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Q3 2012 EARNINGS CALL – Maersk Oil

Maersk Oil · Nov 9, 2012 · 42 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. Q3 2012 EARNINGS CALL – Maersk Oil – slide 1
    A.P. Mller Mrsk Interim Report Q3 2012 09 November 2012 - Conference call 9.30am CET Webcast available at www.maersk.com
  2. Q3 2012 EARNINGS CALL – Maersk Oil – slide 2
    page 2 Forward-looking Statements This presentation contains forward-looking statements. Such statements are subject to risks and uncertainties as various factors, many of which are beyond A.P. Mller - Mrsk A/S control, may cause…
  3. Q3 2012 EARNINGS CALL – Maersk Oil – slide 3
    page 3 Executing on Group strategy Profit was USD 933m and ROIC was 8.3% Maersk Line turned profit making for the year. Push for higher rates on all trades supported by capacity withdraw. Further cost reductions through fuel and…
  4. Q3 2012 EARNINGS CALL – Maersk Oil – slide 4
    page 4 Group Financial Highlights Q3 2012 Group Financial Highlights Group Financial Highlights Q3 2012 (Q3 2011) USD million Q3-11 Q3-12 Profit was USD 933m for Q3 (USD 371m) and USD 2,204 1,051m excluding one-offs (USD 385m)…
  5. Q3 2012 EARNINGS CALL – Maersk Oil – slide 5
    page 5 Maersk Line Q3 Q2 Q3 FY Highlights Q3 2012 (USD million) 2012 2012 2011 2011 With Q3 profit of USD 498m (loss of USD 289m) the 9M profit Revenue 6,962 7,322 6,588 25,108 reached USD 126m (USD 40m) EBITDA 932 694 150 1,009…
  6. Q3 2012 EARNINGS CALL – Maersk Oil – slide 6
    page 6 Maersk Oil Q3 Q2 Q3 FY Highlights Q3 2012 (USD million) 2012 2012 2011 2011 Profit was affected by a 23% reduction in share of Revenue 2,388 2,724 3,012 12,616 production Y/Y and a USD 72m one-off charge due Exploration…
  7. Q3 2012 EARNINGS CALL – Maersk Oil – slide 7
    page 7 APM Terminals Q3 Q2 Q3 FY Highlights Q3 2012 (USD million) 2012 2012 2011 2011 Result was affected by slowdown in the major Asia Revenue 1,187 1,189 1,205 4,682 - Europe trade lane. Volume growth of 4% secured EBITDA 280 299…
  8. Q3 2012 EARNINGS CALL – Maersk Oil – slide 8
    page 8 Maersk Drilling Q3 Q2 Q3 FY Highlights Q3 2012 (USD million) 2012 2012 2011 2011 The result was negatively affected by delayed Revenue 450 465 484 1,878 start-up and maintenance yard stays of two units EBITDA 176 162 239…
  9. Q3 2012 EARNINGS CALL – Maersk Oil – slide 9
    page 9 Opportunistic core Profit by activity* Profit from Opportunistic core units was USD 75m (USD 91m) USD million Q3-2011 Q3-2012 Maersk Supply Service Low activity primary in North Sea but high activity levels 77 in main…
  10. Q3 2012 EARNINGS CALL – Maersk Oil – slide 10
    page 10 Consolidated Financial Information Income statement (USD million) Q3 2012 Q3 2011 Q2 2012 9M 2012 9M 2011 FY 2011 Revenue 14,629 15,330 15,348 44,293 45,257 60,230 EBITDA 3,344 3,389 3,582 9,467 11,594 14,661 Depreciation, etc.…
  11. Q3 2012 EARNINGS CALL – Maersk Oil – slide 11
    page 11 Development in Net Interest-bearing Debt USD billion 15.3 9.5 14.8 0.4 0.9 0.7 3.8 2.4 0.9 NIBD end 2011 EBITDA WC Paid taxes CAPEX Financial items Dividend Other* NIBD Q3 2012 * Other includes change in…
  12. Q3 2012 EARNINGS CALL – Maersk Oil – slide 12
    page page 12 12 Outlook for 2012 The Group expects a result for 2012 around USD 3.7bn (USD Sensitivities for the remainder of 2012 3.4bn in 2011) with an impairment of USD 267m in Maersk Tankers recognised in Q3. Cash flow used…
  13. Q3 2012 EARNINGS CALL – Maersk Oil – slide 13
    page 13 Final remarks The Group continues to prioritise investments in the four core growth businesses Maersk Line will grow with the market and aims to achieve an EBIT- margin 5%-points above peers. The Group sees limited need…
  14. Q3 2012 EARNINGS CALL – Maersk Oil – slide 14
    page 14 Q & A - To ask a question please press 01 Interim Report Q3 2012
  15. Q3 2012 EARNINGS CALL – Maersk Oil – slide 15
