MODEC, Inc Financial Results Analysts Presentation. February 25, 2011

Transcription

1 MODEC, Inc. 21 Financial Results Analysts Presentation February 25, 211

2 Market Overview & Operations Review Financial Results & Outlook 2

3 Market Overview Global demand for oil and gas steadily increases Impact of BP Macondo incident will remain few years in Gulf of Mexico Demand for Floating Production Systems continues to grow US$ 8 billion worth investment in Floating Production systems expected during the next 5 years, mainly in Brazil and West Africa Development of Brazil s pre-salt alone calls for more than 4 FPSOs Gas Development MODEC/Velocys/TEC target the commercialization of GTL facilities for offshore application in 212 MODEC aims to pursue FLNG opportunity 3

4 21 Overview MODEC delivered 4 FPSOs in 21 New order: FPSO Cidade de Sao Paulo MV23 (Petrobras Guara FPSO) Downside impact of appreciation of yen Capital increase of JPY 15.6 billion; Equity ratio improved Proposed dividend (per annum) FY211: JPY 25./share FY21: JPY 22.5/share 4

5 MODEC delivered 4 FPSOs in 21 FPSO Cidade de Santos MV2 (Opportunity Gas) Urugua/Tambau Fields, Brazil FPSO Cidade de Angra dos Reis MV22 Tupi Field, Brazil FPSO Kwame Nkrumah MV21 Jubilee Field, Ghana FPSO Pyrenees Venture Pyrenees Field, Australia 5

6 2 FPSOs are under construction COSCO Dalian China Jurong Singapore FPSO Cidade de Sao Paulo MV23 (Guara) Scope of Work: EPC + Time Charter First Oil: Planned 1Q 213 Guara Field, Brazil Brazilian local content requirement 65% FPSO PSVM Scope of Work: EPCI First Oil: Planned 211 Plutão, Saturno, Vênus and Marte Fields, Angola 6

7 Prospective Projects Russia Shtokman Internal Disconnectable Turret (SOFEC) Southeast Asia & Australia Malaysia Shell Malikai TLWP Indonesia INPEX Masela FLNG Russia Australia Woodside Browse LNG Development West Africa Southeast Asia & Australia Brazil West Africa Ghana a Tullow Jubilee No.2 FPSO Angola Chevron Lucapa Block 14 FPSO Maersk Chissonga Block 16 FPSO Brazil Petrobras Guara 2 FPSO Petrobras FLNG EPC OSX Waimea FPSO 7

8 MODEC operates 17 FPSO/FSOs at 21 yearend FPSO MV 8 Langsa Venture FPSO Jasmine Venture MV7 FPSO Song Doc Pride MV19 FSO Rang Dong MV17 FSO Rong Doi MV12 FSO Ta Kuntah FPSO Fluminense FPSO Cidade d do Rio de Janeiro MV14 FSO Cidade de Macae MV15 FPSO Cidade de Niteroi MV18 FPSO Cidade de Santos MV2 NEW FPSO Cidade d de Angra dos Reis MV22 NEW FPSO Baobab Ivoirien MV1 FPSO Kwame Nkrumah MV21 NEW FPSO Stybarrow Venture MV16 FPSO Pyrenees Venture NEW FPSO MODEC Venture 11 8

9 FPSO/FSO Time Charter / O&M Period Time Charter Contract O&M Contract FPSO Cidade de Sao Paulo MV23 FPSO Kw ame Nkrumah MV21 FPSO Cidade de Angra dos Reis MV22 FPSO Cidade de Santos MV2 FPSO Pyrenees Venture FPSO Cidade de Niteroi MV18 FSO Rang Dong MV17 FPSO Song Doc Pride MV19 FPSO Stybarrow Venture MV16 FSO Cidade de Macae MV15 FPSO Cidade do Rio de Janeiro MV14 FSO Rong Doi MV12 FPSO Jasmine Venture MV7 FPSO Baobab Ivoirien MV1 FPSO MODEC Venture 11 FPSO Fluminense FPSO MV8 Langsa Venture FSO Ta'Kuntah - - Fixed period Option period Fixed period Option period y 1y 15y 12y 15y 9y 9y 5y 1y 2y 8y 7y 3y (FPSO Buffalo Venture) 2.5y 1y 5y 13y 1y 2y 1y 5y Consolidated Subsidiary Affiliates accounted for by the Equity Method February 211 Time Charter : 14 FPSO/FSOs O&M : 2 FPSOs 9

