Ian McHoul CFO Half-year results 2015 27 August 2015 2
H1 Summary 2014 H1 pro forma includes 20m one-off income from license settlement 2014 comparable margin: 8.5% (impact of 80 bps) million 2015 2014 Statutory 2014 Under- AMEC Headline PF lying (5) Revenue 2,664 1,858 +43% 2,807…
Scope revenue by business unit Strong performance from NECIS driven by UKNS AMEASE + GPG impacted by phasing of project ramp-ups Pro Forma million 2015 Underlying(1) Headline Americas 1,255 +2% -2% NECIS 721 -4% -5% AMEASE 462…
Scope revenue by market O&G diversity: downstream strength mitigating upstream weakness GPG + Clean Energy: pipeline strong, but delays in project ramp-ups Pro Forma million 2015 Underlying(1) Headline Oil & Gas 1,450 +5% +3%…
Trading margin(1) Americas decline reflects O&G pricing pressure and increased procurement within scope revenue One-off license settlement in GPG in H1 2014 Impact of 80bps at group level, 900 bps for GPG Comparable 14 margins of…
Order book Significant growth in Clean Energy E&C Expect to see growth from revenue synergy impact billion 2015 2014PF billion 2015 2014PF FY HY FY HY Americas 2.1 2.0 2.2 Oil & Gas 4.0 4.2 4.7 NECIS 2.4 2.3 2.6 Mining 0.3 0.2…
Americas O&G: downstream growth continues Clean energy: reflects project sanction delays Margin impacted by O&G pricing pressure, and more procurement within scope million 2015 2014PF Underlying(1) Scope Revenue Oil & Gas 551 471…
Northern Europe & CIS (NECIS) O&G led by good activity in brownfield/hook-up and commissioning Margin boosted by favourable contract settlements million 2015 2014PF Underlying(1) Scope revenue Oil & Gas 537 560 -6% Mining - - -…
Asia, Middle East, Africa & S. Europe (AMEASE) O&G activity expected to pick up in H2/2016 Margin increase likely to partially reverse million 2015 2014PF Underlying(1) Scope revenue Oil & Gas 362 345 +6% Mining 33 41 -30%…
Global Power Group (GPG) H1 2014 includes 32.5m / 20m one-off income from license settlement Margin impact of 900bps, comparable margin in 2014 H1 was 16.6% Pipeline remains strong million 2015 2014PF Underlying(1) Scope revenue…
Trading cash flow Seasonally weak H1, strong cash inflow in July and August Conversion expected to remain in line with 2014FY million H1 2015 Trading profit 188 120% Half Year (3) Full Year(3) JV trading profit (22) 100% 166…
Cash flow million H1 2015 FY 2015 guidance Trading cash flow 84 Acquisitions and disposals(1) (79) Interest and tax (55) Dividends (56) Share purchases (net) 11 Exceptional items(2) (48) Other(3) 10 Net cash flow (133) Opening…
Amortisation and exceptional items million H1 2015 FY 2015 guidance Continuing operations Amortisation(1) (65) (125) to (130) Merger costs(2) (27) (50) to (60) Asbestos related items(3) 3 Other items (3) (92) Tax on amortisation…
Interest Blended interest rate for net debt of 3.5% in H1 H2 guidance c.4.0% million H1 2015 FY 2015 guidance Bank interest(1) (15) Pension financing - Other interest(2) (2) Income statement (17) Joint ventures (1) Total (18)…
Tax Targeting a sustainable rate in the low-to-mid 20s million H1 2015 FY 2015 guidance Underlying rate(1) 28.2% c.28% P&L charge(2) 22.3% c.22% Cash paid 40m c.70m (1) Weighted average geographic rate (2) For continuing…
Refinancing and shareholder returns Refinancing acquisition debt Acquisition bridge facility extended to February 2017 Capital market issuance timing subject to market conditions Ratings: Baa3 (Moodys) and BBB- (S&P) Dividend…
Outlook Challenging market conditions set to continue No change to group guidance for FY 2015 Decline in underlying scope revenue Mark-to-market currency benefit to FY scope revenue now c.50m Expected decline in trading margin…
Samir Brikho Chief Executive
Our priorities Deal with continued challenging markets Build on our track record Adapt and innovate Stay lean and efficient 20
Dealing with challenging markets Our guiding principles Diverse Split of revenues Mix of markets Mix of customers Mix of services Worldwide Professional services Project delivery Adaptable Technology Transfer resources between…
Dealing with challenging markets Our range of services Diverse Adaptable Scalable Typical TIC split Eng & PM Procurement Construction Margin Group average margin Services Technology Design & Consulting Engineering…
Dealing with challenging markets Market-by-market Diverse Adaptable Scalable Margin Group average margin O&G O&G O&G Mining Power / Nuclear GPG T&D Environ- Infrastruc Mkt Upstream Brownfield Downstream Renewables mental…
Building on our track record Selected projects Project Services Value* Kearl oil sands Reimbursable EP, construction US2.5bn support, Env/Reg compliance Enterprise PDH plant Reimbursable EPC US800m Copper Mountain 3 Solar Fixed…
Our priorities Deal with continued challenging market conditions Build on our track record Adapt and innovate Stay lean and efficient 25
