Bumi Armada Bhd. · MYX:ARMADA
Bumi Armada Bhd — Q1 2015 Earnings Presentation
21 slides from Bumi Armada Bhd's earnings presentation, May 26, 2015
Slide 1: Q1 2015 Results Presentation
Q1 2015 Results Presentation 26th May 2015 “Knots Ahead of the Rest”
Slide 2: Disclaimer
Disclaimer This presentation may contain statements of future expectations and other forward-looking statements based on management’s and/or other information providers’ current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance,
Slide 3: Contents
Contents 1. Q1 2015 Financials 2. Corporate Updates for Q1 2015 3. Outlook 3
Slide 4: Q1 2015 Financial Highlights
Q1 2015 Financial Highlights “Knots Ahead of the Rest”
Slide 5: Key takeaways
Key takeaways Net Profit increased 11.2% from RM64.8 mil in YTD 2014 to RM72.0 mil in YTD 2015 and improved from RM52.6 mil in Q4 2014 . EBITDA increased 117.3% from RM131.1 mil in Q4 2014 to RM284.8 mil in Q1 2015 and improved 27.6% from RM223.1 mil in Q1 2014. YTD 2015 EBITDA margin at 50% a
Slide 6: Results Overview – Q1 2015 vs. Q4 2014
Results Overview – Q1 2015 vs. Q4 2014 (in RM’mil) Revenue -18.5% EBITDA Net (Loss)/Profit* 701.8 +237.1% 72.0 +117.3% 572.2 284.8 131.1 Q4 2014 Q1 2015 Q4 2014 Q1 2015 Q4 2014 Q1 2015 (52.6) Lower revenue from: Net profit is in line with higher EBITDA Higher EBITDA mainly due to: • Lower OSV vessel
Slide 7: Results Overview – YTD 2015 vs. YTD 2014
Results Overview – YTD 2015 vs. YTD 2014 (in RM’mil) Revenue EBITDA +22.0% 284.8 572.2 +27.6% Net Profit* +11.2% 72.0 468.9 223.1 64.8 YTD 2014 YTD 2015 YTD 2014 YTD 2015 YTD 2014 YTD 2015 Higher revenue from: • New FPSO project, ENI 1506 and new Net Profit is in line with higher EBITDA Higher EBITD
Slide 8: Revenue composition by segments – Q1 2015 vs. Q4 2014
Revenue composition by segments – Q1 2015 vs. Q4 2014 (in RM’mil) Performance in established segments driven by the underlying activities FPSO OSV +2.0% 285.5 291.1 182.3 -9.8% 164.5 Q4 2014 Q1 2015 Q4 2014 Q1 2015 Higher contribution from Kraken and tankers operation Lower OSV vessels utilisation o
Slide 9: Revenue composition by segments – YTD 2015 vs. YTD 2014
Revenue composition by segments – YTD 2015 vs. YTD 2014 (in RM’mil) Performance in established segments driven by the underlying activities FPSO OSV +48.7% +5.3% 291.1 164.5 156.2 195.7 YTD 2014 YTD 2015 YTD 2014 YTD 2015 Additional contributions from ENI 1506 FPSO project and Additional contributio
Slide 10: Revenue composition by geographical %
Revenue composition by geographical % Malaysia based international company continued expansion across key regions YTD 2014 YTD 2015 5% 12% 6% 11% 27% 34% 49% 56%
Slide 11: Leverage and capitalisation
Leverage and capitalisation Financial capacity intact to execute existing projects Net Debt / EBITDA(1) Gearing ratio(2) 4.5x 4.0x 3.9x 5.1x 4.9x 4.0x 4.8x 3.4x 3.5x 3.0x 3.2x 3.3x 3.2x 2.5x 2.3x 2.0x 1.5x 0.9x 0.9x 1.9x 0.7x 0.9x 1.0x 0.5x 0.9x 0.0x 2008 2009 2010 2011 2012 2013 2014 Q1 2015 2008 2
Slide 12: Order book as at 31 March 2015
Order book as at 31 March 2015 Quality firm order book increases to RM25.6 bn (Q4: RM24.5 bn) As at 31 March 2015, the Group’s order book stood at RM25.6 bn compared to RM24.5 bn as at 31 December 2014. Upon expiration of the firm contract period, certain contracts contain extension options which ar
Slide 13: Q1 2015 Review & Outlook
Q1 2015 Review & Outlook “Knots Ahead of the Rest”
Slide 14: The oil outlook remains unclear
The oil outlook remains unclear In its “Oil Market Report for April”, the IEA raised 2015 oil demand forecast to 93.6 million b/day, a 1.1 million b/day increase over 2014. The drivers of this forecast increase the IEA notes, may not be sustainable, over the medium-term, which highlights that, w
Slide 15: Cost rationalisation
Cost rationalisation • Staff retrenchment exercise completed in April 2015 resulted in 155 reduction in headcount • One-off charge of the retrenchment exercise was RM20.6 million in Q1 2015. • Estimated annual cost savings of RM65.0 million 15
Slide 16: FPSO Project Updates
FPSO Project Updates KRAKEN PROJECT 15-06 PROJECT MADURA PROJECT • 5.3 million man-hours completed • 2.7 million man-hours completed • 0.08 million man-hours completed • 0 lost time injuries (LTIs) • 0 LTIs • 0 LTIs • Project completion currently at • Project completion currently at • Project comple
Slide 17: FGS - Malta FSU overview
FGS - Malta FSU overview • Malta FSU project was announced 14th April 2015 • BAB subsidiaries Armada Floating Gas Storage Malta Ltd (“AFG Storage”) and Armada Floating Gas Services Malta Ltd (AFG Services) will own and operate the FSU respectively. • Contract is for a fixed term of 18 years and 2 mo
Slide 18: OSV – Challenging times ahead
OSV – Challenging times ahead Q1 2015 utilisation fell to 71% versus 79% in Q4 2014, highlighting the challenging market RM’ mil Q1 2015 Q1 2014 in the OSV business. The Group has identified vessels that are REVENUE 164.52 156.22 available for sale as well as plans to cold- SEGMENTAL RESULTS 0.3
Slide 19: T&I – Subsea demand expected to be weak
T&I – Subsea demand expected to be weak Revenue was flat due to higher contribution from the Armada Hawk activity on the C7 RM’ mil Q1 2015 Q1 2014 field installation being offset by lower activity on the Condor in West Arica and REVENUE 116.55 117.03 lower activity on the LukOil project in the SE
Slide 20: Summary
Summary As highlighted by the IEA outlook for oil, the short- to medium-term outlook remains unclear. This will continue to provide an environment of uncertainty for the oil companies, and as a result the O&G services sector, going forward. The Group will continue to focus on costs efficiency
Slide 21: Thank You
Thank You “Knots Ahead of the Rest”