Aker Solutions Asa · OSL:AKSO
Aker Solutions Asa — Aker Kvaerner — Q1 2007 Earnings Presentation
21 slides from Aker Solutions Asa's earnings presentation, Apr 25, 2007
Slide 1: 1st Quarter Results 2007
1st Quarter Results 2007 25 April 2007 part of the Aker group Slide 1 © 2007 Aker Kvaerner Agenda Topic Speaker ■ Group update Martinus Brandal, President & CEO ■ Financials Bjørn Erik Næss, EVP & CFO ■ Closing remarks Martinus Brandal, President & CEO ■ Q & A session For reporting purposes the main
Slide 2: Health, Safety and Environment / Strong Performance
Health, Safety and Environment ■ Just Care™ as theme and symbol Lost Time Injuries per million hours (LTIF)¹ 3 ■ 850 leaders through the HSE leadership programme 2 1 0,9 ■ 11 000 employees through Just 0 Care™ eLearning and 6 000 2003 2004 2005 2006 YTD through Stress Management eLearning Total Reco
Slide 3: Key indicators / Record high order backlog
Key indicators Operating EBITDA Net current Cash, undrawn revenues operating assets credit facilities and debt level NOK million NOK million NOK million NOK million 18000 500 15000 900 800 0 15000 10000 700 -500 12000 600 5000 500 -1000 9000 400 -1500 0 6000 300 -2000 200 -5000 3000 -2500 100 0 0 -3
Slide 4: Major contracts awarded in Q1 2007 / Field Development
Major contracts awarded in Q1 2007 18 Subsea christmas trees to Petrobras Longview project – Genpower Holdings Contract value ~USD 50 million Contract value ~USD 654 million Valhall redevelopment steel structure BP service contract for NCS* Contract value: ~NOK 450 million Contract value ~NOK 600 mi
Slide 5: Maintenance, Modifications and Operations
Maintenance, Modifications and Operations ■ Market ● NOK 390 million modification contract for Statoil at Norne-Alve ● NOK 600 million maintenance and modification services contract for BP ● Growth in existing project portfolio/strong market ● Increased focus on niche services and front-end activiti
Slide 6: Subsea / Products & Technologies
Subsea ■ Market ● Letter of Intent signed with Aker Floating Production* ● Extension of Petrobras frame agreement ● Strong market interest for Aker Kvaerner’s Subsea Boosting Systems ● High tendering activity ■ Execution ● Successful delivery of the Dalia project for Total in Angola ● High tech manu
Slide 7: Process & Construction
Process & Construction ■ Market ● High growth in North American power plant construction ● Metals continues steady, strong growth ● Petrochemical opportunities in Middle East and China Execution ● Stable performance in project execution ● Strategic partnerships delivering innovative project soluti
Slide 8: Income statement consolidated / Cash flow
Income statement consolidated (in NOK million) 1Q06 2Q06 3Q06 4Q06 1Q07 2006 Operating revenues 10 547 12 682 12 059 15 304 14 147 50 592 EBITDA 649¹ 676 761 786 856 2 872¹ Depreciation -79 -85 -75 -100 -84 -339 EBIT 570 591 686 686 772 2 533 Net financial items -84 -62 -106 -653 -14 -905 Foreign ex
Slide 9: Assets / Debt and equity
Assets (in NOK million) 1Q06 2Q06 3Q06 4Q06 1Q07 Property, plant and equipment 1 365 1 450 1 562 1 761 1 964 Other fixed assets 5 242 4 988 4 982 5 606 5 401 Financial assets (non-current) 102 114 123 148 148 I B receivables (non-current) 132 132 131 54 60 I B receivables (current) 483 498 500 546 5
Slide 10: Field Development / Maintenance, Modifications and Operations
Field Development EBITDA (in NOK million) 251 242 220 201 209 Cameron LNG project, US Highlights ● Stable EBITDA performance ● Satisfactory order intake ● Adequate resource base ● Optimising a true global operational model 1Q 06 2Q 06 3Q 06 4Q 06 1Q 06 (in NOK million) 1Q06 2Q06 3Q06 4Q06 1Q07 2006