10 Market Overview & Operations Review Financial Results & Outlook 1

11 Revenue Variance Remarks Revenue 24, ,66 (57,565) Total revenue decreased due to the completion of 4 FPSO projects Gross Profit 11,549 12, Gross Profit margin 5.7% 8.2% 2.6% Gross profit margin improved Selling, General and Administrative Expenses 7,38 8,51 1,121 Operating Profit 4,169 3,563 (66) Other Income (A) 4,628 4, Other Expense (B) 1,343 2, TtlOth Total Other Income/Expenses (C=A-B) (CAB) , ,594 (691) (Equity in Earnings of Affiliates and Unconsolidated Subsidiaries included in C) (Exchange gain/loss and Gain/loss on revaluation of derivatives included in C) 2,362 2, (1,75) (1,455) Ordinary Profit 7,454 6,156 (1,298) Extraordinary Profit Extraordinary Loss 3, (2,643) Income before Income Taxes and Minority Interests Net Income 2,413 2, Exchange Rate (USD) ( 1.58) Although h the revenue decreased, d gross profit increased due to better project cost and process management SG&A increased mainly due to the increase in proposal expenses and legal fees, etc. Operating profit decreased due to the increase in deferred profit and SG&A Exchange loss on USD based loans receivable was posted due to the appreciation of yen Increased due to the charter start of Opportunity Gas, Tupi and Jubilee FPSOs Decreased mainly due to the foreign exchange loss from the appreciation of yen 29: MV1 write-off 21: Exchange loss from MFBV liquidation , , ,52 Increased mainly due to the decrease in extraordinary loss Shrink in increase mainly due to the negative impact of minority interest by JPY.8 billion Downside impact of the appreciation of yen: Revenue JPY 2 billion, ordinary profit.8 billion, net profit.3 billion 11

12 Revenue by Service Types Revenue Projects EPC(I) Phase Lease, Charter and O&M EPCI Other , FPSO Cidade de Sao Paulo MV23 FPSO PSVM 2, FPSO Kwame Nkrumah MV21 15, FPSO Cidade de Angra dos Reis MV22 FPSO Cidade de Santos MV2 1, 121, ,688 18, ,643 FPSO Pyrenees ees Venture e FPSO Cidade de Niteroi MV18 5, 83,16 FPSO Song Doc Pride MV19 15,154 21,262 28,83 17,618 2, FSO Rang Dong MV17 Shenzi TLP 12

13 Ordinary Profit Ordinary Profit & Ordinary Profit before Deferred Profits Adjustment Influence of Deferred Profits Deferred Realized Balance Ordinary Profit 15, Ordinary Profit before Deferred Profits Adjustment 15, ,396 1, 5,885 7,828 9,27 7,672 7,454 6,156 1,79 1, 5, 3,53 4,73 6,254 6,473 5, 4,664 2,529 4, , ,396-1,35-1,99-1, , -4,361 13

14 Orders & Order Backlogs by Service Types Orders Order Backlogs Lease, Charter and O&M EPCI Other Lease, Charter and O&M EPCI Other 4, 28 FPSO Cidade de Santos MV2 (Opportunity Gas) FPSO Kwame Nkrumah MV21 (Jubilee) FPSO PSVM (BP Angola) FPSO Cidade de Angra dos Reis MV22 (Tupi) 4, 3, 2, 133,792 82, ,487 76,71 69,764 3, 319,614 1, 131,31 156, , ,966 16, , 179, ,15 21 FPSO Cidade de Sao Paulo MV23 (Guara) 173,835 4, Order Backlogs (Lease, Charter and O&M) Lease, Charter and O&M Equity Method Portion 1, 126, ,792 73,963 45,1 122,927 3, 2, 113,4 99, , ,33 144,765 51,459 51,923 53,374 3,742 8,622 43, Acceptance of change orders from existing projects 1, 131,31 156, , ,966 16,