Adapt and innovate Providing More4Less in the UK North Sea 30-60% project cost savings Fabrication Total estimated cost Result of 2 years work with customers Materials Engineering & Project Combination of all 3 levers in our…
Adapt and innovate Creating new opportunities Pipeline progress on revenue synergies Early wins being worked on now Pipeline now up to 70 Areas of focus LNG Clean Energy N/C America Pet-chem Environmental consultancy Middle East…
Our priorities Deal with continued challenging market conditions Build on our track record Adapt and innovate Stay lean and efficient 28
Stay lean and efficient Delivering integration cost savings On course to achieve targets 125m per annum by 2017 Cost to achieve c.150m 100% actions identified 2017: continuous improvement programme Further benefits from real…
Stay lean and efficient Keeping a flexible business model Utilisation remains high Managing our resource base Group headcount flat this year 5,000 hires AND exits Scaling-up successes 400 positions in Aberdeen in 3 months for…
Summary Assume challenging market conditions will continue Amec Foster Wheeler relatively well positioned Flexible business model Track record of adapting and innovation Lean and efficient cost base Retain focus on delivering…
Questions Half-year results 2015 27 August 2015 32
Appendix financial information Half-year results 2015 27 August 2015 33
Appendix Basis of preparation Acquisition of Foster Wheeler completed on 13/11/14 Squeeze out of remaining shareholders completed 19/1/15 Presentation of all numbers on a pro forma basis, unless otherwise stated Foster Wheeler…
Appendix versus North American currencies Considerable volatility in actual and forecast exchange rates At FY results, forecast rates for Cdn was 1.90 and for US was 1.50 Results in forecast tail wind from stronger currencies now…
Appendix Profit reconciliation Per consol income Joint(2) Per million statement ventures presentation Americas 82 NECIS 70 AMEASE 33 GPG 21 Investments Services 7 Corporate costs (25) Profit before net financing expense 166…
Appendix Tax rate(1) Group million companies JVs Total Trading profit per presentation 166 22 188 Net financing income (17) (1) (18) 149 21 170 Tax (33) (5) (38) PAT per consolidated 116 16 132 Tax rate 22.1% 23.8% 22.3% (1)…
Appendix project information Half-year results 2015 27 August 2015 38
Selected contract styles Scope Type P&L Professional Consulting Reimbursable Size: up to 50m services Engineering Fixed rates Margin: 6-12% Design Fixed price Programme management EPC Engineering Reimbursable Size: up to 500m…
Abbreviations used for scope description Eng Engineering EPCm Engineering, Procurement and Construction Management EPC Engineering, Procurement and Construction Cons Consultancy Design Design/engineering D&S Design & Supply HUC…
Imperial Oil Kearl oil sands EP contract Engineering, procurement, construction support, environmental/regulatory compliance Kearl Initial Development (KID) 2007-13 Kearl Expansion Project (KEP) 2013-15 Total value to date US2.5bn…
Enterprise PDH plant EPC contract Engineering, procurement, construction (EPC) propane dehydrogenation (pdh) plant (gas to propylene) 3-year reimbursable EPC, completion 2016 Total value US800m Our value-add Full scope project…
Sempra Copper Mountain 3 solar EPC contract Engineering, procurement, construction (EPC) 2 year fixed price contract for 250MW solar generation facility (CM3) CM3 completed in Q2 2015 Total value US500m 2 further solar projects…
Honeywell site remediation MSA Programme management for site remediation Master services agreement (MSA), reimbursable structure Signed in 2005, current 5-year agreement runs to 2017 US50m largest single project so far Total value…
BP Clair Ridge EPM and HUC contracts Engineering and project management (EPM), hook up and commissioning (HUC) for topsides Initial detailed engineering reimbursable contract signed in 2011 Extended to include HUC in 2013 Total…
ConocoPhillips UK North Sea 2014: Freon Replacement Project at Theddlethorpe Gas Terminal (TGT) 20122015: Alder Topsides, a new dedicated module for Britannia with hydrocarbon separation and processing facilities E&C (operations…
Sellafield SLC Tier 2 contracts Wide ranging engineering, project management and technical skills provided through a number of long-term frameworks On site for several decades Aggregate value typically 50m pa Design Services…
Zadco Upper Zakum 750 PMC contract Programme management consultancy (PMC) Initial 5-year reimbursable contract in 2008 for upgrade of oilfield Extended twice, contract runs until Dec 2017 Total value US500m Our value-add…
Sadara Integrated Chemicals Project KSA FEED and EPCm for one of the worlds largest integrated chemical complexes 2007 - ongoing Total contract value US700m Our value-add Providing engineering, project management and technical…
Further information investorsamecfw.com 44 (0) 207 429 7500 1 713 570 8327 www.amecfw.com/investors 51
Loading...
