Full Year Results 2014
19 March 2015
www.lamprell.com
Nexen PUQ and wellhead
Full Year Results 2014 19 March 2015 Nexen PUQ and wellhead 0 0 - - PowerPoint PPT Presentation
Full Year Results 2014 19 March 2015 Nexen PUQ and wellhead 0 0 www.lamprell.com Disclaimer This presentation contains certain forward-looking statements relating to the business, financial performance and results of the Company and/ or the
www.lamprell.com
Nexen PUQ and wellhead
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This presentation contains certain forward-looking statements relating to the business, financial performance and results of the Company and/ or the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words “believes”, “expects, “predicts”, ”intends”, “projects”, “plans” “estimates”, “aims”, “foresees”, anticipates”, “targets” and similar expressions. The forward-looking statements, contained in this document, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and forecasts which are uncertain and subject to
assumptions underlying such forward-looking statements are free from errors nor does any of the foregoing accept any responsibility for the future accuracy of the opinions expressed in this document
No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, neither the Company nor any of its subsidiary undertakings nor any such person’s officers
document.
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1 Highlights 2 Financial Review 3 Operational Review and Market Environment 4 Summary and Outlook 5 Appendices
Offshore platforms: Jalilah B
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Strong financial position:
Important operational milestones:
Strategy implementation:
Bid Pipeline
Safety
Net Cash
Net profit*
* From the Group’s continuing operations ** Total Recordable Injury Rate
5
Greatdrill Chaaru
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(2013: 7.1%)
equity holders of $118.1m (2013: $36.4m)
and refinancing
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Strong profitability driven by operational performance
Year of exceptional financial performance
EDC “Mercury”
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phasing, exceptionals and market environment
36.7 93.2 8.4 22.1 18.7 25.2 19.5
20 30 40 50 60 70 80 90 100
2013 Net Profit Exceptional items in 2013 Impact of EDC 2 One off expenses in 2014 Project profit improvements Lower overheads 2014 Net Profit
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183.8 272.6 59.3 111.0 (193.8) 161.6 (49.3)
100 150 200 250 300 350 400
Net cash as at 31 Dec 2013 Proceeds from disposal of Inspec Proceeds from rights issue Movement in working capital Operating cash flows Asset additions /
Net cash as at 31 Dec 2014
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31 Dec 14 $m 31 Dec 13 $m Total assets 1,154.3 1,074.6 Net assets 672.2 442.8 Gross cash 371.6 344.6 Available cash* 299.8 275.5 Net cash 272.6 183.8
Financial firepower to support strategy implementation
* Gross cash less cash deposits under lien, less cash deposits with maturity >3 months.
Debt package $m Term loan 100 Working capital facility 50 Revolver 200 Total funded facilities 350 Committed bonding 250
earnings ahead of initial expectations
driver
$0.9bn)
covered
liquidity to help maintain competitive position
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Nexen PUQ
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Offshore platforms: Leighton topsides & jackets
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Order book (bn) As at 31 December 2014
(2013: $0.9)
Our order book ($m) As at 31 December 2014
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products
and awards
core markets:
(2013: $0.9)
(2013: $4.7)
New awards in 2014 (bn) Bid pipeline (bn) As at 31 December 2014
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growing energy demand
Focus on maintaining a competitive position
Ageing current global jackup fleet Approximately 30% of the global jackup fleet will be over 35 years old by 2017. This is expected to reflect positively on the demand for new build jackup rigs and rig refurbishment projects. <35 years old >= 35 years old
implementation progressing well
the onset of low oil prices
reduction in overheads
reductions
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Rig refurbishment: EDC Rig 49
phasing (with nine completions), improved project execution and cost savings
project Evolution
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Strong performance and extensive bid pipeline
Well prepared for challenging times
NDC Al Shuwehat
Fred.Olsen Windcarrier
11 14 12 7 5 7 6 2 2 1 5 4 5 7 4 2 2 3 3
1 1 1 2 3 1 1 TRIFR Target FY 2013 0.65 TRIFR Target FY 2014 0.55
0.93 0.96 0.93 0.89 0.81 0.75 0.74 0.67 0.63 0.55 0.48 0.44 0.42 0.39 0.35 0.33 0.32 0.31 0.27 0.28
0.04 0.04 0.03 0.04 0.04 0.04 0.02 0.02 0.02 0.02 0.02 0.03 0.03 0.05 0.05 0.05 0.05 0.06 0.06 0.06 Incident Frequency Rates Total Number of DAFWC & Recordable Incidents
DAFWC TRC TRIR Target TRIR Actual DAFWCF Actual
Strong platform for future performance Continuous improvement in safety record
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Integrity State of the Art Facilities Cost Efficiencies Productivity Continuous Improvement Balance Sheet Risk Management Systems & Procedures Safety Quality New Build Jackups Client Relationship
Offshore Topsides Onshore Modules Land Rigs Rig Refurb Fiscal Responsibility Teamwork On Time Delivery FPSOs LNG Modules
Renewables
RESULTS FABRICATION BUSINESS STREAMS FOUNDATIONS
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Capital investment includes
processes
throughput
Estimated 3-4 year payback period Significant savings delivered through
utilization
FY 2014 FY 20131
$m $m Revenue* 1,084.9 1,072.8 Gross profit* 182.1 120.0 Gross margin % 16.8% 11.2% Operating profit * 109.1 58.7 Finance costs - net** (18.4) (22) Share of profit of equity accounted investments 3.0 1.1 Profit before income tax 93.7 37.8 Income tax expense (0.5) (1.1) Profit from continuing operations 93.2 36.7 Profit / (loss) from discontinued operations (6.4) (0.2) Gain on disposal of subsidiary (Inspec) 31.3
118.1 36.4
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Significant improvement in profitability
* Relating to continuing operations ** Represents the net balance of finance costs and finance income including exceptional finance costs
1Financial results for the year 2013 have been re-presented due to IFRS 5 (discontinued operations) and further details are provided in the notes to the
Financial Statements.
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New build oil & gas New build renewables Refurbishment Offshore construction Other
As at 31 December 2014 (m) As at 31 December 2013 (m)
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Project Type 2014 1H 2015 2H 2015 1H 2016 2H 2016 1H 2017 NDC 6 Le Tourneau S116E NDC 7 Le Tourneau S116E NDC 8 Le Tourneau S116E Jindal 2 Le Tourneau S116E Greatship 2 Le Tourneau S116E Petrofac UZ750 Process modules Ensco 1 Le Tourneau S116E Ensco 2 Le Tourneau S116E Shelf 1 Le Tourneau S116E Shelf 2 Le Tourneau S116E