Skip to main content Q2 2014 EARNINGS CALL – Maersk Oil Investor Presentation | Shale Experts
Loading...
Pm

Q2 2014 EARNINGS CALL – Maersk Oil

Maersk Oil · Aug 19, 2014 · 48 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. Q2 2014 EARNINGS CALL – Maersk Oil – slide 1
    A.P. Mller Mrsk A/S Interim Report Q2 2014 19 August 2014 - Conference call 9.30am CET webcast available at www.maersk.com 21 May 2014 Conference call 9.30am CET webcast available at www.maersk.com
  2. Q2 2014 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…
  3. Q2 2014 EARNINGS CALL – Maersk Oil – slide 3
    page 3 Strategy update - Group Maersk Line (Algeciras, Spain) Triple-E vessel on its back-haul voyage carrying 17,500 TEU with a mix of empty and loaded containers. On track to deliver Above 10% ROIC over the cycle Strategic…
  4. Q2 2014 EARNINGS CALL – Maersk Oil – slide 4
    page 4 Strategy update Business Units Achieved industry cost leadership with reported EBIT-margin gap of more Maersk Line than 5% points versus peers for seven consecutive quarters Entered into a 10 year vessel sharing agreement…
  5. Q2 2014 EARNINGS CALL – Maersk Oil – slide 5
    page 5 Group Financial Highlights Q2 2014 Group Financial Highlights Reported profit of USD 2.3bn (USD 0.9bn) USD million and ROIC of 18.6% (7.4%) in Q2 2014 2,304 Q2 2013 Q2 2014 2,400 Reported result positively impacted by…
  6. Q2 2014 EARNINGS CALL – Maersk Oil – slide 6
    page 6 Maersk Line results Q2 Q2 FY (USD million) 2014 2013 Change 2013 Highlights Q2 2014 Revenue 6,902 6,651 +3.8% 26,196 Maersk Line increased profit by 25% to USD 547m (USD 439m) and delivered a ROIC of 10.8% (8.5%) EBITDA…
  7. Q2 2014 EARNINGS CALL – Maersk Oil – slide 7
    page 7 Maersk Line cost reductions Unit cost including VSA income Unit costs declined by 4.4% or 118 USD/FFE USD/FFE to 2,585 USD/FFE compared to Q2 2013 3,100 3,054 driven by network efficiencies and operational -323 cost…
  8. Q2 2014 EARNINGS CALL – Maersk Oil – slide 8
    page 8 Maersk Oil results Q2 Q2 FY (USD million) 2014 2013 Change 2013 Highlights Q2 2014 Revenue 2,272 2,059 +10.3% 9,142 Maersk Oil recorded a loss of USD 1.4bn (profit of USD 249m), driven by an USD 1.7bn impairment on…
  9. Q2 2014 EARNINGS CALL – Maersk Oil – slide 9
    page 9 APM Terminals results Q2 Q2 FY (USD million) 2014 2013 Change 2013 Highlights Q2 2014 Revenue 1,130 1,068 +5.8% 4,332 APM Terminals increased profit by 25% to USD EBITDA 260 218 +19.3% 892 223m (USD 179m) and delivered a…
  10. Q2 2014 EARNINGS CALL – Maersk Oil – slide 10
    page 10 Maersk Drilling results Q2 Q2 FY (USD million) 2014 2013 Change 2013 Highlights Q2 2014 Revenue 465 512 -9.2% 1,972 Maersk Drillings profit decreased by 22% to USD 117m (USD 150m), driven by planned EBITDA 214 223…
  11. Q2 2014 EARNINGS CALL – Maersk Oil – slide 11
    page 11 Services & Other Shipping results Q2 Q2 FY (USD million) 2014 2013 Change 2013 Highlights Q2 2014 Revenue 1,456 1,584 -8.1% 6,438 Reported profit for Services & Other Shipping improved to USD 30m versus a loss of USD…
  12. Q2 2014 EARNINGS CALL – Maersk Oil – slide 12
    page 12 Continued focus on performance Invested ROIC % ROIC % ROIC % Development in invested capital since Q2 Business capital 2012 Q2 2014* Q2 2013* FY 2013 (USDm) Maersk Drilling 70% Group 51,941 18.6%** 7.4% 8.2% APM…
