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FULL YEAR 2014 RESULT – Matrix Composites & Engineering Limited

Matrix Composites & Engineering Limited · Aug 13, 2014 · 34 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. FULL YEAR 2014 RESULT – Matrix Composites & Engineering Limited – slide 1
    FULL YEAR RESULT 2014 Matrix Composites & Engineering 13 August 2014
  2. FULL YEAR 2014 RESULT – Matrix Composites & Engineering Limited – slide 2
    OVERVIEW Highlights FY14 FY14 Financial Results Operational Review Strategy & Outlook 3 Drilling Riser Buoyancy Load-out
  3. FULL YEAR 2014 RESULT – Matrix Composites & Engineering Limited – slide 3
    HIGHLIGHTS FY14 Aaron Begley - CEO
  4. FULL YEAR 2014 RESULT – Matrix Composites & Engineering Limited – slide 4
    HIGHLIGHTS FY14 5
  5. FULL YEAR 2014 RESULT – Matrix Composites & Engineering Limited – slide 5
    HIGHLIGHTS OPERATIONAL Order Book/ Pipeline Order Book, Pending Orders & Quotes (US) as at 30/6/14 Current order book US65m (Q4) Decline in current orders in Q4 due to slower than anticipated order conversion protracted award…
  6. FULL YEAR 2014 RESULT – Matrix Composites & Engineering Limited – slide 6
    HIGHLIGHTS OPERATIONAL Production Actual v Target Production Q1 FY13 Q4 FY14 Absolute production Stable and improved and targets adjusted due to move to three production output shift roster. Return to three shift roster…
  7. FULL YEAR 2014 RESULT – Matrix Composites & Engineering Limited – slide 7
    HIGHLIGHTS RESTRUCTURE Business Restructure (Q4) All Engineering, Project Management, Procurement and Finance functions relocated to Henderson Restructure will assist business to transition to aftermarket for capital drilling…
  8. FULL YEAR 2014 RESULT – Matrix Composites & Engineering Limited – slide 8
    FY14 FINANCIAL RESULTS CFO Peter Tazewell
  9. FULL YEAR 2014 RESULT – Matrix Composites & Engineering Limited – slide 9
    KEY METRICS FY2014 FY2013 Variance Revenue m 158.6 145.5 9.0% EBITDAF m 20.0 9.6 108.3% EBITDA m 18.6 7.5 148.0% Net profit/(loss) after tax m 3.0 (2.9) n/a Earnings per share c 3.2 (3.1) n/a Dividends per share c nil nil n/a…
  10. FULL YEAR 2014 RESULT – Matrix Composites & Engineering Limited – slide 10
    REVENUE m 200 9.0% increase over FY14 revenue 175 Increased 2H revenue arising from increased production 150 Revenue exceeded market 125 expectations 100 Reduced revenue contribution from 75 MOSE 50 Persistently high AUD adversely…
  11. FULL YEAR 2014 RESULT – Matrix Composites & Engineering Limited – slide 11
    EBITDAF MATRIX GROUP 26.0 40.0% m Strong 2H EBITDAF which has 30.0% benefitted from: 19.5 Higher production levels 20.0% 13.0 Materials efficiencies Labour efficiencies 10.0% 6.5 EBITDAF margin of 12.6% 0.0% Margin remains…
  12. FULL YEAR 2014 RESULT – Matrix Composites & Engineering Limited – slide 12
    PROFIT & LOSS FY2014 FY2013 Variance Revenue m 158.6 145.5 9.0% EBITDAF m 20.0 9.6 108.3% Forex gain/(loss) m (1.4) (2.1) 33.3% EBITDA m 18.6 7.5 148.0% Depreciation/amortisation m (11.9) (10.3) 15.5% EBIT m 6.7 (2.8) Net…
  13. FULL YEAR 2014 RESULT – Matrix Composites & Engineering Limited – slide 13
    BALANCE SHEET m FY2014 FY2013 Strong working capital Cash and restricted cash 23.2 25.3 metrics (debtors + other Trade receivables 20.0 17.2 receivables) Other receivables 9.8 9.6 Inventory 18.8 23.6 Reduced inventory holdings…
  14. FULL YEAR 2014 RESULT – Matrix Composites & Engineering Limited – slide 14
    DEBT & BANKING Operating within existing covenants Undrawn available facilities of US10 million significant available liquidity Gross debt continues to amortise sharply Adjusted net debt reducing sharply Facility review in…
  15. FULL YEAR 2014 RESULT – Matrix Composites & Engineering Limited – slide 15
    WORKING CAPITAL 75 20% m 60 15% 45 10% 30 15 5% 0 0% -15 -5% -30 -10% -45 -60 -15% 2H 09 1H 10 2H 10 1H 11 2H 11 1H 12 2H 12 1H 13 2H 13 1H 14 2H 14 Debtors Inventory Restricted Cash Creditors Progress Billing…
  16. FULL YEAR 2014 RESULT – Matrix Composites & Engineering Limited – slide 16
    CASH FLOW FROM OPERATIONS m 25.0 3.4 4.8 20.0 0.9 1.9 2.6 - 6.4 0.6 0.0 15.0 2.3 11.9 7.2 10.0 18.6 16.5 5.5 1.9 5.0 1.7 3.0 3.6 - - (5.0) 17
  17. FULL YEAR 2014 RESULT – Matrix Composites & Engineering Limited – slide 17
    SUMMARY Delivered above consensus Revenue and EBITDA Improved EBITDA margin maintained Balance sheet and working capital stabilised Strong cash flow generation Capital expenditure remains modest Significant debt reduction Modest…
  18. FULL YEAR 2014 RESULT – Matrix Composites & Engineering Limited – slide 18
    OPERATIONAL REVIEW
  19. FULL YEAR 2014 RESULT – Matrix Composites & Engineering Limited – slide 19
