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H1 2015 Earnings Call – FUGRO

FUGRO · Aug 6, 2015 · 30 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 – FUGRO – slide 1
    Half-year results 2015 Amsterdam, 6 August 2015
  2. H1 2015 Earnings Call – FUGRO – slide 2
    General highlights: Improved results under continued challenging market circumstances Good progress implementation management agenda Improved profitability Positive cash flow Strengthened balance sheet General downturn oil and gas…
  3. H1 2015 Earnings Call – FUGRO – slide 3
    Financial highlights HY15 Y-on-Y revenue decline of 7.3% on currency comparable basis EBITDA (excl exceptional items) up by 34% to EUR 198 million EBIT margin (excl exceptional items) increased to 5.7% from 2.1% in HY14, mainly…
  4. H1 2015 Earnings Call – FUGRO – slide 4
    Progress portfolio changes in line with rebalanced strategic priorities Planned portfolio changes Status Divestment multi-client data library Finalised in HY 15 Reduction of Fugros stake in Seabed Geosolutions Given current market…
  5. H1 2015 Earnings Call – FUGRO – slide 5
    Cost reduction and performance improvement measures on track EBIT margin1 Actions EBIT Gross margin 1 headcount reduction of 755 employees (around 6% for total Fugro); 616 net reduction Vessel fleet reduction on track…
  6. H1 2015 Earnings Call – FUGRO – slide 6
    Additional cost reduction and performance improvement measures Further headcount reductions Reduction of 200 employees in the coming half year, in particular in Subsea Services and Geotechnical divisions 18.1 18.8 11.8 Fleet…
  7. H1 2015 Earnings Call – FUGRO – slide 7
    MARKET DEVELOPMENTS 7 www.fugro.com
  8. H1 2015 Earnings Call – FUGRO – slide 8
    Oil and gas market (78% of Fugro revenue) under pressure No oil price recovery expected for some time to come Significant reduction in E&P spending NOCs in Middle East continue to invest Significant restructuring in oil field…
  9. H1 2015 Earnings Call – FUGRO – slide 9
    Infrastructure market regional differences Infrastructure and building (12%) Market flat in Western Europe; Middle East and Far East continued to be strong Infrastructure under pressure in oil and gas producing countries (Africa)…
  10. H1 2015 Earnings Call – FUGRO – slide 10
    Regional overview Europe Significant slow down in the North Sea; back to seasonal volatility High level of offshore windfarm activities Infrastructure spending flat but growing European economies should support Americas…
  11. H1 2015 Earnings Call – FUGRO – slide 11
    Key project wins Site investigation for Fehmarnbelt Link tunnel between Three year extension of construction support services Denmark and Germany contract with McDermott in Middle East Investigation wind farm sites Borssele,…
  12. H1 2015 Earnings Call – FUGRO – slide 12
    FINANCIALS 12 www.fugro.com
  13. H1 2015 Earnings Call – FUGRO – slide 13
    Nominal revenue growth; revenue decline at constant currencies Reported growth Currency comparable growth Revenue X EUR million + 4.3% -7.3% 81 -16 1,238 138 1,238 16 -4 -26 1,187 1,187 -29 -50 -57 49 1,100 HY14…
  14. H1 2015 Earnings Call – FUGRO – slide 14
    EBIT improvement mainly driven by Seabed EBIT excl. exceptional items X EUR million 62 70 25 -13 2 -6 HY14 Geotech Survey Subsea Geoscience HY15 Seabed 100% 14 www.fugro.com
  15. H1 2015 Earnings Call – FUGRO – slide 15
    Cost reduction and performance improvement measures on track Compared to YE14 annualised savings (x EUR million) FTE Geotech - 182 13 Survey - 206 14 Subsea - 159 17 Seabed / other - 69 9 - 616 53 Vessels* Geotech -2 30…
  16. H1 2015 Earnings Call – FUGRO – slide 16
