Sbm Offshore Nv · EURONEXT:SBMO
Sbm Offshore Nv — H1 2006 Earnings Presentation
41 slides from Sbm Offshore Nv's earnings presentation, Aug 29, 2006
Slide 1: Half-Year Results 2006
HALF-YEAR RESULTS 2006 PRESENTATIONS AMSTERDAM & LONDON AUGUST 29, 2006 D. Keller: Managing Director & CEO M. Miles: CFO H. Peereboom: V.P. Investor Relations
Slide 2: Disclaimer
DISCLAIMER Some of the statements contained in this presentation that are not historical facts are statements of future expectations and other forward-looking statements based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual
Slide 3: Company Structure
COMPANY STRUCTURE SBM Offshore NV THE NETHERLANDS HOUSTON Gusto BV SBM-Imodco Marine Structure Atlantia Offshore Consultants (MSC) NKI Group GustoMSC Inc (Divestment Intended) MONACO KUALA LUMPUR Single Buoy SBM Malaysia Sdn Bhd 3 Moorings
Slide 4: SBM Offshore Activities
SBM OFFSHORE ACTIVITIES Turnkey Supply & Installation Floating (Production) Storage and Offloading Systems F(P)SOs Floating Production Units TLPs / Semi-Submersibles Deepwater and Conventional Tanker Loading Systems Drilling Units Turnkey or Design & Components Offshore Contracting 4 Overhauls / Spa
Slide 5: SBM Offshore Activities
SBM OFFSHORE ACTIVITIES Lease & Operation FPSOs FSOs Semi-Submersible Production Units Mobile Offshore Production Units 5 & Storage
Slide 6: Offshore Field Life Cycle
OFFSHORE FIELD LIFE CYCLE SBM OFFSHORE INVOLVEMENT 6
Slide 7: Highlights First Half 2006
HIGHLIGHTS FIRST HALF 2006 • Half-year results: net profit US$ 98 million; Full-year outlook: net profit around US$ 200 million • Start of two new leases : MOPU & FSO for Petronas / Turkmenistan and FPSO Capixaba for Petrobras / Brazil • Orders from ExxonMobil for long term leases of two FPSOs for t
Slide 8: Major Events First Half 2006
MAJOR EVENTS FIRST HALF 2006 Start of Production March 2006 Extended Well Test System - Petronas - Turkmenistan Mobile Offshore Production Unit Saparmirat Türkmenbaşy MOPU Floating Storage & Offloading Vessel Oguzhan 8
Slide 9: Major Events First Half 2006
MAJOR EVENTS FIRST HALF 2006 Start of Production May 2006 FPSO Capixaba - Golfinho - Petrobras - Brazil 9
Slide 10: Major Events First Half 2006
MAJOR EVENTS FIRST HALF 2006 Offshore Hook-Up of Disconnectable Turret for Woodside Enfield FPSO 10
Slide 11: Major Events First Half 2006
MAJOR EVENTS FIRST HALF 2006 Start of Operations of New-Generation Deepwater Installation Vessel “Normand Installer” Particulars: LOA 123.65 m Breadth 28 m Min Draught 5.70 m Speed 16.8 knots Cargo Capacity 3,400 t 11 Total Generated Power 23 MW
Slide 12: New Orders First Half 2006
NEW ORDERS FIRST HALF 2006 • Contracts with ExxonMobil for the fifteen year lease and operation of FPSOs for Mondo and for Saxi-Batuque in the Kizomba “C” development area offshore Angola • Contract with Chevron for the turnkey supply, installation and three years operation of an FPSO for the Frade
Slide 13: New Orders Since Mid-Year 2006
NEW ORDERS SINCE MID-YEAR 2006 • Contract with Technip Consortium for the supply of a CALM type tanker discharge terminal for Petrovietnam’s Dung Quat Refinery project • Letters of Intent from Brazilian drilling contractors for the supply of dynamically positioned semi-submersible drilling units; fo
