Investors and Analysts Meeting March 2018 www.renaissanceoman.com - - PowerPoint PPT Presentation
Investors and Analysts Meeting March 2018 www.renaissanceoman.com Our Business Group o Market leader in Facilities management, o Modern, young and efficient Off-shore Contract services and Accommodation Support Vessel fleet of 100 vessels
www.renaissanceoman.com
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Support Vessel fleet of 100 vessels
significant presence in Middle East and West Africa
Contract services and Accommodation solutions in Oman
in the Middle-East, with
and Afghanistan
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Vision: ‘To be champion provider of marine logistics solutions to the global offshore industry, with profitability in the top quartile’
8.7 7.7 14.3 9.5 8.2 17.7 13.4 20.0 25.4 17 AHTSV PSV MPSV ERRV All OSV Industry average
Younger vessels have less downtime, more capacity and better fuel use Market leader in vessel efficiency, with an average age of 8.2 years, significantly below the market average
8.8 years younger 15.9 years younger 5.7 years younger 5.7 years younger 9 years younger
Industry data from Clarkson’s Shipping Intelligence Network
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Topaz
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BUILD OWN OPERATE CATERING CLEANING LAUNDRY WASTE MANAGEMENT LANDSCAPING CAFES RECEPTION ENERGY MANAGEMENT … AND MORE
Vision: Provide innovative, sustainable, IFM and Accommodation solutions, that unlock human capital, optimize asset utilization, and drive economic wellbeing that translates into superior returns
Contract services Renaissance Villages IFM
management
(CMMS; IOT and branded homecare services)
and
model
for large groups
contractors at affordable costs
serviced: catering, cleaning, medical, recreation and more.
costs through economy of scale
We create strategic partnerships with our clients and offer exceptional solutions for all their facility needs, giving them more time to focus on their business
accommodation solutions
client’s non-core services
through minimal
state
the art accommodation facility
rooms ~ 192,480 square meters
value for money proposition for occupants
caring for workforces competitively
Renaissance Duqm Village
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Renaissance Duqm Village fulfils SEZAD’s and Oman’s vision in demonstrating how to look after workforces well, without compromising competitiveness of projects
Resilience within – strong future outlook
Strategic contract wins which secure our long term future : ❖ BP 2020 ❖ Tengizchevroil project Largest ever signed single contracts in the
State of the art Renaissance Duqm Village commenced. Positive contribution expected from 2018 onwards Market leader in Oman, serving for the last 25 years Oman PDO
PACs delivering sustainable revenue. Clear focus on leveraging
Hard FM capabilities to address
Developing new markets in UAE and beyond
Our underlying business fundamentals remain intact with an industry leading contract backlog of USD 1.8 billion
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Global Energy Demand Outlook (million tonnes of oil equivalent)
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➢ Market consensus show a gradual increase in oil prices from 2017 ➢ In the long-term, oil prices are weighted towards the upside
Source: 1. IMF – Oil Prices and the Global Economy, 2017 2. International Energy Agency
1,000 2,000 3,000 4,000 5,000 6,000 2000 2005 2010 2015 2020 2025
Oil Coal Gas Renewables Nuclear
Oil Price Outlook
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Global forecast to increase by 5.1% going forward
9.5 10 8.1 5.3 4.2 4.1 2 4 6 8 10 12 2013 2014 2015 2016 2017 2018 OSV Market Revenue USD Bn
Source: Spears Oilfield Market Report *Based on total market revenue
17% 13% 12% 7% 6% 5% 40%
Bourbon ECO Tidewater COSL Maersk Topaz Others
Market share* by player
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Source: Westwood Global Energy Group Analysis
200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
OSV Supply / Demand (‘000 Vessel Days)
Demand Total Theoretical Supply Available Supply (excluding Lay-ups) Competitive Supply¹
10,000 12,000 14,000 16,000 18,000 20,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
OSV Average Dayrate ($/Day)
Reference case Topaz
Increasing Day rates Fewer competitive vessels lead to supply / demand balance
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Source: Company data, Factset January 2018
37% 27% 23% 8% 0% 10% 20% 30% 40%