    Improved profitability in challenging market X EUR million Revenue EBIT (margin) Capital employed ROCE* excluding exceptional items excluding exceptional items 1,238 1,187 2,492 2,219 5.7% 4.7% 2.1% 1.8% HY14 HY15 HY14…
  17. H1 2015 Earnings Call – FUGRO – slide 17
    Negative exceptional items partially offset by positive exceptionals (x EUR million) Geotechnical Survey Subsea Geoscience Total Services Of which Of which Seabed multi-client Onerous contract provision (2.0) 8.9 16.7 16.7 23.6 Loss…
  18. H1 2015 Earnings Call – FUGRO – slide 18
    Geotechnical H1 onshore weak, offshore improved X EUR million Revenue EBIT (margin) Capital employed excluding exceptional items 7.4% 789 382 754 366 offshore 139 147 3.6% 27 onshore 219 244 14 HY14 HY15 HY14…
  19. H1 2015 Earnings Call – FUGRO – slide 19
    Survey marginally improved in difficult market X EUR million Revenue EBIT (margin) Capital employed excluding exceptional items 697 424 420 11.8% 12.5% 584 50 52 HY14 HY15 HY14 HY15 HY14 HY15 Rev. Currency comparable…
  20. H1 2015 Earnings Call – FUGRO – slide 20
    Subsea Services steep revenue decline and high operational leverage result in losses X EUR million Revenue EBIT (margin) Capital employed excluding exceptional items -1.4% -3.9% 577 598 265 239 -3.7 -9.4 HY14 HY15 HY14…
  21. H1 2015 Earnings Call – FUGRO – slide 21
    Geoscience: turnaround Seabed results in strong result improvement X EUR million Revenue EBIT (margin) Capital employed excluding exceptional items 14 197 577 19 15 4 -5 -1 133 244 35 178 -47 other 245 135 97…
  22. H1 2015 Earnings Call – FUGRO – slide 22
    Increased interest and tax expenses Net finance costs Tax expense (x EUR million) HY15 HY14 (x EUR million) HY15 HY14 Finance income 5 7 Tax before exceptional items (36) (7) Interest expenses (26) (14) Tax on exceptional items…
  23. H1 2015 Earnings Call – FUGRO – slide 23
    Working capital reduction initiative delivers ahead of plan Working capital Reduction trade receivables (x EUR million) HY15 HY14 Working capital reduction program with focus on reduction of receivables and work in Working capital…
  24. H1 2015 Earnings Call – FUGRO – slide 24
    Capex strongly curtailed Capital expenditure (x EUR million) HY15 HY14 Maintenance capex 34 50 Capex major assets (incl assets 54 84 under construction) Total 88 134 FY 15 capex will be just below the mid-term guided range…
  25. H1 2015 Earnings Call – FUGRO – slide 25
    Positive cash flow despite challenging market circumstances 71 - 68 102 -9 9 131 122 -1 - 88 115 Operating Receivables Payables Inventories Capex Proceeds Other CF from Cash flow Cash flow Net cash CF before Sale…
  26. H1 2015 Earnings Call – FUGRO – slide 26
    Balance sheet strengthened All covenants met Debt maturity profile* 470 FY14 HY15 HY15 realisation realisation adjusted covenant Fixed charge 2.9 2.8 2.0 cover 320 Net debt / 2.2 2.0 < 3.0 EBITDA Solvency 43% 44%…
  27. H1 2015 Earnings Call – FUGRO – slide 27
    OUTLOOK 27 www.fugro.com
  28. H1 2015 Earnings Call – FUGRO – slide 28
    Backlog next 12 months: decline in line with market developments 12 month backlog Currency comparable growth (x EUR million) HY14 1Q15 HY15 Y-on-Y Q-on-Q onshore Geotech 264 345 312 + 5.2% - 7.8% offshore Geotech 235 143 144 -…
  29. H1 2015 Earnings Call – FUGRO – slide 29
    Outlook 2015 Oil services market expected to remain weak for foreseeable future Lower EBIT in 2HY15, compared to 2HY14 (excl exceptional items), mainly related to Subsea Services, which is confronted with significant backlog…
  30. H1 2015 Earnings Call – FUGRO – slide 30
    Courtesy of French Ministry Of Culture and Communication / Immadras THANK YOU

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