Aker Solutions Asa · OSL:AKSO
Aker Solutions Asa — Aker Kvaerner — Q3 2006 Earnings Presentation
23 slides from Aker Solutions Asa's earnings presentation, Oct 24, 2006
Slide 1: 3rd quarter results 2006
3rd quarter results 2006 24 October 2006 part of the Aker group © 2006 Aker Kvaerner Agenda Topic Speaker ■ Group update Martinus Brandal, President & CEO ■ Financials Bjørn Erik Næss, EVP & CFO ■ Closing remarks Martinus Brandal, President & CEO ■ Q & A session part of the Aker group © 2006 Aker Kv
Slide 2: Accident at Stord Airport – 10 October 2006
Accident at Stord Airport – 10 October 2006 ■ Atlantic Airways charter plane slid off the landing strip at Stord Airport and caught fire ■ 16 colleagues on board - 7 from Aker Kvaerner Elektro, 5 from subcontractors, and 4 crew members ■ 4 colleagues died ● Per Olaf Skjæveland (33) Aker Kvaerner Ele
Slide 3: Strong Performance; Health, Safety and Environment
Strong Performance ■ Record high operating result and EBITDA margin ■ High quality order backlog ■ Markets continue to be positive, many attractive opportunities ■ Constrain on resources ■ Refinancing ■ Disposal of Pulping & Power part of the Aker group © 2006 Aker Kvaerner Health, Safety and Enviro
Slide 4: Key indicators; High order intake and backlog
Key indicators Operating EBITDA Net current Cash and undrawn revenues operating assets credit facilities NOK million NOK million NOK million NOK million 14000 0 10000 900 9000 12000 800 -500 8000 700 10000 -1000 7000 600 6000 8000 -1500 500 5000 6000 400 -2000 4000 300 4000 -2500 3000 200 2000 2000
Slide 5: Major contract awards; Segment update: Field Development
Major contract awards Gjøa Topside – Statoil Ormen Lange Subsea Compression – Hydro Contract value ~NOK 8 billion Contract value ~NOK 850 million Ingleside Energy Center – Occidental Drilling contract – Daewoo Contract value: 50% of ~USD 665 million Contract value ~USD 86 million part of the Aker gr
Slide 6: Segment update: MMO; Segment update: Subsea
Segment update: MMO ■ Market ● North Sea opportunities ● Statoil declared options for 2 new years on both Tampen and Halten Nordland ● Well positioned for new activities in Canada ● Selective international growth ■ Execution ● Growth in existing order backlog ● Aker Kvaerner Elektro: High activity a
Slide 7: Segment update: Products & Technologies; Process
Segment update: Products & Technologies ■ Market ● Strong market continues ● Deepwater new build opportunities ● Opportunities for products and services in the FPSO market ● Growing installed base with after-sales potential ■ Execution ● Key projects on schedule ● High utilization within well Wireli
Slide 8: Segment update: Pulping & Power
Segment update: Pulping & Power ■ Market ● Market outlook positive The sale of Aker Kvaerner’s ● Continual flow of new prospects Pulping & Power businesses ● Sustainable service market expected to be closed in fourth quarter ■ Execution ● Key projects on schedule ● Arauco Nueva Aldea mill, Chile – s
Slide 9: Income statement consolidated; Cash flow
Income statement consolidated¹ (in NOK million) 3Q05 4Q05 1Q06 2Q06 3Q06 YTD05 YTD06 2005 Operating revenues 10 073 13 274 11 588 13 998 13 400 28 189 38 986 41 463 EBITDA 539 789² 7104 733 822 1 356 2 265⁴ 2 145² Depreciation -94 -109 -92 -97 -89 -247 -278 -356 EBIT 445 680 618 636 733 1 109 1 987
Slide 10: Assets; Debt and equity
Assets (in NOK million) 3Q05 4Q05 1Q06 2Q06 3Q06 Property, plant and equipment 1 510 1 549 1 602 1 688 1 812 Other fixed assets 5 047 5 432 5 574 5 316 5 330 Financial assets (non-current) 215 142 112 124 163 I B receivables (non-current) 142 141 132 132 131 I B receivables (current) 387 388 483 498
Slide 11: Field Development; Maintenance, Modifications and Operations
Field Development EBITDA (in NOK million) 263 252 234 213 161 Aker H-6e Highlights ● MoU for Gjøa semisubmersible platform ● Satisfactory performance year to date 3Q 05 4Q 05 1Q 06 2Q 06 3Q 06 ● Valhall dispute settled (in NOK million) 3Q05 4Q05 1Q06 2Q06 3Q06 YTD05 YTD06 2005 Operating revenues 2 4
