Slide 1: 2024 Investor Presentation
2024 Investor Presentation February 14, 2025 1
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by MODEC, Inc. (the “Company”) solely for information purpose only. The information contained herein is based on current economic, regulatory, market trends and other conditions. The Company makes no representation or guarantee with respect to the credi
Slide 3: Table of Contents
Table of Contents I. 2024 Highlight II. Company Overview III. Industry Landscape IV. Financial Summary V. Financial Guidance VI. Appendix 3
Slide 4: I. 2024 Highlights
& MODEC |. 2024 Highlights
Slide 5: 2024 Highlight: Earnings Results Overview
2024 Highlight Earnings Results Overview Revenue Net Income $ 4,186MM $ 220MM • 97% achievement ratio against FY2024 revised guidance • 110% achievement ratio against FY2024 revised guidance • $611MM (+17%) increase compared to FY2023 • $123MM (+128%) increase compared to FY2023 • Record high • Reco
Slide 6: 2024 Highlight – 1H 2024 Topics
2024 Highlight – 1H 2024 Topics New FEED Contract / Secondary Offering of Shares / Efforts to Reduce GHG Emissions / Sangomar FPSO Achieved First Oil Shell Gato do Mato FPSO - Secured New FEED Contract (March 2024) FPSO Bacalhau - Received DNV Abate Notation (May 2024) MODEC was awarded single sou
Slide 7: 2024 Highlight – 2H 2024 Topics
2024 Highlight – 2H 2024 Topics Strengthening Global Capabilities / Blue Ammonia FPSO AiP / Bacalhau FPSO Sailaway for Brazil / Fleet Update Summary Establishment of New Offices in Malaysia and India (May, October 2024) FPSO Bacalhau Departs Singapore for Brazil (December 2024) MODEC announced tha
Slide 8: II. Company Overview
& MODEC ll. Company Overview
Slide 9: Company Overview
Company Overview World’s Leading Player in the Offshore Oil & Gas Production Industry Founded in 1968, MODEC has established a strong presence in all major offshore oil & gas producing regions of the world, providing a reliable one-stop solution to its clients across EPCI, O&M and Charter Services M
Slide 10: Business Model: MODEC Specializes in Building and Operating FPSOs
Business Model MODEC Specializes in Building and Operating FPSOs FPSO is offshore midstream production/storage facility that is used to extract/transport, process and store deepwater hydrocarbons Description Either converted from an existing oil tanker, or based on a new build hull, into a float
Slide 11: FPSO is a Critical Asset in the Production Phase
Business Model FPSO is a Critical Asset in the Production Phase of Field Development Appraisal EXPLORATION Acquisition of Concession PRODUCTION Construction of REFINERY Transport Production Facility (EPCI) Development Onshore or & SALES Searching & Seismic Survey Offshore Refined Oil Storage & Refin
Slide 12: Diversified Business Model Across EPCI, O&M and Charter Services
Business Model Diversified Business Model Across EPCI, O&M and Charter Services As an EPCI contractor, MODEC manages the entire production process, including managing various vendors and shipyards In the operational phase, MODEC provides Charter and O&M services to its clients EPCI Charter and O
Slide 13: EPCI / Charter / O&M Projects at Glance
Financial Summary EPCI / Charter / O&M Projects at Glance Asset Charter Charter 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 # Current (%)1 Ship Name Offtakers Stage Location Start End Date Date 1 EPCI - FPSO Raia Equinor - -
Slide 14: Key Credit Highlights
Key Credit Highlights A Leading Midstream Company Long-Term, Contractual, Stable & Predictable Business Model 100% of revenues/cash flows are based on long-term contracts with reputable counterparties, ranging from 3-5 years (EPCI) to as long as 20+ years (Charter, O&M), and thus insulated from th
Slide 15: III. Industry Landscape
& MODEC lll. Industry Landscape
Slide 16: Solid Operating Environments with Competitive Deep Water Fields
Industry Landscape Solid Operating Environments with Competitive Deep Water Fields ▪ Oil is expected to remain the leading source of energy supply even though alternative energy are expected to grow ▪ MODEC’s primary target market is the deepwater and the ultra-deepwater reserves, which are cost-com
Slide 17: Strong Global Pipeline
Industry Landscape Strong Global Pipeline ▪ Global FPSO pipeline remains robust with Latin America, West Africa and Southeast Asia leading the market. For deepwater/ultra-deepwater, Latin America and West Africa are promising areas. ▪ MODEC has the track record to serve each of these markets Overall
Slide 18: MODEC has Established a Leading Position in the Global Leased FPSO Industry
Industry Landscape MODEC has Established a Leading Position in the Global Leased FPSO Industry Owned vs Leased FPSOs by Oil Company Leased FPSO Market All the FPSO users are the large global energy companies that can afford the large upfront investments in Leasing FPSOs continues to remain a str
Slide 19: Leading Player of the FPSO Market
Industry Landscape Leading Player of the FPSO Market MODEC stands with the largest overall and ultra-deepwater fleet in the market Total Fleet1,2 Ultra Deepwater Units (2,000m+) 21 9 19 6 8 7 7 5 4 1 1 0 0 0 MODEC Comp. A Comp. D Comp. B Comp. E Comp. C Comp. F MODEC Comp. A Comp. F Comp. E Comp. B
