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H1 2015 Earnings Call – Sbm Offshore

Sbm Offshore · Aug 5, 2015 · 43 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. H1 2015 Earnings Call – Sbm Offshore – slide 1
    First-Half 2015 Earnings Presentation August 5, 2015 SBM Offshore 2015. All rights reserved. www.sbmoffshore.com
  2. H1 2015 Earnings Call – Sbm Offshore – slide 2
    2015 Update Industry Outlook Directional(1) Adaptation Revenue Down 9% Strategy Brazil Turritella Joint Memorandum of Understanding Venture US1.6 bn Cidade de Saquarema Project Finance (1) Directional view is a…
  3. H1 2015 Earnings Call – Sbm Offshore – slide 3
    No. 1 FPSO Player Worldwide The Company Lease Fleet 5 Regional Centers 10 FPSOs; 3 FPSOs under construction 13 Shore Bases / Operations Offices 2 FSOs 4 Site Offices 1 Semi-sub 9,080 Employees 1 MOPU Financials in US billion…
  4. H1 2015 Earnings Call – Sbm Offshore – slide 4
    Delivering 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 FPSO…
  5. H1 2015 Earnings Call – Sbm Offshore – slide 5
    1H 2015 Review Macro View 1H 2015 Financials Outlook SBM Offshore 2015. All rights reserved. www.sbmoffshore.com
  6. H1 2015 Earnings Call – Sbm Offshore – slide 6
    Total Overview (US Millions) Revenue Directional(1) IFRS 2,797 1,729 1,572 1,457 1H 2014 1H 2015 1H 2014 1H 2015 EBIT Directional(1) IFRS 255 201 204 (41) 1H 2014 1H 2015 1H 2014 1H 2015 (1) Directional view…
  7. H1 2015 Earnings Call – Sbm Offshore – slide 7
    Compliance On March 16, 2015 SBM Offshore announced the signing of a Memorandum of Understanding with the Comptroller Generals Office (CGU) and the Attorney Generals Office (AGU) Sets a framework for discussions on a potential…
  8. H1 2015 Earnings Call – Sbm Offshore – slide 8
    HSSE Results Lowest recordable injury and HSSE Results lost time injury frequencies 0.6 since 2007 Frequencies reduced by 30% 0.5 and 80%, respectively, Injury Frequency compared to last year 0.4 Frequency of potentially 0.3…
  9. H1 2015 Earnings Call – Sbm Offshore – slide 9
    1H 2015 Review Macro View 1H 2015 Financials Outlook SBM Offshore 2015. All rights reserved. www.sbmoffshore.com
  10. H1 2015 Earnings Call – Sbm Offshore – slide 10
    What Were Seeing Brent Crude Pricing Life in the New Normal 140 2015-2017 is survival mode 120 Order intake down, pricing pressure up CapEx budgets slashed US / bbl 100 Earnings to struggle through 2017 80 Companies are…
  11. H1 2015 Earnings Call – Sbm Offshore – slide 11
    What Clients Are Saying Projects must be profitable at There are Cash is still lower oil price many king deepwater opportunities CapEx will be cut in 2015 and How can we do 2016 could be it cheaper similar Were engaging…
  12. H1 2015 Earnings Call – Sbm Offshore – slide 12
    What the Market is Telling Us Historical and Estimated FPSO Awards 2015-2016 Commentary 14 Downward adjustment of 2015 and 2016 estimated awards by 8 and 3 awards, 12 12 respectively, across all segments 10 10 Near-term demand is…
  13. H1 2015 Earnings Call – Sbm Offshore – slide 13
    Prospects in Pursuit Pre-Award Activity 20 Ex: Carryover of 2 projects from 2010 to 2011 (across all 16 project types) 15 13 10 10 10 7 5 0 2011 2012 2013 2014 2015E Turret ITT FPU FEED/ITT Previous Year Carryover…
  14. H1 2015 Earnings Call – Sbm Offshore – slide 14
    How SBM is Rising to Meet the Challenge Turnaround Transformation Vision Work as One Crisis The Way Perform Odyssey24 Restructuring Management Forward Shape the Future JAN 2012 FEB 2013 SEPT 2013 DEC 2014 Q1 2016 JAN 2012 FEB…
  15. H1 2015 Earnings Call – Sbm Offshore – slide 15
