Interim Results. For the six months ending 30 June 2015

Transcription

1 Interim Results For the six months ending 30 June 2015

2 Interim Results agenda Financial Review Carole Cran, CFO Operating Review & Outlook Chris Weston, CEO 2

3 Financial Review Carole Cran, CFO 3

4 First half financial performance Underlying revenue down 2% 1H15 1H14 Reported Change Underlying Change Underlying trading profit down 22% Underlying trading margin 15% DEPS down 19% Dividend in line with last year 70m reduction in net debt since June 2014 Revenue % (2)% Revenue excl. pass-through fuel % (2)% Trading profit (18)% (22)% Operating profit (17)% Net interest expense (13) (10) (39)% Profit before tax (21)% Tax (27) (33) 20% Profit after tax (22)% Diluted earnings per share 29.6p 36.5p (19)% Dividends per share (declared) 9.4p 9.4p - Net Debt at period end 467m 537m 70m Underlying excludes pass-through fuel and currency translation. 4

5 Strong cashflow and balance sheet Strong operating cashflow 6 Months to June Months to June 2014 Debtor days improved in Power Projects and in line with year end in Local Fleet age maintained at around 5 years Strong net debt to EBITDA of 0.8x provides flexibility for the future Operating Profit Depreciation EBITDA Working Capital (1) (61) Other 1 2 Operating Cash Flow Tax (37) (30) Net Interest (13) (9) Purchase of Fixed Assets (147) (121) Proceeds from Fixed Asset Disposals 5 4 Free Cash Flow Dividends (45) (46) Return of Value & Changes in Equity 1 (196) Net Cash Flow 19 (185) Exchange 8 11 Movement in Net Debt 27 (174) 5

6 Capital allocation discipline maintained Utilisation continued to improve in both businesses 32m of Local 1MW diesel capex funded from Power Projects Local Business Fleet At 30 June (MW) ,929 4, G3+ highly efficient diesel engine refurbishments completed Full year fleet capex flexed down to 270m reflecting current trading conditions 2014 Power Projects Fleet At 30 June (MW) 4,654 4,929 Diesel Gas HFO Average utilisation Fleet Capex / Fleet Depreciation Local Business Power Projects 1H15 1H14 1H15 1H14 61% 60% 78% 74% 91% 110% 123% 64% ,920 4,918 Diesel Gas HFO Fleet Capex 62m 68m 76m 39m 6

7 Operating Review & Outlook Chris Weston, CEO 7

8 Highlights and lowlights Highlights Good performance in EMEA; successful European Games Number of key extensions secured in Power Projects; strong order book Growth in South Africa, Middle East, COEUR and South Korea Maintained capital discipline and flexibility; balance sheet strong Lowlights Challenging market environment in APAC, lower than expected Bangladesh extension rate Slowdown in oil and gas sector, particularly in North America Subdued trading conditions in South America, Northern Europe and Australia Security concerns continue in handful of markets; Yemen in particular 8

9 Americas impacted by slowdown in oil & gas Local business down 2% driven by slowdown in oil and gas Power Projects down 15% as lower running in Panama and continued Military off hires Underlying margins and returns impacted by oil and gas Secured 150MW of new work and 300MW of contract extensions in Argentina 1H15 1H14 Reported Change Underlying Change Local % (2)% Power Projects (12)% (15)% Revenue (3)% (7)% Trading Profit (27)% (29)% Trading Margin 15% 19% ROCE 17% 20% Revenue by sector 1H15 Events Services Mining Oil & Gas Petrochemical & Refining Manufacturing Utilities Military Other 6% 3% 9% 5%4% 19% 34% 15% 5% Underlying excludes currency translation 9

