Keppel Ltd. · SGX:BN4

Keppel — Pareto Securities' 23rd Annual Oil & Offshore Conference 2016

44 slides from Keppel's conference presentation, Sep 14, 2016

  1. Slide 1: Pareto Securities' 23rd Annual Oil & Offshore Conference

    Pareto Securities’ 23rd Annual Oil & Offshore Conference 14-15 September 2016 Chow Yew Yuen CEO Keppel Offshore & Marine 1

  2. Slide 2: Disclaimer

    Disclaimer This release may contain forward-looking statements which are subject to risks and uncertainties that could cause actual results to differ materially from such statements. Such risks and uncertainties include industry and economic conditions, competition, and legal, governmental and regul

  3. Slide 3: Keppel Corporation

    Keppel Corporation Meeting the needs of sustainable urbanisation. Offshore & Marine Property Infrastructure Investments • Offshore rig design, • Property • Energy & related • Asset construction, repair development infrastructure management and upgrading •Property & • Logistics & data infrastructure

  4. Slide 4: Keppel Offshore & Marine

    Keppel Offshore & Marine Ship Repair & Specialised Offshore Technology Conversion Shipbuilding Leading designer, Trusted industry Designer and Design and builder and repairer name for repair, builder of a wide engineer market- of high-performance conversion and spectrum of highly relevant and mobile

  5. Slide 5: Industry Headwinds

    Industry Headwinds  Oil and gas prices remain low  Significant reduction in global E&P spending  Overhang of uncontracted newbuilds for rigs  Oversupply of offshore supply vessels  Offshore production projects pushed to the right  Rig delivery deferments and cancellations 5

  6. Slide 6: Keppel's Order Backlog

    Keppel’s Order Backlog Net orderbook*  Order backlog as of end-Aug 2016 includes: Newbuild  22 newbuild rigs semis 7%  16 FPSO/FLNG/FSU projects Newbuild jackups  One pipelay vessel 26%  One ice-class multi-purpose Others S$4.3b vessel 4% Specialised  One subsea construction vessels vessel 2%

  7. Slide 7: Responding with Agility

    Responding with Agility ‘ iG y+t-1| Offshore & Marine

  8. Slide 8: Rightsizing to Optimise Operations

    Rightsizing to Optimise Operations  Lowered workforce by about 28% from early 2015.  Reduced overheads by about 20% yoy in 1H 2016.  Restructuring yards with low work volumes.  Streamlining operations using data analysis. 8

  9. Slide 9: Improving Efficiency & Productivity

    Improving Efficiency & Productivity CAN-DO barge Asian Hercules III Automated panel line Robotic fit-up & welding machine 9

  10. Slide 10: Retaining & Strengthening Capabilities

    Retaining & Strengthening Capabilities  Improved construction methodologies.  Integrating resources across our global operations.  Enhancing processes and engineering capabilities.  Investing prudently in R&D.  Developing and redeploying talent. 10

  11. Slide 11: Broadening Product & Service Offerings

    Broadening Product & Service Offerings  Acquisition of LETOURNEAU™ business increased Keppel’s rig designs to more than 26 and added to its aftersales business.  Added designs and construction capabilities for Production units  Solutions for gas value chain  Variety of specialised vessels  Non

  12. Slide 12: Aftersales, Aftermarket & Lifecycle Services

    Aftersales, Aftermarket & Lifecycle Services  Aftersales, aftermarket and lifecycle maintenance services for:  Jackups/semis/drillships  Specialised vessels  FPSOs/FLNGs/FSRUs  Scope of services:  Sale of spare parts  Engineering services  Repair  Field service  Inspection 12

  13. Slide 13: Execution Excellence

    Execution Excellence  Delivered four KFELS B Class jackups, a harsh environment land rig, a semi upgrade, a liftboat, a derrick lay vessel, an anchor handling tug, and an FPSO project. KFELS B Class jackups, Cidade de Caraguatatuba MV27 Derrick lay vessel, DLV 2000 CANTARELL I & II 13

  14. Slide 14: Singapore: Keppel FELS

    Singapore: Keppel FELS  Global leader in offshore rig design, construction and repair.  113 jackups and 39 semisubmersibles delivered and on order since 2000 by Keppel O&M. 14

