MODEC, Inc Half-Year Financial Results Analysts Presentation. August 4, 2017

Transcription

1 MODEC, Inc. 217 Half-Year Financial Results Analysts Presentation August 4, 217

2 MODEC, Inc. 217 Half-Year Financial Results Highlight Market Review & Outlook Financial Results 2

3 217 Half-Year : Highlight Revenue Operating Profit Ordinary Profit Profit Attributable to Owners of Parent 1H 2H H 2H (.2) (.8) (2.1) (5) EPC(I) of FPSO/FSO progressed on track Operating profit, ordinary profit, and profit attributable to owners of parent exceeded the results of the same period last year Interim dividend 2 yen per share, annual dividend 4 yen per share (planned); Dividends to increase in 13 consecutive years 3

4 217 Half-Year : Highlight FPSO Baobab Ivoirien MV1 ENI Coral South FLNG internal turret FSO Rang Dong MV17 FPSO Song Doc Pride MV19 Client CNR Client TechnipFMC/JGC Client JVPC Client PVEP Field Baobab (Côte d'ivoire) Field Coral South (Mozambique) Field Rang Dong (Vietnam) Field Song Doc (Vietnam) Charter 25~ Contract EPC Charter 28~ Charter 28~217 Charter extended Firm 5 years + 16 one-year options (January 217~) Delivery 22 2H SOFEC awarded Turret Mooring System Supply Contract Charter extended Firm 7.5 years + 3 one-year options (November 217~) Charter completed in June 217 4

5 217 Half-Year : EPC(I) (as of end-june 217) FSO Ailsa FPSO Cidade de Campos dos Goytacazes MV29 Stampede TLP Client Maersk Oil Client Petrobras Client Hess Contract EPC Contract EPCI + Charter (2 yrs) Contract EPCM Field Culzean (UK) Water depth 9 m Production 25, bpd inlet Storage 35, bbls Delivery planned for 218 1H Field Tartaruga Verde & Tartaruga Mestiça (Brazil) Water depth 765 m Production 15, bpd, 176 mmscfd Storage 1,6, bbls Delivery planned for 217 2H Field Stampede (US GOM) Water depth 1,67 m Production 8, bpd, 4 mmscfd Delivered in June 217 5

6 EPC(I) / Charter / O&M Period As of August 217 EPC(I) period Time Charter fixed period Time Charter option period O&M period Culzean FSO (EPC) Maersk 2 Stampede TLP (EPCM) Hess FPSO Cidade de Campos dos Goytacazes MV29 Petrobras FPSO Cidade de Caraguatatuba MV27 Petrobras FPSO Prof. John Evans Atta Mills Tullow 2y 2y 1y FPSO Cidade de Itaguai MV26 Petrobras 2y FPSO Cidade de Mangaratiba MV24 Petrobras 2y FPSO Cidade de Sao Paulo MV23 Petrobras 2y FPSO Cidade de Angra dos Reis MV22 Petrobras 8 5. FPSO Cidade de Santos MV2 Petrobras 15y 12y FPSO Cidade de Niteroi MV18 Petrobras FSO Rang Dong MV17 JVPC FPSO Song Doc Pride MV19 PVEP 9y 9y 6.5y 7.5y FSO Cidade de Macae MV15 Petrobras 2y FPSO Cidade do Rio de Janeiro MV14 Petrobras FSO Rong Doi MV12 KNOC 8y 7y FPSO Baobab Ivoirien MV1 CNR FPSO MODEC Venture 11 Santos 1y 5y 5y (17) 4. FPSO Stybarrow Venture MV16 available 7y+ 1 FPSO Raroa OMV 15y 2 FPSO Kwame Nkrumah MV21 Tullow 1y 3 FPSO Pyrenees Venture BHPB 15y 4 FPSO Fluminense Shell 17.5y Owned by MODEC group companies (%) Affiliates accounted for by the equity method Consolidated subsidiary 6

7 R&D FSRWP FSRWP Floating Storage Regasification Water-Desalination & Power-Generation FSR-Power (Power only) FSR-Water (Water only) 7

8 MODEC, Inc. 217 Half-Year Financial Results Highlight Market Review & Outlook Financial Results 8

9 Q1 212 Q1 213 Q1 214 Q1 215 Q1 216 Q1 217 Q Market Review Oil Supply & Consumption Oil Demand & Price Breakeven Improvement Million bpd 15 Million bpd 5 Million bpd 12 3 Breakeven improvement of a best-in-class non-sanctioned offshore development Forecast Supply (left axis) Implied stock change (right axis) Consumption (left axis) Oil demand Oil price 25 2 USD/ bbl USD/ bbl Downsizing and simplification Unit prices Improved design and reduced contingencies High grading and efficiency gains Seismic Well Services and Commodities Drilling Contractors Subsea EPCI Maintenance and Operations Currency gains Source: Short -Term Energy Outlook (EIA) Source: World Energy Outlook 216 (IEA) Source: Rystad Energy Research and Analysis 9

