Aker Solutions Asa · OSL:AKSO
Aker Solutions Asa — Q1 2012 Earnings Presentation
35 slides from Aker Solutions Asa's earnings presentation, May 9, 2012
Slide 1: 1st quarter results 2012
part of Aker 1st quarter results 2012 Fornebu, 9 May 2012 Øyvind Eriksen and Leif Borge © 2012 Aker Solutions Slide 1 9 May 2012 1st quarter results 2012 part of Aker
Slide 2: Agenda | Q1 2012
Agenda | Q1 2012 Introduction Øyvind Eriksen Executive chairman Financials Leif Borge President & CFO Q&A session Øyvind Eriksen Leif Borge Q&A Front page: Delivery of manifold to Goliat. © 2012 Aker Solutions Slide 2 9 May 2012 1st quarter results 2012 part of Aker
Slide 3: Q1 2012 | Financial headlines
Q1 2012 I Financial headlines ■ Good revenue growth ■ By 15.7 per cent from Q1 2011 to NOK 9.8 billion ■ Strong growth in operating profit ■ EBITDA excluding non-recurring items increased from NOK 683 million in Q1 2011 to NOK 1 002 million ■ Improved recurring EBITDA margin ■ Increased to 10.2 per
Slide 4: Q1 2012 | Key figures
Q1 2012 | Key figures Revenues and EBITDA Order backlog and order intake NOK million NOK million 12 000 50 000 45 000 42 890 9 837 10 000 40 000 35 000 8 000 30 000 6 000 25 000 20 000 4 000 15 000 11 307 10 000 2 000 1 002 5 000 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2010 2010 20
Slide 5: Q1 2012 | Headlines by region
Q1 2012 | Headlines by region North America Norway Asia Pacific UMB plant low Award of Cat-B Slow down in marine capacity utilised for intervention rig for construction sales for maintenance Statoil (Q2) MLS WIS turning down work Good progress on Await tender decision due to capacity Sub
Slide 6: Q1 2012 | By business area
Q1 2012 | By business area Profitability Growth NOK million NOK million Q1 2012 18 % Backlog Revenue WIS 18 % Q1 2011 growth growth 16 % MLS 12 % DRT 76 % 22 % 12 % SUB 22 % 48 % DRT 11 % PRS 17 % -28 % 10 % ENG 11 % UMB 16 % -5 % 10 % MMO -8 % 17 % MMO 9% MLS -16 % 3% 8% SUB 8% ENG -21 % 59 % 5% OM
Slide 7: New Head of Process Systems David Merle
New Head of Process Systems David Merle Curriculum vitae 2003-2012 | Cameron Senior management positions, including Group Vice President Operations for Process & Compression systems and Head of Subsea Controls 1998-2001 | Total Project manager, drilling engineer and logistics engineer David Merle ■
Slide 8: Cat-B well intervention services
Cat-B well intervention services CAT-B Statoil contract a company maker ■ Value USD 1.9 billion for 8 years ■ Specially designed rig for harsh North Sea environment ■ Offers a full range of heavy well intervention and light drilling tasks for client Statoil © 2012 Aker Solutions Slide 8 9 May 2012 1
Slide 9: Health, safety and environment: a top priority
Health, safety and environment: a top priority HSE performance indicators HSE awards We had 25 total recordable injuries in Q1. 6 of these resulted in lost time. The majority of the TRIs were finger injuries from cuts, dust in eyes, slip and fall. HSE performance Malaysia's highest award. safety awa
Slide 10: Spending expected to grow across regions 2011-2015
Spending expected to grow across regions 2011-2015 North Sea 10.8% CAGR average in New discoveries increase selected offshore regions confidence USD bn % CAGR Ship yards in Asia North America Chinese yards expected Increasingly deeper waters, to grow pick up after Macondo Middle East USD bn Oilfield
Slide 11: Strategy and market | Engineering
Strategy and market | Engineering Front end and concept studies a key differentiator ■ Great market opportunities – high activity in study markets ■ Customers are concerned about capacity constraints ■ Increasing capacity and building presence in London, Houston, Kuala Lumpur, Rio de Janeiro, Perth
Slide 12: Strategy and market | Subsea and Umbilicals
