Second quarter results July 2018

Transcription

1 Second quarter results July 2018

2 Second quarter 2018 Highlights Operations and results on track Contract for Sverdrup riser platform modification in JV with Aker Solutions Valhall Flank West start-up After quarter end: Process platform jacket completed High activity at the Stord yard. 2

3 Globally recognised for predictable deliveries: All current projects on track Johan Sverdrup utility and living quarters topside Njord A upgrade Aasta Hansteen completion assistance Johan Sverdrup Riser Platform hook-up Johan Castberg FPSO Decommissioning projects Nord Stream 2 Valhall Flank West 3

4 HSSE results Lost time injury frequency (LTIF) & total recordable injury frequency (TRIF) Per million worked hours (12 months average) LTIF TRIF

5 Order intake and backlog Order intake NOK million Order backlog NOK million % 41% % Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 0 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 5 Note: All figures include scope of work of jointly controlled entities. Estimated scheduling as of : For execution in 2018 For execution in 2019 For execution in 2020+

6 Second quarter financials Idar Eikrem, Chief Financial Officer

7 Field Development review Results reflect phasing of projects and projects in early phase not yet recognising margin Outlook for 2018 maintained with full year gross revenue of more than NOK 7 billion and full year EBITDA margins lower than in 2017 Revenues NOK million EBITDA NOK million Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Note: All figures include Kvaerner s scope of work of jointly controlled entities 0 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 EBITDA-% 11.6% 15.1% 12.7% 10.6% 6.4% 7

8 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Cash flow and working capital development Amounts in NOK million Q Q Q YTD 2018 YTD 2017 FY 2017 Cash flow from operating activities 336 (14) (34) 322 (85) (113) Cash flow from investing activities (80) (26) (10) (106) (17) (93) Cash flow from financing activities (9) (2) (4) (11) (8) (27) Translation adjustments (1) (5) 0 (6) (1) (1) Net increase/(decrease) in cash and bank deposits 245 (46) (47) 199 (111) (234) Negative working capital of NOK 703 million Fluctuations in working capital must be expected Capital tied up in the Nordsee Ost project Net current operating assets (NCOA) Continuing operations (NOK million) - (500) (1 000) (1 500) (2 000) 8

9 Market and outlook 9

10 Market Traditional segments Growth segments Traditional segments: Short term: A few key prospects expected decided in 2018 and 2019 Longer term: Anticipates several prospects for satellite fields and green field developments in Barents Growth segments: A number of prospects are being pursued 10

11 Q2 summary Operations and results on track Some few and important prospects for award 2018 / 2019 Robust financial platform Way forward Execute projects safely and predictably Further improve competitiveness Maintain home markets, develop growth segments and regions Develop products and consider structural growth opportunities 11

12 Topsides, floaters & onshore facilities Jackets Concrete solutions 12

13 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. 13