Slide 14: Key Financial Points First Half 2006
KEY FINANCIAL POINTS FIRST HALF 2006 • Net profit US$ 97.8 million versus US$ 73.5 million in 2005 • Stable EBIT from lease fleet despite sale of FPSO Serpentina end 2005 – First contributions from FPSO Capixaba & EWT in Turkmenistan – FPSO Operating bonuses (Marlim Sul, Espadarte, Falcon, Xikomba)
Slide 15: Results & Backlog Mid 2006
RESULTS & BACKLOG MID 2006 Total Group In millions of US Dollars 30/6/2006 30/6/2005 Change Comment Turnkey sales up; Turnover 823 607 36% FPSO Brasil 49% sale Gross Margin 173 146 Higher turnkey share reduces 18% (%) (21.0%) (24.0%) average margin EBITDA 219 205 Turnkey sales & FPSO Brasil; 7% (% M
Slide 16: Results & Backlog Mid 2006: Lease and Operate
RESULTS & BACKLOG MID 2006 Lease and Operate In millions of US Dollars 30/6/2006 30/6/2005 Change Comment FPSO Serpentina sold H2 2005; Turnover 282 283 -- Turkmenistan & Capixaba startup H1 2006 Gross Margin 91 91 Good operating bonuses; -- (%) (32.3%) (32.2%) FPSO Serpentina sold H2 2005 *EBITDA 1
Slide 17: Results & Backlog Mid 2006: Turnkey Systems & Services
RESULTS & BACKLOG MID 2006 Turnkey Systems & Services In millions of US Dollars 30/6/2006 30/6/2005 Change Comment FPSO Brasil 49% sale; Turnover 541 325 66% Growing supply activity Gross Margin 82 55 FPSO Brasil book gain; 49% (%) (15.1%) (16.9%) Growing supply activity *EBITDA 46 31 Increased prod
Slide 18: Financial Overview Mid 2006
FINANCIAL OVERVIEW MID 2006 Total Group In millions of US Dollars 30/6/2006 30/6/2005 Change Comment Capital Expenditure 225 207 9% Vessel investments up Long-Term Debt (including 911 1,184 (23%) FPSO Serpentina sale H2 2005 short-term portion) Net Liquidities 227 110 x 2.1 Turnkey lump sum payments
Slide 19: Expectations Full Year 2006
EXPECTATIONS FULL YEAR 2006 • Net profit around US$ 200 mln (original expectation US$ 165 mln) – Sale of 49% interest in FPSO Brasil – High order intake in turnkey – Lower financing costs – Good FPSO operating bonuses • Increasing share of results from turnkey (at least one third of EBIT) • EBITDA a
Slide 20: SBM's Lease Business Approach
SBM’s LEASE BUSINESS APPROACH • Invest only on the basis of contracts in hand, except for acquisition of existing tankers for conversion into an FPSO • Convert only quality tankers, excluding “early” double hulls built late eighties and early nineties (high tensile steel, fatigue prone) • Contract f
Slide 21: SBM's Lease Fleet
SBM’s LEASE FLEET FPSO FSO FPSO FPSO MOPU/FSO FSO FSO Roncador Nkossa II Okono Aquila Diyarbekir P-A Yetagun FPSO FPSO Rang Dong Marlim Sul FPSO FPSO Tantawan Golfinho FPSO FPSO Espadarte Kikeh FPSO FPSO FPSO FPSO FPSO LPG FPSO Falcon Mondo Saxi Xikomba Kuito Sanha 21 FPSOs on lease FSOs on lease FP
Slide 22: Remaining Durations of Lease Contracts
REMAINING DURATIONS OF LEASE CONTRACTS 22
Slide 23: FPSO Construction in Progress
FPSO CONSTRUCTION IN PROGRESS Murphy - FPSO Kikeh 23
Slide 24: FPSO Market
