Tecnicas Reunidas Sa · BME:TRE
Tecnicas Reunidas Sa — 9M 2017 Earnings Presentation
14 slides from Tecnicas Reunidas Sa's earnings presentation, Nov 10, 2017
Slide 1: Nine Months 2017 Results Presentation
NINE MONTHS 2017 RESULTS PRESENTATION November 10th 2017 Juan Lladó CEO 1
Slide 2: Disclaimer
DISCLAIMER This document has been prepared by Técnicas Reunidas S.A. (the Company) solely for use at presentations held in connection with the announcement of the Company's results for the first nine months of 2017. This document contains forward-looking statements of the Company and/or its manageme
Slide 3: Current Business Environment
CURRENT BUSINESS ENVIRONMENT RESULTS 9M 2017 RESOURCE Unexpected cancellation of awarded projects UTILIZATION Delays in project sanctioning Good prospects in immediate opportunities Decision to maintain core Engineering and Project Management capabilities for fast and proper works’ start Limited per
Slide 4: Guidance Update
GUIDANCE UPDATE RESULTS 9M 2017 2017 2018 Decrease due mainly to delays Revenues, €B 4.9 – 5.0 4.3 – 4.6 and cancellations Progressive improvement along EBIT Margin 2.0% 1.5 to 2.5% 2018 Awards ~ €5B -- Strong pipeline foreseen for 2018 Commitment to shareholder remuneration policy 4
Slide 5: Financial Results
FINANCIAL RESULTS RESULTS 9M 2017 PROFIT AND LOSS Impacts in margins: € Million 9M 17 9M 16 Var. 2016 Delays in project sanctioning and Revenues 3,883 3,438 13% 4,793 unexpected cancellation of EBITDA 105 154 -32% 211 EBIT 88 139 -37% 192 awards results in under activity Margin 2.3% 4.0% 4.0% Uncert
Slide 6: Net Cash Position
NET CASH POSITION RESULTS 9M 2017 M€ Demanding contractual terms in the Middle East 488 Customers’ cash constraints 413 Lower down payment balance due to less awards TR’s customers are among the 225 218 most large, renowned and recurring investors 2016 1Q2017 1H 2017 9M 2017 6
Slide 7: Strong Franchise ~30 B$
STRONG FRANCHISE Duqm (Oman) Refining Al Zour (Kuwait) Upstream & Fadhili (Saudi Arabia) GT5 (Kuwait) Leading the Ras Tanura (Saudi Arabia) Nat Gas Gasco (UAE) STAR (Turkey) IGCC (Saudi Arabia) execution of RAPID (Malaysia) Touat (Algeria) some of the Jazan (Saudi Arabia) Talara (Peru) Hail (UAE) mo
Slide 8: Awards
AWARDS RESULTS 9M 2017 M€ Excellence in execution is a 6,661 prerequisite for projects’ inflow 4 year average 2017 awards among the most €4.4B 4,499 Expected strategic projects in the sector awards 4Q2017 Well positioned in immediate 3,309 2,922 €3B opportunities for this year 2,000 Strong pipeline
Slide 9: 9M 2017 Awards
9M 2017 AWARDS RESULTS 9M 2017 2017 awards among the most strategic projects in the sector 0.5 B$ 2.8 B$ Tierra Mojada CCGT Duqm Refinery Turnkey contract for a combined cycle project in Turnkey contract for a new grassroots refinery in Guadalajara, Mexico Oman The project will help to increase the
Slide 10: YTD 2017 Prospects
YTD 2017 PROSPECTS RESULTS 9M 2017 http://www.saudiaramco.com/en/home/news-media/news/oil-and-gas-agreements.html Saudi Aramco signs agreements for oil and gas megaprojects worth nearly US$4.5 billion. DHAHRAN, November 09, 2017 Saudi Aramco today signed agreements with several oil and gas service c
Slide 11: Backlog
BACKLOG RESULTS 9M 2017 B€ 6.4 8.4 12.1 10.6 8.5 10.6 Expected backlog at year end: near historically highest levels Average annual 13 % increase in backlog 2013-2017E 2013 2014 2015 2016 9M 2017E 2017 Oil and Gas Power and Water 11
Slide 12: Backlog Geographical Split
BACKLOG GEOGRAPHICAL SPLIT RESULTS 9M 2017 20% 21% Strong presence in most resilient 2013 market: Middle East 25% 34% Well positioned in immediate 5% opportunities in Middle East and 19% Central Asia Recurrent customers: a 8% 9M17 consequence of good execution 68% Middle East Europe Latam RoW 12
Slide 13: Closing Remarks
CLOSING REMARKS RESULTS 9M 2017 MARKET Solid investment drivers in oil, gas and petrochemicals Immediate outcome of tenders where we are well positioned Concentration of significant bids during the coming months COMPANY 2013-2017: strengthening of industrial position Reference EPC contractor for lar
Slide 14: Tecnicas Reunidas
fi TECNICAS REUNIDAS