Bumi Armada Bhd. · MYX:ARMADA
Bumi Armada Bhd — FY2013 Earnings Presentation
25 slides from Bumi Armada Bhd's earnings presentation, Feb 19, 2014
Slide 1: FY 2013 Financial Results Presentation
FY 2013 Financial Results Presentation 19 February 2014 “Knots Ahead of the Rest”
Slide 2: Disclaimer
Disclaimer This document 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, or e
Slide 3: Key Takeaways
Key Takeaways Net profit for the year increased by 11.8% to RM431.2million EBITDA of RM994.2 million up 4.9% compared to 2012 Revenue increased by RM413.8 million or 24.9% to RM2.1 billion Order book stands at RM22.1 billion with good profitability (comprising RM13.2 billion of firm contracts and RM
Slide 4: Results Overview – FY 2013 vs. FY 2012 (in RM’mil)
Results Overview – FY 2013 vs. FY 2012 (in RM’mil) Operations on track and growth across all business segments Net Profit* 431.2 385.8 Revenue EBITDA +24.9% 2,073.0 948.0 +4.9% 994.2 +11.8% 1,659.2 FY 2012 FY 2013 FY 2012 FY 2013 In line with EBITDA increase with benefit from: FY 2012 FY 2013 • Lowe
Slide 5: Revenue composition by business units (in RM’mil)
Revenue composition by business units (in RM’mil) Improved performance in established segments FPSO OSV +10.0% +15.6% 636.8 787.6 716.0 551.0 FY 2012 FY 2013 FY 2012 FY 2013 Increase in FPSO client VOs, O&M, revenue from FPSO candidate vessels & start up Kraken contract. Additional OSV vessels and i
Slide 6: Revenue composition by geographical %
Revenue composition by geographical % Increasingly More International FY 2012 FY 2013 6.6% 4.4% 13.6% 17.5% 28.5% 29.1% 47.4% 52.9% 6
Slide 7: Leverage and capitalization
Leverage and capitalization Financial capacity intact to undertake more projects Net Debt / EBITDA(1) Gearing ratio(2) 5.1x 4.9x 4.8x 4.5x 4.0x 3.9x 4.0x 3.5x 3.4x 2.9x 3.2x 3.0x 2.6x 2.4x 2.5x 2.3x 1.9x 2.0x 1.5x 0.9x 0.8x 0.8x 0.9x 1.0x 0.7x 0.7x 0.5x 0.0x 2008 2009 2010 2011 2012 Q1 2013 Q2 2013
Slide 8: Order book as at 31 December 2013
Order book as at 31 December 2013 Quality firm backlog of RM13.2 bn As at 31 December 2013, the Group’s order book stood at RM13.2 billion compared to RM8.0 billion as at 30 September 2013. Upon expiration of the firm contract period, certain contracts contain extension options which are renewable o
Slide 9: What Went Right
What Went Right Secured Cluster 7 FPSO: consolidates Bumi Armada’s dominant position in the Indian FPSO market Secured Kraken FPSO: significant achievement for Bumi Armada as it becomes the first Malaysian oil field service company to work in the U.K. North Sea Addition of Armada Condor to T&I fleet
Slide 10: What Went Wrong
What Went Wrong Delays in FPSO awards due to political uncertainty in the markets we wish to operate in OSV: changes to the market conditions in Malaysia Slower start-up for OFS and Gas Development & Technology 10
Slide 11: Integrated Offshore Oilfield Services Provider
Integrated Offshore Oilfield Services Provider ASSET MANAGEMENT FIELD AND DEVELOPMENT OPERATIONS Further Deeper TRANSPORT AND INSTALLATIONS Harsher POST DRILLING OILFIELD SERVICES FLOATING FACILITIES 11
Slide 12: Sector Outlook
Sector Outlook “Knots Ahead of the Rest”
Slide 13: The Leading Indicators
The Leading Indicators • China to continue dominating the demand for energy • Shift in longer term regional energy balance 13
Slide 14: Oil & Gas
Oil & Gas • Oil and Gas remain as key components in the global energy mix 14
Slide 15: Deepwater
Deepwater • Deepwater oil will become an increasingly important source to global hydrocarbon supply • Shallow water investment peaked in 2013. Deepwater investment to take over. • Deepwater oil and gas spending is expected to rise by 130% to $260 billion from 2014 to 2018, predicts Douglas Westwood
Slide 16: Steel Prices
Steel Prices • Prices have remained steady • Conducive for conversion projects and newbuilds Source: Bloomberg 16
Slide 17: Tanker Prices
Tanker Prices • Second-hand tanker prices have started to creep up • Close monitoring needed to control capex and inflation Source: Clarkson 17
Slide 18: 2013 FPSO Awards
2013 FPSO Awards • 2013 was a better year for FPSO awards compared to 2012. • There were 12 FPSO awards in 2013 (7 of which were lease) • Bumi Armada secured 2 awards 2013 FPSO Awards Type Cluster 7, India Lease Kraken, U.K. Lease Carioca, Brazil Lease Lula Alto, Brazil Lease Lula Central, Brazil Le
Slide 19: FPSO – 2014 Outlook
FPSO – 2014 Outlook • Bumi Armada currently has 10 outstanding FPSO tenders. • Key FPSO markets for Bumi Armada are West Africa and Asia with potential opportunities from the Gulf of Mexico and Brazil. • For its 5 year forecast to 2018, Energy Maritime Associates forecasts 65 - 93 FPSOs to be awarde
Slide 20: Where We Stand
Where We Stand Expanding FPSO operator with target to be the 4th largest by fleet size ~~ Il Existing vessels © Expected new vessels Source: Companies’ website as atFeb 2014 3 G SBM Oftshore BW Otshore Modec Teekay Misc Rubicon Yinson Petrotac Ezra / Emas Bumi Armada = Bluawater Number of operationa
Slide 21: OSV
OSV • Continue with our fleet renewal and expansion plan, Steel on Water 2. • Aim to add 4 – 5 premium vessels a year and maintain average fleet age of 5- 7 years. • Focus on adding higher specification, greener, cleaner, safer and fuel efficient (GCSE) vessels to the fleet. • Enhance service offeri
Slide 22: Gas Development and Technology (GDT)
Gas Development and Technology (GDT) • Bumi Armada has continued to expand and strengthen its GDT department in 2013 in order to provide gas related floating solutions. • Focus on small-scale FSRU/FLNG conversion to provide a fast track solution for clients. • Establishing partnerships with engineer
Slide 23: T&I – SURF’s up
T&I – SURF’ ’s up • Continue to build track record and build subsea competency with the Armada Hawk and Armada Condor. • Expand our offering in subsea installation and SURF by adding services (e.g. saturation diving system) on existing vessels Armada Hawk and Armada Condor. • Newbuild SURF 1 vessel
Slide 24: OFS
OFS • Focus on securing vessel based riserless light well intervention / top- hole drilling jobs. • Provide alternative to field operators in hiring over-spec ’ d UDW drilling rigs or semi-submersibles with high dayrates to perform well intervention work. Source: Jensen, 2008. Underwater Technology
Slide 25: Q&A Thank You
Q&A Thank You “Knots Ahead of the Rest”