Slide 1: 1H 2024 Financial Results Summary
1H 2024 Financial Results Summary August 9, 2024 1
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by MODEC, Inc. (the “Company”) solely for information purpose only. The information contained herein is based on current economic, regulatory, market trends and other conditions. The Company makes no representation or guarantee with respect to the credi
Slide 3: Agenda
Agenda I. 1H 2024 Highlight II. Industry Landscape III. Financial Summary IV. Financial Guidance V. Appendix 3
Slide 4: I. 1H 2024 Highlight
I. 1H 2024 Highlight 4
Slide 5: 1H 2024 Highlight: Earnings Results Overview
1H 2024 Highlight Earnings Results Overview Revenue Net Income $ 1,877MM $ 124MM • 48% achievement ratio against FY2024 original guidance • 103% achievement ratio against FY2024 original guidance • $289MM (+18%) increase compared to 1H 2023 • $100MM (+421%) increase compared to 1H 2023 • Record high
Slide 6: Achieved First Oil / Secured a New FEED Contract
1H 2024 Highlight Achieved First Oil / Secured a New FEED Contract Woodside Sangomar FPSO Shell Gato do Mato FPSO Achieved First Oil and Started Operation in June 2024 Secured New FEED Contract in March 2024 UNDER FEED ▪ The FPSO is safely delivered and deployed 100 kilometers south of ▪ MODEC was a
Slide 7: Secondary Offering of Shares / Efforts to Reduce GHG Emissions
1H 2024 Highlight Secondary Offering of Shares / Efforts to Reduce GHG Emissions FPSO Bacalhau Secondary Offering of Shares Completed in May 2024 Recieved DNV Abate Notation in May 2024 Mitsui E&S (“MES”), which owned 40.5% MODEC shares, FPSO Bacalhau, currently under construction, is the world’
Slide 8: II. Industry Landscape
II. Industry Landscape 8
Slide 9: Industry Landscape: Solid Operating Environment
Industry Landscape Solid Operating Environment with Growing Oil Demand and Competitive Deep Water Oil Lifting Costs World Population1 Energy Demand2 Global Liquid Supply Cost Curve4 (Real Brent US$/bbl) Oil is expected to remain the leading source of energy even though MODEC’s primary target mar
Slide 10: Industry Landscape: Strong Global Pipeline
Industry Landscape Strong Global Pipeline Project pipeline remains robust with Latin America, Africa and Southeast Asia leading the market - MODEC has the track record to serve each of these markets. - Large oil reservoirs are primarily found in the Deepwater and the Ultra Deepwater areas of Latin A
Slide 11: III. Financial Summary
III. Financial Summary 11
Slide 12: EPCI / Charter / O&M Projects
Financial Summary EPCI / Charter / O&M Projects As of July 2024 EPC(I) period Time Charter fixed period Time Charter option period O&M period 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 Current Charter Charter # Asset Stage (%)1 Ship Name Of
Slide 13: EPCI/O&M Backlog
Financial Summary EPCI/O&M Backlog Backlog remains high EPCI backlog increased significantly and remains at a high level due to two large contracts, Uaru and Raia, awarded in May 2023. O&M backlog remains at a high level with long-term contracts. FEED for Shell Gato do Mato is currently being
Slide 14: EPCI/O&M Revenue and Gross Profit
Financial Summary EPCI/O&M Revenue and Gross Profit Significant improvement in operating performance Legacy EPCI projects that were most affected by Covid-19 have all been completed by 2023. Steady progress in the EPCI construction work of Uaru, Raia, and Bacalhau. Higher profits in 1H 2024 re
Slide 15: Charter Backlog and Business Performance
Financial Summary Charter Backlog and Business Performance 160 cumulative years of Charter contracts with 12.8-year remaining average life MODEC does not consolidate the SPCs whose financial results are recognized as “share of profit of investments accounted for using equity method ” in Modec’s in
Slide 16: 1H 2024 Financial Results
Financial Summary 1H 2024 Financial Results 2021 2022 2023 1H 2023 1H 2024 Diff. Revenue EPCI 3,115 1,775 2,488 1,096 1,271 + 174 O&M 728 901 1,006 460 556 + 96 Service Fee 29 36 42 22 23 +1 Others 26 26 36 9 25 + 16 Revenue Total 3,899 2,739 3,574 1,588 1,877 + 289 Gross Profits (excluding Service
Slide 17: Historical Performance
Financial Summary Historical Performance1 Significant improvement in EPCI, O&M and Charter Business Performance. MODEC maintains a solid financial condition with a low levered balance sheet. KEY FINANCIAL ITEMS (US$ MM) 2021 2022 2023 1H 2023 1H 2024 Revenue 3,899 2,739 3,574 1,588 1,877 Adj. EBITDA
Slide 18: IV. Financial Guidance
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Slide 19: FY2024 Earnings Outlook / Shareholder Return
Financial Guidance FY2024 Earnings Outlook / Shareholder Return Upward Revision to the 2024 Earnings Forecast Although additional expenses for the Special Maintenance for the older FPSO vessel is expected in 2H 2024, the earnings forecast for the full year 2024 is revised upward in view of the sol
Slide 20: V. Appendix
& MODEC V. Appendix
Slide 21: Adjusted EBITDA
Financial Summary Adjusted EBITDA (US$ MM) 1H 2023 1H 2024 Diff. EPCI + O&M Profits 63 174 + 110 (Gross Profits excluding Service Fee) Charter Profits Service Fee 22 23 +1 Interest Income 18 18 +0 Equity in Affiliates 41 82 + 40 Charter Profits Total 81 123 + 42 SG&A (78) (93) - 14 Depreciation (CF)
Slide 22: Balance sheet and Cash flow Summary
Financial Summary Balance sheet and Cash flow Summary Balance sheet Unit：US$ MM 2023.12 2024.6 Variance Cash and cash equivalents 1,013 1,143 + 130 Trade and other receivable 592 501 - 91 Contract assets 185 130 - 55 Investment accounted for using equity method 1,374 1,553 + 179 LT loan receivable 3
Slide 23: EPCI Projects
EPCI Projects Project Details 3 FPSOs are under construction FPSO FPSO FPSO Bacalhau Uaru Raia Client Equinor ExxonMobil Equinor Contract EPCI + Short term O&M (1 year) EPCI + O&M (10 years) EPCI + Short term O&M (1 year) FID 2020 2023 2023 First Oil (Planned) 2025 2026 2027 Field Bacalhau Stabroek
Slide 24: Defined Terms
Defined Terms Term & Definition Term Definition EPCI Engineering, Procurement, Construction, and Installation Deepwater Water depths between 500 meters and 1,999 meters FEED Front End Engineering and Design FPSO Floating Production, Storage, and Offloading vessel FSO Floating Storage and Offloading
Slide 25: Ocean is Full of Potential
OCEAN IS FULL OF POTENTIAL 25