Slide 1: MODEC, Inc. 2022 Financial Results Analysts Presentation
MODEC, Inc. 2022 Financial Results Analysts Presentation February 15, 2023 1
Slide 2: Highlight / Market View & Outlook / Medium- to long-term initiatives / Financial Results
Highlight Market View & Outlook Medium- to long-term initiatives Financial Results (Note) From the end of FY2021, the Company's consolidated financial results have applied International Financial Reporting Standards (IFRS) instead of the conventional Japanese GAAP. In addition, the currency unit has
Slide 3: FY2022: Highlights
FY2022 : Highlights <Profit Attributable to Owners of Parent> (UNIT:US$M) 197 100 Secured profitability for the first time in four years 50 37 0 Progress of construction projects of Woodside Sangomar and Equinor Bacalhau as well as some (50) change orders are recorded. (100) Charter of MV31 FPSO
Slide 4: FY2022: EPC(I) (as of December 2022)
FY2022：EPC(I) (as of December 2022) FPSO FPSO FPSO FPSO Almirante Barroso MV32 Anita Garibaldi MV33 Sangomar Bacalhau Client Petrobras Petrobras Woodside Equinor Contract EPCI + Time Charter EPCI + Time Charter Purchase Contract EPCI + Short term O&M ( 21 yrs ) ( 25 yrs) + O&M (10 yrs+10 one-year ex
Slide 5: EPC(I) / Charter / O&M Period
As of January 2023 EPC(I) period EPC(I) / Charter / O&M 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 (*) 1 FPSO Bacalhau Equinor 2 FPSO Sangomar Woodside MV34 10y 3 32.5 FPSO Anita Garibaldi MV33
Slide 6: Market View & Outlook
Highlight Market View & Outlook Medium- to long-term initiatives Financial Results 6
Slide 7: Crude oil & Natural gas price (WTI/Henry Hub)
FPSO/FSO & TLP Market Trends Crude oil & Natural gas price (WTI/Henry Hub) Although WTI temporarily dropped in the first half of 2020 due to a decline in crude oil demand triggered by the spread of the COVID-19, recently there has been a supply shortage due to factors such as the prolonged invasion
Slide 8: Floating Production Systems Planned or Under Study
FPSO/FSO & TLP Market Trends Floating Production Systems Planned or Under Study The number of development offshore oil fields in Central and South America, Africa and Southeast Asia remains high. Projects in Planning Pipeline (Appraisal, Planning, and Bidding/Final Design) as of January 2023 World T
Slide 9: FY2023: Outlook
FY2022 : Outlook Revenue is expected to be US$3,000M due to the progress of construction work of Woodside Sangomar, Equinor Bacalhau and new orders to be awarded in 2023. Although we expect additional FPSO repair costs, we will secure a net income of US$45M due to the progress of construction wo
Slide 10: Medium- to long-term initiatives
Highlight Market View & Outlook Medium- to long-term initiatives Financial Results
Slide 11: Offshore wind power generation business
Offshore wind power generation business 11
Slide 12: Efforts to reduce the carbon footprint of FPSOs
Efforts to reduce the carbon footprint of FPSOs 12
Slide 13: Four Major Sources of GHG Emissions
Four Major Sources of GHG Emissions 13
Slide 14: Measures to reduce GHG emissions
Measures to reduce GHG emissions 14
Slide 15: Financial Results
Highlight Market View & Outlook Medium- to long-term initiatives Financial Results
Slide 16: Revenue
Revenue EPC(I) Lease, Charter and O&M US$M Secure 2020 level revenue 3,899 4,000 The progress of construction 3,036 work of Woodside Sangomar 3,000 2,736 2,739 and Equinor Bacalhau, and 3,115 change orders contributed to 1,998 2,000 2,168 1,775 revenue. 1,949 1,093 The progress of construction 1
Slide 17: Operating Profit / Profit Attributable to Owners of Parent
Operating Profit / Profit Attributable to Owners of Parent Operating Profit US$75M / Profit Attributable to Owners of Parent US$37M / EBIDA US$126M(refer to P19) Operating Profit Profit Attributable to Owners of Parent US$M US$M MV32 197 300 100 200 200 50 37 134 75 100 0 0 (50) (44) (100) (100) (13
Slide 18: Equity in Earnings of Affiliates / Interest Income
Equity in Earnings of Affiliates / Interest Income Secured equity method investment income in comparison with the last year which was suffered by shut down of some Brazil fleets. In addition, charter service commencement of MV30 and MV31 also contributes the income. Equity in Earnings of Affiliates
Slide 19: Adjusted EBITDA
Adjusted EBITDA GAAP Adj. GAAP(*) EPCI + O&M Operations $ 30MM $ 30MM Charter Operations $ 210MM $ 124MM Service Fee (PL / CF) $ 38MM $ 38MM Interest received (PL / CF) $ 45MM $ 40MM Equity method investment income (PL) $ 127MM $ 46MM Dividends received (Adj. GAAP): Dividends received from SPC / D
Slide 20: Order Backlogs
Order Backlogs Charter/O&M order backlog remains at a high level with long-term contracts Order backlog for construction work will decrease due to progress in existing construction projects. Thus we focus on new project awards. EPC(I) Order backlogs for MODEC Group’s share in the Lease, Charter
Slide 21: Financial position and cash flow
Financial position and cash flow Financial Position Unit：US$M 2021.12 2022.12 Variance Cash and cash equivalents 810 492 -318 Trade & Other receivable 379 478 99 Contract assets 704 257 -447 Investment accounted for using equity method 739 1,114 375 LT loan receivable 398 365 -33 Total assets 3,425
Slide 22: Thank you
Thank you