Topaz Peer 1 Peer 2 Median Revenue CAGR (%) 17-19E
54% 41% 19% 0% 20% 40% 60%
Topaz Peer 1 Peer 2 Median
Negative
EBITDA CAGR (%) 17-19E
5.7
4.0 6.0
Topaz Peer 1 Peer 2 Median
Negative EBITDA Nil
Net Debt/EBITDA (x) 17E
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2017 2016 Rial m Rial m Revenue* 194 207 EBITDA* 60 70 Operating profits* 25 36 Net Profit after tax* (10.7) (0.5) Net Profit/(Loss) (after one-offs) (47) (39)
Renaissance Group
Revenue OMR 194 m USD 504 m EBITDA OMR 60 m USD 156 m Asset Base OMR 0.8b USD 2.0b Contract Backlog USD 1.8b Global Presence 15 Countries Employees Over 10,000
* Before one-offs
Clear focus on operational excellence and financial discipline has helped to tide us over the business cycle and protect value in the company
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2017 2016 Rial m Rial m Revenue* 94 109 EBITDA* 45 56 Operating profits* 18 27 Net Profit/(Loss) after tax* (10) (3)
Revenue OMR 94 m USD 244 m EBITDA OMR 45 m USD 117 m
OMR 18m USD 47m Contract Backlog USD 1.5b Global Presence 14 Countries Employees Over 1,800
* Before one-offs
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2017 2016 Rial m Rial m Revenue* 100 98 EBITDA* 15 14 Operating profits* 7 9 Net Profit after tax* 3 6
Revenue OMR 100 m USD 260 m EBITDA OMR 15 m USD 39 m
OMR 7m USD 18m Contract Backlog USD 300 m Global Presence 3 Countries Employees Over 8,500
* Before one-offs
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239 244 237 207 194 150 175 200 225 250 2013 2014 2015 2016 2017
Supported by long term secured contracts
Rial Million
We have a positive future to look forward to in 2018 and going forward
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* Before one-offs.
Rial Million
Offering a long term sustainable value proposition to clients
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53% 47%
94 48% 100 52%
Oman 85 MENA 21 Caspian 72 Others 16
Rial Million
Geographic focus on the Caspian, MENA and West Africa regions
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Liquidity Position of the Group is well preserved
Despite the oil crisis, our operational performance has generated sustainable cash flows to meet all our commitments on time Clear focus on maintaining liquidity and improving long term operational efficiencies
* Before one-offs.
73 90 82 70 60
2013 2014 2015 2016 2017 Rial Million
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Rial Million
Underwrites the strength which enables the group companies to meet all their commitments
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53% 47%
25% 75%
48 60 49 36 25
2013 2014 2015 2016 2017
Sustainable profit through operational efficiencies
Our businesses have worked hard to cut costs in response to the crisis This year, we have passed much of the resulting savings on to our long-term clients in the interest
Rial Million
* Before one-offs.
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28% 35% 29% 25% 19% 10% 9% 10% 9% 7% 5% 15% 25% 35% 45% 2013 2014 2015 2016 2017 Topaz Renaissance
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* Before one-offs.
We have created the platform to start rebuilding the recent year’s lost value in 2018 and delivering sustainable value and new growth in the years ahead
No impact on our liquidity position
Rial Million
These one-offs are a product of negative sentiment due to oil price crisis
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53% 47%
25 67% 1 3% 4 11% 7 19%
Provision for impairment of vessels Refinancing cost of Senior Notes Goodwill impairment Increase in derivative liability
1.54 1.21 1.29 1.62 2.15 2013 2014 2015 2016 2017
Fiscal Discipline
Deleveraging our Balance Sheet is our top priority. RO 28 million repaid in 2017.
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81 123 42 63 18 2013 2014 2015 2016 2017 104 41 56 74
Planned investments generating long term economic value
We are well placed to get through this low cycle of offshore markets through our capacity for resilience developed over the years
Rial Million
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Capex for Tengiz
100 300 500 700 2013 2014 2015 2016 2017
503 592 571 602 612
100 200 300 400 2013 2014 2015 2016 2017
388 372 353 375 380
Term Loans Net Fixed Assets
New growth capex are pre-funded by clients with no further leverage in our Balance Sheet
Disciplined investment to fuel growth
Rial Million Rial Million
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For more details please visit our website: www.renaissanceoman.com