Slide 11: Subsea / Products & Technologies
Subsea EBITDA (in NOK million) 171 142 138 114 Worker at the high 85 tech manufacturing centre in Malaysia Highlights ● Robust order backlog ● High bidding activity ● Promising market outlook 1Q 06 2Q 06 3Q 06 4Q 06 1Q 07 ● Improved margins (in NOK million) 1Q06 2Q06 3Q06 4Q06 1Q07 2006 Operating re
Slide 12: Process & Construction / Summary from AGM
Process & Construction EBITDA (in NOK million) 176 146 152 108 100 Boddington gold mine project, Australia Highlights ● Strengthened order backlog ● Strong performance in metals and construction continues 1Q 06 2Q 06 3Q 06 4Q 06 1Q 07 ● Engineering Services in UK turned profitable (in NOK million) 1
Slide 13: Share buy back programme initiated
Share buy back programme initiated ■ Based on the Annual General Meeting’s (AGM) authorisation for the share buy back, the BoD of Aker Kvaerner has authorised the management to purchase up to 13.7 million shares, representing 5 percent. ■ The buy back programme will be conducted opportunistically, a
Slide 14: New global operational model
Establishing a new global operating model to support our profitable growth objective ■ Market oriented organisation ■ Cost optimisation through sharing resources efficiently ■ Each business area will optimise its global operation ■ New operational model to streamline organisation for profitable grow
Slide 15: Achievements Q1 2007 / Strong outlook
Achievements Q1 2007 ■ Order intake of NOK 17.3 billion + NOK 4.4 billion (34%) ■ Revenues of NOK 14.1 billion + NOK 3.6 billion (34%) ■ EBITDA of NOK 856 million + NOK 207 million (32%) ■ Earnings per share of NOK 2.01 + NOK 0.33 (20%) Compared to Q1 2006 part of the Aker group Slide 29 © 2007 Aker
Slide 16: Additional information: Order intake
Additional information part of the Aker group Slide 31 © 2007 Aker Kvaerner Order intake (in NOK million) 1Q06 2Q06 3Q06 4Q06 1Q07 2006 Field Development 3 192 919 11 608 1 421 5 347 17 140 MMO 2 071 909 5 189 1 764 2 353 9 933 Subsea 1 463 4 789 3 255 2 240 2 266 11 747 Products &Technologies 3 123
Slide 17: Order backlog / Net current operating assets
Order backlog (in NOK million) 1Q06 2Q06 3Q06 4Q06 1Q07 Field Development 19 557 16 174 23 822 20 385 20 881 MMO 12 060 10 404 13 365 12 245 11 977 Subsea 4 008 6 719 8 704 8 775 8 838 Products & Technologies 9 271 11 287 11 946 12 741 12 092 Process & Construction 8 651 7 949 7 852 7 989 11 706 Oth
Slide 18: Field Development / Maintenance, Modifications and Operations
Field Development (in NOK million) 1Q06 2Q06 3Q06 4Q06 1Q07 2006 Operating revenues 3 139 4 228 4 027 4 731 4 817 16 125 EBITDA 201 251 209 242 220 903 EBIT 188 237 196 228 206 849 Order intake 3 192 919 11 608 1 421 5 347 17 140 Order backlog 19 557 16 174 23 822 20 385 20 881 20 385 Employees 3 52
Slide 19: Subsea / Products & Technologies
Subsea (in NOK million) 1Q06 2Q06 3Q06 4Q06 1Q07 2006 Operating revenues 1 513 1 842 1 489 2 097 2 136 6 941 EBITDA 85 114 142 138 171 479 EBIT 61 82 121 115 150 379 Order intake 1 463 4 789 3 255 2 240 2 266 11 747 Order backlog 4 008 6 719 8 704 8 775 8 838 8 775 Employees 2 182 2 399 2 536 3 028
Slide 20: Process & Construction / Other and eliminations
Process & Construction (in NOK million) 1Q06 2Q06 3Q06 4Q06 1Q07 2006 Operating revenues 2 920 3 029 2 722 3 336 2 459 12 007 EBITDA 100 108 176 146 152 530 EBIT 94 100 169 133 144 496 Order intake 3 078 2 596 2 286 3 710 6 270 11 670 Order backlog 8 651 7 949 7 852 7 989 11 706 7 989 Employees 6 53
Slide 21: Disclaimer
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 a