Aker Solutions Asa · OSL:AKSO
Aker Solutions Asa — Q3 2012 Earnings Presentation
30 slides from Aker Solutions Asa's earnings presentation, Nov 2, 2012
Slide 1: Third quarter results 2012
Preferred partner Q3 Third quarter results 2012 Fornebu, 2 November 2012 Øyvind Eriksen and Leif Borge © 2012 Aker Solutions Slide 1 2 November 2012 3rd quarter results 2012 Preferred partner
Slide 2: Agenda | Q3 2012
Agenda | Q3 2012 Introduction Øyvind Eriksen Executive chairman Financials Leif Borge President & CFO Q&A session Øyvind Eriksen Q&A Leif Borge © 2012 Aker Solutions Slide 2 2 November 2012 3rd quarter results 2012 Preferred partner
Slide 3: Active markets, operational improvements
Active markets, operational improvements Q3 2012 Controlled growth Our commitment: ■ Operational stability Double in size ■ Active market. Breakthrough contracts from 2010 to 2015 ■ Bringing product offering into new markets © 2012 Aker Solutions Slide 3 2 November 2012 3rd quarter results 2012 Pref
Slide 4: Q3 2012 | Key figures
Q3 2012 | Key figures Revenues and EBITDA Order intake and backlog NOK billion NOK billion Revenues EBITDA Intake Backlog 14 3,5 30 60 12 3 25 50 59.7 10 2,5 11.2 20 40 8 2 15 30 6 1,5 16.9 10 20 4 1 1.1 5 10 2 0,5 0 0 0 0 Q2 3 4 1 2 3 Q2 3 4 1 2 3 Q2 3 4 1 2 3 Q2 3 4 1 2 3 2011 2012 2011 2012 2011
Slide 5: Q3 2012 | Some highlights by region
Q3 2012 | Some highlights by region Brazil ■ Drilling packages for 6 drillships for Jurong Angola ■ Skandi Aker contract for vessel- based intervention services in deep waters Brunei ■ Maintenance, modifications and operations business expanding from home market Norway ■ Visund and Troll subsea cont
Slide 6: Q3 2012 | By business area
Q3 2012 | By business area Profitability Growth Percentage EBITDA margin Percentage growth versus Q3 2011 Revenue Backlog 23 % WIS 17 % growth growth MLS 16 % OMA 68 % NA 14 % 15 % SUB 50 % -15 % DRT 13 % ENG 46 % -28 % 14 % ENG 13 % DRT 35 % 77 % OMA -19 % 12 % MMO 29 % 10 % MMO 9% UMB 23 % -8 % 8%
Slide 7: Strategically optimising asset base
Strategically optimising asset base ■ Lewek Connector sold ■ Acquisition of Subsea House/SSH ■ Acquisition of facility in Sandnessjøen ■ Opening new subsea service base in Malaysia ■ Buy-back of manufacturing and service facilities in Norway Public © 2012 Aker Solutions Slide 7 2 November 2012 3rd q
Slide 8: Selected market trends and recent events
Selected market trends and recent events Legend North Sea ■ Trends ■ Discoveries in new horizons ►Aker Solutions ■ Drive towards fIeld life events extension ►Record-high tender activity Asian yards ►Cat B contract award ■ Ruling the market for rigs and FPSOs ►Break-through with M East, N Africa Nort
Slide 9: Agenda | Q3 2012
Agenda | Q3 2012 Introduction Øyvind Eriksen Executive chairman Financials Leif Borge President & CFO Q&A session Øyvind Eriksen Q&A Leif Borge Public © 2012 Aker Solutions Slide 9 2 November 2012 3rd quarter results 2012 Preferred partner
Slide 10: Consolidated income statement
Consolidated income statement1 (NOK million) Q3 12 Q3 11 YTD 2012 YTD 2011 2011 Operating revenues and other income 11 158 8 561 32 888 24 874 36 474 EBITDA 1 122 322 3 519 2 398 3 445 Of which related to non-recurring items - - 1651 7572 7572 Of which related to hedging (2) 40 61 46 44 Depreciation
Slide 11: Q3 2012 | Consolidated cash flow, capex and NCOA
Q3 2012 | Consolidated cash flow, capex and NCOA ■ Cash flow from operations negative NOK 50 million in the quarter ■ Group NCOA of NOK 3.5 billion (Q2: NOK 2.7 billion) ■ Main reason for growth in NCOA is phasing of DRT projects ■ Expecting NCOA level to drop to a more “normalized” level of 5 %-6 %
Slide 12: Q3 2012 | Financial position
Q3 2012 | Financial position ■ Q3 2012 net debt of NOK 6.0 billion (Q2: net debt of NOK 5.3 billion) ■ In October 2012 NOK 345 million was released in connection with the sale of Lewek Connector to OceanYield AS. The vessel was sold for a total consideration of USD 315 million ■ 27 September 2012 –
Slide 13: Engineering and Process Systems
Engineering Product Solutions Engineering Process Systems ■ Revenue growth 46 % compared to Q3 2011 ■ Strong order intake in the quarter ■ Another quarter with strong results ■ Bidding activity remained high for all process ■ Strong performance from the North Sea and system technologies Malaysia ■ S
Slide 14: Product Solutions: Subsea and Umbilicals
Product Solutions Subsea Umbilicals ■ Revenue growth 50 % compared to Q3 2011 ■ Revenue growth 23 % compared to Q3 2011 ■ Better execution drives margin improvements ■ High tender activity and positive market ■ New wave of projects coming up in 2013 outlook in all regions ■ Focus on quality performa
Slide 15: Product Solutions: Drilling Technologies and Mooring
