiana Umbili
Slide 66: Brazil: 35 years of Local Presence
Brazil: 35 years of Local Presence Assets & Activities Technip in Brazil Engineering & project management centers ~3,700 People Flexible/umbilical manufacturing plants Founded in 1977 Flexibras: since 1986 Port of Açu: High-end flexible manufacturing plant1 Logistic base Campos basin
Slide 67: Technip in Brazil: Steady Development to Provide Unmatched Local Content
Technip in Brazil: Steady Development to Provide Unmatched Local Content Flexible pipe frame agreement with Petrobras 1st IPB2 in Brazil 2012 1st Brazilian PLSV: Skandi Vitória Roncador Field Development & P-52 Platform 2010 1,800m water depth 2007 ~3,700 people 1st LTC1 with Petrobras: Garoupa Plat
Slide 68: Shareholding Structure, November 2012
Shareholding Structure, November 2012 North America 31.7% Employees 2.6% Treasury Shares 2.0% UK & Ireland 11.7% Others Institutional 4.7% Investors 83.1% Individual Shareholde 5.1% Rest of World IFP Energies 18.1% Nouvelles 2.5% FSI 5.2% French Institutional Investors 16.4% Listed on NYSE Euronext
Slide 69: Technip's Share Information
Technip’s Share Information ISIN: FR0000131708 Bloomberg: TEC FP Reuters: TECF.PA SEDOL: 4874160 OTC ADR ISIN: US8785462099 ADR: TKPPY Convertible Bonds: OCEANE 2010 ISIN: FR0010962704 OCEANE 2011 ISIN: FR0011163864 Private Placement Notes: ISIN: FR0010828095 69
Slide 70: Technip has a sponsored Level 1 ADR
Technip has a sponsored Level 1 ADR Bloomberg ticker: TKPPY CUSIP: 878546209 OTC ADR ISIN: US8785462099 Depositary bank: Deutsche Bank Trust Company Americas Depositary bank contacts: ADR broker helpline: +1 212 250 9100 (New York) +44 207 547 6500 (London) e-mail: adr@db.com ADR website: www.adr.db