    page 15 Consolidated Financial Information Income statement (DKK million) Q3 2012 Q3 2011 Q2 2012 9M 2012 9M 2011 FY 2011 Revenue 87,196 80,794 88,818 257,264 240,023 322,520 EBITDA 19,882 17,835 20,683 54,987 61,489 78,506…
  16. Q3 2012 EARNINGS CALL – Maersk Oil – slide 16
    page 16 Group Business Drivers Q3-12 Q2-12 Q3-11 Change vs Change vs Comment previous quarter previous year to Q3 (vs Q2) Transported container 2.1 2.2 2.1 -4.9% -0.2% AE: -8% (headhaul decline by 15%) volumes, mill FFE IntraAsia:…
  17. Q3 2012 EARNINGS CALL – Maersk Oil – slide 17
    page 17 Strategic investments and other Profit by activity* Dansk Supermarked USD million Q3-2011 Q3-2012 Reduced margins in non-food sector and impairment losses of DKK 94m related to closure of two Ftex stores 55 Dansk…
  18. Q3 2012 EARNINGS CALL – Maersk Oil – slide 18
    Maersk Line: From good to best Five years ago Today Five years ahead 4th quartile performer 2nd quartile performer Top quartile performer 3% EBIT margin EBIT margin 5% above peers EBIT margin below peers advantage to peers Growing…
  19. Q3 2012 EARNINGS CALL – Maersk Oil – slide 19
    page 19 Maersk Line EBIT margin gap to peers EBIT-margin, % EBIT-margin, % 25% 25% 20% 20% 15% 12.8% 15% 10.4% 10% 7.3% 10% 4.8% 5.1% 5.6% 4.9% 5.4% 4.0% 3.6% 5% 2.9% 2.8% 3.0% 5% 0.7% 1.1% 1.2% 0.8% 0% 0% -0.4% -5% -2.5% -5%…
  20. Q3 2012 EARNINGS CALL – Maersk Oil – slide 20
    page 20 Global container market: Market balance Global supply/demand growth The market balance in nominal terms suggests Procent Y/Y excess capacity also in 2013 20 15 13 14 13 14 The global order book declined to 3.6 million…
  21. Q3 2012 EARNINGS CALL – Maersk Oil – slide 21
    Maersk Oil: Unlocking potentials Five years ago Today 2020 Producing 400,000 barrels Producing 265,000 boepd Producing 400,000 boepd of oil equivalent per day Top quartile returns Double digit returns (boepd) Exploration results in…
  22. Q3 2012 EARNINGS CALL – Maersk Oil – slide 22
    page 22 Maersk Oils portfolio end 2011 Exploration Resources Project Maturation Process Reserves Production Prospects in Initiate & the pipeline Discoveries Assess Select Define Execute Assets Diamante Koskha Brochel Safira…
  23. Q3 2012 EARNINGS CALL – Maersk Oil – slide 23
    page 23 Maersk Oils projects to 400,000 barrels per day Key projects 2012-2014 Sanctioned major development projects Project First Equity Share Net Sanctioned Capex Plateau Production Production (Billion USD) (Entitlement, boepd)…
  24. Q3 2012 EARNINGS CALL – Maersk Oil – slide 24
    page 24 Maersk Oils projects to 400,000 barrels per day Key projects 400 258 Present Chissonga* Culzean* Johan Golden El Merk Dunga II* Buckskin Elly-Luke* Jack Existing Target Angola UK Sverdrup Eagle Algeria Kazakhstan…
  25. Q3 2012 EARNINGS CALL – Maersk Oil – slide 25
    page 25 Maersk Oil resource base (mmbbl) End-2001 End-2011 Reserves & resources 1,237 1,384 Proved reserves (1P) 515 443 From 2010 to 2011, resources increased 12% Post-2017 Qatar reserves or resources not included…
  26. Q3 2012 EARNINGS CALL – Maersk Oil – slide 26
    APM Terminals: Continuing profitable growth Five years ago Today Five years ahead Below average performer Top quartile performer Best port operator in Closely linked to Independent company; the world Maersk Line 46% revenue from 3rd…
  27. Q3 2012 EARNINGS CALL – Maersk Oil – slide 27
    APM Terminals strategic objectives & targets Strategic Objectives Mid Term Targets Top quartile return on capital, min 12% 2011 2012 F 2016 F Most Profitable ROIC 13.1% 13.2% 13.0% Top quartile growth Earn The Customer Emerging…
  28. Q3 2012 EARNINGS CALL – Maersk Oil – slide 28
    APM Terminals portfolio management lifts financial returns Rigorous benchmarking and annual portfolio Selected portfolio adjustments 20082012 review to identify candidates for portfolio adjustments Exit Entry Consolidation Yantian…
  29. Q3 2012 EARNINGS CALL – Maersk Oil – slide 29
