Q4 presentation

Kvaerner's Q4 presentation.

Transcript

1. © Kvaerner 2013 13.02.2013 Fourth quarter results 2012 Photo: A/S Norske Shell
2. © Kvaerner 2013 13.02.2013 Highlights 2 Nyhamna onshore contract increased to NOK 11 billion Calpine Garrison power plant won Eldfisk 2/7S hook-up and commissioning assistance awarded Order backlog of NOK 21.3 billion Semi-annual dividend proposal of NOK 0.55 per share All home market tenders concluded with awards to competitors The Eldfisk 2/7S topside being assembled at Stord, Norway.
3. © Kvaerner 2013 13.02.2013 Key financials 3 249 159 85 67 119 42 0 50 100 150 200 250 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Revenues NOK million -1 235 -717 -432 -840 -514 -1 400 -1 200 -1 000 -800 -600 -400 -200 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 EBITDA NOK million Net current operating assets NOK million 3 004 2 388 3 000 2 430 2 930 500 1 000 1 500 2 000 2 500 3 000 3 500 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 8.3% 6.7% 2.8% 2.8%² 4.1% EBITDA margin ¹ Gain on sale of EPC Center Houston to IHI Corp. ² EBITDA margin excluding sales gain. ¹
4. © Kvaerner 2013 13.02.2013 Solid order backlog 4 0 2 000 4 000 6 000 8 000 10 000 12 000 14 000 16 000 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Order intake NOK million 0 5 000 10 000 15 000 20 000 25 000 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Order backlog NOK million For execution in 2013 For execution in 2014 Upstream Downstream & Industrials For execution in 2015 and later 21 262 2 444 ~50% ~30% ~20%
5. © Kvaerner 2013 13.02.2013 Fourth quarter operations 5 Roll-up of the Clair Ridge jacket at Verdal, Norway.
6. © Kvaerner 2013 13.02.2013 Health, safety, security and environment 6 0,0 1,0 2,0 3,0 4,0 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec LTIF TRIF Lost time incident frequency (LTIF) and Total recorded incident frequency (TRIF) Per million work hours and 12 months rolling averages Enforced pro- activeness throughout the organisation Started roll-out of new HSSE Leadership course Increased security focus Highlights Two lost time injuries and twelve other injuries resulting in 14 recordable injuries in the quarter Four serious near miss incidents 3.2 0.6
7. © Kvaerner 2013 13.02.2013 Operations 7 NORTH SEA INTERNATIONAL JACKETS E&C AMERICAS CONCRETE UPSTREAM DOWNSTREAM & INDUSTRIALS Eldfisk assembly progressing E. Grieg topside prefabrication started Nyhamna onshore detailed engineering Positioning for the Browse project Pre-qualification and study activities Nordsee Ost: 31 jackets completed Fabrication started on E. Grieg and M. Linge Start up activities for the Calpine Garrison project Steel maintenance projects on plan Hebron GBS: steel skirts installed Several studies on- going
8. © Kvaerner 2013 13.02.2013 Major onshore project at Nyhamna 8
9. Fourth quarter financials Eiliv Gjesdal, Chief Financial Officer
10. © Kvaerner 2013 13.02.2013 Amounts in NOK million Q4 2012 Q4 2011 Full year 2012 Full year 2011 Total revenue and other income 2 930 3 004 10 748 13 295 EBITDA 119 249 473 1 073 Depreciation and amortisation (19) (18) (66) (54) EBIT 101 230 407 1 019 Net financial income/(expense) (17) (106) (31) (109) Profit from associated companies and JVs (6) (6) (7) (6) Profit before tax 77 119 369 903 Income tax expense (21) (38) (131) (344) Net profit 56 81 238 559 EBITDA margin 4.1 % 8.3 % 4.4 % 8.1 % Income statement 10 ¹ Figures include net positive effect of NOK 42 million from divestment of EPC Center Houston operations. Historical figures include EPC Center Houston. ¹
11. © Kvaerner 2013 13.02.2013 Q4 2012: Downstream & Industrials review 11 Order backlog and order intake NOK million Revenues, EBITDA and EBITDA margin NOK million Revenues EBITDA Financials  Somewhat lower activity level expected first half of 2013  Limited results expected until Longview arbitration is concluded Orders  Calpine Garrison power plant of ~USD 100-120 million  Various smaller steel maintenance projects 850 496 689 442 261 -15 3 6 46 7 -100 400 900 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 1 287 1 130 702 358 1 039 716 381 234 148 981 0 500 1 000 1 500 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 EBITDA-% (1.8)% 0.5% 0.9% 10.4% 2.7% Order backlog at the end of the quarter Order intake in the quarter ¹ Figures include net positive effect of NOK 42 million from divestment of EPC Center Houston operations. Historical figures include EPC Center Houston. ¹
12. © Kvaerner 2013 13.02.2013 Q4 2012: Upstream review 2 176 1 891 2 317 1 992 2 717 287 196 119 100 136 0 1 000 2 000 3 000 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 12 8 758 9 683 22 318 21 433 20 226 446 2 817 14 959 1 097 1 511 0 5 000 10 000 15 000 20 000 25 000 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Order backlog and order intake NOK million Revenues, EBITDA and EBITDA margin NOK million Order backlog at the end of the quarter Order intake in the quarter Revenues EBITDA Financials  North Sea activity level increasing  Early cycle projects with limited contribution  Nordsee Ost project commercial challenging Orders  Eldfisk 2/7S hook-up and commissioning assistance contract of NOK 400 million  Growth in existing projects EBITDA-% 13.2% 10.4% 5.1% 5.0% 5.0%