Slide 20: Oligopolistic Deepwater Market
Industry Landscape Oligopolistic Deepwater Market The industry is heading toward the development of the deeper water reserves where only a limited number of the players have the sufficient track record. Total Fleets (Oil Production / Water Depth)1 Installed FPS Units by Maximum Water Depth2 300,000
Slide 21: IV. Financial Summary
& MODEC IV. Financial Summary
Slide 22: High Backlog in EPCI and O&M Business
Financial Summary High Backlog in EPCI and O&M Business EPCI backlog increased significantly due to two large contracts, Uaru and Raia awarded in 2023. During 2024, the construction of EPCI projects made steady progress, while Modec was awarded FEED for Gato do Mato project on a single source ba
Slide 23: Significant improvement in EPCI / O&M Performance
Financial Summary Significant improvement in EPCI / O&M Performance1 Revenues2 (US$ MM) 26 50 Record High Revenue in 2024 36 728 1,177 Lower revenues in FY2022 reflect the multiple EPCI projects entering into 56 43 the final phase and the lack of new project awards 26 1,006 892 745 Higher revenu
Slide 24: Predictable & Stable Charter Earnings under Long-Term Contracts
Financial Summary Predictable & Stable Charter Earnings under Long-Term Availability-based Contracts 159 cumulative years of Charter contracts with 12.6-year remaining average life MODEC does not consolidate its minority stakes in the SPCs. MODEC’s share of SPCs’ net earnings are recognized under
Slide 25: Income Statement
Financial Summary Income Statement1 (US$ MM) 2018 2019 2020 2021 2022 2023 2024 2023 vs 2024 Revenue EPCI 1,049 2,059 2,175 3,115 1,775 2,488 2,910 + 421 O&M 885 892 745 728 901 1,006 1,177 + 171 Service Fee 23 27 28 29 36 42 48 +5 Others 40 56 43 26 26 36 50 + 18 Revenue Total 1,998 3,036 2,994 3,8
Slide 26: Historical EBITDA Performance & Financial Metrics
Financial Summary Historical EBITDA Performance & Financial Metrics 1,2 (US$ MM) 2018 2019 2020 2021 2022 2023 2024 2023 vs 2024 Highlights EPCI + O&M Profits 215 40 (121) (254) 31 208 344 + 136 (Gross Profits excluding Service Fee) Strong EBITDA growth, now exceeding the pre-Covid record. Charter
Slide 27: Balance Sheet
Financial Summary Balance Sheet1 Balance sheet (US$ MM) 2018 2019 2020 2021 2022 2023 2024 2023 vs 2024 Cash & cash equivalents 461 478 638 810 492 1,013 1,253 + 239 Trade & other receivables 856 1,491 1,205 379 478 592 752 + 160 Contract assets - - - 704 257 185 195 + 10 ST loans receivable 387 76
Slide 28: V. Financial Guidance
& MODEC V. Financial Guidance 28
Slide 29: FY2025 Earnings Outlook / Shareholder Return
Financial Guidance FY2025 Earnings Outlook / Shareholder Return FY2025 Earnings Forecast Revenue is expected to be lower than in 2024, mainly due to lower EPCI revenues (Bacalhau nearing completion and Uaru approaching its latter stages). Profits are expected to be higher than in 2024, mainly du
Slide 30: Mid-term Business Plan 2024-2026 Financial KPIs
Financial Guidance Mid-term Business Plan 2024-2026 Financial KPIs Upward Revision to the FY2026 Targets Financial KPIs for the fiscal year ending December 31, 2026, the final year of the “MODEC Group Mid-term Business Plan 2024-2026” announced on February 14, 2024, is revised upwards. The targe
Slide 31: VI. Appendix
& MODEC VI. Appendix
Slide 32: EPCI Projects
EPCI Projects Project Details 3 FPSOs are under construction FPSO FPSO FPSO Bacalhau Uaru Raia Client Equinor ExxonMobil Equinor Contract EPCI + Short term O&M (1 year) EPCI + O&M (10 years) EPCI + Short term O&M (1 year) FID 2020 2023 2023 First Oil (Planned) 2025 2026 2027 Field Bacalhau Stabroek
Slide 33: A History of Proven Success
Company Overview A History of Proven Success Listed on the first FPSO Cidade de Angra dos “Shape”, a digital First chartered FPSO starts operations. section of the Tokyo Reis MV22 (Brazil) solutions business MODEC starts providing O&M services. Stock Exchange company in Singapore, Singapore
Slide 34: MODEC Primarily Operates Under the EPCI-to-Charter Structure
Business Model MODEC Primarily Operates Under the EPCI-to-Charter Structure with Creditworthy Counterparties EPCI-to-Charter 17 out of 23 vessels in MODEC’s fleet are under an EPCI-to-Charter structure Cash Generation: EPCI Revenues + O&M Revenues + SPC Distributions In the EPCI-to-Charter modalit
Slide 35: Asset Level Financing Cycle
Business Model Asset Level Financing Cycle MODEC has established strong relationships with a core group of project finance lenders to ensure competitive financing of the FPSOs from the Construction through Charter Period Installation/Test EPCI/Construction Period (a few months) Charter Period (appro
Slide 36: Defined Terms
Defined Terms Term & Definition Term Definition EPCI Engineering, Procurement, Construction, and Installation E&P Exploration and Production (a large upstream segment of oil & gas) Deepwater Water depths between 500 meters and 1,999 meters FEED Front End Engineering and Design FPSO Floating Producti