Strategy and market | Subsea and Umbilicals Strong subsea markets Subsea capex ■ High international tender activity, interesting prospects in Brazil and the North Sea ■ Subsea doubling capacity in Tranby and Port Klang, building new support base in Malaysia ■ Umbilicals to invest in new plant in Mal
Slide 13: Strategy and market | Drilling
Strategy and market | Drilling Crucial moments in deep-water Expected orders DRT bottom up analyses 20-25 drilling Yearly number of newbuilds (UDW, midwater), 2015-2020 ■91 newbuilds (UDW) on order including Nordea 25 Brazil, analysts expect 20-30 newbuilds per year to 2020 Pareto 27+ ■Awards of dri
Slide 14: Strategy and market | MMO
Strategy and market | MMO Prospects extended North Sea (Norway) market growth1 ■ Upcoming prospects in modifications, USD million frame agreements and hook-ups 60 000 ■ Acquisition of Sandnessjøen 50 000 40 000 Engineering strengthens presence in 30 000 northern Norway 20 000 10 000 0 2011 2012 2013
Slide 15: Agenda | Q1 2012
Agenda | Q1 2012 Introduction Øyvind Eriksen Executive chairman Financials Leif Borge President & CFO Q&A session Øyvind Eriksen Leif Borge Q&A © 2012 Aker Solutions Slide 15 9 May 2012 1st quarter results 2012 part of Aker
Slide 16: Consolidated income statement
Consolidated income statement1 (NOK million) Q1 12 Q1 11 2011 2010 Operating revenues and other income 9 837 8 504 36 474 33 365 EBITDA 1 002 1 440 3 445 3 308 Of which related to non-recurring items - 7572 7572 1823 Of which related to hedging 26 (13) 44 17 Depreciation and amortisation (231) (202)
Slide 17: Consolidated cash flow, NCOA and net debt
Consolidated cash flow, NCOA and net debt ■ Net debt of NOK 4.4 billion (Q4: net Net current operating assets (NCOA) NOK million debt of NOK 3.5 billion) ■ Cash and bank deposits of NOK 1.1 4 000 billion 3 000 ■ Gross interest bearing debt of NOK 6.7 2 000 billion 1 000 ■ Liquidity reserves of NOK 5
Slide 18: Engineering and Process Systems
Engineering Product Solutions Engineering Process Systems ■ Good results from the North Sea, India and ■ Delayed progress and lower activity in Malaysia Norway, France and Brazil ■ Acquired remaining 50% of shares in Aker ■ Good results in Midsund and Asia Pacific Clean Carbon ■ Provision for repair
Slide 19: Product Solutions: Subsea and Umbilicals
Product Solutions Subsea Umbilicals ■ Operations according to revised plan in Brazil ■ Delayed progress on some projects in ■ High activity in the North Sea Norway ■ Important milestone reached on Vigdis work- ■ Lower activity due to delayed awards in over system Mobile (US) ■ Good contribution from
Slide 20: Product Solutions: Drilling and Mooring
Product Solutions Drilling Technologies Mooring and Loading Systems ■ 2 drilling risers completed ■ Bow loading systems to Samsung ■ Good contribution from services successfully delivered ■ 5 topside packages to be completed in 2012, ■ Good contribution from both mooring and 8 in 2013 loading segmen
Slide 21: Field Life Solutions
Field Life Solutions MMO Well Intervention Services ■ Important milestones met on Statfjord ■ High activity in the North Sea, growing Latelife, Marulk and Valhall Hook Up activity internationally ■ Margin affected positively by completion of ■ Margin affected by weather delays and contracts higher t
Slide 22: Field-Life Solutions: Oilfield Services and Marine Assets
Field-Life Solutions Oilfield Services and Marine Assets Revenues, EBITDA NOK million Cat-B (Statoil) 199 203 ■ Eight-year, USD 1.9 billion contract signed in 143 138 Q2 101 Skandi Santos ■ Six consecutive months with above 98% uptime 5 ■ Has performed 36% of Petrobras’ subsea tree installations in
Slide 23: Contracts and order intake
