Murray & Roberts — Clough — Investor Presentation (2014)
29 slides from Murray & Roberts's investor presentation, 2014
Slide 1: Engineered Excellence
y y¥// CLOUGH pursuit ofexcellence pursuit of excellence Engineered Excellence
Slide 2: Agenda
Agenda Market Overview Business Overview Services Contracting Models Strategy and Outlook Engineered Excellence
Slide 3: Global Energy Demand
Global Energy Demand World Projected Energy Mix In 2035 Commentary OECD ~6.0btoe Population and income Other* ~5.3btoe +50% growth are the key Natural Gas +22% drivers to increasing Oil energy demand -10% Coal -7% Non-OECD countries 2012 2035 will account for 88% of total energy demand Non - ~11.8bt
Slide 4: The Compelling Case for Gas
The Compelling Case for Gas Gas is Abundant Gas is Acceptable – Over 250 years of global reserves – Gas fired power stations emit 50-70% now available…still more to be found less CO2 than coal – By 2020 LNG could meet 20% of Gas is Affordable global gas needs – Gas fired power stations have lowest –
Slide 5: Gas Demand Forecast
Gas Demand Forecast Gas Trends Non OECD countries account for 70% of growth in natural gas Technology shifts unlocking unconventional gas reserves The move away from Nuclear power in Japan and Europe Increasing use of gas as a transportation fuel Climate stress will increase demand for cleaner fuels
Slide 6: Australian Capex: Oil & Gas
Australian Capex: Oil & Gas Oil, gas and other hydrocarbons – Currently $277B of energy Capex spend ($m) and chemical projects are under construction in 40000.0 Australia, with a further $297B at the feasibility stage. 35000.0 Of the projects under 30000.0 construction, $205B of investment is from L
Slide 7: Opportunities: Transition to Brownfields
Opportunities: Transition to Brownfields Forecast Asset Support Market - Upstream and Downstream LNG (+Gas plants) A$m in Australia and PNG 3 500 A step change in installed Uncommitted - Brownfield Engineering capacity will result in 3 000 Uncommitted - Maintenance increased demand for production op
Slide 8: Clough: Established in 1919
Clough: Established in 1919 1919 1950 1960 1970 1980 1990 2000 2010 years in Australia 95 Established in 1919 years of major engineering & construction projects 55 1957 Narrows Bridge Project awarded years of jetty design and construction 50 1964 Hamersley Iron Parker Point load out jetty awarded ye
Slide 9: Clough Today – 4 + 2 + 3
Clough Today – 4 + 2 + 3 Construction Engineering & Commissioning & Minor & Medium Jetties & Terminals EPCM Major Capex Brownfields 4 Capex Projects Projects Products Oil & Gas Minerals 2 Market Upstream, downstream, offshore, onshore, oil, gas and Iron ore, coal, precious and other metals markets S
Slide 10: Current Projects
Current Projects Active on every major LNG project in Australia & PNG Engineered Excellence 10
Slide 11: Services across the project lifecycle
Services across the project lifecycle We engineer to construct and construct to commission, operate and maintain Engineered Excellence
Slide 12: Engineering & EPCM
Engineering & EPCM Capabilities include: Concept Evaluation Project Feasibility Studies Basis of Design Front End Engineering Design Detailed Design Specialised Process Engineering Design Engineering, Procurement, Construction and Project Management (EPCM) Project Management Consultant (and Services
Slide 13: Construction: Minor & Medium Capex Projects
CONSTRUCTION: Minor & Medium Capex Projects Capabilities include: Brownfield Expansion and Modification Projects Process Facilities Balance of Plant Infrastructure Power Generation Compression Facilities and Infield Pipelines Offshore Fabrication A lean delivery model across the project lifecycle En
Slide 14: Construction: Major Capex Projects
CONSTRUCTION: Major Capex Projects Capabilities include: Process Facilities Power Generation Compression Facilities Pipelines Civil Infrastructure Roads and Bridges Camps Offshore Fabrication Integrated EPC Services Engineered Excellence 14
Slide 15: Jetties & Terminals
Jetties & Terminals Capabilities include: Oil, Gas and Minerals Import and Export Jetties Ports and Port Development Import and Export Terminals Berthing Structures, Quay Walls and Breakwaters Intake and Outfall Structures / Pipelines In-house Design and Construct Capability The Market Leader in Jet
Slide 16: Commissioning & Brownfields
