IR Presentation November 2017

Transcription

1 IR Presentation November 2017

2 Contents I. Financials II. New Order & Market Outlook III. Appendix

3 3 rd Quarter Earnings of 2017 I. Financials Revenue Satisfied Market Expectation" - Revenue met the Market Expectation, but decreased from 2 nd Quarter and from the same period last year due to reduced overall Workload Operating Profit Stayed "Positive for 5-Consecutive-Quarters" - Through Cost saving Efforts, Operating profit Maintained Positive for Five consecutive quarters (KRWb) 3Q 2016 (YoY) 2Q 2017 (QoQ) 3Q 2017 YoY QoQ Revenue 2,778 2,300 1, % -23.8% Operating Profit (Margin) (3.0%) (0.9%) (1.3%) Pretax Income (Margin) (4.0%) (1.3%) (1.3%) -71.9% 14.6% -80.3% -25.8% - 1 -

4 Financial Status as of September I. Financials Net Debt "Decreased" 연결손익계산서 - Positive cash-flow from the Increased number of Deliveries in 2017 Lowered Debt level Debt to Equity Ratio Continues to "Improve" - Debt-to-Equity ratio declined down to 116% due to Repayments of Bank Debt and Others. * 306% in % in % in 2017 (KRWb) As of December 31, 2016 As of September 30, 2017 Asset 17,217 13,590 Cash and Cash Equivalents (a) 1,771 1,101 Accounts Receivable 5,468 3,400 Liabilities 10,942 7,306 Interest Bearing Debts (b) 5,327 3,694 Advance Payments 1,855 1,245 Stockholders Equity 6,275 6,285 Net Debt (b-a) 3,556 2,594 Debt-to-Equity Ratio 174% 116% - 2 -

5 I. Financials II. New Orders & Market Outlook III. Appendix

6 New Orders & Order Backlogs II. New Order New Orders from January to October 2017: USD 6.5b 연결손익계산서 - 1 FPU(USD 1.3b), 2 LNGCs(USD 0.1), 2 LNG FSRU(USD 0.5b), 8 VLCCs(USD 0.7b) 1 LNG FPSO(2.5b), 5 Shuttle Tankers(0.6), 6 Containerships(0.8) Order Backlogs as of October 31, 2017: USD 20.6b As of December 31, 2016 From January to October 2017 As of October 30, New Order Deliveries 2017 No Amount No Amount No Amount No Amount (USDb) Containerships LNGCs Tankers Others Drilling Rigs Offshore Facilities * Total * Mega-size offshore projects successfully sailed-away: Ichthys CPF(April), Prelude FLNG(June) - 3 -

7 Offshore Facilities II. Market Outlook Oil 연결 Majors 손익계산서 Inquiries Increased - With Cost-Saving effort, more Deep-Water projects become Approved IOC s BEP level Lowered to USD 50/bbl range throughout Cost-Saving Efforts - Value-Chain Activities in entire Oil-Service Sector improved by Collaboration, Standardization and Technology enhancement Recently, IOC Recorded BEP around 40~60/bbl for Deep-Water Development Major Orders in 2017, while Expecting More Opportunities in MaddogII FPU and Coral FLNG have been Ordered during 1H The number of new Offshore projects under discussion with clients and targeted for new order in 2018 has increased since 2H

8 Commercial Vessels II. Market Outlook Market Recovery in 2017(YoY 83% ) will continue its Momentum, * 8.7 million CGT 15.9 million CGT particularly, with Containership & LNGC towards 2018 VLCC and Large-sized Containership were main Catalyst for Market Recovery * 41 VLCCs were ordered in 1~3Q 2017, which is the same as yearly average new order of 41 VLCCs from 2007 to 2016 in Increased demand for VLCC was mainly due to increased Seaborne Trade Volume & Distance from Europe, North America and West Africa regions to Asia and due to aging vessels - Commercial vessels market has shown more rapid recovery than expected * New order in 2017(1~3Q) recovered up to 65% of (1~3Q) average, which is better than market expectation(47%) LNGC and Large-sized Containership show Signs of Recovery in LNGC market also shows Signs of Recovery as Spot charter rates increased recently, and more New LNG plants will start productions in a near term - Containership market is Recovering after 2 years of downturn as trade volume jumped up 5% and the size of the fleet is getting bigger - 5 -

