Sbm Offshore Nv · EURONEXT:SBMO
Sbm Offshore Nv — H1 2013 Earnings Presentation
42 slides from Sbm Offshore Nv's earnings presentation, August 2013
Slide 1: H1 2013 Results Presentation - August 2013
H1 2013 Results Presentation- August 2013 © SBM Offshore 2013. All rights reserved. www.sbmoffshore.com
Slide 2: Disclaimer
Disclaimer Some of the statements contained Should one or more of these risks in this presentation that are not or uncertainties materialize, or historical facts are statements of should underlying assumptions future expectations and other prove incorrect, actual results forward-looking statements b
Slide 3: H1 2013 in Context
H1 2013 in Context IR - 07/08/2013 ¹ Directional view is a non-IFRS disclosure, which corrects the non-cash effects on revenue and earnings introduced by IFRS finance lease accounting 3
Slide 4: Agenda: H1 2013 Review
Agenda H1 2013 Review Project Direction H1 2013 Financials Outlook IR - 07/08/2013 4
Slide 5: Key Figures
Key Figures (in millions of US$) IR - 07/08/2013 *Restated for comparison purposes 5
Slide 6: H1 2013 HSSE Results
H1 2013 HSSE Results • Frequency of recordable injuries higher than 2012, lost time injury frequency mainly impacted by an isolated altercation in the yard in China • Frequency of potentially severe incidents reduced by 40% compared to 2012 • Offshore gaseous emissions 15% higher than industry bench
Slide 7: FPSOs Cidade de Maricá & Cidade de Saquarema
FPSOs Cidade de Maricá & Cidade de Saquarema • Generation 3 FPSOs • Topside: 22,000 T • Accelerated award process • Delivery end 2015 and early 2016 H1 2013 Award IR - 07/08/2013 July 2013 7
Slide 8: FPSO OSX 2
FPSO OSX 2 • Turnkey sale • On time, on budget • 97% paid at July 31, 2013 Delivery H2 2013 IR - 07/08/2013 July 2013 8
Slide 9: FPSO Cidade de Paraty
FPSO Cidade de Paraty • 20 year lease contract • On time, on budget • More than 65% local content • FPSO built in 34 months In production H1 2013 IR - 07/08/2013 July 2013 9
Slide 10: FPSO Stones
FPSO Stones • 10 year lease contract • Optional extensions up to 10 years • World’s deepest disconnectable FPSO; 2,896 meters in GOM • Delivery date H1 2016 H2 2013 Award IR - 07/08/2013 July 2013 10
Slide 11: MOPU Deep Panuke
MOPU Deep Panuke • First well gas on platform • Operations Authorization (Production) issued by CNSOPB • Final stages commissioning and start-up In production H2 2013 IR - 07/08/2013 July 2013 11
Slide 12: Core Projects on Track
Core Projects on Track (ol) operating lease (fl) finance lease (t) turnkey Legacy Project In Progress/On Schedule Completed/On Hire IR - 07/08/2013 12
Slide 13: Yme Resolution
Yme Resolution • Termination of existing agreements and arbitration procedures • Platform to be decommissioned by Talisman by 2016; transported and scrapped by SBM Offshore • All relevant costs have been provided for in 2012 • US$470 mln settlement contribution: Paid in full, March 2013 • Impact on
Slide 14: Recapitalisation
Recapitalisation • 10% Rights Issue at €10.07 per share in April 2013 • 97.7% take-up by existing shareholders • HAL at 13.5% shareholding following the Rights Issue and December 2012 Private Placement IR - 07/08/2013 14
Slide 15: FPSO Awards in Review
FPSO Awards in Review IR - 07/08/2013 15
Slide 16: Oil Production Dynamics
Oil Production Dynamics Breakeven costs (IRR>10%) • Deep and ultra-deep water breakeven costs are competitive • Average SBM Generation 3 FPSO production costs are below US$5/bbl Sources: IEA, CERA, Total, Goldman Sachs, Internal analysis IR - 07/08/2013 16
Slide 17: Agenda: Project Direction
Agenda H1 2013 Review Project Direction H1 2013 Financials Outlook IR - 07/08/2013 17
Slide 18: Project Direction - Context
Project Direction - Context • SBM Offshore seeking to provide analysts and investors with clarity on business performance above and beyond statutory IFRS disclosure • SBM Offshore’s business model combines turnkey sales, construction and lease and operate projects, making it a challenge to model • I
Slide 19: Operating Lease vs Finance Lease
Operating Lease vs Finance Lease IR - 07/08/2013 19
Slide 20: Operating Lease vs Finance Lease
Operating Lease vs Finance Lease IR - 07/08/2013 20
Slide 21: Directional Philosophy
Directional Philosophy Directional¹ Reporting + IFRS Adjustment = IFRS IR - 07/08/2013 ¹ Directional view is a non-IFRS disclosure, which corrects the non-cash effects on revenue and earnings introduced by IFRS finance lease accounting 21
Slide 22: Directional - The Way Forward
Directional - The Way Forward • Turnkey segment becomes a pure construction business. Revenue and Gross Margin consist of: • Direct sales contracts (FPSO OSX 2, Turrets for Prelude, Quad 204 and Ichthys) • Sales to JV partners (FPSO Cdd de Ilhabela, FPSO N’Goma, FPSO Cdd de Maricá and Saquarema) • L
Slide 23: Agenda: H1 2013 Financials
Agenda H1 2013 Review Project Direction H1 2013 Financials Outlook IR - 07/08/2013 23
Slide 24: Financial Overview June 30, 2013 - Turnkey P&L