    Sources of Resilience Contractually secured, near record US20.0 billion Backlog Not price or production volume(1) sensitive Release 1,500 positions to optimise cost base Capacity Adaptations As the market further develops, SBM…
  16. H1 2015 Earnings Call – Sbm Offshore – slide 16
    Directional(1) Backlog (US Billions) US 20.0 bn (as of June 30, 2015) 1H15 Revenue Lease & Operate Backlog Remaining Backlog 2.0 1.5 1.0 0.5 0.0 19.1 bn 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024…
  17. H1 2015 Earnings Call – Sbm Offshore – slide 17
    Restructuring & Corporate Relocation Eliminated approximately 900 permanent positions and 600 contractor positions Total redundancy cost of US57 million US8 million in 2014 US49 million in 1H 2015 Expected annualized savings of…
  18. H1 2015 Earnings Call – Sbm Offshore – slide 18
    1H 2015 Review Macro View 1H 2015 Financials Outlook SBM Offshore 2015. All rights reserved. www.sbmoffshore.com
  19. H1 2015 Earnings Call – Sbm Offshore – slide 19
    Underlying Directional(1) Performance (US Millions) Directional(1) Revenue Directional(1) EBITDA Directional(1) EBIT 430 0 430 1,572 255 0 255 1H 2015 Reported Exceptional items Underlying Reported Exceptional items…
  20. H1 2015 Earnings Call – Sbm Offshore – slide 20
    Turnkey P&L (US Millions) Directional(1) 1H 2015 1H 2014 Variance Revenue 1,030 1,208 (178) Gross Margin 282 199 83 EBIT 171 107 64 Depreciation, amortization and impairment (4) (7) 3 EBITDA 175 114 61 Directional(1)…
  21. H1 2015 Earnings Call – Sbm Offshore – slide 21
    Lease and Operate P&L (US Millions) Directional(1) 1H 2015 1H 2014 Variance Revenue 542 521 21 Gross Margin 168 152 16 EBIT 149 139 10 Depreciation, amortization and impairment (167) (129) (38) EBITDA 316 268 48…
  22. H1 2015 Earnings Call – Sbm Offshore – slide 22
    Group P&L (US Millions) Directional(1) 1H 2015 1H 2014 Variance Revenue 1,572 1,729 (157) Gross Margin 450 352 98 Overheads (150) (153) (3) Other operating income (45) (240) 195 EBIT 255 (41) 296 Depreciation, amortization and…
  23. H1 2015 Earnings Call – Sbm Offshore – slide 23
    Overheads Breakdown (US Millions) Directional(1) Expense Bridge 200 153 (14) 6 (2) 150 7 150 100 50 0 1H 2014 General & Sales & Research & One-off Items 1H 2015 Administrative Marketing Development General &…
  24. H1 2015 Earnings Call – Sbm Offshore – slide 24
    Group Balance Sheet (US Millions) 30-Jun-15 31-Dec-14 Variance Comment Property, plant and equipment 1,821 1,923 (102) Depreciation of assets Investments in associates and Net results of JVs and redemption of finance 4,197 4,288…
  25. H1 2015 Earnings Call – Sbm Offshore – slide 25
    Development of Group Cash Position (US Millions) IFRS Cash Flow Bridge 1,500 62 5 13 (559) 49 1,250 587 1,000 (293) 750 164 452 (89) 500 389 250 0 Cash Cash from New Loans Equity Investment Other Disposal of…
  26. H1 2015 Earnings Call – Sbm Offshore – slide 26
    Group Net Debt (US Millions) Proportional IFRS 6,000 5,159 4,775 5,000 3,568 4,000 3,293 3,000 2,000 1,000 0 (1,000) 1H15 FY14 1H15 FY14 Proportional Proportional IFRS IFRS Bridge Loans Revolving Credit Other…
  27. H1 2015 Earnings Call – Sbm Offshore – slide 27
    Group Proportional Borrowings Overview (US Millions) 1H15 Borrowings(1) 1H15 Undrawn Facilities + Cash(2) 1H15 1H15 3,988 1,259 Proportional Proportional Proportional Debt Repayment Profile(1) 1,000 800 623 574 600…
  28. H1 2015 Earnings Call – Sbm Offshore – slide 28
    Funding Undrawn Credit Facilities + Cash = US1,364 mn(1) FPSO Turritella Joint Venture(1) Cidade de Saquarema project finance: US1.55 bn(1) Average cost of debt: 1H15 4.2% vs. FY14 4.2% (1) The Turritella JV and Cidade de Saquarema…
