Emergency exits If the alarm goes off, please leave the auditorium as guided by this map and go to the muster area. No drills planned for today.

Transcription

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2 Emergency exits If the alarm goes off, please leave the auditorium as guided by this map and go to the muster area. No drills planned for today. 2

3 Second quarter results 2013 Photo: Trønder-Avisa, Marius Langfjord 3

4 Highlights Continued focus on competitiveness and delivery models High activity Delivered Clair Ridge jackets Order backlog of NOK 29.6 billion* Proposed semi-annual dividend of NOK 0.58 per share High activity on the Hebron project. * Including incorporated joint ventures. 4

5 Key financials Revenues NOK million EBITDA NOK million Net current operating assets NOK million Q2'12 Q3'12 Q4'12 Q1'13 Q2' Q2'12 Q3'12 Q4'12 Q1'13 Q2' Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 ¹ EBITDA margin 2.8% 2.8%² 4.3% 3.5% 4.5% 5 ¹ Gain on sale of EPC Center Houston. ² EBITDA margin excluding sales gain.

6 Order intake and -backlog Order intake NOK million Order backlog NOK million ~30% ~40% ~30% 0 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Upstream Downstream & Industrials Note: All figures include incorporated joint ventures. 0 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Estimated scheduling as of 30 June 2013: For execution in 2013 For execution in 2014 For execution in 2015 and later 6

7 Second quarter operations 7

8 Health, safety, security and environment No lost time injuries No serious incidents No serious near miss Lost time incident frequency (LTIF) and Total recorded incident frequency (TRIF) Per million work hours and 12 months rolling averages 4.0 LTIF TRIF Highlights 3.0 Focus on risk observations Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 8

9 Operational highlights Overall high activity level CLAIR RIDGE JACKETS ELDFISK TOPSIDE Optimising resources in Contractors Norway and International Nytt bilde New gantry crane being installed at Stord Both jackets successfully delivered to BP Final assembly activities on-going GARRISON ENERGY CENTER HEBRON GBS Construction team mobilised on site Slip forming of shafts on-going 9

10 Second quarter financials Eiliv Gjesdal, Chief Financial Officer

11 Income statement Amounts in NOK million Q Q Q YTD 2013 YTD 2012 ¹ FY 2012 Restated Total revenue and other income EBITDA Depreciation and amortisation (17) (16) (15) (33) (31) (66) EBIT Net financial income/(expense) (7) (21) (2) (28) (3) (39) Profit from associated companies and JVs (18) (3) 0 (22) (0) (7) Profit before tax Income tax expense (45) (25) (26) (70) (76) (130) Net profit EBITDA margin 4.5 % 3.5 % 2.8 % 4.1 % 4.5 % 4.5 % Note: Restated figures for previous periods are reflecting impacts from implementing IAS 19R Employee Benefits. Revenues excluding incorporated joint ventures. 11

12 Q2 2013: Upstream review Financials Activity level in Norway increasing Early cycle projects with limited contribution Orders Growth in existing contracts, especially within procurement Revenues, EBITDA and EBITDA margin NOK million Order backlog and order intake NOK million Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 EBITDA-% 4.6% 4.6% 4.5% 3.8% 4.7% Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Revenues EBITDA Order backlog at the end of the quarter Order intake in the quarter Note: All figures include incorporated joint ventures. 12

13 Q2 2013: Downstream & Industrials review Financials Lower activity level than historically expected for 2013 Negative results in the range of NOK million expected for 2013 Revenues, EBITDA and EBITDA margin NOK million Orders Net order intake nil due to scope reduction in a contract for US Steel corp. Order backlog and order intake NOK million Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 EBITDA-% 0.9% 10.4% 2.7% (3.1)% (0.7)% Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Revenues EBITDA Order backlog at the end of the quarter Order intake in the quarter ¹ Figures include net positive effect of NOK 42 million from divestment of EPC Center Houston operations in Q4 12. Historical figures include EPC Center Houston. 13

14 Strong revenue visibility Order backlog estimation by execution year (as of 30 June 2013) NOK million Revenues in excess of NOK 16 billion estimated for & later & later & later Q Q Q Note: All figures include incorporated joint ventures. Booked Booked EBITDA assumptions 2013: Upstream margins impacted by projects from Downstream & Industrials impacted by increased legal costs Corporate costs reduced by NOK 30 million 14

15 Cash flow and working capital development Amounts in NOK million Q Q Q YTD 2013 YTD 2012 FY 2012 Cash flow from operating activities 655 (357) (387) 298 (772) (748) Cash flow from investing activities (40) (21) (19) (61) (58) (91) Cash flow from financing activities (176) (5) (294) (181) (294) (481) Translation adjustments (29) Net increase/(decrease) in cash and bank deposits 441 (364) (699) 77 (1 075) (1 349) Customer pre-payments¹ of NOK 188 million Downstream & Industrials: Capital tied up in the Longview project Upstream: Capital tied up in the Nordsee Ost project Increase in working capital expected during second half of 2013 Net current operating assets (NCOA) NOK million Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Downstream & Industrials Group Upstream ¹ Invoicing in excess of cost and estimated earnings less amounts billed in advance but not received (on a project by project basis). 15

16 Balance sheet Restated FY 2012 Restated Amounts in NOK million Assets Total non-current assets Prepaid company tax Current operating assets Other current assets Total cash and bank Total assets Total equity Non-current interest bearing liabilities Other non-current liabilities Current operating liabilities Current tax liabilities Other current liabilities (0) (0) 0 (0) Total liabilities Total equity and liabilities Equtiy ratio 35 % 38 % 36 % 36 % Net cash

17 Closing remarks The Stord yard with the Eldfisk topside in front and the crane installation on-going. 17

18 On-going improvement initiatives to strengthen competitiveness New operating model implemented Corporate staff reduced by 35 percent Assessing options for the future of the Verdal yard 18

19 Opportunities in all target markets Alaska & Canada Activities on-going to position concrete sub-structures High potential in Newfoundland and Labrador North America Certain wards for gas fired power plants seems to be sliding Steel maintenance market see some reduction in spending North Sea Johan Sverdrup key target Opportunities for completion and hookup projects Caspian Strong future market, uncertain timing Development of delivery model on-going Kashagan expected on-stream in 2013 Arctic Russia Strong future market Studies on-going in in several areas Kara Sea field seismic surveys started Asia Pacific Multiple opportunities within next 24 months Robust delivery model established High activity on studies for Arctic areas Positive medium- and long-term market prospects 19

20 Summary Strong order backlog High activity project execution focus Improving competitiveness and delivery models Predictable dividend policy HSSE core value and licence to operate Maintain and develop home markets International expansion Hands-on management 20

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22 APPENDIX 22

23 The current EPC project portfolio Value at award Mongstad TCM NOK 525M Eldfisk topside NOK 5.5B Nyhamna onshore Edvard Grieg topside Nordsee Ost wind jackets NOK 11B NOK 8B EUR 115M Clair Ridge jackets NOK 1.7B Edvard Grieg jacket NOK 1.1B Martin Linge jacket NOK 1.2B Sakhalin-1 USD 600M Hebron USD 1.5B Kashagan HUC USD 1.6B V&M Star (MEP) Undisclosed Calpine Garrison USD M Contractors Norway Jackets Concrete Solutions Contractors International Onshore Americas 23

24 Revenue distribution Share of revenues 2011 Percent Share of revenues 2012 Percent Share of revenues last 12 months Percent NOK 13.3 billion NOK 10.7 billion NOK 11.9 billion Contractors International Onshore Americas Concrete Solutions Jackets Contractors Norway 24

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