Fugro Nv · EURONEXT:FUR
Fugro Nv — H1 2013 Earnings Presentation
33 slides from Fugro Nv's earnings presentation, Aug 9, 2013
Slide 1: Half-yearly Results 2013
Fugro N.V. Half-yearly Results 2013 P. van Riel A. Jonkman Amsterdam, 9 August 2013 www.fugro.com
Slide 2: Results first half 2013 (Continued and discontinued business)
Results first half 2013 (Continued and discontinued business) Continuing growth from a new base • Net result of EUR 314.3 million (H1 2012: EUR 114.5 million) including the gain on the sale of the majority of the Geoscience division of EUR 204 million • Net profit margin (excluding the gain on the s
Slide 3: Results first half 2013 (continued business)
Results first half 2013 (continued business) • Net result EUR 109.4 million (H1 2012: EUR 107.6 million), increase 1.7% • Revenue including multi-client sales EUR 1,181.0 (H1 2012: EUR 1,075.5), increase 9.8% • Organic + 10,8%; Acquisitions + 0.9%; Currency effect - 1.9% • EBIT 133.1 EUR million (H1
Slide 4: Seabed Geosolutions JV
Seabed Geosolutions JV • Acquired business from CGG: • Ocean Bottom Nodes • Transition zone • Ocean Bottom Cable (OBC) • Shallow water activities (SW) • Permanent reservoir activities • Immediate leading market position in seabed geophysical activities • Contribution to consolidated statements of th
Slide 5: Major developments first half 2013
Major developments first half 2013 • Divestment major part of the Geoscience activities (closed 31 January 2013) resulting in a gain of EUR 204 million • Seabed Geosolutions joint venture established 16 February 2013 • Sales and marketing agreement for 3D and 2D seismic data library with CGG and TGS
Slide 6: Major developments first half 2013
Major developments first half 2013 • Subsea performance continues to be under pressure due to start up losses in the new trenching business and diving activities in West Africa • Ten-year extension of the 30-year joint venture with COSL for offshore China • Geotechnical vessel Fugro Voyager delivere
Slide 7: Market developments oil and gas
Market developments oil and gas Oil and gas market (73% of revenue) • Stable oil price • Stable oil and gas market • Deepwater and ultra-deepwater markets continue to be strong • Opportunities in GoM, Brazil, East and West Africa, Arctic and in the Caspian • Shale gas enthusiasm cooling down outside
Slide 8: Market developments infrastructure
Market developments infrastructure Market for infrastructure projects (22% of revenue) • Negative impact of continuing economic uncertainty in Europe and USA • Offshore wind farm market activities lower than last year due to budgetary constraints in Western Europe • Strong performance in Saudi Arabi
Slide 9: Market developments other markets
Market developments other markets Other markets (5% of revenue) • Negative impact of continuing economic uncertainty on mining sector 9 Half-yearly Results 9 August 2013 www.fugro.com
Slide 10: Geotechnical division
Geotechnical division • Continued strength of the deepwater and ultra-deepwater markets • Largest geotechnical project programme in history for Petrobras completed • Geoconsulting business continues to grow • Strong development activities except for slow recovery of the infrastructure business in We
Slide 11: Geotechnical division
Geotechnical division (EUR x million) first half first half year 2013 year 2012 Revenue Onshore Geotechnical 205 202 Revenue Offshore Geotechnical 130 150 Total 335 352 Result from operating activities 43 49 (EBIT) In % of revenue 13 14 11 Half-yearly Results 9 August 2013 www.fugro.com
Slide 12: Survey division
Survey division • Slow start due to prolonged winter conditions • All regions contributed to the Offshore survey results • Good utilisation of the survey vessel fleet • Mixed performance of geospatial services • Growth opportunities in East Africa • In July delivery took place of the new build vesse
Slide 13: Survey division
Survey division (EUR x million) first half first half year 2013 year 2012 Revenue Survey 442 398 Result from operating activities 89 86 (EBIT) In % of revenue 20 22 13 Half-yearly Results 9 August 2013 www.fugro.com
Slide 14: Subsea division
Subsea division • As of 1 January 2013 subsea activities separately reported • Performance similar to first half 2012 and still under pressure • Start-up issues in the new trenching business • Poor results diving activities in West Africa • Issues are being addressed • ROV fleet remained static at 1
Slide 15: Subsea division
Subsea division (EUR x million) first half first half year 2013 year 2012 Revenue Subsea 289 243 Result from operating activities 12 3 (EBIT) In % of revenue 4 1 15 Half-yearly Results 9 August 2013 www.fugro.com
Slide 16: Geoscience division