    OFFSHORE CDE (DRB) US100m+ contracts awarded in FY14 Delay in order conversions. Confident of converting new orders in the short term Pending order book and short turnaround project activity remain high Continued penetration of…
  20. FULL YEAR 2014 RESULT – Matrix Composites & Engineering Limited – slide 20
    OFFSHORE Offshore Services (CDE Riser Service) Focus offshore drilling contractors Aftermarket CDE and buoyancy services Offshore Services Market growth in local offshore services market exposure to major drilling contractors…
  21. FULL YEAR 2014 RESULT – Matrix Composites & Engineering Limited – slide 21
    SURF Umbilicals, Flowlines & Riser Products Record year 24 individual projects completed Milestone deliveries: Installation Buoyancy Gorgon and Wheatstone projects (WA) Distributed Flexible Flowline Buoyancy major project in West…
  22. FULL YEAR 2014 RESULT – Matrix Composites & Engineering Limited – slide 22
    WELL CONSTRUCTION Engineered Products (Centralizers) Centralizer sales below expectations although still growing Sales expected to continue growing in FY15 Recent third party/ client testing demonstrated a quality differential…
  23. FULL YEAR 2014 RESULT – Matrix Composites & Engineering Limited – slide 23
    STRATEGY & OUTLOOK
  24. FULL YEAR 2014 RESULT – Matrix Composites & Engineering Limited – slide 24
    STRATEGY GROUP Strategy Grow share of DRBM market in new build and aftermarket segments via OEMs, contractors and shipyards Expand CDE Riser and DRBM aftermarket services capabilities in Australia and Internationally Grow…
  25. FULL YEAR 2014 RESULT – Matrix Composites & Engineering Limited – slide 25
    OUTLOOK CDE DRB Global expected demand for floaters from 266 rigs (2014) to 420 rigs (2020) (Graph 1) Market utilisation from 87% to 85% in 2015 due to an 8% in available new builds before recovering to an estimated 87% in 2016…
  26. FULL YEAR 2014 RESULT – Matrix Composites & Engineering Limited – slide 26
    OUTLOOK OFFSHORE CDE/OFFSHORE SERVICES Graph 1: Floater Supply/ Demand 450 100 Demand 400 Supply 95 Marketed Utilisation (%) 350 Marketed Utilisation (%) 300 90 No Rigs 250 200 85 150 100 80 Graph 2: World Number…
  27. FULL YEAR 2014 RESULT – Matrix Composites & Engineering Limited – slide 27
    OUTLOOK OFFSHORE SERVICES CDE Size of global operating floater market expected to by 8% in 2015, and 6% in 2016 (Graph 1) Record number of floaters expected in Australian waters 14 floaters in 2015 (Graph 3) Supports a likely…
  28. FULL YEAR 2014 RESULT – Matrix Composites & Engineering Limited – slide 28
    OUTLOOK OFFSHORE CDE/OFFSHORE SERVICES Graph 3: Australian Offshore Rig & Well Forecast 2014-2019 140 15 120 14 14 100 13 80 13 60 12 40 12 20 11 0 11 2014 2015 2016 2017 2018 2019 Offshore Wells 94 102 107 111…
  29. FULL YEAR 2014 RESULT – Matrix Composites & Engineering Limited – slide 29
    OUTLOOK SURF SURF Engineered Products Strong global growth projected for FPS to 2017 (Graph 4 & 5) FPS expenditure expected to by 68% from 2014 to 2017 Backlogs of major oilfield services (OFS) companies at all time highs (Graph…
  30. FULL YEAR 2014 RESULT – Matrix Composites & Engineering Limited – slide 30
    OUTLOOK SURF Graph 4: FPS Expenditure (%) by REGION 2013-17 Graph 5: FPS Expenditure (USm) by Region 2008-17 Middle East 30,000 North North America & Caspian Africa America 25,000 Middle East & Caspian Sea Sea 19% 13% Latin…
  31. FULL YEAR 2014 RESULT – Matrix Composites & Engineering Limited – slide 31
    OUTLOOK WELL CONSTRUCTION Total global number of wells and footage drilled expected to to year 2019 (Baker Hughes, Spears & Associates, Dec 2013) Growth in North American (NA) market expected to before flattening beyond 2015…
  32. FULL YEAR 2014 RESULT – Matrix Composites & Engineering Limited – slide 32
    OUTLOOK WELL CONSTRUCTION Graph 13: Oil Wells Drilled By Region Graph 14: Gas Wells Drilled By Region 16,000 8,000 USA - Horizontal Gas Wells 14,000 7,000 Canada- Horizontal Gas Wells No. Horizontal Oil Wells 12,000 6,000 USA…
  33. FULL YEAR 2014 RESULT – Matrix Composites & Engineering Limited – slide 33
    SUMMARY EBITDAF 20.0m (108%) EBITDA 18.6 million (148%) NPAT 3.0 million Balance Sheet metrics stable with ongoing debt reduction. Stable and improved production output Continued penetration into Riser Buoyancy Repair and…
  34. FULL YEAR 2014 RESULT – Matrix Composites & Engineering Limited – slide 34
    CONTACT DETAILS AARON BEGLEY PETER TAZEWELL CEO CFO T: +61 8 9412 1200 T: +61 8 9412 1200 aaron.begleymatrixengineered.com peter.tazewellmatrixengineered.com

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