Investors and Analysts Meeting March 2017 Our Business Group o - - PowerPoint PPT Presentation

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Investors and Analysts Meeting March 2017 Our Business Group o - - PowerPoint PPT Presentation

Apr 26, 2023 111 likes •435 views

Investors and Analysts Meeting March 2017 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 solutions in Oman o Fortress

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Investors and Analysts Meeting March 2017

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Our Business Group

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  • Modern, young and efficient Off-shore

Support Vessel fleet of 100 vessels

  • Fortress position in the Caspian and

significant presence in Middle East and West Africa

  • Market leader in Facilities management,

Contract services and Accommodation solutions in Oman

  • Primarily

in the Middle-East, with

  • perational experience in Norway, Iraq

and Afghanistan

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Vision: ‘To be the global local quality champion and top five OSV player, with profitability in top quartile’

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7.7 6.7 13.3 8.5 8.2 16.9 12.6 19.2 24.6 16.2 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 years, significantly below the market average

  • f 16.2 years

8.0 years younger 16.1 years younger 5.9 years younger 5.9 years younger 9.2 years younger

Industry data from Clarkson’s Shipping Intelligence Network

Young Fleet – Enhanced Value to Clients

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Topaz

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Project Tengiz

  • The super-giant Tengiz project is among the top 10 producing
  • il

fields in the world. The project is developed by Tengizchevroil(TCO); a consortium comprising Chevron 50%, Exxon 25%, KMG 20% and Lukarco 5%, and operated by Chevron

  • Tengiz represents an estimated investment of US$40 billion,

and is the only ongoing “mega project” by all global oil majors expected to be given full investment commitment in 2016

  • Topaz’s scope is to provide vessels for transporting these

modules through the Russian river systems into the Caspian Sea and into Kazakhstan

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Transhipment hub Kuryk(Load Port) Prorva(Discharge Port) TengizOil Field Don River System Volga River System Kazakhstan Transit

Project Tengiz – Russian Water System and Caspian

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BUILD OWN OPERATE CATERING CLEANING LAUNDRY WASTE MANAGEMENT LANDSCAPING CAFES RECEPTION ENERGY MANAGEMENT … AND MORE

Vision: ‘To deliver world-class services to an international market’

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Contract services Renaissance Villages IFM

  • Catering
  • Cleaning
  • Laundry
  • Security
  • Waste

management

  • Build,
  • wn

and

  • perate

model

  • World class living facilities

for large groups

  • f

contractors at affordable costs

  • Fully

serviced: catering, cleaning, medical, recreation and more.

  • Higher standards at lower

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

  • Building
  • n
  • ur

contract services experience

  • Turnkey solutions
  • Reducing

costs for client’s non core services

  • No

margins

  • n

margins through minimal outsourcing

  • New

state

  • f

the art accommodation facility

  • Over 16,000 beds ~ 3,710

rooms ~ 192,480 square meters

  • Best

value for money proposition for occupants

  • Oman leading the world in

caring for workforces competitively

Renaissance Duqm Village

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Renaissance – Unique service offering at world class standards

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Renaissance Duqm Village – Largest PAC in Oman

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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

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Our Growth Drivers

Resilience within – strong future outlook

Strategic contract wins which secure our long term future :  BP2020 – Order backlog of USD 750m  Tengizchevroil project - Order backlog

  • f USD 550M

Largest ever signed single contracts in the

  • ffshore industry

State of the art Renaissance Duqm Village

  • commences. Positive contribution expected

from 2018 onwards Market leader in Oman with an annual contract revenue of over USD 200 million, serving for the last 25 years Oman PDO oilfields PACs delivering sustainable revenue Developing new markets in UAE and beyond

Our underlying business fundamentals remain intact with an industry leading contract backlog of USD 1.6 billion

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Industry Updates

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Oil Price Outlook

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Years Forecast (USD/bbl) 2016 46 2017 66 2018 75 2019 78 2020 85

  • Market consensus show a gradual increase in oil prices from Q2’2017; International Energy Agency projects a