FPSO MARKET “FPSO” covers a large variety of units • Converted tankers / purpose built barges / cylinders • Spread moored / weathervaning • Oil production rates from 15,000 to 250,000 barrels / day • Oil storage capacity from 30,000 to 2,000,000 barrels • From oil production only to comprehensive pr
Slide 25: FPSO Market
FPSO MARKET Number of Units in Operation, Under Construction & Prospects 25
Slide 26: FPSO Lease Contractors
FPSO LEASE CONTRACTORS Units in Operation or Under Construction 26
Slide 27: SBM's Competitive Edge
SBM’s COMPETITIVE EDGE • Cumulative experience of over 125 years of FPSO/FSO operation • All required engineering disciplines available within the Company • Large pool of experienced project managers • Flexibility with four execution centres • Construction outsourced • Own ultra-deepwater installati
Slide 28: FPSO Prospects
FPSO PROSPECTS Cascade Bonga SW Usan Bosi Bosi (EPS) Song Doc Petrobras Shell Total ExxonMobil ExxonMobil Truong Song USA Nigeria Nigeria Nigeria Nigeria Vietnam Jack Gendalo Chevron Chevron USA Indonesia Bukit Tua ConocoPhillips Gas FPSO (2x) Indonesia Petrobras Brazil BHP Oil FPSO (2x) Pyrenees Pe
Slide 29: Non-FPSO Prospects
NON-FPSO PROSPECTS TLP LNG Import MOPU STOR Turret Drilling Barges Woodside Anglesey Yme Bouri Kashagan Tiof Canatxx Talisman Agip Agip FSRU (Components) FSRU New York Cyprus Broadwater EAC FSRU California Woodside Turret Sutu Vang TLP Cuulong Knotty Head Anadarko FSO Semi-Sub Cepu Thunder Hawk Exxo
Slide 30: Turnkey Supply
TURNKEY SUPPLY Backlog Major Orders 30
Slide 31: Major Orders in Progress
MAJOR ORDERS IN PROGRESS Enterprise - Independence Hub Semi-Submersible Hull 31
Slide 32: Major Orders in Progress
MAJOR ORDERS IN PROGRESS AGIP KCO - Kashagan Compression Barges 32
Slide 33: Major Orders in Progress
MAJOR ORDERS IN PROGRESS BHP - SeaStar® TLP - Neptune 33
Slide 34: Major Orders in Progress
MAJOR ORDERS IN PROGRESS Murphy - Gravity Actuated Pipe (GAP) - Kikeh 34
Slide 35: Major Orders in Progress
MAJOR ORDERS IN PROGRESS Shell - Trelline - Bonga Trelline 35
Slide 36: Major Orders in Progress
MAJOR ORDERS IN PROGRESS BP / Greater Plutonio - Chevron / Agbami - Total / Akpo Deepwater Export Buoys 36
Slide 37: SBM Gas & Power
SBM GAS & POWER The LNG Chain / Role for SBM LNG PRODUCTION • Onshore: ► export via port or jetties ► export via offshore terminal • Offshore: Floating LNG Production, Storage and Offloading LNG TRANSPORTATION • Long-term charters for dedicated routes • Very limited spot market LNG REGASIFICATION •
Slide 38: SBM Gas & Power
SBM GAS & POWER Inshore LNG Terminals “TWIN SOFT QUAY MOORING” “GAS LINKTM” 38
Slide 39: SBM Gas & Power
SBM GAS & POWER Floating Storage and Regasification Unit (FSRU) “Small” capacity FSRU based on the conversion of an LNG carrier “Large” capacity FSRU based on a new-built barge 39
Slide 40: Competition Turnkey Supply
COMPETITION TURNKEY SUPPLY 40
Slide 41: Strategy
STRATEGY • Grow the Group organically with yearly average double-digit EPS increase • Develop innovative technical solutions, in particular for deepwater technology and in the gas sector • Expand the product line • Expand the lease business model to cover more products and geographical areas • Maint