10 FPSO Awards (214~217 1H) FPSO Awards & Oil Price Total Kaombo Extra Small ~1K bpd Small >1~5K bpd Mid >5~1K bpd Large >1K bpd Africa Brazil Asia Europe Latin America Middle East ENI East Hub Total Kaombo YFP Aje ENI OCTP BW Dussafu Perenco Yombo USD/ bbl 1 Petrobras Tartaruga Verde Petrobras Libra EWT Oil prices stabilized at $5/bbl level; Order intake is in recovery mode 5 JX Nippon Husky Layang Madura BD QGEP Atlanta PetroChina Salawati Island Vestigo Anjung Kecil WTI Octanex Repsol Ophir Ca Rong Do Premier Catcher Petroleum Iran South Pars ExxonMobil Liza H Source: Prepared by MODEC based on 217 Q3 FPS Outlook Report (EMA), EIA 1

11 Main Prospective Projects (as of August 217) North America & Gulf of Mexico Africa Asia & Pacific Latin America Ghana FPSO (Charter) Indonesia FPSO (Charter) India FPSO (Charter) Brazil FPSO (Charter) FPSO (Charter) FPSO (Charter) 11

12 FY217 : Outlook Revenue Operating Profit Ordinary Profit Profit Attributable to Owners of Parent Assumed exchange rate for FY217: 15 yen/usd 217 2H MV29 to start charter service MV25 s deferred profit to be recognized FPSO Cidade de Campos dos Goytacazes MV29 FPSO Prof. John Evans Atta Mills (MV25) 12

13 MODEC, Inc. 217 Half-Year Financial Results Highlight Market Review & Outlook Financial Results 13

14 Profit & Loss 216 1H 217 1H Variance Million JPY Revenue 14,31 11,719 (2,312) Gross Profit 7,758 9,565 1,87 Selling, General and Administrative Expenses 5,413 6,822 1,49 Operating Profit 2,344 2, Other Income (A) 9,266 7,31 (1,965) Gross profit increased by 1.8 billion yen year-on-year mainly due to profit improvement in O&M business Secured operating profit despite the recognition of unrealized profit slipping into 217 2H Other Expenses (B) 5,542 1,798 (3,744) Total Other Income/Expenses (C=A-B) 3,724 5,53 1,779 (Equity in Earnings of Affiliates and Unconsolidated Subsidiaries included in C) (Exchange gain/loss and Gain/loss on revaluation of derivatives included in C) 3,773 3,647 (126) (1,785) (84) 981 Ordinary Profit 6,69 8,246 2,177 Extraordinary Profit Extraordinary Loss Income before Income Taxes and Noncontrolling Interests 6,69 8,983 2,914 Profit Attributable to Owners of Parent 4,45 6,326 1,921 Foreign exchange loss decreased due to less fluctuations in foreign exchange compared to the same period last year Recorded extraordinary profit in relation to liquidation and share sales of affiliated companies Exchange Rate (USD) ( 9.) 14

15 New Orders / Revenue / Order Backlogs New Orders Revenue Order Backlogs 1, Stampede MV27 MV29 EPC(I) period FSO Ailsa Coral South Order backlogs for MODEC Group s share in the Lease, Charter and O&M services of the affiliates accounted for by the equity method MV25 MV MV OSX H H H H 15

16 Ordinary Profit Influence of Deferred/Realized Profits Ordinary Profit (as if consolidating affiliates basis) Deferred Realized Balance H A A + B + C A : Consolidated Ordinary Profit B : Ordinary Profit (equity method portion) C : Influence of Deferred/Realized Profits (5) (1) H 16

17 Balance Sheet H Variance Million JPY Accounts Receivable - trade 95,544 11,921 6,377 Short-term Loans Receivable 55,12 68,836 13,824 Total Current Assets 218,42 231,355 13,313 Property and Equipment 14,161 12,294-1,867 Intangible Assets 7,42 7, Investments and Other Assets 93,624 94,89 1,185 Total Fixed Assets 115,26 114, Total Assets 333, ,569 12,32 Construction loans to SPCs increased Asset value decreased in JPY due to depreciation of US dollars Investments and other assets increased due to capital injection to MV H Variance Accounts Payable - trade 96,738 93,768-2,97 Short-term Loans Payable 7,812 33,153 25,341 Total Current Liabilities 142, ,652 22,116 Long-term Loans Payable 42,478 33,422-9,56 Total Long-term Liabilities 56,12 48,467-7,635 Total Liabilities 198, ,119 14,48 Total Shareholders Equity 118,2 123,469 5,269 Total Accumulated Other Comprehensive Income 4,849-2,363-7,212 Minority Interests in Consolidated Subsidiaries 11,56 11, Total Net Assets 134,69 132,449-2,16 Total Liabilities, Net Assets 333, ,569 12,32 Short-term loans payable increased in response to the construction loans to SPCs Long-term loans payable decreased due to scheduled loan repayments Foreign currency translation adjustments decreased due to depreciation of US dollars 17

18 Key Financial Indicators EBITDA Interest-Bearing Debt EBITDA (after adjustment*) Total interest-bearing debt (after adjustment*) EBITDA Interest Coverage Ratio X times Total interest-bearing debt/ebitda X times H H *Adjustment: Adding MODEC group s share in affiliates accounted for by the equity method ROE ROA Equity Ratio. % % % Equity H H H 18