  15. Slide 15: Singapore: Keppel FELS

    Singapore: Keppel FELS  Order backlog of 21 newbuilds, with deliveries into 2020.  Completed eight repair/upgrading projects year-to-date, with another 12 on order. SSAUTM 5000NG unit, Floatel Triumph Refurbishment of semi, Ocean Apex 15

  16. Slide 16: Singapore: Keppel Shipyard

    Singapore: Keppel Shipyard  Converted/repaired 40% of FPSO/FSO/FSRU vessels worldwide.  Average of 400 vessel conversion/repair/modification/upgrade jobs per year.  Fabricated 30% of turrets for FPSO vessels worldwide. 16

  17. Slide 17: Singapore: Keppel Shipyard

    Singapore: Keppel Shipyard  Order backlog of 13 FPSO/FLNG/FSU jobs. Golar’s LNG carrier, the HILLI 17

  18. Slide 18: Singapore: Keppel Shipyard

    Singapore: Keppel Shipyard  On track to deliver four FPSO jobs in 2016. Harsh-environment FPSO, Armada Kraken 18

  19. Slide 19: Singapore: Keppel Singmarine

    Singapore: Keppel Singmarine  Constructed over 400 specialised vessels for global clientele.  Delivered six pipelay vessels, the highest number by a single builder.  Constructed 11 ice-class vessels, the largest builder in the region. Derrick lay vessal, DLV 2000 19

  20. Slide 20: Singapore: Keppel Singmarine

    Singapore: Keppel Singmarine  Recent key deliveries include three ice-class vessels, a derrick lay vessel and an anchor handling tug.  On track to complete an ice-class multi-purpose vessel in mid-2017. Ice-class vessels, Bumi Uray, Bumi Pokachi and Bumi Naryan-Mar 20

  21. Slide 21: China: Keppel Nantong

    China: Keppel Nantong  Offers effective production support to the Singapore yards.  To support Keppel Singmarine in building three Trailing Suction Hopper dredgers for Jan De Nul*. * Construction of the third dredger will start upon receiving notice from Jan De Nul. 21

  22. Slide 22: US Gulf of Mexico: Keppel AmFELS

    US Gulf of Mexico: Keppel AmFELS  Established a strong track record in the construction, refurbishment, conversion, life extension and repair of a variety of drilling rigs.  Delivered a land rig and a KFELS B Class jackup in 2016. Harsh environment enhanced mobility land rig 22

  23. Slide 23: Brazil: BrasFELS

    Brazil: BrasFELS  Over 16 years of experience providing solutions for offshore rigs, FPSOs, specialised vessels and repair and upgrading projects.  Completed six FPSO projects since 2010. 23

  24. Slide 24: Brazil: BrasFELS

    Brazil: BrasFELS  Presently engaged for three FPSO projects, including module fabrication and integration for MODEC’s FPSO, MV29, and Petrobras’ FPSOs, P-66 and P-69. Delivered FPSO, Cidade de Caraguatatuba MV27 in early 2016. 24

  25. Slide 25: Azerbaijan: Caspian Shipyard & Baku Shipyard

    Azerbaijan: Caspian Shipyard & Baku Shipyard  Synergies of our yards in the design and construction of rigs/vessels. Subsea construction vessel, DSSTM 38M semi Khankendi Modules transported 13,000 km from Singapore to Azerbaijan 25

  26. Slide 26: Azerbaijan: Caspian Shipyard

    Azerbaijan: Caspian Shipyard  Delivered a major upgrade of the semi, Istiglal, as well as a jacket transportation and launch barge year-to-date. Upgrade of semi drilling rig, Istiglal Purpose-built jacket transportation and launch barge, STB-1 26

  27. Slide 27: Opportunities - Production Solutions

    Opportunities - Production Solutions 27

  28. Slide 28: Floating Production Market

    Floating Production Market  FPSOs remain the preferred floating production solution. 45% of FPSs on order are FPSOs, constituting 60% of the global FPS capex.  Niche demand for tension leg platform and semi floating production units. * Source: Energy Maritime Associates 28

  29. Slide 29: Production Solutions

    Production Solutions  Suite of deepwater floating production solutions.  FPSO conversions, tension leg platforms and semi floating production units.  Leveraging engineering, procurement, construction and installation capability to build superstructures.  Proven FloaTEC designs for extended tensi