  13. Q2 2014 EARNINGS CALL – Maersk Oil – slide 13
    page 13 A strong financial framework Well capitalised position Active portfolio management Net debt reduction of USD 2.1bn since Q4 2013 Cash flow from divestments has been USD 9.7bn with divestment (USDbn) gains of USD 4.7bn…
  14. Q2 2014 EARNINGS CALL – Maersk Oil – slide 14
    page 14 Share buy-back program The Board has decided to initiate a share buy-back program of up to USD 1bn within the coming 12 months, due to the current strong financial position The Board will decide on the reoccurrence and…
  15. Q2 2014 EARNINGS CALL – Maersk Oil – slide 15
    page 15 Consolidated Financial Information Income statement (USD million) Q2 2014 Q2 2013 Change FY 2013 Revenue 11,949 11,687 2.2% 47,386 EBITDA 3,085 2,830 9.0% 11,372 Depreciation, etc. 2,806 1,337 109.9% 4,628 Gain on sale of…
  16. Q2 2014 EARNINGS CALL – Maersk Oil – slide 16
    page 16 Outlook for 2014 The Group still expects a result for 2014 significantly above Maersk Drilling still expects a result below 2013 (USD the 2013 result of USD 3.8bn. The underlying result is now 528m) due to planned yard stays…
  17. Q2 2014 EARNINGS CALL – Maersk Oil – slide 17
    page 17 Priorities H2 2014 Maersk Line Manage capacity effectively and maintain market share during introduction of additional Triple-E vessels Progress VSA with MSC, start up in early 2015 Maersk Oil Deliver progress on key…
  18. Q2 2014 EARNINGS CALL – Maersk Oil – slide 18
    page 18 Q&A - To ask a question please press * then 01 APM Terminals Maasvlakte II (The Netherlands, Rotterdam) The worlds most advanced container terminal, is scheduled to open later this year. It operates 48 Automated…
  19. Q2 2014 EARNINGS CALL – Maersk Oil – slide 19
    page 19 Appendix
  20. Q2 2014 EARNINGS CALL – Maersk Oil – slide 20
    page page page 20 20 page20 20 Terms for the share buy- back (SBB) program Acquire a maximum amount of DKK 5.6bn (around USD 1bn) within the coming 12 months starting 1 September 2014. The amount corresponds to 5-10% of…
  21. Q2 2014 EARNINGS CALL – Maersk Oil – slide 21
    page 21 Group Financial Highlights H1 2014 Group Financial Highlights Reported profit of USD 3.5bn (USD 1.6bn) and USD million ROIC of 14.3% (7.7%) in H1 2014 3,511 H1 2013 H1 2014 3,500 Reported result positively impacted by…
  22. Q2 2014 EARNINGS CALL – Maersk Oil – slide 22
    page 22 The Maersk Group Company Overview Maersk Line Maersk Oil APM Terminals Maersk Drilling Services & other shipping* Self-funded 400,000 boepd USD 1bn NOPAT USD 1bn NOPAT USD 0.5bn NOPAT EBIT 5%-points peers ROIC at least…
  23. Q2 2014 EARNINGS CALL – Maersk Oil – slide 23
    page 23 Company portfolio strategy -2% 13% 14% 13% 4% 40% 12% 9% Revenue NOPAT Invested 46% 20% 2013 55% 2013 Capital 14% 2013 19% 28% 15% Maersk Line Maersk Oil APM Terminals Maersk Drilling Services & other…
  24. Q2 2014 EARNINGS CALL – Maersk Oil – slide 24
    page 24 Active portfolio management Cash flow from divestments has been USD 9.7bn with divestment gains of USD 4.7bn pre-tax since 2009 USDbn 3.5 3.3 2.8 2.9 3.0 2.5 2.0 1.4 1.5 1.2 1.0 0.7 0.6 0.5 0.5 0.5 0.2 0.2 0.1…
  25. Q2 2014 EARNINGS CALL – Maersk Oil – slide 25