Commissioning & Brownfields Clough’s Commissioning Services: Bridge the gap between the construction phase and the operations phase Integrate with client project execution teams Apply sophisticated engineering techniques that identify and schedule commissioning requirements early in the project Dete
Slide 17: Commissioning & Brownfields: Clough Coens
Commissioning & Brownfields Clough Coens: Offers an attractive alternative to the traditional commissioning model Brings a skilled Korean workforce, training and development expertise, and extensive knowledge in the delivery of commissioning projects Korean & Chinese fabrication yards. Global resour
Slide 18: Commissioning & Brownfields: Operations & Maintenance
Commissioning & Brownfields Operations & Maintenance capabilities include: Operations Engineering Reliability Modelling Maintenance Management and Execution Shutdowns and Turnarounds Operational Readiness Supply Chain Management Operators Maintenance Staff Competency Assurance and Training (classroo
Slide 19: Current Contracting Models
Current Contracting Models Benefits Issues EPCM • Owner involvement • No single-point accountability for contractor • Early owner engagement at technical • Owner retains interface risk definition • Limited risk to contractor for cost & schedule • Owner controlled team outcomes • Large owner’s team r
Slide 20: Contracts across the Project Lifecycle
Contracts across the Project Lifecycle OPERATIONS & MAINTENANCE DEVELOPMENT PHASE EPC PHASE (O&M) PHASE DETAILED HOOK-UP & OPERATIONS & CONCEPT BOD FEED PROCUREMENT CONSTRUCTION DESIGN COMMISSIONING MAINTENANCE COMMISSIONING O&M EPCM CONTRACTOR CONTRACTOR CONTRACTOR VENDOR CONTRACT 1 CONTRACT 2 COMM
Slide 21: Diversification of earnings, Increase Commercial Performance
Strategic Growth Horizon 3 Robustness to Commodity cycles Increase Commercial Performance Diversification of earnings Transformational Change Build an annuity business through operations Commentary capability Build Own Operate Maintain commercial models Governance systems Domestic LNG plant operatio
Slide 22: Revenue Diversity: 2013-2020
Revenue Diversity: 2013- 2020 % Transition from a small PROJECTS base load of large projects to a larger base load of smaller projects Revenue Diversity Growth Businesses Engineering Major Capex Projects Jetties & Near Shore Minor & Medium Commissioning Asset Support Marine Capex Projects * Note: 20
Slide 23: Summary
Summary The global oil & gas industry is a growth market; gas is affordable, abundant and acceptable The oil & gas industry in Australia transitioning to Brownfields but significant ongoing capex opportunities remain The mining industry is transitioning from large scale projects to large scale opera
Slide 24: Appendices
Appendices Engineered Excellence
Slide 25: Engineering Key Projects
Engineering Key Projects Ichthys Integrated Project Arrow Upstream FEED Tangguh Expansion Project Management Services Client INPEX Arrow Energy Limited BP Berau Offshore Darwin, Northern Bintuni Bay, West Papua, Location Queensland Territory Indonesia Contracting Clough Doris Clough AMEC Clough enti
Slide 26: Minor & Medium Capex Projects - Key Projects
Minor & Medium Capex Projects - Key Projects Kumul Terminal Rejuvenation Ammonium Nitrate/Nitric Acid Plant Project Project Number 3 Client Oil Search PNG CSBP Limited Location Offshore Papua New Guinea Kwinana, Western Australia Contracting Clough AMEC Downer Clough entity Scope Construction manage
Slide 27: Major Capex Projects Key Projects
Major Capex Projects Key Projects PNG LNG Gas Conditioning Gorgon Project K128 Upstream Facilities Plant / Upstream Infrastructure Client Chevron Australia Santos / Fluor Australia ExxonMobil PNG Limited Hela Province and Southern Location Barrow Island, Western Australia Surat Basin, Queensland Hig
Slide 28: Jetties, Near Shore Marine & Terminals – Key Projects
Jetties, Near Shore Marine & Terminals – Key Projects Ichthys Project Onshore Facilities LNG Anderson Point Facility Wheatstone Project Jetty Product Loading Jetty and Onshore (AP5) Module Offloading Facility (MOF) Client Fortescue Metals Group Bechtel JGC Corporation Location Port Hedland, Western
Slide 29: Commissioning & Brownfields Key Projects
Commissioning & Brownfields Key Projects Wheatstone HUC Bayu-Undan Operations and Blacktip Maintenance Client Chevron Australia ConocoPhillips Australia ENI Australia Location 200km North of Onslow, Western Timor Sea Northern Territory and Western Australia Australia Contracting Clough Clough AMEC C