    Higher ROIC than competition, but lower EBITDA margin USD mill. 2011 2011 2011 2011 Revenue 4,682 2,978 4,177 3,429 EBITDA 1,059 1,307 1,509 1,556 EBITDA % 23% 44% 36% 45% EBIT * 767 1,116 1,057 1,316 EBIT ROIC ** 15% 8% n.a. 13%…
  30. Q3 2012 EARNINGS CALL – Maersk Oil – slide 30
    Maersk Drilling: Investing to reach relevant size Five years ago Today Five years ahead Below average performer Progress towards top Top quartile performer quartile performer Active in North Sea + other 30 high-end rigs mainly…
  31. Q3 2012 EARNINGS CALL – Maersk Oil – slide 31
    page 31 Maersk Drilling has USD 5.8bn revenue backlog 2012 2013 2014 2015 2016 Jack-Ups Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Maersk Drillings MRSK INNOVATOR MRSK INSPIRER contract coverage is MRSK GALLANT 97% for 2013…
  32. Q3 2012 EARNINGS CALL – Maersk Oil – slide 32
    page 32 Building value across the Group Damco Profitable growth Maersk Supply Service Build on leadership position SVITZER Grow margins and invest in profitable contracts Maersk Tankers Protect value during cycle lows…
  33. Q3 2012 EARNINGS CALL – Maersk Oil – slide 33
    page 33 Capital is focused on our strategic growth business Invested capital 2012 Our portfolio strategy over the next five years Maersk Line Maersk Oil APM Terminals At least 75% of the invested capital is Maersk Drilling Other…
  34. Q3 2012 EARNINGS CALL – Maersk Oil – slide 34
    page 34 Focus on performance Group ROIC annually 20052012 9M* Breakdown of ROIC by business USD Business Invested ROIC % ROIC % bn capital 9M 2012* 2011 18% 16% USDm 14% A.P. Moller Maersk 53,767 9.3 8.3 12% Group 10% Maersk Line…
  35. Q3 2012 EARNINGS CALL – Maersk Oil – slide 35
    page 35 Strong cash generation through the cycle Cash flow from operations Cash flow of USD 57bn annually from stable businesses Maersk Line and Maersk Tankers contribute annually with cash flow of USD 04bn USD bn 12 10…
  36. Q3 2012 EARNINGS CALL – Maersk Oil – slide 36
    page 36 supported by active portfolio management Cash flow and gains from divestments Cash flow from divestments Divestment gains Cash flow from divestments of USD USD m 9bn since 2007 with a pre-tax gain of USD 2,000 4.1bn…
  37. Q3 2012 EARNINGS CALL – Maersk Oil – slide 37
    page 37 Selected divestments past five years Loksa Maersk Peregrino (FPSO) 2012 Loksa Laevateehase (shipyard) 2009 Maersk Equipment Service Comp. MartinAir (50%) (Dutch Airline) 2008 (66,000 chassis in the US) 2012 Roadways…
  38. Q3 2012 EARNINGS CALL – Maersk Oil – slide 38
    page 38 Development in dividend payout Historical dividend Dividend per share Dividend yield (RHS) Continue historical trend of increasing dividends per share supported by DKK underlying earnings growth 1000 2.5% 800 2.0% 600…
  39. Q3 2012 EARNINGS CALL – Maersk Oil – slide 39
    page 39 Capital commitments for growth Track record for growth the cash flow used Capital commitments for capital expenditure has been USD 42bn accumulated for the past five years Four core growth All other USD bn The Group has…
  40. Q3 2012 EARNINGS CALL – Maersk Oil – slide 40
    page 40 Funding in place with liquidity buffer of USD 10.7bn Loan profile for APMM Group end Q2 Funding Drawn debt Corporate bonds Undrawn revolving APMM is committed to maintaining a conservative capital facilities structure and…
  41. Q3 2012 EARNINGS CALL – Maersk Oil – slide 41
    page 41 Critical to the Groups success Performance management of Business Units Disciplined capital allocation Active portfolio management both at Group level and within Business Units Agile HQ utilising economies of scale…
  42. Q3 2012 EARNINGS CALL – Maersk Oil – slide 42
    Henrik Brnniche Lund Stephanie Fell Head of Investor Relations Investor Relations Officer henrik.lundmaersk.com stephanie.fellmaersk.com Tel: +45 3363 3106 Tel: +45 3363 3639

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