    page 25 Shareholders and share performance Share fact box Maersk B relative share performance Listed on NASDAQ MAERSK-A (voting right) Performance YTD (31 July 2014) OMX Copenhagen MAERSK-B (no voting right) Maersk B 8.6%…
  26. Q2 2014 EARNINGS CALL – Maersk Oil – slide 26
    page 26 Funding in place with liquidity reserve of USD 11.6bn Loan maturity profile at the end of Q2 2014 Funding USD billion BBB+/Baa1 credit ratings (both stable) reaffirmed by S&P and Moodys on 14 8 May 2014 and 25 April…
  27. Q2 2014 EARNINGS CALL – Maersk Oil – slide 27
    page 27 Maersk Line Capacity market share by trade no.3 12% no.2 no.6 no.3 no.1 no.2 Intra 8% 5% Europe 22% Pacific Atlantic Asia-Europe Pacific Intra 6% Asia no.3 Latin Africa West- Oceania America Central Asia 16%…
  28. Q2 2014 EARNINGS CALL – Maersk Oil – slide 28
    page 28 Industry is fragmented and dominated by families and government-supported players Less focus on traditional Capacity market share, (%) Controlling owner Type of owner return requirements Maersk 14.5% 1 APM foundation…
  29. Q2 2014 EARNINGS CALL – Maersk Oil – slide 29
    page 29 Cost leadership is key Unit cost USD/FFE incl. VSA income USD/FFE -101 -394 -118 3,400 3,198 3,192 3,200 3,128 3,092 3,097 3,012 3,010 3,000 2,871 2,800 2,742 2,703 2,622 2,612 2,585 2,600 2,400…
  30. Q2 2014 EARNINGS CALL – Maersk Oil – slide 30
    page 30 Maersk Line EBIT-margin gap to peers EBIT-margin, % EBIT-margin gap, %-points 25% 25% 20% 20% 15% 12.9% 15% 10.5% 9.8% 9.2% 9.1% 9.1% 10% 5.8% 7.9% 8.4% 10% 7.0% 6.7% 5.3% 5.4% 5.8% 5.4% 6.7% 5.4% 5.4% 5% 3.1%…
  31. Q2 2014 EARNINGS CALL – Maersk Oil – slide 31
    page 31 Maersk Line break-even level for freight rate reduced Average freight rate, (USD/FFE) 3,100 Quarterly 3,014 3,022 Annual 3,000 2,908 2,892 2,846 2,900 2,860 2,800 2,770 2,700 2,671 2,654 2,662 2,646 2,618…
  32. Q2 2014 EARNINGS CALL – Maersk Oil – slide 32
    page 32 Vessel, bunker and terminal represent the largest components of our cost base Cost base, FY 2013 Administration Terminal 10% and other costs USD 24.7bn costs 26% FY 2013 cost base Bunker 21% 2,731 USD/FFE 11%…
  33. Q2 2014 EARNINGS CALL – Maersk Oil – slide 33
    page 33 Maersk Oil from local to global player Expansion of geographical focus 2002 - 2014 The value chain Exploration Appraisal Development Primary production Mature field EOR Abandonment Business Development Expansion of…
  34. Q2 2014 EARNINGS CALL – Maersk Oil – slide 34
    page 34 Maersk Oil - Progress on all major projects Short-term perspectives Long-term perspectives Qatar: Angola: Al Shaheen FDP2012 development project progressing Chissonga FDP submitted to authorities. Tender process as…
  35. Q2 2014 EARNINGS CALL – Maersk Oil – slide 35
    page 35 Maersk Oils portfolio (as of Q1 2014) EXPLORATION Resources PROJECT MATURATION PROCESS Reserves PRODUCTION Prospects in Initiate & the pipeline Discoveries Assess Select Define Execute Assets Jack I Dunga III Farsund…
  36. Q2 2014 EARNINGS CALL – Maersk Oil – slide 36
    page 36 Maersk Oils Key Projects (as of Q2 2014) Sanctioned development projects Project (Country) First Working Net Capex Plateau Production Production Interest (USD Billion) (Entitlement, boepd) Al Shaheen FDP2012 (Qatar) 2013…
  37. Q2 2014 EARNINGS CALL – Maersk Oil – slide 37
