BW Offshore Pareto Oil & Offshore Conference 2 September 2009
BW Offshore Status Floating production Brazil: BW Cidade de So Vicente US GoM: BW Pioneer GoM : YUM KAKNAB Technology and Installation Services Financials Future What to expect of us What not to expect Risk and reward…
Pareto Oil & Offshore Conference STATUS 2 September, 2009 4
Key events 1H 2009 Operational availability (99.6%) BW Cidade de So Vicente commenced operation BW Pioneer conversion in line with expectations Final stage of several advanced technology projects Neptune LNG Deepwater Port,…
FPSO fleet overview 2007 2010 2015 2020 2025 Sendje Berge Nigeria: Addax 2011 (2013) Berge Helene Mauritania: Petronas 2013 (2021) Yum KakNab Mexico: Pemex 2022 (2025) BW Cidade de So Vicente Brazil: Petrobras 2019 (2024) BW…
Brazil: BW Cidade de So Vicente Fast track FPSO conversion Contract award April 2008 50,000 engineering hours Yard work started July 2008 1.5 million man-hours 335 days from contract award to arrival in Brazilian waters Operations…
US GoM: BW Pioneer (I) First FPSO in the US GoM Contract award August 2007 Ready for operation in Q1 2010 5 year contract with Petrobras (8 years including options) First disconnectable FPSO in 2,600 meters Installation of buoy…
US GoM: BW Pioneer (II) Conversion progress in line with expectations Commissioning started in June 82% complete per 31 July 2009 Last module delivered and lifted on board primo August 2 September 2009 9
GoM: YUM KAKNAB Technical upgrade completed according to plan Cooperation with PEMEX on field operations Oil production and gas compression stabilised Focus on optimisation of operating costs 10 0.0 0 8 0.0 0 6 0.0 0…
Technology and Installation Services Considerable track record Turret mooring systems for FPSO -18 Turret mooring systems for FSO - 7 Terminals and offshore buoys - 25 Installation campaigns - 13 International client base Oil…
Financial strength Total assets USD 2.3 billion Adjusted equity ratio 43.3% Annual operating revenues of USD 400-450 million (2009e) Unsecured Revolving Credit Facility of USD 1,500 million LIBOR +125 bps Net interest bearing…
The rise and fall.. 2007 2008 2009 Large number of new Cost overruns Limited availability of entrants reduced IRR project financing Complexity Guaranteed IRR Defaults continue Supplier workload Long term cash flow Good…
What to expect of us New oil requires reduced CAPEX and OPEX levels Our response is engage us to create these cost efficiencies through: Plant simplifications New concepts Simpler installations Case study - Vietnam: Very…
What not to expect of us A cavalier and unprofessional attitude to risk we can not fully control or insure against Information provided by the Technical data Company is provided for the convenience of the Contractor Political…
Our industry needs healthy returns FPSO companies have produced lower than expected IRR Construction overruns Delayed start-up Operational problems If CAPEX overruns by 20% on a 400 MUSD project NPV falls from 70 MUSD to minus 10…
BW Offshores track record Timely delivery of 14 FPSO projects Demonstrated cost and execution control Demonstrated operational stability World leading technology basis Funded for growth 2 September 2009 18
Contracted cash flow growth Net interest bearing debt fully invested (Q1 2010) of USD 750 million Run rate EBITDA on current contract portfolio is USD 200-225 million Book value of equity is USD 924 million (Price/book 0.6) Our…
An investment opportunity Price /Book Current investor perception Rigs good FPSO bad FPSO shares are cheap Long term clients Contracted cash flows Solid clients Earnings growth Less competition Less supply chain…
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