Slide 12: Subsea, Products & Technologies; Process
Subsea, Products & Technologies EBITDA (in NOK million) 287 224 225 Subsea Compression Pilot, Ormen Lange 177 173 Seadrill 10 & 11 – semi Highlights with conventional Rig ● Record high order backlog ● Improved backlog quality and margins ● Subsea boosting gaining acceptance 3Q 05 4Q 05 1Q 06 2Q 06 3
Slide 13: Pulping & Power; Simplified legal and operating structure
Pulping & Power EBITDA (in NOK million) 109 76 61 57 61 Arauco, Chile Highlights ● EU competition review phase II ongoing ● Healthy order backlog 3Q 05 4Q 05 1Q 06 2Q 06 3Q 06 ● Stable performance (in NOK million) 3Q05 4Q05 1Q06 2Q06 3Q06 YTD05 YTD06 2005 Operating revenues 1 049 1 350 1 041 1 316 1
Slide 14: Refinancing of Aker Kvaerner Group
Refinancing of Aker Kvaerner Group - reduced finance cost and increased flexibility ■ Underwritten bank financing of EUR 850 million signed ● New financing expected to be in place 1 December ■ “One off” P&L and equity effects of NOK 660 million in Q4 2006 ● ~ 60% related to subordinated debt ● ~ 40%
Slide 15: Neutralisation of existing debt
Neutralisation of existing debt Subordinated debt: Option to redeem debt in full at 101.2% to par ■ Bondholder meeting called to be held 9 November, redemption on 1 December ■ Aker Kvaerner has obtained power of attorney from investors holding more than 2/3 of the bonds EUR 260 million notes: “Satis
Slide 16: Technology highlights; Retain and attract talented employees
Technology: Highlights from recent developments ■ Strong position for CO2 capture projects in Norway ■ Driving force within Increased Oil Recovery (IOR) technology ■ Floating concepts (Steel and concrete) for LNG terminals Just CatchTM CO2 capture Offshore LNG terminals Multi Booster part of the Ake
Slide 17: Strong Performance in Q3 2006; Well positioned for the future
Well positioned for the future Execution priority number one Continued strong market, especially for deepwater subsea and the Arctic Growth in service from installed base part of the Aker group © 2006 Aker Kvaerner Strong Performance in Q3 2006 part of the Aker group © 2006 Aker Kvaerner
Slide 18: Additional information: Order intake
Additional information part of the Aker group © 2006 Aker Kvaerner Order intake (in NOK million) 3Q05 4Q05 1Q06 2Q06 3Q06 YTD05 YTD06 2005 Field Development 1 145 8 516 3 823 627 11 775 10 544 16 225 19 060 MMO 1 410 4 112 2 078 957 5 202 5 763 8 237 9 875 Subsea and P&T 3 856 5 585 4 526 8 384 5 72
Slide 19: Order backlog; Net current operating assets
Order backlog (in NOK million) 3Q05 4Q05 1Q06 2Q06 3Q06 Field Development 14 904 20 265 20 218 16 695 24 344 MMO 10 314 12 061 12 083 10 446 13 392 Subsea and P&T 8 576 11 269 13 150 17 892 20 489 Process 9 560 8 174 8 129 7 530 7 494 Pulping and Power 3 897 4 819 4 993 5 727 5 639 Other -850 -3 247
Slide 20: Field Development; Maintenance, Modifications and Operations
Field Development (in NOK million) 3Q05 4Q05 1Q06 2Q06 3Q06 YTD05 YTD06 2005 Operating revenues 2 476 3 270 3 681 4 056 4 215 7 350 11 952 10 620 EBITDA 161 213 234 263 252 419 749 632 EBIT 147 198 218 249 236 377 703 575 Order intake 1 145 8 516 3 823 627 11 775 10 544 16 225 19 060 Order backlog 1
Slide 21: Subsea, Products & Technologies; Process
Subsea, Products & Technologies (in NOK million) 3Q05 4Q05 1Q06 2Q06 3Q06 YTD05 YTD06 2005 Operating revenues 2 446 2 997 2 671 3 357 3 390 6 857 9 418 9 854 EBITDA 177 224 173 225 287 430 685 654 EBIT 138 172 134 179 251 331 564 503 Order intake 3 856 5 585 4 526 8 384 5 720 9 860 18 630 15 445 Ord
Slide 22: Pulping & Power; Other and eliminations
Pulping & Power (in NOK million) 3Q05 4Q05 1Q06 2Q06 3Q06 YTD05 YTD06 2005 Operating revenues 1 049 1 350 1 041 1 316 1 341 3 173 3 698 4 523 EBITDA 76 109 61 57 61 220 179 329 EBIT 61 96 48 45 47 183 140 279 Order intake 1 320 2 074 998 2 224 989 3 737 4 211 5 811 Order backlog 3 897 4 819 4 993 5
Slide 23: Disclaimer
Disclaimer ■ This Presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this Presentation are based on current expectations, estimates and projections a