Pareto s oil and offshore conference. Jan Arve Haugan, President & CEO

Transcription

1 Pareto s oil and offshore conference Jan Arve Haugan, President & CEO

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

3 175 th anniversary: Leading contractor with proven track record: CONCRETE SOLUTIONS JACKETS TOPSIDES ONSHORE Global leader in gravity based concrete structures European leader in steel jackets Leading EPC contractor to the Norwegian Shelf Leading Norwegian EPC contractor for offshore plants Substructures Steel jackets Topsides Upstream plants CONDEEP TM GBS Floating concepts LNG terminals Other steel structures Piping technology Floating platforms Hook up Completion Treatment facilities employees in 8 countries Revenues of NOK 12 billion (2015) Order backlog of NOK 10.2 billion (as of 30 June 2016) 3

4 Our competitive edge: HSSE - Expertise - Execution model - Predictability GOOD HSSE OUR LICENCE TO OPERATE PREDICTABLE DELIVERY Photo: Lundin Norway FEED E Engineering P Procurement C Construction Hook-up & completion ENGINEERS AND PROJECT MANAGERS WITH EXTENSIVE EXPERIENCE MARTIN LINGE SECIALISED FACILITIES AND IN-HOUSE YARDS 4

5 Delivering as committed: All projects on track for predictable delivery Johan Sverdrup: EPC contracts for the Riser, Drilling and Process platform steel jackets Johan Sverdrup: EPC for the utility and living quarters topside Nyhamna: EPCM onshore contract with options for Maintenance and Modifications to Hebron: Detailed engineering, procurement, construction and installation (EPCI) of GBS Marine installation Njord A: Frame agreement for for upgrading of the semi-submersible platform Aasta Hansteen: A sub-contract to provide services for inshore and offshore hook-up and commissioning assistance for the topsides 5

6 Use of funds Balance sheet Revenues & EBITDA Solid financial platform Activity level estimated at around NOK 10 billion for 2016 Improved project portfolio EBITDA margin increase in 2016 vs Net cash of NOK 2.5 billion Robust capital structure with NOK 2.0 billion in undrawn facilities Working capital of negative NOK 1.47 billion 2016: Capex of NOK 200 million incl. 3 new cranes Annual maintenance capex of NOK million Strategic development Note: All figures as reported in 2 nd quarter

7 Documented improvements of competitiveness: Further improvements may trigger more new projects Joint industry improvement initiatives Reducing internal costs by NOK 250 million ( ) More effective execution model Dialogue re-new step changes with selected clients 15% improved cost base by Q New operating model Reductions to capacity and administration Refined and leaner organisation Most Norwegian operations in one unit 7

8 Market: Focus on selected geographic regions Near term market Studies and FEEDs ongoing Some few but important prospects of moderate size: Completion, hook-up and commissioning, decommissioning, modifications Greenfield / brownfield EPC for offshore platforms and onshore facilities 8

9 Based on core competence, solid financial platform and credibility in the market Strategic development Leading EPC & HUC contractor 9

10 Well positioned for future market opportunities Safe and predictable execution Competitive position strengthened Solid financial platform Pursuing specific prospects Interesting strategic opportunities HSSE core value and licence to operate Maintain and develop home markets Develop global delivery model for Norway and abroad Hands-on management 10

11 11

12 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. 12