13. © Kvaerner 2013 13.02.2013 2 000 4 000 6 000 8 000 10 000 12 000 14 000 2008 2009 2010 2011 2012 2013 2014 2015 and later 2012 order intake – foundation for growth 13 ¹ Revenues and backlog NOK million Backlog per year-end 2012 Backlog per year-end 2011 Solid long term revenue visibility The major 2012 project wins:  Nyhamna onshore project  Edvard Grieg topside, jacket and offshore completion  Martin Linge jacket  Hook-up and commissioning of Eldfisk 2/7S  Construction of Garrison Energy Center Incorporated joint ventures will not be included in the backlog 2013 order intake: Increase in the Nyhamna onshore contract of NOK 5 billion Note: The Hebron project will be accounted for as an incorporated JV. Revenues Orders booked in 2013
14. © Kvaerner 2013 13.02.2013 -2 000 -1 500 -1 000 -500 0 500 1 000 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Cash flow and working capital development 14 The EPC business is cash positive through negative working capital:  Customer pre- payments¹ of NOK 143 million  Downstream & Industrials: Capital tied up in the Longview project  Upstream: Capital tied up in the Nordsee Ost project Net current operating assets (NCOA) NOK million Downstream & Industrials Upstream Group ¹ Invoicing in excess of cost and estimated earnings less amounts billed in advance but not received (on a project by project basis). Amounts in NOK million Q4 2012 Q4 2011 Full year 2012 Full year 2011 Cash flow from operating activities (293) 322 (748) 1 069 Cash flow from investing activities (23) (77) (91) (231) Cash flow from financing activities (190) - (481) (1 105) Translation adjustments (75) 55 (29) 8 Net increase/(decrease) in cash and bank deposits (580) 300 (1 349) (259)
15. © Kvaerner 2013 13.02.2013 Balance sheet 15 Full year 2012 Q3 2012 Full year 2011 Assets Total non-current assets 2 231 2 150 1 954 Prepaid company tax 91 173 169 Current operating assets 2 660 2 498 2 256 Other current assets - 20 25 Total cash and bank 1 069 1 649 2 418 Total assets 6 052 6 491 6 823 Total equity 2 202 2 321 2 445 Non-current interest bearing liabilities 469 467 460 Other non-current liabilities 178 218 161 Current operating liabilities 3 175 3 338 3 491 Current tax liabilities 28 147 257 Other current liabilities (0) 0 8 Total liabilities 3 850 4 170 4 378 Total equity and liabilities 6 052 6 491 6 823 Equtiy ratio 36 % 36 % 36 % Net cash 650 1 253 2 012 Amounts in NOK million
16. © Kvaerner 2013 13.02.2013 Summary and closing remarks 16
17. © Kvaerner 2013 13.02.2013 Future market opportunities 17 Facsimiles from Capital Markets Day 10 January 2013.
18. © Kvaerner 2013 13.02.2013 Summary 18 Strong order backlog  More than NOK 11 billion secured for 2013 Focus on project execution and improving competitiveness Predictable deliveries  Quality on time with predictable price tag Predictable dividend policy  Proposed semi-annual dividend of NOK 0.55 per share HSSE – core value and licence to operate Maintain and develop home markets International expansion Hands-on management
20. © Kvaerner 2013 13.02.2013 20 APPENDIX
21. © Kvaerner 2013 13.02.2013 International E&C Americas Concrete Solutions Jackets North Sea The current EPC project portfolio 21 2011 2012 2013 2014 2015 Value at award Mongstad TCM NOK 525M Eldfisk topside NOK 5.5B Nyhamna onshore NOK 11B Edvard Grieg topside NOK 8B Nordsee Ost wind jackets EUR 115M Clair Ridge jackets NOK 1.7B Edvard Grieg jacket NOK 1.1B Martin Linge jacket NOK 1.2B Sakhalin-1 USD 600M Kashagan HUC USD 1.6B V&M Star (MEP) Undisclosed Calpine Garrison USD 100-120M
22. © Kvaerner 2013 13.02.2013 Revenue distribution 22 Share of revenues 2010 Percent Share of revenues 2011 Percent Share of revenues 2012 Percent NOK 13.2 billion NOK 13.3 billion NOK 10.7 billion International E&C Americas Concrete Jackets North Sea
23. © Kvaerner 2013 13.02.2013 EPC prospects 23 Victoria Maria Tommeliten Snorre Utsira high Skrugard Johan Sverdrup Havis Existing and prioritised markets North Sea Jackets International Concrete E&C Americas Browse Other international prospects on a case by case basis Gas processing Chemical Refining Steel Pipe manufacturing industry Gas fired power plants Plant maintenance and services Power plants environmental compliance projects White Rose Piltun South Amuligak Kara Sea Pechora LNG Kammennomyskoye Dolginskoe Natuna Note: The list is not exhaustive or indicative of Kvaerner’s priorities. Hod Auk Tor Tommeliten Utsira high Greater Clair Development Snorre Johan Sverdrup
24. © Kvaerner 2013 13.02.2013 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. Copyright and disclaimer 24