Sparebank 1 Markets Energy Conference. Idar Eikrem, EVP & CFO 28 February 2018

Transcription

1 Sparebank 1 Markets Energy Conference Idar Eikrem, EVP & CFO 28 February

2 Well positioned for future market opportunities 1) Leading contractor with proven track record 2) Competitive position strengthened a) Delivering projects predictably: Safely, on time, with right quality b) Improved cost position 3) Near term market opportunities in selected regions 4) Solid financial platform 2

3 Delivering complete solutions Traditional segments Growth segments 3

4 Kvaerner s core expertise FEED E P C HUC & I DECOM Concept development / FEED Engineering management Procurement Project Management Project management Fabrication Assembly Assembly 4 Hook-up and commissioning Tow-out, installation, production start

5 All current projects on track Johan Sverdrup DP jacket Johan Sverdrup P1 jacket Johan Sverdrup utility and living quarters topside Valhall Flank West Njord A upgrade Johan Sverdrup RP HUC Aasta Hansteen completion assistance Decommissioning projects 5

6 Key financials Field Development segment Revenues NOK million Adjusted EBITDA NOK million Order backlog NOK million

7 Predictable deliveries 26 quarters in a row Revenue Field Development Adjusted EBITDA margin NOK billion Margin % 5.5 Average adjusted EBITDA margin Average adjusted EBITDA margin last 12 quarters ,7 5 4, ,9 4,1 4,2 4,2 4 3,8 3,8 12 3,6 3, ,3 3, ,8 2,6 2,5 2,7 2,1 2,2 2, ,2 2 2, ,7 1, Q3'11 Q1'12 Q3'12 Q1'13 Q3'13 Q1'14 Q3'14 Q1'15 Q3'15 Q1'16 Q3'16 Q1'17 Q3'17 7

8 Balance sheet Cash flow Revenues & EBITDA Solid financial platform Improved quality performance Reduced admin costs / improved competitiveness Full year 2018 revenues expected at NOK 6-7 billion 2017 cash flow from operations of negative NOK 113 million due to working capital movements 2017 cash flow from investing activities of NOK 93 million Annual maintenance capex of NOK million Investments in new quay and facilities at Stord of NOK 370 million Net cash of NOK 2.8 billion Negative working capital of NOK 650 million Robust capital structure with NOK 2.0 billion in undrawn facilities 8

9 Investing to increase productivity and flexibility 9

10 Market outlook Short term: Field development market levelling out Longer term: Potentially some decline in traditional markets for large new platforms Increasing opportunities for smaller new platforms and in growth segments 10

11 Market Traditional segments Growth segments Traditional segments: Award of some key prospects expected in 2018 and 2019 Strengthened competitiveness enables maintained/increased market share & international opportunities Growth segments: Use upcoming contract prospects to develop targeted growth segments 11

12 Harvesting improvement effects, implementing further steps Improved delivery model Streamlined organisation Reduced internal costs Reduced project cost base Joint initiatives with clients Increased productivity Quality improvements Digitalisation 12

13 Concluding remarks Execute ongoing projects safely and predictably Further improve competitiveness Maintain and develop home markets, grow adjacent segments and regions Develop products and consider structural growth opportunities Johan Sverdrup drilling platform jacket being finalised. 13

14 Topsides, floaters & onshore facilities Jackets Concrete solutions 14

15 Copyright and disclaimer Copyright Copyright of all published material including photographs, drawings and images in this document remains vested in Kvaerner and third party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor used in any manner without express prior permission and applicable acknowledgements. No trademark, copyright or other notice shall be altered or removed from any reproduction. Disclaimer This Presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this Presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for Kværner ASA and Kværner ASA s (including subsidiaries and affiliates) lines of business. These expectations, estimates and projections are generally identifiable by statements containing words such as expects, believes, estimates or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for Kvaerner s businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time in the Presentation. Although Kværner ASA believes that its expectations and the Presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Presentation. Kværner ASA is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither Kværner ASA nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use. 15