NOT FOR PUBLIC DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA, CANADA, SOUTH AFRICA, AUSTRALIA OR JAPAN BW Offshore Q2 2010 presentation 31 August 2010 Picture: Petrobras
Highlights Q2 2010 EBITDA of USD 22.4 million before results from associates Record high order intake (YTD); USD 1.4 billion for FPSO and APL Signed contract for the completion of FPSO OSX-1 Signed contract for a gas FPSO for the…
MARKET
FPSO market significantly stronger Increased activity in all market regions Financial strength and track record increasingly important factors to secure contracts High activity with BW Offshore focusing on project robustness,…
BW Offshore with record order intake USD 1.4 billion contract inflow since January BW Offshores success is primary a result of Project execution Operational excellence Financial robustness FPSO awards 2010 - Lease Number of awards…
APL building momentum First evidences of market pick up Higher bidding activity more contract awards Gas market activity improving Significant variations in market activity by region New orders signed and in progress Offloading…
OPERATIONS
Long term contracted cash flow 2007 2010 2015 2020 2025 Sendje Berge Nigeria: Addax/Sinopec 2011 (2013) Berge Helene Mauritania: Petronas 2013 (2021) Yum KakNab Mexico: Pemex 2022 (2025) BW Cidade de So Vicente Brazil: Petrobras…
FPSO BW Pioneer BW Pioneer has passed the inspection on 25th of August Important milestone in completion of project Full compliance with US regulations Onshore and offshore personnel ready for operation Standby day rate (95%) of…
FPSO P-63 (Papa Terra) Project is progressing according to schedule BW Nisa (ULCC) at COSCO Dalian Shipyard Demolition work well under way In first drydock from 30 July to end September Steel renewal and life extension work…
FPSO OSX-1 Contract signed 14 July 2010 Total value of the works USD 150 million Completion mid 2011 OSX has engaged BW Offshore to complete the FPSO OSX-1 Topside extensions to operate in the Campos Basin offshore Brazil Delivery…
FPSO for Terang Sirasun Batur Contract signed 15 July 2010 Total contract value USD 875 million 10 year fixed contract (up to 14 years including options) First gas early 2012 Gas FPSO (340 mmscfd) Kangean Energy Indonesia (KEI)…
FPSO operations Production uptime Production uptime Q2 2010: 99.9% 100.0 5 year average: 99.5% 99.0 98.0 97.0 High HSE level maintained 96.0 95.0 Improving operational efficiency 94.0 93.0 92.0 91.0 90.0 2005 2006 2007 2008…
APL new orders confirm positive outlook Order backlog at USD 233 million by end Q2 2010 Several projects in the tender and bidding stage Existing projects are progressing according to schedule Pazflor (Total) Hibernia (HMDC)…
FINANCE
Floating Production segment Stable financial and operational performance Construction contract for FPSO P-63/Papa Terra Revenues and expenses to be recognised following percentage of completion method Majority of the OSX project…
APL segment Financial performance in line with expectations Pick up in activity from H2 2010 and onward Amortisations relate to purchase price allocation USD million Q2 2010 Q1 2010 Q2 2009 Operating revenue 29.6 36.0 77.2…
Income statement USD million Q2 2010 Q1 2010 Q2 2009 Operating revenue 98.8 113.3 114.9 Operating expenses -76.4 -82.1 -85.1 Share of profit from associates 0.1 1.5 2.0 EBITDA 22.5 32.7 31.8 Depreciation and amortisations -17.3 -17.3…
Balance sheet Equity ratio 37.1% Price/book 0.64 Net interest bearing debt USD 785.5 million USD million 30.06.10 31.03.10 30.06.09 Total non-current assets 2,126.9 2113,5 2,134.8 Total current assets 275.7 382,3 258.7 Total…
Cash status Cash at 30 June 2010 USD 81.3 million Operating cashflow of USD 32.1 million in Q2 2010 and USD 156.3 million in 1H 2010 Unsecured RCF of USD 1,500 million (LIBOR +125 bps to May 2013) Utilised USD 843.3 million per Q2…
Cash outlook Growing operational cashflow based on fixed long term contracts with strong counterparties Run-rate EBITDA on current portfolio is USD 275-325 million* Remaining net cash outflow is USD 300 million* Includes BW…
FUTURE Picture: Petrobras
Higher returns for BW Offshores projects Positive market outlook Target good return projects Will not agree to undue contractual risk Expect further improvement in terms and returns on new charter contracts Improved contracts…
Voluntary offer for Prosafe Production The FPSO market is growing and the sector needs larger companies that can meet the increasing requirements from clients and regulators A combined BW Offshore and Prosafe Production will address…
Summary Operations and project development in line with plan BW Pioneer passed technical inspection Order book of USD 4.2 billion after USD 1.4 billion in new contracts Positive market development - larger established players with…
31 August 2010 27
APPENDIX
APL turnkey solutions Production systems Terminal systems Submerged Turret Production Submerged Turret Loading (STL) (STP) for FPSO for LNG and Shuttle Tankers Submerged Turret Loading (STL) Single Anchor Loading (SAL) for for…
Units on contract Belokamenka, FSO Sovkomflot, Russia 2,400,000 bbls storage Cargo heating system Spread mooring BW Pioneer, FPSO Petrobras, US 80,000 bopd processing 25.6 mmscfd gas export 600,000 bbls storage capacity…
Units on contract P-63 (Papa Terra), FPSO Petrobras, Brazil ULCC (322.000 dwt) 2,200,000 bbls storage capacity BW Nisa - construction contract BW Cidade de So Vicente, FPSO Petrobras, Brazil 40,000 bopd oil processing…
Available units BW Ara ULCC (322.000 dwt) 2,000,000 bbls storage capacity 31 August 2010 33
Q3 2010: 30 November 2010 Further information: www.bwoffshore.com IR contact: Kristian Flaten, VP Finance & IR kristian.flatenbwoffshore.com 31 August 2010 34
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