Contracts and order intake Q1 2012 announced order intake of around NOK 6 billion Largest orders Client Deliverable NOK million Drilling DSME Drilling packages two Cat-D rigs Undisclosed MMO Statoil Drilling upgrade on Snorre A 1 000 MMO BP Norway Extension of MMO contract 800 – 1 200 MMO Talisman F
Slide 24: Order backlog and subsequent events
Order backlog and subsequent events Order backlog by execution date Order backlog by business area NOK million NOK million Other MMO SUB DRT ENG 30 000 50 000 26 000 25 000 40 000 20 000 30 000 15 000 13 000 20 000 10 000 10 000 5 000 4 000 - 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2012 2013 Later 2010 2010 20
Slide 25: Key focus and outlook
Key focus and outlook Key focus ■ Quality in operations ■ Capacity expansions to meet demand Outlook ■ Continued good tender activity in our core segments © 2012 Aker Solutions Slide 25 9 May 2012 1st quarter results 2012 part of Aker
Slide 26: © 2012 Aker Solutions Slide 26 9 May 2012
© 2012 Aker Solutions Slide 26 9 May 2012 1st quarter results 2012 part of Aker
Slide 27: Additional information
Additional information © 2012 Aker Solutions Slide 27 9 May 2012 1st quarter results 2012 part of Aker
Slide 28: Financial position
Financial position LTM EBITDA, NIBD and NIBD/LTM EBITDA Debt maturity profile, NOK million Note: NIBD and LTM EBITDA as reported. Kvaerner received total cash of NOK 1.8 Note: Revolving credit facility of NOK 6 billion, drawn NOK 2 billion, billion upon listing. maturing in 2016 6 000 NOK million NI
Slide 29: Consolidated cash flow
Consolidated cash flow (NOK million) Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Net cash flow from operating activities 1 181 237 1 227 1 182 (122) Net cash flow from investing activities 3 492 (413) (1 058) (2 223) (708) Net cash flow from financial activities (2 798) (992) (27) 939 698 Translation adjustment (
Slide 30: Consolidated assets
Consolidated assets (NOK million) Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Property, plant and equipment 7 217 6 970 7 343 7 409 7 732 Intangible assets 7 183 5 911 6 409 6 843 6 776 Financial assets (non-current) 1 417 1 245 930 958 1 102 IB receivables (non-current) 671 649 673 704 702 IB receivables (curren
Slide 31: Consolidated debt and equity
Consolidated debt and equity (NOK million) Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Shareholders' equity 13 566 12 703 10 408 11 148 11 686 Minority interests 168 163 181 169 173 Non IB liabilities (non-current) 2 473 2 403 2 628 2 548 2 436 Interest bearing debt (non-current) 4 635 4 637 4 506 5 371 6 044 Non
Slide 32: Split per business segment in Aker Solutions
Split per business segment in Aker Solutions Revenues Q1 2010 Q2 2010 Q3 2010 Q4 2010 FY 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 FY 2011 Q1 2012 Product Solutions 4 022 4 469 4 170 5 737 18 398 4 345 4 306 4 514 6 541 19 706 5 394 Field Life Solutions 2 466 2 678 2 816 3 136 11 096 2 643 2 899 2 920 3
Slide 33: Split per business segment in Aker Solutions
Split per business segment in Aker Solutions Revenues Q1 2010 Q2 2010 Q3 2010 Q4 2010 FY 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 FY 2011 Q1 2012 Subsea 1 512 1 476 1 355 2 290 6 633 1 657 1 782 1 927 2 638 8 004 2 445 Umbilicals 188 407 472 504 1 571 435 506 420 685 2 046 413 Drilling Technologies 1 89
Slide 34: Split per business segment in Aker Solutions
Split per business segment in Aker Solutions Order intake Q1 2010 Q2 2010 Q3 2010 Q4 2010 FY 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 FY 2011 Q1 2012 Subsea 1 881 3 031 1 890 2 140 8 942 2 555 4 415 2 473 1 991 11 434 2 423 Umbilicals 1 385 127 371 287 2 170 419 1 080 283 524 2 306 297 Drilling Technolo
Slide 35: 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