Geoscience division • Seabed Geosolutions joint venture established • OBN business line is currently fully occupied well into 2014 • Start SW and OBC activities below expectation as a result of delays in contract start up • Prospects for the joint venture lumpy but large and increasing tender activi
Slide 17: Geoscience division
Geoscience division (EUR x million) first half first half year 2013 year 2012 Revenue* (excluding multi-client) 102 (24) Revenue* (including multi-client 115 82 sales) Result from operating activities 17 24 (EBIT) In % of revenue (inc. mult-client) 15 29 * Includes IP license sale EUR 18.5 million 1
Slide 18: Acquisitions in first half 2013
Acquisitions in first half 2013 Geoscience • Seabed Geosolutions B.V., Netherlands (Fugro share 60%) • FAZ Research Ltd, Ireland Total consideration EUR 287.9 million 18 Half-yearly Results 9 August 2013 www.fugro.com
Slide 19: Financials
Financials www.fugro.com
Slide 20: Revenue
Revenue (EUR x million) 3000 2500 2000 2nd HY continued and discontinued 1403 1st HY continued and discontinued 1238 1018 1.196 2nd HY continued business 1500 1st HY continued business 1000 1175 1.168 500 1035 1042 969 0 2009 2010 2011 2012 2013 20 Half-yearly Results 9 August 2013 www.fugro.com
Slide 21: Revenue growth
Revenue growth In % Organic Acquisitions Exchange Divest Total rate -ments differences 2013(H1)** 10.8 0.9 (1.9) - 9.8 2012 5.3 4.9 6.3 - 16.5 2011* 7.6 8.8 (3.2) (0.2) 13.0 2010* 6.0 0.4 4.7 - 11.1 2009* (5.6) 1.1 (0.2) - (4.7) 2009 – 2012: Full year * Continued and discontinued business ** includi
Slide 22: EBITDA, EBIT and Net result as per 30 June
EBITDA, EBIT and Net result as per 30 June 300 250 200 150 100 50 0 2009 2010 2011 2012 2013 EBITDA EBIT Net result 2009 – 2011: Continued and discontinued business 2012 – 2013: Continued business 22 Half-yearly Results 9 August 2013 www.fugro.com
Slide 23: Expenses as % of revenue (first half-year 2009-2013)
Expenses as % of revenue (first half-year 2009-2013) 45 40 35 30 25 20 15 10 5 0 2009 2010 2011 2012 2013 Third party costs Staff costs Other operating expenses 2009 – 2011: Continued and discontinued business 2012 – 2013: Continued business 23 Half-yearly Results 9 August 2013 www.fugro.com
Slide 24: Interim Profit and Loss account (continued business)
Interim Profit and Loss account (continued business) • Net finance costs (in EUR million): 30/06/13 30/06/12 Interest income 9.5 0.9 Interest expense (13.5) (8.5) Net changes fair value 0.5 (2.6) Rates of exchange 5.5 0.3 Net finance income 2.0 (9.9) (expense) • Tax rate H1 2013 21.1% H1 2012 22.0%
Slide 25: Investments
Investments (EUR x million) 2011 2012 2013* 2014* 2015* Maintenance capex 95 73 100 100 100 capacity expansion 189 111 200 200 75 Total investments 284 184 300 300 175 Movement in fixed assets under (42) 74 (40) (100) (50) construction Net cash 242 258 260 200 125 * estimate 25 Half-yearly Results 9
Slide 26: Ratios
Ratios • Solvency 30 June 2013: 53% (31 December 2012: 47%) • Gearing 30 June 2013: 43% (31 December 2012: 66%) • Interest cover 30 June 2013: 33 (31 December 2012: 17) • Covenants met 26 Half-yearly Results 9 August 2013 www.fugro.com
Slide 27: Interim statement of financial position
Interim statement of financial position • Multi-client library decreased to EUR 416 million (end 2012: EUR 459 million), decrease because of currency EUR 31 million • Working capital Working capital Mid End ∆ 2013* 2012* (EUR x million) Inventories 441.1 479.8 (38.7) Trade and other receivables 1.12
Slide 28: Outlook
Outlook www.fugro.com
Slide 29: Market prospects
Market prospects Oil & gas • Continued growth • Strong market for deepwater services • Strong interest in Seabed Geophysical data acquisition services • Investments oil and gas industry in subsea infrastructure anticipated to continue with significant demand expected in Asia, Africa and Brazil Infra
Slide 30: Fleet renewal / expansion
Fleet renewal / expansion Name vessel Type of vessel Expected start of Owned/ operation Chartered Fugro Brasilis Survey Q3-2013 Owned Fugro Scout Geotechnical Q1-2014 Owned Fugro Australis Survey Q2-2014 Owned Fugro Aquarius Subsea Q2-2014 Owned 30 Half-yearly Results 9 August 2013 www.fugro.com
Slide 31: Backlog per 30 June for the remainder of the year
Backlog per 30 June for the remainder of the year (EUR x million) 1400 1200 266 1000 28 0 245 238 800 0 Geoscience 192 139 Subsea 0 600 120 Survey 368 399 Geotechnical 329 309 400 303 200 333 305 321 324 232 0 2009 2010 2011 2012 2013 31 Half-yearly Results 9 August 2013 www.fugro.com
Slide 32: Outlook
Outlook Barring unforeseen circumstances, and assuming reasonably stable exchange rates, Fugro expects that the revenue from continued operations for 2013 will be around EUR 2,600 million (2012: EUR 2,400 million; including multi-client sales) with a net result attributable to the owners of the Comp
Slide 33: Thank you
Thank you www.fugro.com