Sbm Offshore Nv · EURONEXT:SBMO
Sbm Offshore Nv — Investor Presentation (November 2011)
32 slides from Sbm Offshore Nv's investor presentation, Nov 28, 2011
Slide 1: SBM Offshore N.V. Market Overview
SBM OFFSHORE N.V. MARKET OVERVIEW BRUNO CHABAS, COO SINGAPORE 28 NOVEMBER 2011
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 may forward-looking statemen
Slide 3: Content
Content Introduction Market The Company page 3
Slide 4: Content
Content Introduction Market The Company page 4
Slide 5: Content
Content Introduction Market The Company page 5
Slide 6: Oil: demand/supply equilibrium
Oil: demand/supply equilibrium Source: IEA- June 2011 Current focus on potential short term decreasing demand in oil, but real issue is long term stability of supply: Depletion rates Geopolitical tensions Development of new fields is high priority page 6
Slide 7: Importance of offshore development
Importance of offshore development Offshore reserves Offshore production 45 700 40 600 35 Reserves (bn boe) 500 30 Mboe/d 25 400 20 300 15 200 10 100 5 0 0 1950 1954 1958 1962 1966 1970 1974 1978 1982 1986 1990 1994 1998 2002 2006 1950 1956 1962 1968 1974 1980 1986 1992 1998 2004 Liquids< 1000m Liqu
Slide 8: Part of recent discoveries in Deepwater
Part of recent discoveries in Deepwater New discoveries 2005-2010 51% 49% Other discoveries Deepwater Source: Petrobras Deepwater needs high technology solutions page 8
Slide 9: Economics of offshore development
Economics of offshore development CAPEX for offshore field development 21% 41% 38% Subsea Drilling Production facility Source: IFPEN Production facility is the minor part of field development costs page 9
Slide 10: CAPEX plans
CAPEX plans CAPEX plans of our clients are oriented to offshore page 10
Slide 11: Alternative solutions
Alternative solutions Offshore production facilities- Existing fleet Others ENI/Agip CoconoPhilips CNOOC Total Anadarko Chevron BP ExxonMobil StatoilHydro Shell Petrobras 0 10 20 30 40 50 60 70 80 90 100 110 FPSO Semi Spar TLP Other Source: Petrobras, PFC Energy FPSO is the favourite solution for of
Slide 12: Alternative solutions: No of FPSOs
Alternative solutions 100 90 80 70 60 No of FPSOs 50 40 30 20 Conversion Newbuild 10 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Conversion is the cheapest solution page 12
Slide 13: Field developments over 3 coming years
Field developments over 3 coming years 3 6 1 2 9 2 1 14 5 9 3 7 6 Lease Sale FPSOs only Lease or Sale Market outlook is buoyant page 13
Slide 14: Outlook on FPSO market over next 5 years
Outlook on FPSO market over next 5 years 160 N 140 u m 120 b Large FPSO e r 100 o 80 f Medium FPSO 60 u n 40 i Small FPSO t 20 s 0 US$/bl: 70-90 US$/bl: 90-110 US$/bl: 110-150 New units+ redeployments Source: IMA March 2011 SBM targets the upper side of the market page 14
Slide 15: Lease production units
Lease production units SBM 11 6 1 BW Offshore 12 3 Modec 9 2 Teekay 7 3 Bluewater 4 1 1 Bumi Armada 3 2 OSX 5 Maersk 4 Petrofac 1 2 1 Saipem 2 1 MISC 2 1 Fred Olsen 2 Rubicon 2 Emas 2 Sea Production 2 Sevan Marine 2 Single Unit Owners 6 1 1 1 0 2 4 6 8 10 12 14 16 18 20 Working Under Construction Id
Slide 16: Competitors
Competitors FPSO market 2010-2011 YTD Awards 5 4 A w a (Engineering/Financial r 3 d capacity) s 2 w o n 1 0 0 20000 40000 60000 80000 100000 120000 140000 Average production capacity (bpd) (Engineering complexity) SBM engineering and financing capacity makes the difference page 16
Slide 17: Cumulative FPSO Operational Experience
Cumulative FPSO Operational Experience 140 120 100 80 FPSO Years 137 60 120 116 93 88 40 77 69 20 47 45 38 33 0 Unrivalled experience in operation of FPSOs page 17
Slide 18: What is different from 2008-2009 period?
What is different from 2008-2009 period? Oil price has not decreased Recent trend in costs Overheating in supply chain page 18
Slide 19: Trend in costs
Trend in costs IHS/CERA Upstream Capital Costs Index (UCCI) 240 220 200 180 160 140 120 100 Q3 Q3 Q3 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q4 Q1 Q3 Q1 Q3 Q1 2000 2001 2002 2003 2004 2004 2005 2005 2006 2006 2007 2007 2008 2008 2008 2009 2009 2010 2010 2011 All the industry now works with new breakeven le
Slide 20: Overheating
Overheating Global picture is different for yards page 20
Slide 21: Content
Content Introduction Market The Company page 21
Slide 22: Business Model
Business Model Integrated model creates cash flow and knowledge synergies page 22
Slide 23: Historical figures
Historical figures Backlog 11,502 10,032 9,247 7,955 6,992 CAGR: +13.3% 2006 2007 2008 2009 2010 Turnover 2,871 3,060 2,956 3,056 1,990 CAGR: +11.3% 2006 2007 2008 2009 2010 page 23
Slide 24: Historical figures
Historical figures Ebitda 688 613 549 530 477 CAGR: +9.6% 2006 2007 2008 2009 2010 Net income 267 276 228 230 216 CAGR: +6.4% 2006 2007 2008 2009 2010 page 24
Slide 25: Historical figures
Historical figures ROCE 14.6 15.1 11 10.1 9.7 2006 2007 2008 2009 2010 ROE 21.5 21.7 17.7 14.6 12.4 2006 2007 2008 2009 2010 page 25
Slide 26: FPSO, FPSO, FPSO
FPSO, FPSO, FPSO SBM focuses growth on core products with historically solid margins page 26
Slide 27: Improved execution and control
Improved execution and control 2006 2007 2008 2009 2010 2011 2012 2013 2014 Difficult Projects 2 MOPUs Completed with 4 FPSOs good performance + 1 Turret In progress, on schedule 5 FPSOs 2 Turrets SBM maintains preferred supplier status to deliver superior financial returns whilst maintaining a good
Slide 28: China
China First criteria of choice: Quality and Safety Basic work Contingencies and calendar redundancies page 28
Slide 29: Local content: SBM's way to do business
Local content: SBM’s way to do business Partnership or investment in local yards: PAENAL (Angola) and MAUA (Brazil) P 57: 65 % of local content, first FPSO achieving this level in Brazil Local workforce Percentage of national crew in SBM Offshore fleet at year- end 2010 80.00% 70.00% 60.00% 50
Slide 30: Financing the growth
Financing the growth Project Financing Joint ventures with Local partners Mitsubishi agreement Direct access to debt markets SBM has strong financial basis thanks its long term business partners page 30
Slide 31: Q&A session
Q&A session page 31
Slide 32: Notes
Notes page 32