  30. Slide 30: Opportunities - LNG

    Opportunities - LNG * \()*)-.-) | Offshore & Marine

  31. Slide 31: LNG Market

    LNG Market Global LNG expenditure is expected to total US$284b in 2017-2021, a 50% growth from the preceding five-year period¹. LNG demand is driven by: Development of LNG-fuelled fleet²  COP21 200  Gas-fired power plants No. of Ships 150  Harbour use 100  FSRU for municipalities  LNG-fueled sh

  32. Slide 32: Solutions for Gas Value Chain

    Solutions for Gas Value Chain Gas to LNG Gas to LNG LNG to Gas Offshore liquefaction Onshore liquefaction Re-gasification and storage LNG to Users LNG to Power LNG as Fuel Transportation and bunkering Bringing power to users Engine conversion 32

  33. Slide 33: FLNG Solutions

    FLNG Solutions  The global FLNG market is expected to draw US$65b of investments in 2014-2020*.  35 years of experience and expertise in conversion and modularization.  Economical, safe and quick to market midstream solutions for Keppel’s FLNG + FSU deployment concepts provide cost small and mid-

  34. Slide 34: PreNEx Liquefaction Technology

    PreNEx Liquefaction Technology  Keppel’s proprietary PreNEx (Pre-cooled Nitrogen Expansion) offers simple, safe and reliable alternative to other LNG processes.  PreNEx can be used for offshore and onshore applications.  Collaborating with PT NAT Gas in developing PreNEx LNG plant in Batam, Indon

  35. Slide 35: LNG Bunkering & Distribution

    LNG Bunkering & Distribution  The Keppel-Shell joint venture, FueLNG, secured the license to supply LNG bunker in Singapore.  Developing Singapore into a key LNG bunkering hub in Asia.  Meeting the needs for sustainable shipping with our growing LNG solution.  Potential pull-through for LNG-fuel

  36. Slide 36: LNG Transportation & Logistics Solutions

    LNG Transportation & Logistics Solutions  LNG carriers for shallow waters  FSRU barge 3,000mᶟ capacity, non-propelled Storage capacity up to 50,000mᶟ 12,000mᶟ capacity, self-propelled or non-propelled 8,000mᶟ/10,000mᶟ capacity, non-propelled 36

  37. Slide 37: Opportunities - Specialised Vessels

    Opportunities - Specialised Vessels 37

  38. Slide 38: Specialised Vessels

    Specialised Vessels  Liftboats  Decommissioning/plug & abandonment vessels  Pipelay vessels  Subsea construction vessels  Cable laying vessels  Ice-breakers/Ice-class vessels Liftboat  Dredgers Artist impression of Trailing Suction Hopper dredgers Ice-class vessel 38

  39. Slide 39: Opportunities - Non O&G Solutions

    Opportunities - Non O&G Solutions 39

  40. Slide 40: Offshore Wind Support

    Offshore Wind Support  Offshore wind market continues to grow.  Seven projects in Europe has drawn €14b investment in 1H 2016.  Keppel offers a full suite of offshore wind support solutions, including:  Liftboat/self-installing platforms  Offshore substations  Jacket foundations  Floating cra

  41. Slide 41: Single/Dual Fuel Floating Power Barge

    Single/Dual Fuel Floating Power Barge  Increasing demand for offshore power in developing countries.  Minimal land usage  Cheaper fuel  High mobility  Quick implementation  Customised business model related to Power Purchase Agreement opportunities. 41

  42. Slide 42: Offshore Desalination

    Offshore Desalination  Freshwater shortage driven by climate change and population growth.  Global floating desalination market expected to generate at least US$1.5-4b every year until 2025*.  Advantages of offshore desalination:  Minimal ecological footprint  Minimal land usage  Quick impleme

  43. Slide 43: We aim to anchor our position as the trusted and preferred solutions partner

    We aim to anchor our position as the trusted and preferred solutions partner in the offshore & marine industry by seizing opportunities to build and grow our businesses. 43

  44. Slide 44: Thank you Q&As

    Thank you Q&AS \()*)-.-) | Offshore & Marine

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