10 Challenges remain in APAC Local business flat with AusPac rate of decline attenuating Power Projects down 28% driven by pricing pressure in Bangladesh and lower volumes in Indonesia 124MW of new work and key extensions in Bangladesh and Japan secured 1H15 1H14 Reported Change Underlying Change Local (3)% -% Power Projects (21)% (28)% Revenue (14)% (17)% Trading Profit (46)% (49)% Trading Margin 12% 19% ROCE 13% 17% Revenue by sector 1H15 Mining Oil & Gas Construction Contracting 12% 14% 6% 3% 5% Shipping 6% Utilities 54% Other Underlying excludes currency translation 10

11 Good performance in EMEA Local business up 12%; successful delivery of first European Games Power Projects up 8% driven by strong contract wins in 2014 Margins and returns impacted by higher mobilisation costs from new work 87MW new work secured and multi year contract extension in Ivory Coast 1H15 1H14 Reported Change Underlying Change Local % 12% Power Projects % 8% Revenue % 10% Trading Profit % -% Trading Margin 17% 19% ROCE 20% 23% Revenue by sector 1H15 115MW of 260MW extensions secured in Mozambique, expect to extend balance in Q3 Events Services Mining Oil & Gas Construction Contracting Utilities Manufacturing Other 10% 5% 43% 9% 5% 4% 6% 5% 13% Underlying excludes currency translation and pass through fuel 11

12 Summary Outloo Expect H2 revenue trend to be similar to H1 at Group level Capex flexed and now anticipate fleet spend of around 270m for FY Cash generative with strong balance sheet Overall expect profit before tax of 250m - 270m Strong foundations for future growth 12

13 Q&A 13

14 Appendix 14

15 Results split by business model Local business grew 3%; margins under pressure Impacted by oil and gas slowdown Number of factors impacted Power Projects Bangladesh contract extension pricing Indonesia volumes lower Lower running of Panama contract Higher mobilisation costs from greater new work in EMEA Lower production levels in Yemen 1H15 1H14 Revenue Underlying % 1H15 Trading profit 1H14 Underlying % Local Business % (14)% Trading Margin: 11% 13% Rolling 12-month ROCE: 14% 16% Power Projects (ex fuel) (9)% (27)% Trading Margin: 22% 27% Rolling 12-month ROCE: 22% 27% Total (ex fuel) (2)% (22)% Trading Margin: 15% 19% Rolling 12-month ROCE: 17% 21% Underlying excludes pass-through fuel and currency translation. 15

16 Revenue mix 1H15 1H14 Revenue Underlying 1 % 1H15 % of Revenue (ex fuel) 1H14 Change pp Power (1)% 71% 70% 1 Temperature Control % 7% 7% - Oil-Free Air (8)% 2% 2% - Total Rental (1)% 80% 79% 1 Service Revenue (8)% 20% 21% (1) Revenue excl pass-through fuel (2)% 100% 100% - Pass-through fuel NA Total Revenue (2)% 1 Excluding revenue from pass through fuel and currency. 16

17 Balance sheet Intangible assets/goodwill Tangible fixed assets 1,148 1,124 Working capital Retirement benefit obligation (9) (3) Derivative financial instruments (4) (4) Provisions for taxes (68) (76) Net borrowings (467) (537) Net Assets 1, H15 1H14 17

18 Power fleet breakdown Local Business Power Projects 1H15 1H14 1H15 1H14 Diesel 4,478 4,262 3,542 3,531 Gas ,228 1,170 HFO Total 4,929 4,654 4,920 4,918 18

19 Foreign currency translation FY14 Average FX Rates July 2015 Average FY14 Actual FY14 Actual at July 2015 Average Variance Revenue () % Variance US Dollar ,013 1, % Euro (11)% Australian Dollar (10)% Argentinian Peso (3)% Brazilian Real (19)% Canadian Dollar (7)% Russian Rouble (29)% Other (3)% Total Revenue 1,577 1, % Total Trading Profit % Note: UAE Dirhams included within US Dollar as it is pegged to the US dollar; Argentinian Peso includes Power Projects contracts which are pegged to the US Dollar but paid and reported in Argentinian Pesos. 19