Financing the Brazilian Maritime Sector. Luís André Sá d Oliveira Head of O&G Department October / 2017

Transcription

1 1 Financing the Brazilian Maritime Sector Luís André Sá d Oliveira Head of O&G Department October / 2017

2 2 General Information// Highlights Estabilished in % state-owned company under private law. Key instrument for implementation of Federal Government s industrial and infrastructure policies. Main provider of long-term financing in Brazil. Emphasis on financing investment projects. Team of 2,800 employees Robust processes and structure regarding compliance and risk management New operational policy since January, 2017: priorities focusing on projects qualifiers (innovation, sustainability, health, education, infrastructure, exports, SMEs).

3 3 Operations and Policies // Who can apply LEGAL ENTITIES ESTABLISHED IN BRAZIL Companies: agro-business, industry, trade and services etc. Cooperatives or associations NGOs, OSCIPs or Foundations BRAZILIAN PRIVATE INDIVIDUALS Rural producer Truck drivers Micro-entrepeneur BRAZILIAN PUBLIC MANAGEMENT Municipalities States Federal

4 4 How we Work // Direct Operations DIRECT TRANSACTIONS Companies financed directly by BNDES ENTERPRISE Examples Power Plants Oil and Gas Industries Sanitation Maritime

5 5 How we Work // FMM Funding FMM (Merchant Marine Fund) Companies financed directly by BNDES with FMM Funding FMM ENTERPRISE Examples PLSV PSV OSRV AHTS Shipyards

6 6 FMM Main Terms and Conditions Sector Cabotage Tug OSV National Content 65% National Items Participation Up to Imported Items 90% Financial cost National Items Spread (%) Imported Items 2-3,75 3-4,75 < 65% 70% 2-3,75 4-5,8 50% 75% 2-3,75 3-4,75 < 50% 60% TLP or 2-3,75 4-5,8 90% US$ 60% 70% 2-3,75 3-4,75 < 60% 60% 2-3,75 4-5,8 Dry Docking - 90% 3-4,75 Term: up to 4 years of grace period and up to 20 years of amortization.

7 7 How we Work // Financial Instruments BNDES Financial Instruments: Financing Fixed Assets: Machinery and Equipment; Implement investment production capacity; Increase of goods and services supply capacity; Project Finance; Export Financing; Equity; Innovation.

8 Performance and Financial Data // Annual Disbursements 8

9 BNDES O&G & Maritime Sector Potfolio 9

10 BNDES Maritime Sector Support 10

11 BNDES Shipyard/Tankers Support Tanker Ships 2 Large Shipyards 5 Integrated Shipyards

12 BNDES Offshore Vessels Support PSV - Platform Supply Vessels 14 AHTS Anchor, Handling, Tug and Supply 5 OSRV Oil Spill Recovery Vessels (OSRV) 15 FSV Fast Supply Vessels 4 PLSV Pipe Laying Support Vessels 3 LH Line Handling Vessels

13 BNDES Offshore Clients Portfolio 13

14 BNDES Support to the Maritime Sector 14 OSV Daily Rates have fallen almost 50% in Brazil since peak oil prices in Brazilian Offshore Fleet : up to 20% idleness. BNDES helping to find solutions (debt restructuring for companies with relevant liquidity issues) : Joint and proportional efforts from all stakeholders. Repricing and reinforcement of guarantees. Temporary relief only on repayment, interests preserved. Cash sweep mechanism. Covenants.

15 Sector challenges Cumulative Global Deepwater Resources Discovered 15 Presalt oil The world's largest oil discoveries in recent years are in Brazil's offshore, presalt basins. (US EIA, DOE) 50%+ of the world's discoveries from 2005 to 2010 were in deep waters. Brazil accounted for 63% of the findings in the period.

16 Sector challenges The Oil and Gas Sector currently 16 Brazil is the 12th largest oil producer in the world and 93.4% of the national production is offshore. 15th largest world reserve - possibly 7th with the presalt. GFCF O&G weight in jumped from 3.5% in 2000 to more than 10% in recent years. Despite Petrobras' investments, reduction the Brazilian market for offshore goods and services will remain very important in the world. Until 2020, more than US$ 83 billion are expected to be invested in the Brazilian O&G sector.

17 Sector challenges Presalt 17 The presalt is the main ultra deep waters reserve in the world. The presalt wells have high productivity and high quality oil (currently 36 thousand bbl/day and with an expected up to 45 thousand bbl/day). The cost of presalt extraction is decreasing - increasing its attractiveness. Libra Field Breakeven target US$ 35/bbl.

18 Investment Perspective (2020) 18 US$ billion Brazilian Bidding Round in O&G sector. Privatization of gas distributors. Investment in Infrastructure.

19 Sector challenges Final Words 19 Flexibilty to adjust to low price scenarios. Main Goals: Reduce investment costs/opex; Increase productivity and flexibility; Develop new technologies (subsea factory). BNDES is prepared to support the oil and gas industry and foster the supply chain. BR Presalt is robust and sustainable.

20 Thank You! BNDES Website Contact Center Chamadas internacionais Onbudsman Contact us facebook.com/bndes.imprensa twitter.com/bndes_imprensa youtube.com/bndesgovbr slideshare.net/bndes