  29. H1 2015 Earnings Call – Sbm Offshore – slide 29
    1H 2015 Review Macro View 1H 2015 Financials Outlook SBM Offshore 2015. All rights reserved. www.sbmoffshore.com
  30. H1 2015 Earnings Call – Sbm Offshore – slide 30
    Scheduled for Delivery FPSO Cidade de Maric Undergoing topside integration at our Brasa joint venture yard in Rio de Janeiro Expected delivery in first quarter 2016 Initial charter contract of 20 years FPSO Cidade de Saquarema…
  31. H1 2015 Earnings Call – Sbm Offshore – slide 31
    Project Overview Project 2011 2012 2013 2014 2015 2016 POC Type(1) 30/6/15 Percentage of Completion FPSO NGoma FPSO…
  32. H1 2015 Earnings Call – Sbm Offshore – slide 32
    Odyssey24 Project Scope Update Odyssey24 program ends September 2015, with minimal carryover into 2016 Project aimed at improvements in project execution, supply chain, controls, and organizational capabilities, supported by fit…
  33. H1 2015 Earnings Call – Sbm Offshore – slide 33
    2015 Guidance Updated Directional(1) Revenue guidance: At least US2.6 billion Turnkey: US1.4 billion Lease & Operate: US1.2 billion Proportional Net Debt guidance: Less than US3.5 billion Directional(1) Capital Expenditure(2)…
  34. H1 2015 Earnings Call – Sbm Offshore – slide 34
    Appendix SBM Offshore 2015. All rights reserved. www.sbmoffshore.com
  35. H1 2015 Earnings Call – Sbm Offshore – slide 35
    Directional vs IFRS: JVs During Construction The table below summarizes the accounting consequences under IFRS and Directional(1) of the participation by JV partners in a mature construction project, for a finance lease for a…
  36. H1 2015 Earnings Call – Sbm Offshore – slide 36
    IFRS 10 & 11 Lease Joint Ventures Contract SBM Share % New Directional(1) New IFRS Type FPSO NGoma FPSO FL 50% Proportional Equity FPSO Saxi Batuque FL 50% Proportional Equity FPSO Mondo FL 50% Proportional Equity FPSO Cdde de…
  37. H1 2015 Earnings Call – Sbm Offshore – slide 37
    Group Loans & Borrowings (US Millions) Net Book Value as of June 30, 2015 Proportional Full Amount IFRS (Business Ownership) PROJECT FINANCE FACILITIES DRAWN FPSO Capixaba relocation 61 61 49 FPSO Espirito Santo 75 75 38 FPSO…
  38. H1 2015 Earnings Call – Sbm Offshore – slide 38
    New Revolving Credit Facility Key Characteristics Covenant Calculations Historical and Estimated Awards Amount US1.0 billion Tangible Net Worth divided by Total 5 years + two one-year extensions Solvency Tangible Assets 25% Tenor…
  39. H1 2015 Earnings Call – Sbm Offshore – slide 39
    New RCF Covenant Definitions Key Financial Covenant Definition Solvency Ratio Tangible Net Worth(1) divided by Total Tangible Assets(2) 25% Leverage Ratio Consolidated Net Borrowings(3) divided by Adjusted EBITDA(4) < 3.75 At the…
  40. H1 2015 Earnings Call – Sbm Offshore – slide 40
    Floating Solutions Current: Future: Focus on top-end segment Leverage core competencies FPSOs Floating LNG (FLNG) Turret moorings Semisubmersible & TLP production units Turnkey Sale or Lease & Operate Brownfields; Operating and…
  41. H1 2015 Earnings Call – Sbm Offshore – slide 41
    Competitive Landscape Small Conversions Large Conversions
  42. H1 2015 Earnings Call – Sbm Offshore – slide 42
    SBM Lease Portfolio L&O Portfolio Average Duration: 14.5 years(1) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 09/30 09/32 11/14 11/26 11/29 04/22 04/25…
  43. H1 2015 Earnings Call – Sbm Offshore – slide 43
    SBM Offshore 2015. All rights reserved. www.sbmoffshore.com

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