Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Sembcorp Marine — 9M 2017 Earnings Presentation
23 slides from Singapore Exchange's earnings presentation, Oct 31, 2017
Slide 1: Corporate Presentation – 3Q/9M 2017 Results
10/31/2017 CORPORATE PRESENTATION 3Q/9M 2017 results – October 31, 2017 1 Aerial view of Tuas Boulevard Yard Phase I and II Aerial view of Phase I of Sembcorp Marine Tuas Boulevard Yard AGENDA CEO Address CFO Financial Highlights 2 1
Slide 2: CEO Address – Macro environment remains challenging
10/31/2017 CEO ADDRESS Macro Environment update Financial performance for 9M 2017 Operations Review Outlook and Prospects 3 Macro environment – remains challenging Global economy maintained good momentum in 3Q 2017 with sustained growth in industrial production, consumer spending & investment. Busin
Slide 3: Financial Performance; Sale of Jack-ups
10/31/2017 Financial Performance Despite the tough operating 9M 2017 Revenue and Profit environment, Sembcorp Marine 3,000 49 remained profitable for 9M 2017. 2,715 48 Net gearing remained steady but is 2,500 expected to improve significantly with 47 2,000 monetization of rig inventory. 46 1,732 S$
Slide 4: Project deliveries and projects in progress
10/31/2017 Review of Operations – Project deliveries Key deliveries during 9M 2017 include the following: • The Pioneiro de Libra FPSO, Sembcorp Marine’s first full EPC FPSO conversion, arrived in Brazil waters in May after its successful delivery to Odebrecht and Teekay in March this year. The proj
Slide 5: Projects in progress; Repairs & Upgrades
10/31/2017 Review of Operations – Projects in progress Construction of two high-spec ultra-deepwater drillships for Transocean based on Sembcorp Marine’s proprietary Jurong Espadon III drillship design. Transocean recently decided to proceed with enhancing capabilities of the two drillships, resulti
Slide 6: Successful deliveries in 9M 2017
10/31/2017 Successful deliveries in 9M 2017 FPSO Pioneiro de Libra Project: Conversion of shuttle tanker to an FPSO, including detailed engineering, installation and integration of topside modules, installation of external turret and power generation, accommodation upgrading as well as extensive pip
Slide 7: Ongoing Projects – Heerema crane vessel, Culzean FSO
10/31/2017 Ongoing Projects Heerema Semi-submersible Crane Vessel Project: Engineering and construction of a newbuild semi-submersible crane vessel Customer: Heerema Offshore Services B.V. 13 Ongoing Projects Maersk Culzean FSO Newbuild Project: Turnkey FSO newbuilding comprising engineering, procur
Slide 8: Ongoing Projects – Culzean Platform, Kaombo FPSO
10/31/2017 Ongoing Projects Maersk Culzean Platform EPC Project Project: Engineering, procurement, construction and onshore pre-commissioning of Central Processing Facility plus 2 connecting bridges, Wellhead Platform and Utilities & Living Quarters Platform Topsides Customer: Maersk Oil North Sea U
Slide 9: Steady flow of vessels at Repairs & Upgrades
10/31/2017 Steady flow of vessels at Repairs & Upgrades REPAIRS & UPGRADES : CRUISE SHIPS 17 Steady flow of vessels at Repairs & Upgrades REPAIRS & UPGRADES : LNG CARRIERS 18 9
Slide 10: Sete Brasil drillships & NADL semisub; Orderbook developments
10/31/2017 Sete Brasil drillships & NADL semisub Sete Brasil continues discussions with its creditors on its judicial recovery plan. We continue to monitor the developments and engage with Sete Brasil as necessary to progress the restructuring plan. We believe provisions of $329 million made in FY20
Slide 11: Net Orderbook at $7.97 billion
10/31/2017 Net Orderbook at $7.97 billion The sale of the nine jack-up rigs to Borr Drilling contributed a total of $1.77 billion to our orderbook for year 2017. With another $270 million in new orders for non-drilling solutions (which includes US$145 million P- 68 hull COW contract for Petrobras),
