Maersk Drilling Q November 2015

Transcription

1 Maersk Drilling Q November 2015

2 page 2 Legal notice This presentation contains certain forward looking statements (all statements that are not entirely based on historical facts, among others expectations to future financial performance, developments, resources growth and production levels). Those forward looking statements reflect current views on future events and are by their nature subject to significant risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. We consider such forward looking statements reasonable based on the information available to us at this time, but the actual results etc. may differ materially from our expectations because of external factors as well as changes to APMM s goals and strategy. Thus, no undue reliance should be placed on such statements. Neither APMM, nor any other person, shall assume responsibility for the accuracy or completeness of the forward looking statements and do not undertake any obligation to update such statements except as required by law. This Legal Notice shall be governed by Danish Law. Any dispute arising out of or in relation to this Legal Notice which can not be solved amicably shall be decided by the Danish Courts.

3 Result positively impacted by fleet growth, cost savings and high operational uptime but negatively affected by increased idle time page 3 Financial Highlights (USDm) Highlights Q Q Revenue Profit/loss before depreciation, amortisation and impairment losses etc. (EBITDA) Depreciation, amortisation, and impairment losses Gain on sale of non-current assets, etc., net Share of profit/loss in joint ventures - 8 Profit/loss before financial items (EBIT) Tax Net operating profit/loss after tax (NOPAT) Cash flow from operating activities Cash flow used for capital expenditure Invested capital 8,092 7,710 ROIC 9.0% 10.7% Operational uptime 97% 97% Maersk Drilling result Maersk Drilling delivered a profit of USD 184m (USD 192m) Maersk Drilling increased the underlying profit by 46% to USD 172m (USD 118m) positively impacted by cost savings, fleet growth, and strong operational performance ROIC was 9.0% (10.7%) The initiated cost reduction program delivered savings of more than 10% on the operating cost level in Q compared to Q The average operational uptime was 97% (97%) for the jack-up rigs and 98% (96%) for the floating rigs Maersk Drillings forward contract coverage was 85% for the remaining part of 2015, 70% for 2016 and 49% for 2017 Two new contracts and four contract extensions added USD 1.1bn to the revenue backlog in Q The total revenue backlog amounted to USD 5.8bn (USD 6.6bn) Maersk Drilling recycled its oldest jack-up rig, the Maersk Endurer

4 Continued strong operational performance page 4 Operational uptime, Q vs. Q Operational uptime, 5 years 100% 100% 97% 97% 96% 98% 97% 97% 96% 96% 93% 97% 97% 97% 80% 80% 60% 60% 40% 40% 20% 20% 0% Maersk Drilling Floating rigs Jack-up rigs 0% Q Q Q3 2015

5 High forward coverage reduces near term exposure page 5 Maersk Drilling forward contract coverage 100% 80% 85% 60% 70% 40% 49% 20% 0% Note: As per end Q3 2015

6 Strong revenue backlog of USD 5.8bn with quality customers page 6 Revenue backlog by year, end Q3 2015, USDbn Revenue backlog by customer, end Q Others 2,5 Chevron BP 2,0 ~1,9 ConocoPhillips 7% 4% 3% 1,5 1,0 0,5 ~0,6 ~1,4 ~1,0 ~0,9 Total ExxonMobil ENI Ghana Det norske 7% 8% 10% 10% USD 5.8bn 14% 37% Statoil 0,0 RoY

7 Maersk Drilling has secured USD1.1bn in new contracts and extensions during Q page 7 MAERSK RESILIENT Customer: Country: Contract Value (USD) Duration: Maersk Oil Denmark 110m 3 years MÆRSK INNOVATOR Customer: Country: Contract Value (USD) Duration: ConocoPhillips Norway 142m 16 months MAERSK RESOLVE Customer: Country: Contract Value (USD) Duration: DONG Energy Denmark 28m 250 days MÆRSK GIANT Customer: Country: Contract Value (USD) Duration: DONG Energy Denmark 16m 150 days HEYDAR ALIYEV Customer: Country: Contract Value (USD) Duration: BP Azerbaijan 523m 5 years MAERSK DISCOVERER Customer: Country: Contract Value (USD) Duration: BP Egypt Undisclosed 3 years

8 Cost savings program Our commitment to enhancing resiliency has enabled a 10% cost reduction compared to Q page 8 OPERATIONAL EXPENDITURES YARD STAYS ADMINISTRATIVE & OVERHEAD, LOCATION COSTS STRATEGIC APPROACH TO STACKING Leaner maintenance & project management, procurement savings, travel expense reductions, general efficiency programmes Optimisation of yardstays, rolling maintenance evaluation, predictive maintenance & real-time monitoring Refitting the head office, expat position localisation, consultants, travel & benefits efficiencies realised Evaluate on a case-bycase basis, aggressively pursue new contracts & extensions, rigorously re-evaluate stacking cost levels

9 XLE-4 Customer: BP page 9 Country: Norway Contract value: USD 812m Duration: Five years Newbuild programme Maersk Drilling will take delivery of its last ultra harsh environment jack-up, XLE-4, from Daewoo Shipbuilding and Marine Engineering (DSME) shipyard in South Korea in 2016

10 Maersk Drilling Present in the most important oil and gas markets page 10 US Gulf of Mexico 3 ultra deepwater floaters North West Europe 8 ultra harsh jack-up rigs 3 premium jack-up rigs Caspian Sea 1 midwater floater Ghana 1 ultra deepwater floater Angola 1 ultra deepwater floater Egypt 1ultra deepwater floater Egyptian Drilling Company 50/50 Joint Venture South East Asia 2 premium jack-up rigs Under construction 1 ultra harsh jack-up rig Available 1 ultra deepwater floater 1 ultra harsh jack-up Note: Maersk Drilling decommissioned the Maersk Endurer in July 2015

11 Market page 11 The offshore drilling industry is facing significant challenges over the medium-term, due to the on-going low oil price environment and the continued need for resolution of the structural imbalance in global rig supply & demand. Globally, offshore drilling companies are expected to continue to face significant headwinds, and the current market is fairly characterised as providing very low visibility to drilling operators. While oil traded above $60 per barrel for much of the second quarter, Brent Crude has since trended down to below $50 per barrel as of the end of the third quarter as global oil supply remains significantly above global oil demand. The market continues to deteriorate further with additional announced cutbacks in oil company E&P capital expenditures, headcount reductions, and postponements or outright cancellations of existing offshore field developments. The offshore drilling space is responding by undertaking large headcount reductions through operational & financial efficiency programs, as well as delaying scheduled newbuild rig deliveries and stacking an increasing number of rigs. In addition, declining utilization levels and forward contract coverage are further indications that a historic level of scrapping activity is required over the coming years to bring balance back to the rig market. Tendering activity continues to be very limited.

12 Maersk Drilling Moving boundaries within offshore drilling page 12