    page 37 Maersk Oils share of Production and Exploration Costs Maersk Oils share of production (000 boepd) 500 424 429 387 377 400 333 321 300 257 235 240 200 100 0 2006 2007 2008 2009 2010 2011 2012 2013 2014e DK UK…
  38. Q2 2014 EARNINGS CALL – Maersk Oil – slide 38
    page 38 APM Terminals Diversified pipeline of expansions & new constructions Gothenburg GPI integration Poti Expansion Acquisition Brownfield Maasvlakte II To be completed in 2018 Integration of GPI and To be completed in 2014…
  39. Q2 2014 EARNINGS CALL – Maersk Oil – slide 39
    page 39 APM Terminals - Port projects underway New terminal developments Existing terminal expansion Americas Region Americas Region Lzaro Crdenas, Mexico (TEC2) Buenos Aires, Argentina (Terminal 4) Moin, Costa Rica (Moin…
  40. Q2 2014 EARNINGS CALL – Maersk Oil – slide 40
    page 40 APM Terminals - Capturing growth opportunities Buenos Aires APMT DPW Kolkata Busan HPH Buenos Aires Vung Tau Rijeka PSA Amsterdam Chennai ICTSI Mumbai Brisbane Sydney Mariel Barcelona Zhuhai Stockholm Manzanillo…
  41. Q2 2014 EARNINGS CALL – Maersk Oil – slide 41
    page 41 APM Terminals - Value creation from construction of green field terminals and upgrades 2008 2010 Monrovia Santos 2014 2013 Appendix
  42. Q2 2014 EARNINGS CALL – Maersk Oil – slide 42
    page 42 APM Terminals Portfolio APM Terminals has seven new terminal projects: Maasvlakte II, Netherlands, end-2014 Lazaro Cardenas, Mexico, 2015 Ningbo, China, 2015 Izmir, Turkey, 2016 Moin, Costa Rica, 2017 Vado, Italy,…
  43. Q2 2014 EARNINGS CALL – Maersk Oil – slide 43
    page 43 APM Terminals financials including pro-rata share of joint ventures and associates Q2 2014 Q2 2013 Total Total (USD million) Consolidated Share of Consolidated Share of including including under JVs & ass. under JVs &…
  44. Q2 2014 EARNINGS CALL – Maersk Oil – slide 44
    page 44 Maersk Drilling Present in the most important oil and gas markets North West Europe 6 ultra harsh jack-up rigs US Gulf of Mexico 4 premium jack-up rigs 3 ultra deepwater floaters Caspian Sea 1 midwater floater…
  45. Q2 2014 EARNINGS CALL – Maersk Oil – slide 45
    page page 45 45 Maersk Drillings Strategy Deliver on the financial ambition of Net Operating Profit After Tax (NOPAT) of USD 1bn in 2018 (ROIC 10%) Conduct incident free operation Become a sizeable player in the market…
  46. Q2 2014 EARNINGS CALL – Maersk Oil – slide 46
    page 46 Maersk Drilling has one of the most modern fleets in the competitive landscape Deepwater fleet average age, years 35 30 25 20 15 10 5 0 Rowan Maersk Seadrill Ensco Transocean Noble Atwood Diamond Drilling…
  47. Q2 2014 EARNINGS CALL – Maersk Oil – slide 47
    page page 47 page 47 47 Maersk Valiant Managing the newbuild Customer: ConocoPhillips & Marathon Oil programme Country: US GoM Contract value: USD 694m Duration: Three years Expected delivery schedule Maersk Intrepid…
  48. Q2 2014 EARNINGS CALL – Maersk Oil – slide 48
    page 48 Henrik Lund Johan Mortensen Stephanie Fell Head of Investor Relations Senior Investor Relations Officer Investor Relations Officer henrik.lundmaersk.com johan.mortensenmaersk.com stephanie.fellmaersk.com Tel: +45 3363 3106…

From the store

Browse maps, data & reports in the Shale Experts store