Barclays Conference, September 2013 SBM Offshore 2013. All rights reserved. www.sbmoffshore.com
Agenda Who we are, where we are Emerging Opportunities Our Strategy 3
SBM Offshore No.1 FPSO Player Worldwide The Company Lease Fleet 4 Execution Centres 16 FPSOs 10 Shore Bases 2 FSOs 5 Representative Offices 1 Semi Sub 8,507 Employees 1 MOPU Financials in US billion Performance YE2012…
We Deliver along the Full Product Lifecycle Engineering Procurement 50 years of industry firsts Integrated supply chain Leading edge technology Global efficiencies Local sourcing Product Life Extension Construction Leader in…
H1 2013 Key Figures (in millions of US) IR- 09/09/2013 *Restated for comparison purposes 6
Directional Backlog US22.4 bn Lease & Operate backlog: Directional vs IFRS 1.4 1.2 Directional 1.0 IFRS in US bn 0.8 0.6 0.4 0.2 0.0 US18.7 bn Turnkey backlog: Directional vs IFRS 3.0 Directional 2.5 IFRS 2.0…
SBM Lease Fleet Portfolio L&O Portfolio Average Duration: 14.5 years IR- 09/09/2013 8
H2 2013 Outlook Continue strengthening Balance Sheet post Rights Issue No dividend over 2013 Sale of non-core assets ongoing Contracts executed for FPSO Cidade de Maric, FPSO Cidade de Saquarema and FPSO Stones Delivery of Deep…
Agenda Who we are, where we are Emerging Opportunities Our Strategy 10
Understanding Global Market IR- 09/09/2013 11
Understanding Our Clients Production vs. E&P Spending 600 Cash Flows situation of CAGR 14.1% clients 500 Cost of new 400 developments Index 300 IOCs vs. NOCs 6.8% 200 Delays in project 1.8% sanctions due to 100…
Demand for New Production Demand Growth vs. Field Depletion 100 90 80 Over 24 mln bbl/day = 2 x 2012 Saudi 70 Arabia production in million barrels per day 60 50 40 30 20 10 0 11 12 13e 14e 15e 16e 17e 18e…
Oil Production Dynamics Breakeven Oil Price Deep and ultra-deep (IRR10%) water breakeven costs are competitive Average SBM Generation 3 FPSO production costs are below US5/bbl Sources: IEA, CERA, Total, Goldman Sachs,…
Whats Happening Trends in Giant Field Discoveries 25,000 Remote discoveries favorable for FPSOs 20,000 Exponential technology demand 15,000 in mln bbls High end of FPSO 10,000 market: production capacity above…
Capitalising on CAPEX Global Upstream CAPEX (in US mln) 400,000 Offshore Growth CAGR 2012-15E: +20% 350,000 300,000 Ultra-deep Water Growth 250,000 CAGR 2012-15E: +38% in US mln 200,000 Onshore Growth 150,000 CAGR…
Regional Opportunities Top 380 Giant Fields: Ultra-deep Water CAPEX Growth located in: 80,000 North America 70,000 Africa 60,000 Latin America 50,000 in US mln 40,000 30,000 20,000 10,000 0 2013E…
SBM Record in Serving Depth Trend Year of first oil 0 1996 2001 2006 2011 2016 Kuito Serpentina -500 Mondo Saxi Espadarte Marlim Sul Aseng Frade -1,000 Water Depth (m) Xikomba Cd de Anchieta Brasil P 57 NGoma Kikeh…
Scale and Complexity Turrets Swivel stack size Swivel stack size in meters Source: Internal Analysis - August 2013 IR- 09/09/2013 19
Getting Complex IR09/09/2013 IR- 09/09/2013 1996 November 2012
FPSO Awards in Review Source: Internal Analysis - August 2013 IR- 09/09/2013 21
Supply side FPSO Market 2010-2013 YTD Awards Converted FPSOs only 7 6 5 Awards won 4 3 2 1 0 0 50,000 100,000 150,000 Average production capacity (bbl/d) Engineering complexity Source: Internal Analysis…
FPSO Market Outlook Field developments requiring FPSOs over the next 3 years More than 50 FPSO project awards anticipated SBM will focus on 20 projects to obtain targeted share North America Other 1 Asia 3 3 4 2 Africa 1…
Agenda Who we are, where we are Emerging Opportunities Our Strategy 24
FPSO The Company has refocused its FPSO product line on core FPSO products and associated services. FPSO By focusing on core products with historically good margins, whilst improving execution standards and project risk…
Improving Risk/Reward Balance Unsustainable historic industry returns SBM recent steps: Discipline in tendering Attractive niche position Not a commodity product Excellent operations (99% uptime) IR IR-09/09/2013…
Improving Risk/Reward Balance Current Focus: Consultations with clients Improving standard terms and conditions in the industry contracting practice IR IR-09/09/2013 09/09/2013 July 2013 27
2013 Restoring Pride Closure of legacy Strengthened projects balance sheet Selective bidding Directional reporting policy Investment in Reshaped organisation technological edge Still in Transformation Process IR-…
Local Content: Competitive Advantage Brazil: In-country presence since 1995 First FPSO in 1997 Brasa yard key asset for SBM Stake in biggest floating crane in Latin America Over 2,700 employees IR IR -IR- 09/09/2013…
Local Content: Competitive Advantage Angola: In-country presence since 1968 First FPSO in 1999 Paenal yard key asset for SBM: biggest crane in West Africa Over 1,400 employees IR IR -IR- 09/09/2013 07/08/2013 09/09/2013…
Q&A Session SBM Offshore 2013. All rights reserved. www.sbmoffshore.com 31
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