15 Balance Sheet Variance Remarks Cash and Time Deposits 31,55 12,122 (19,383) Total Current Assets 127,732 98,135 (29,597) Property and Equipment 1,516 15,33 13,517 Intangible Assets 7,272 6,82 (452) Investments and Other Assets 31,843 26,638 (5,25) Total Fixed Assets 4,632 48,492 7,86 Total Assets: 1. Cash decreased due to reinforcement of Group cash management and allocation for repayment of loans 2. Accounts receivable decreased due to the completion of projects 3. Loans receivable increased from MV23(Guara) as a construction finance 4. Property and equipment increased due to MV11 & MV17 change from affiliates accounted for by equity method to consolidated subsidiaries Total Assets 168, ,627 (21,738) Short-term Loans Payable 43,327 23,237 (2,9) Total Liabilities: Total Current Liabilities 11,535 77,816 (32,719) Long-term Loans Payable 13,472 8,14 (5,332) Total Long-term Liabilities 17,755 1,486 (7,269) Total Liabilities 128,291 88,33 (39,988) Total Shareholders Equity 44,761 62,166 17,45 1. Short-term and long-term loans payable decreased mainly due to reinforcement of Group cash management and allocation for repayment of loans 2. Accounts payable decreased due to the completion of projects Total Net Assets: Total Accumulated Losses from 1. Capital increase of JPY 15.6 billion by third party allotment; (6,525) (8,535) (2,1) Valuation and Translation Adjustments Equity ratio improved from 22% to 36% Minority Interests in Consolidated Subsidiaries 1,838 4,693 2, Foreign translation adjustments decreased due to appreciation of yen Total Net Assets 4,74 58,324 18,25 3. Minority interests increased due to MV11 & MV17 change from affiliates accounted for by equity method to consolidated Total Liabilities, Net Assets 168, ,627 (21,738) subsidiaries 15

16 Cash Flow CF from Operating Activities Net income before tax + depreciation, as working capital was balanced Cash Flow Cash Flow from Operating Activities Cash Flow from Investing Activities Cash Flow from Financing Activities CF from Investing Activities Increase in construction loan financing to SPC CF from Financing Activities - Repayment of long-term loans: JPY 9.6 billion - New share issuance: JPY 15.6 billion 4, , 28,794 21,974 2, 1, 11,716 11,867 3,811 5,49 7,52 7,668-1, -9, ,96-2, -3, -2, ,635-4, -37,98 16

17 Key Financial Figures Operating profit 3,494 6,959 1,973 4,169 3,563 Depreciation and amortization 662 1,656 1,619 1, Amortization of consolidated differences Collection of lease receivable (Cantarell FSO, Inc., S.A. de C.V.) 2,34 2,834 1, EBITDA 6,522 11,462 5,436 5,813 4,732 Operating profit (equity method portion) 3,151 4,252 4,613 6,242 6,67 Depreciation and amortization (equity method portion) 2,566 3,848 3,945 5,142 5,611 Collection of lease receivable (equity method portion) 1,19 1,81 1,213 1,35 1,588 EBITDA (after adjustment) 13,258 2,643 15,27 18,547 18,538 Interest income 3,545 3,564 2,222 1,444 1,957 Interest expense 3,661 3,679 1,95 1, Interest expense (equity method portion) 1, ,33 2,978 3,324 Net Interest expense (after adjustment) , , , , ,853 EBITDA Interest Coverage Ratio (x times) Liabilities with interest 49,95 46,81 43,21 56,8 31,377 Liabilities with interest (equity method portion) 15,836 18,448 46,8 69,61 79,677 Cash and time deposits 28,827 21,499 45,82 31,55 12,122 Cash and time deposits (equity method portion) 1,697 2,873 4,183 4,66 7,848 Net liabilities with interest (after adjustment) 35,262 4,886 39,764 89,75 91,84 Net liabilities with interest / EBITDA (x times) ROE (%) ROA (%) Equity Ratio (%)

18 Forecast for FY211 3, Revenue 15, Ordinary Profit Ordinary Profit Ordinary Profit before Deferred Profits Adjustment 2, 1, 144,4 143,669 24, ,66 12, 1, 5, 9,27 7,828 4,53 2,529 7,672 7,454 6,156 1,79 4, (F) (F) Net Income & Equity in Earnings of Affiliates and Unconsolidated Subsidiaries 6, (Mil. USD) 45 <211 Forecast Assumption> New orders of - 2 FPSOs -1 TLP 4, 4,499 2,413 2,735 2,9 3 Percentage of completion method (211) - Existing projects: Past the peak phase - New projects: Slow pace in initial phase 2, 1, Net Income (F) Equity in Earnings of Affiliates and Unconsolidated Subsidiaries (Mil. USD) Exchange Rate (F) 18