Second quarter results 2011

Transcription

1 Second quarter results 2011

2 Highlights for the second quarter 2011 General One fatality in the quarter Kvaerner listed on Oslo Børs 8 July 2011 Financing successfully completed Gudrun jacket delivered on schedule and successfully installed Financial Revenues of NOK 3.9 billion reflecting very high activity in the International and North Sea business areas EBITDA of NOK 192 million with an EBITDA margin of 4.9% Net cash of NOK 1.7 billion Kashagan Hook-up project reached completion milestone in June 2

3 Kvaerner a dedicated EPC company UPSTREAM DOWNSTREAM & INDUSTRIAL CONCRETE JACKETS NORTH SEA INTERNATIONAL E&C AMERICAS Global leader in gravity based concrete structures European leader in steel jackets Leading EPC contractor to the North Sea market Spearhead for international expansion A leading EPC contractor for the American market Concrete substructures Large steel jackets for oil & gas installations Wind jackets Topsides Floaters Onshore upstream facilities Topsides Floaters Onshore upstream facilities Onshore facilities Power plants Steel mills 3

4 Key financial indicators Revenues NOK million EBITDA NOK million Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q2'10 Q3' Q4' Q1' Q2' Net current operating assets NOK million Q2'10 Q3'10 Q4'10 Q1'11 Q2'11

5 Order intake and backlog Order intake NOK million Order backlog NOK million Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 0 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 5

6 Second quarter operations

7 Health, Safety and Environment Sakhalin-1 project Fatal fall accident in June More than 5 million hours without lost time incidents prior to the accident Gudrun jacket delivered on time without any lost time incidents Lost time incident frequency (LTIF) Per million work hours 1,5 1 0,5 0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total recorded incident frequency (TRIF) Per million work hours 5,0 4,0 3,0 2,0 1,0 0,0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 7

8 Upstream North Sea Operations Market Skarv FPSO in-shore contract completed in August Eldfisk project in the start-up phase Kollsnes: hook up of the second MEG train to be completed in Q3 Mongstad Test Center mechanical complete in June testing to commence towards end of the year Lower capacity utilisation at the Stord yard in 2H 2011 High bidding activity and several prospects in the pipeline 8

9 Upstream Jackets Operations Gudrun jacket delivered on schedule and successfully installed High activity on Clair Ridge project - fabrication commenced in June Ekofisk 2/4L jacket execution ongoing Nordsee Ost wind jackets assembly started at yard Market Two FEEDs completed in July High bidding activity Other Verdal yard upgrades ongoing 9

10 Upstream Concrete Operations Sakhalin-1 reached important milestone slip forming of shafts completed Hebron FEED and site preparations ongoing Market Feasibility studies ongoing for field development in Far East Russia Ongoing business development activities in several markets 10

11 Upstream International Operations Last milestone on the Kashagan Hook-up project successfully reached demobilisation has started First test module according to NORSOK standards fabricated at the COOEC yard - valuable experiences gathered Market Kvaerner one of two contractors working on the FEED for Browse LNG Other studies ongoing 11

12 Downstream & Industrials E&C Americas Operations The Longview plant has produced power and is in the final commissioning phase The Gulf LNG Energy, LLC regasification project is in the final commissioning phase and is expected to be substantial complete in Q3 V&M seamless pipemill installation project preparing for construction activities in Q3 Longview: August 2007 Longview: May 2011 Market High bidding activity and several upcoming prospects A number of smaller studies and FEEDs awarded 12

13 Second quarter financials Eiliv Gjesdal, Chief Financial Officer

14 Income statement NOK million Q Q YTD 2011 YTD Revenues EBITDA 192 (35) Depreciation and amortisation (12) (13) (24) (26) (54) EBIT 180 (48) Net financial items (5) 6 (6) (14) (30) Profit before tax 177 (43) Tax (155) 24 (285) (53) (330) Net profit 22 (19) EBITDA margin 4.9% (1.2)% 8.6% 4.1% 3.7% EBITDA negatively affected by Blind Faith loss of NOK 165 million and Longview loss provision of NOK 278 million Future financial expenses will be affected by a NOK 50 million fee for the established loan facilities to be distributed over the duration of the facilities Effective tax rate extraordinary high, mainly due to no tax asset being recognised for the negative results in Downstream & Industrials 14

15 Q2 2011: Upstream review Financials High activity on the Skarv FPSO and Kashagan Hook-up projects EBITDA effect of NOK 165 million from Blind Faith arbitration ruling Lower activity level in the second half of 2011 expected Orders Mainly growth in existing contracts Revenues, EBITDA and EBITDA margin NOK million Order backlog and order intake NOK million Q2'10 Q3'10 Q4'10 Q1'11 Q2' Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 EBITDA-% 1.7% 10.7% 13.8% 15.6% 15.4% Revenues EBITDA Order backlog Order intake 15

16 Q2 2011: Downstream & Industrials review Financials Loss provision of USD 50 million (NOK 278 million) booked on the Longview project Adjusted for the provision and legal costs on the Longview project, the segment was breaking even in Q2 Orders Seamless pipe mill installation project for V&M Star LP awarded in April Revenues, EBITDA and EBITDA margin NOK million Order backlog and order intake NOK million Q2'10 Q3'10 Q4'10 Q1'11 Q2' Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 EBITDA-% -5.8% -13.1% -34.8% 0.4% -87.0% Revenues EBITDA Order backlog Order intake (1) The CAD 400 million contract with TransCanada for a gas fired power plant was removed from the backlog in Q

17 Cash flow and working capital NOK million Q Q YTD 2011 YTD Net CF from operating activities (35) (219) 796 (711) (645) Net CF from investing activities (64) (13) (106) (30) (26) Net CF from financial activities (1 533) 517 (1 529) Translation adjustment (119) 183 (62) Net +/- in cash and bank deposits (1 751) 468 (901) (392) (269) Net current operating assets (NCOA) NOK million Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Downstream & Industrials Kvaerner Group Upstream The EPC business is cash positive through negative working capital Up-front payments and milestone payments NCOA is fluctuating with project portfolio Fluctuations can be as much as NOK 500 million to NOK million during a month 17

18 Balance sheet NOK million * * Total non-current assets Current tax receivables Current operating assets Cash and cash equivalents Total assets Total equity Total non-current liabilities Current tax payables Current operating liabilities Total liabilities related parties Total liabilities Total liabilities and equity Equity ratio 28% 23% 40% Net cash The NOK 3.0 billion credit facility fully syndicated prior to listing and un-drawn at the end of Q2. The NOK 500 million term loan is expected to be drawn during Q3. 18 *The reduction in Cash and cash equivalents is mainly related to settlement of inter-company positions, including group contribution to Aker Solutions and dividends settled in cash prior to the consummation of the Demerger. Please see Section 7 in the listing prospectus for further information.

19 Shareholder structure 70% 30% Aker Kværner Holding AS 41.02% Long term strategic ownership by Aker Kværner Holding AS Kvaerner has shareholders in 68 countries USA 23% Norway 15% Great Britain 10% Luxembourg 5% Sweden 1% Denmark 1% Top 20 shareholders hold 74% of the shares Source: VPS 19

20 Summary and closing remarks Jan Arve Haugan, Chief Executive Officer

21 Summary and closing remarks Second quarter 2011 Successful projects delivered on schedule: Gudrun jacket Kashagan Hook-up Skarv FPSO in-shore scope High bidding activity in all business areas Healthy financial position HSE core value and licence to operate Maintain and develop home markets International expansion Hands-on management 21

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23 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. 23