9 Commercial Vessels II. Market Outlook Demand 연결손익계산서 of LNG carriers recover, and LNG-FSRU continue to Expand Recovery of LNG Carriers market - Increase of LNG seaborne trade is expected as 100 million ton New LNG Export is forecasted by LNGC spot rate increases rapidly * $39,000/day(June) $63,000/day(Nov.) Solid LT Demand for LNG Carriers - Yearly 30 LNGC orders are Expected from LNG Trade Volume 258mtpa 500mtpa (CAGR 5%) LNG-FSRU Demand Expanding - In order to meet excessive demand of electricity in Southeast Asia, South America and Africa, more FSRU will be on demand * LNG-FSRU can be quickly available to use and the Construction cost is a half of Onshore Terminal - LNG market is Dominated by Korean Big 3, where SHI s global Market Share is at 30% New Orders Modification Total Current Fleet Under Const Gloabal LNG Fleets 469 * Source: Gaslog, BP, etc (1.6 unit/1mtpa) 900 (30 units/year) Total SHI 9-9

10 Commercial Vessels II. Market Outlook Container 연결손익계산서 seaborne trade Increases, Cascading Down continues Container trade Expanding - Trade growth accelerates from 3% in to 5% in (Million TEU) Seaborne Trade Growth rate 2.2% 4.0% 4.9% 5.2% * 2017~2018 : forecast by Clarksons Cascading Down in Container shipping continues - Smaller vessels move to shorter routes after losing competiveness in longer ones More demand of 10,000TEU+ expected to replace smaller vessels in Asia/Europe and Asia/North America routes - Gradual increase of charter rate and enhanced financials of shipping companies are forecasted Charter rate: $27,000/day(June) $29,000/day(Oct.) * 9000TEU, 3 Year Timecharter - 7 -

11 Commercial Vessels II. Market Outlook Environmental Regulations 연결손익계산서 - SOx Emission and BWTS Regulations will Require More LNG-fueled vessels and Replacement of Old vessels * At the request of buyers, 2 Afra-max class tankers under construction, and 4 Shuttle tankers ordered this year are being equipped with LNG-fueled Engine base Types Regulations Effective Year Ballast Water Treatment System(BWTS) To prevent transferring foreign marine specifies(microbes) to local ocean 2017(newbuild), 2019(existing) Sulfur-Oxide Emission(SOx) To regulate and put limits on Sulfur-Oxide Emission at different levels 2020 Carbon-Dioxide Emission(CO2) To regulate and put limits on Carbon-Dioxide at different levels 2020~2023 *Energy Efficiency Design Index(EEDI) and Nitrogen-Oxide Emission(Tier 3) are already effective Age Tankers Bulkers Containerships General Cargo Gas Carrier Specialized Vessel Total Units 000 GT Units 000 GT Units 000 GT Units 000 GT Units 000 GT Units 000 GT Units 000 GT 21yr < 4,003 22,772 1,219 39, ,778 11,761 24, ,054 2,659 11,479 21, ,243 % 39% 8% 11% 9% 16% 6% 60% 38% 31% 15% 43% 17% 39% 11% 16~20yr ,254 1,028 34, ,497 1,384 7, , ,202 4, ,060 % 9% 15% 9% 8% 16% 11% 7% 11% 10% 8% 10% 13% 9% 11% Total 10, ,754 10, ,968 5, ,345 19,610 62,493 1,875 66,773 6,205 69,311 53,862 1,149,644 *Source: Clarkson(2016) - 8 -

12 I. Financials II. New Orders & Market Outlook III. Appendix

13 Revenue & Operating Profit Trends III. Appendix (KRWt) 연결손익계산서 8.8% Revenue(Shipbuilding&Offshore) Revenue(Others) OP Margin % % 8.0% % 9.0% 8.0% % % 6.6% 6.2% % 6.0% % 5.3% 5.0% % % % % 1.4% 2.0% 1.1% 1.0% - 0.4% 0.1% Q % -15.5% 0.0%

14 New Order Trends III. Appendix (USDb) 연결손익계산서 25 Containership LNG Carrier Tankers Drilling Rig Production Facility Others(WTIV etc) Oct

15 Disclaimer This presentation has been prepared by Samsung Heavy Industries Co., Ltd. and contains forward-looking statements that are subject to risks, uncertainties, and assumptions. The presentation is solely for your information, subject to change without notice, and makes no representation or warranty, expressed or implied and no reliability should be placed on the accuracy, fairness, or completeness of the information presented herein. The Company, its affiliates, or representatives accept no liability for any losses arising from any information contained in the presentation. The contents of this presentation may not be reproduced, redistributed or circulated, directly or Indirectly, to any other person or organization, or published, in whole or in part, for any purpose.