Financial Overview June 30, 2013 Turnkey P&L (in millions of US$) *Restated for comparison purposes Directional¹ • Revenue up 29% reflecting high activity levels • EBIT margin 15% vs 7% in H1 2012 (includes introduction POC method) IR - 07/08/2013 ¹ Directional view is a non-IFRS disclosure, which c
Slide 25: Financial Overview June 30, 2013 - Turnkey P&L
Financial Overview June 30, 2013 Turnkey P&L (in millions of US$) *Restated for comparison purposes • Add back of non-cash deemed revenue and margin of SBM share in FPSO under finance lease IR - 07/08/2013 ¹ Directional view is a non-IFRS disclosure, which corrects the non-cash effects on revenue an
Slide 26: Financial Overview June 30, 2013 - Turnkey P&L
Financial Overview June 30, 2013 Turnkey P&L (in millions of US$) *Restated for comparison purposes Directional¹ IFRS • Revenue up 29% reflecting high activity • Revenue up 43% reflecting high activity levels levels on FL contracts • EBIT margin 15% vs 7% in H1 2012 • EBIT margin 14% vs 8% in H1 201
Slide 27: Financial Overview June 30, 2013 - Lease & Operate P&L
Financial Overview June 30, 2013 Lease & Operate P&L (in millions of US$) *Restated for comparison purposes Directional¹ • Revenue up 14%, mainly Anchieta • EBIT affected by US$300 mln charges (Yme, Deep Panuke) • Underlying EBIT margin 28% (H1 2012 31%) IR - 07/08/2013 ¹ Directional view is a non-I
Slide 28: Financial Overview June 30, 2013 - Lease & Operate P&L
Financial Overview June 30, 2013 Lease & Operate P&L (in millions of US$) *Restated for comparison purposes • Non-cash adjustments mainly related to Aseng FL contract • Downward revenue adjustment, compensating accelerated EPC revenue under IFRS IR - 07/08/2013 ¹ Directional view is a non-IFRS discl
Slide 29: Financial Overview June 30, 2013 - Lease & Operate P&L
Financial Overview June 30, 2013 Lease & Operate P&L (in millions of US$) *Restated for comparison purposes Directional¹ IFRS • Revenue up 14%, mainly Anchieta • Revenue up 13%, mainly Anchieta • EBIT affected by US$300 mln charges • EBIT affected by US$300 mln charges (Yme, Deep Panuke) (Yme, Deep
Slide 30: Financial Overview June 30, 2013 - Group P&L
Financial Overview June 30, 2013 Group P&L (in millions of US$) *Restated for comparison purposes • Directional¹ revenue up 24% • US$270 mln charge for Yme settlement and US$30 mln Deep Panuke charge • Directional¹ EBIT(excluding Yme and Deep Panuke charges) up 69% IR - 07/08/2013 ¹ Directional view
Slide 31: Underlying Directional Performance
Underlying Directional Performance in millions of US$ + 6% *Restated for comparison purposes IR - 07/08/2013 ¹ Directional view is a non-IFRS disclosure, which corrects the non-cash effects on revenue and earnings introduced by IFRS finance lease accounting 31
Slide 32: 2013 Group Results - Group Balance Sheet
2013 Group Results Group Balance Sheet (in millions of US$) *Restated for comparison purposes IR - 07/08/2013 32
Slide 33: 2013 Group Results - Group Ratios
2013 Group Results Group Ratios (in millions of US$) *Restated for comparison purposes IR - 07/08/2013 33
Slide 34: Development of Group Cash Position
Development of Group Cash Position Group Cash Flow (in millions of US$) IR - 07/08/2013 34
Slide 35: FPSO N'Goma Project Financing
FPSO N’Goma Project Financing • US$600 mln project loan secured • Maturity: 1 year pre completion / 7 years post completion fully amortised term loan • Weighted Average Cost of Debt: 4.7% H2 2013 Financing Obtained IR - 07/08/2013 January 2013 35
Slide 36: Divestment Update
Divestment Update • Sale and lease back of Monaco real estate • COOL™ hose technology sold • SBM Installer being evaluated for sale IR - 07/08/2013 July 2013 36
Slide 37: Directional Backlog
Directional Backlog US$22.4 bn Lease & Operate backlog: Directional¹ vs IFRS 1.4 1.2 Directional 1.0 IFRS in US$ bn 0.8 0.6 0.4 0.2 0.0 US$18.7 bn Turnkey backlog: Directional¹ vs IFRS 3.0 Directional 2.5 IFRS 2.0 in US$ bn 1.5 1.0 US$3.7 bn 0.5 0.0 Lease & Operate H2 2013 2014 2015 Turnkey IR - 07/
Slide 38: Agenda: Outlook
Agenda H1 2013 Review Project Direction H1 2013 Financials Outlook IR - 07/08/2013 38
Slide 39: Technology - Focus Areas
Technology - Focus Areas FPSO Complexity (Generation 3) Advanced Mooring Technology Process Intensification FLNG Turret IR - 07/08/2013 39
Slide 40: FPSO Market Outlook
FPSO Market Outlook Field developments requiring FPSOs over the next 3 years More than 50 FPSO projects currently expected to be awarded SBM will focus on ~20 projects to obtain its targeted share North America Other 1 Asia 3 3 4 2 Africa 1 5 South America 2 5 2 8 Lease 4 Sale 14 Lease or Sale Sourc
Slide 41: H2 2013 Outlook
H2 2013 Outlook • Continue strengthening Balance Sheet post Rights Issue • No dividend over 2013 • Sale of non-core assets ongoing • Contracts executed for FPSO Cidade de Maricá, FPSO Cidade de Saquarema and FPSO Stones • Delivery of Deep Panuke and FPSO OSX 2 • Updating 2013 IFRS revenue guidance t
Slide 42: Q&A Session
Q&A Session © SBM Offshore 2013. All rights reserved. www.sbmoffshore.com IR - 07/08/2013 42