Slide 12: Sustainability and Human Resource Initiatives
10/31/2017 Sustainability - Green energy initiatives As part of our sustainability strategy, Sembcorp Marine and the SP Group will jointly develop a smart renewable energy-based Digital Energy-saving System (“DES”) for our Tuas Boulevard Yard. The DES will harness solar energy through the installati
Slide 13: Singapore Yards; Cashflow and Liquidity Management
10/31/2017 Singapore Yards Tuas Boulevard Yard, which completed Phase II in 1Q 2017, is a cornerstone in Sembcorp Marine’s sustainable growth strategy. With our enhanced capabilities and enlarged capacity, we are able to venture into the EPC construction of mega offshore projects and forge new front
Slide 14: Outlook
10/31/2017 Outlook 27 Global exploration and production spending continues to show signs of improvement. Recent stabilisation of drilling rigs day rates and utilisation levels, coupled with increased activities in secondary rigs sales indicate a commencement of recovery in the drilling segment. Enqu
Slide 15: Performance Highlights; Financial Highlights
10/31/2017 Performance Highlights Key highlights: For the 9 months to September 30, 2017: Turnover totalled $1.73 billion compared with 9M 2016’s $2.72 billion. Gross profit of $109 million on earnings recognition of ongoing projects and deliveries. Group EBITDA of $209 million. Net profit attributa
Slide 16: Financial Review: Revenue and Net Profit
10/31/2017 Financial Review: Revenue 9M 2017 Revenue: $ 1.73 billion 7,000 6,000 5,832 5,526 1,445 4,968 5,000 1,693 1,327 4,000 3,545 $ million 1,712 3,000 1,659 1,130 830 888 2,000 1,341 1,208 1,732 1,124 317 908 1,000 655 1,335 1,304 1,050 918 760 - 2013 2014 2015 2016 2017 YTD 1Q 2Q 3Q 4Q 31 Fin
Slide 17: Business Review: Turnover by Segments
10/31/2017 Business Review: Turnover by Segments 9M 2017: $1.73 billion 9M 2016: $2.72 billion Other Other Activities Activities 4% 2% Offshore Offshore Rigs & Platforms Platforms Floaters 34% 36% 40% Rigs & Floaters 51% Repairs & Repairs & Upgrades Upgrades 13% 20% Turnover ($ million) 3Q 2017 3Q 2
Slide 18: Core Business: Floaters and Offshore Platforms
10/31/2017 Core Business: Floaters 35 • Floaters revenue declined 24% YOY to $493 million in 9M 2017 on fewer projects being booked. Major deliveries included the FPSO Pioneiro de Libra and the Rangrid FSO for Gina Krog field. REVENUE - FLOATERS ($ MILLION) 891 838 No. of Offshore conversions projec
Slide 19: Core Business: Repairs & Upgrades; Capital, Gearing & ROE
10/31/2017 Core Business: Repairs & Upgrades • 9M 2017 Repairs & Upgrades revenue increased 1% year on year to $352 million on higher revenue per vessel due to improved vessel mix despite fewer vessels repaired in the nine months. REVENUE – REPAIRS & UPGRADES ($ MILLION) 681 622 557 Period 9M 2017 9
Slide 20: Cashflow; New Contracts Secured
10/31/2017 CASHFLOW Group ($ million) 9M 2017 9M 2016 % change FY 2016 Operating profit before working capital changes 235 245 (4) 384 Cash (used in)/ generated from operations (412) 803 n.m. 669 Net cash (used in)/ generated from operating activities (489) 722 n.m. 569 Net cash generated from/ (use
Slide 21: Net Order Book at S$7.97 billion
10/31/2017 Net Order Book at S$7.97 billion Net order book by product type Floaters 12,337 Offshore Platforms Jack Up 11,432 Semi-submersible Transocean drillships 10,368 Sete Brasil drillships 6,096 4,702 3,126 7,974 7,835 S$ million 1,375 3,126 1,360 3,126 1,608 660 1,533 625 1,309 1,240 1,591 2,3
Slide 22: 9M 2017 Results Question & Answer session
10/31/2017 9M 2017 Results Question & Answer session 22
Slide 23: Forward-looking statements
10/31/2017 This release may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representativ