Product Solutions Drilling Technologies Mooring and Loading Systems ■ Revenue growth 35 % compared to Q3 2011 ■ Main deliveries on schedule ■ Projects execution continues to be solid ■ Lifecycle services with stable contribution ■ High activity in the drilling equipment market ■ Positive offshore ma
Slide 16: Field-Life Solutions: MMO and Well Intervention
Field-Life Solutions MMO Well Intervention Services ■ Revenue growth of 29 % compared to Q3-11 ■ High activity level and good performance in ■ Strong growth in existing project portfolio the North Sea ■ Generally high activity levels in all regions ■ Margins negatively effected by low activity in We
Slide 17: Field-Life Solutions: Oilfield Services and Marine Assets
Field-Life Solutions Oilfield Services and Marine Assets – Key priorities Skandi Santos (Petrobras) Maintain operational excellence Skandi Aker (Total) Start up of operation in Angola and demonstrate operational stability Cat-B (Statoil) Conclude the technical specifications, place construction cont
Slide 18: Order backlog and order intake
Order backlog and order intake Order backlog by execution date Order intake NOK 17 bn NOK million NOK million 26 000 22 500 OMA 1 532 10 500 WIS 332 MMO 3 695 2012 2013 Later MLS 299 All time high backlog of NOK 60 bn PRS 718 NOK million DRT 7 262 70 000 ENG DRT SUB MMO Other 60 000 50 000 UMB 500 4
Slide 19: Agenda | Q3 2012
Agenda | Q3 2012 Introduction Øyvind Eriksen Executive chairman Financials Leif Borge President & CFO Q&A session Øyvind Eriksen Q&A Leif Borge Public © 2012 Aker Solutions Slide 19 2 November 2012 3rd quarter results 2012 Preferred partner
Slide 20: Q&A Third quarter results 2012
Preferred partner Q&A Third quarter results 2012 Fornebu, 2 November 2012 Øyvind Eriksen and Leif Borge © 2012 Aker Solutions Slide 20 2 November 2012 3rd quarter results 2012 Preferred partner
Slide 21: Public © 2012 Aker Solutions Slide 21 2 November 2012
Public © 2012 Aker Solutions Slide 21 2 November 2012 3rd quarter results 2012 Preferred partner
Slide 22: Additional information
■ Additional information Public © 2012 Aker Solutions Slide 22 2 November 2012 3rd quarter results 2012 Preferred partner
Slide 23: Consolidated cash flow
Consolidated cash flow (NOK million) Q3 11 Q4 11 Q1 12 Q2 2012 Q3 2012 Net cash flow from operating activities 1 227 1 182 (122) (487) (51) Net cash flow from investing activities (1 058) (2 223) (708) 461 (774) Net cash flow from financial activities (27) 939 698 (441) 1 551 Translation adjustment
Slide 24: Consolidated assets
Consolidated assets (NOK million) Q3 11 Q4 11 Q1 12 Q2 12 Q3 2012 Property, plant and equipment 7 343 7 409 7 732 8 179 8 518 Intangible assets 6 409 6 843 6 776 7 040 7 162 Financial assets (non-current) 859 856 1 000 1 208 1 260 IB receivables (non-current) 673 704 702 767 757 IB receivables (curr
Slide 25: Consolidated debt and equity
Consolidated debt and equity (NOK million) Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Shareholders' equity 10 201 10 797 11 360 10 790 11 363 Minority interests 181 169 173 159 170 Non IB liabilities (non-current) 2 764 2 797 2 660 2 756 2 844 Interest bearing debt (non-current) 4 506 5 371 6 044 6 561 8 628 Non
Slide 26: Split per business segment in Aker Solutions
Split per business segment in Aker Solutions Revenues Q1 2011 Q2 2011 Q3 2011 Q4 2011 FY 2011 Q1 2012 Q2 2012 Q3 2012 Product Solutions 4 345 4 306 4 514 6 541 19 706 5 394 6 620 6 198 Field Life Solutions 2 643 2 899 2 920 3 716 12 178 3 261 3 709 3 673 Engineering Solutions 625 692 766 1 170 3 253
Slide 27: Split per business segment in Aker Solutions
Split per business segment in Aker Solutions Revenues Q1 2011 Q2 2011 Q3 2011 Q4 2011 FY 2011 Q1 2012 Q2 2012 Q3 2012 Subsea 1 657 1 782 1 927 2 638 8 004 2 445 3 401 2 899 Umbilicals 435 506 420 685 2 046 413 506 518 Drilling Technologies 1 614 1 471 1 595 2 408 7 088 1 974 2 146 2 156 Process Syst
Slide 28: Split per business segment in Aker Solutions
Split per business segment in Aker Solutions Order intake Q1 2011 Q2 2011 Q3 2011 Q4 2011 FY 2011 Q1 2012 Q2 2012 Q3 2012 Subsea 2 555 4 415 2 473 1 991 11 434 2 423 3 203 1 908 Umbilicals 419 1 080 283 524 2 306 297 790 500 Drilling Technologies 1 012 4 427 2 259 2 073 9 771 2 927 2 157 7 262 Proce
Slide 29: Public © 2012 Aker Solutions Slide 29 2 November 2012
Public © 2012 Aker Solutions Slide 29 2 November 2012 3rd quarter results 2012 Preferred partner
Slide 30: Copyright and disclaimer
Copyright and disclaimer Copyright Copyright of all published material including photographs, drawings and images in this document remains vested in Aker Solutions and third party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any for