75% increase in oil prices by 2020

  • In the long-term, oil prices are weighted towards the upside

Source: Bloomberg, *Standard Chartered Bank Research

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OSV Supply Forecast

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  • Steady decline in OSV supply as new-build activity is expected to remain subdued in the current environment
  • Out of the 3,503 vessels, approximately 600 vessels (17%) are more than 30 years old and are not viable to

return to operations

Global AHTS and PSV Fleet Orderbook

1,876 1,627 3,503 154 200 3 1

1,000 2,000 3,000 4,000

2016 2017 2018 2019 Current Fleet Under Construction

AHTS PSV

Source: Infield Systems and Offshore Merchant Partners AS

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Financial Performance

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2016 2015 USD m USD m Revenue* 538 616 EBITDA* 182 213 Operating profits* 94 127 Net Profit after tax* (1) 29 Net Profit/(Loss) (after one-offs) (101) (78)

Financial Highlights - Group

Renaissance Group

Revenue OMR 207 m USD 538 m EBITDA OMR 70 m USD 182 m Asset Base OMR 0.8 b USD 2.0 b Equity OMR 175 m USD 455 m 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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2016 2015 USD m USD m Revenue* 282 361 EBITDA* 146 177 Operating profits* 70 104 Net Profit/(Loss) after tax* (8) 21

Financial Highlights - Topaz

Revenue OMR 109 m USD 282 m EBITDA OMR 56 m USD 146 m Asset Base OMR 0.5 b USD 1.4 b Equity OMR 178 m USD 463 m Global Presence 14 Countries Employees Over 2,000

* Before one-offs

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2016 2015 USD m USD m Revenue* 255 255 EBITDA* 36 36 Operating profits* 23 23 Net Profit after tax* 16 13

Financial Highlights - Renaissance

Revenue OMR 98 m USD 255 m EBITDA OMR 14 m USD 36 m Asset Base OMR 0.2 b USD 0.5 b Equity OMR 77 m USD 200 m Global Presence 3 Countries Employees Over 8,000

* Before one-offs

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Renaissance Revenue - Segmentation

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53% 47%

70% 30%

Offering world class integrated service solutions to our clients

Contract Services Renaissance Villages (PACs)

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574 621 633 616 538 150 175 200 225 250 2012 2013 2014 2015 2016

Group Revenue*

Supported by long term secured contracts

USD Million

Despite challenging times, our business fundamentals remain intact with clear visibility on future revenue growth

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* Before one-offs.

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283 255

Group Revenue - Segmentation

USD Million

Offering a long term sustainable value proposition to clients

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53% 47%

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Oman 213 MENA 62 Caspian 205 Others 58

USD Million

Group Revenue – Geographical Segmentation

Geographic focus on the Caspian, MENA and West Africa regions

40% Oman 38% Caspian 12% MENA 10% Others

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Group EBITDA*

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.

187 190 234 213 182

2012 2013 2014 2015 2016 USD Million

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Group EBITDA - Segmentation

USD Million

Underwrites the strength which enables the group companies to meet all their commitments

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53% 47%

146 36

20% 80%

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119 125 156 127 94

2012 2013 2014 2015 2016

Group Operating Profit*

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

  • f preserving and developing those vital relationships

USD Million

* Before one-offs.

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Group Operating Margins*

27% 28% 35% 29% 25% 12% 10% 9% 10% 9% 5% 15% 25% 35% 45% 2012 2013 2014 2015 2016 Topaz Renaissance

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* Before one-offs.

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One–off Charges

No impact on our liquidity position

USD Million

These one-offs are a product of negative sentiment due to oil price crisis

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53% 47%

99 3

3% 97%

Increase in derivative liability Provision for impairment of vessels

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1.49 1.54 1.21 1.29 1.62 2012 2013 2014 2015 2016

Gearing

Fiscal Discipline

Deleveraging our Balance Sheet is our top priority. USD 88 million repaid in 2016

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135 210 319 109 164 2012 2013 2014 2015 2016

Our Ongoing Investment Programme

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

USD Million

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100 300 500 700 2012 2013 2014 2015 2016

1184 1306 1538 1483 1564

200 300 400 2012 2013 2014 2015 2016

847 1008 966 917 974

Term Loans Net Fixed Assets

New growth capex are pre-funded by clients with no further leverage in our Balance Sheet

Investing for future growth

Disciplined investment to fuel growth

USD Million USD Million

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Our Strategic Business Network

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Thank You

For more details please visit our website: www.renaissance.om