Aker Solutions Asa · OSL:AKSO
Aker Solutions Asa — Q4 2011 Earnings Presentation
35 slides from Aker Solutions Asa's earnings presentation, Feb 17, 2012
Slide 1: Fourth quarter and preliminary annual results 2011
part of Aker Fourth quarter and preliminary annual results 2011 17 February 2012 © 2011 2012 Aker Solutions
Slide 2: Agenda
Agenda Q4 2011 Topic Speaker Introduction Øyvind Eriksen | Executive Chairman Financials Leif Borge | President & CFO Q&A session 4th quarter results 2011 – 17 February 2012 Slide 2 © 2012 Aker Solutions part of Aker
Slide 3: Health, Safety and Environment
Health, Safety and Environment Regrettably we had one fatality in Q4. A subcontractor died during maintenance work at a storage building in India. We had 25 total recordable injuries. 5 of these resulted in lost time. The majority of the TRIs were finger injuries from cuts and dust in eyes. HSE perf
Slide 4: Full year 2011 | Financial headlines
Full year 2011 | Financial headlines ■ Revenues increased ● By 9.3 percent compared with 2010 to NOK 36.5 billion ■ Net profit increased ● From NOK 2 billion in 2010 to NOK 5.3 billion ● Mainly due to gains from the sale of P&C and demerger of Kvaerner ■ EBITDA increased ● From NOK 3.3 billion in 20
Slide 5: Q4 2011 | Key figures
Q4 2011 | Key figures Revenues and EBITDA Order backlog and order intake NOK million NOK million 12 000 11 600 50 000 45 000 41 449 10 000 40 000 35 000 8 000 30 000 6 000 25 000 20 000 4 000 15 000 10 000 7 900 2 000 1 047 5 000 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2010 2010 201
Slide 6: Q4 2011 | By business area
Q4 2011 | By business area Profitability Growth EBITDA margin Q4 2011 vs. Q4 2010 Q4 2011 ENG 12 % Q4 2010 11 % Backlog Revenue growth growth SUB 5% 4% ENG 47 % 24 % UMB 9% DRT 36 % 9% 14 % SUB 34 % 15 % DRT 12 % UMB 24 % 36 % -3 % MMO -7 % 19 % 4% PRS 11 % MLS -15 % -1 % PRS -20 % -5 % 16 % MLS 13
Slide 7: The regional approach
The regional approach From Capital Markets Day December 2011 Arctic The next natural Norway gas region. World’s largest offshore market 1% 3% UK Share Share of of empl revenues Mature region being 56 % 43 % revitalised. Share Share of of empl revenues N America 12 % 14 % Deep-water picking Share Sha
Slide 8: Market outlook | Our response
Market outlook | Our response Market trends Aker Solutions targets ■ New level of industry optimism ■ Ambition until 2015 ■ Supplier capacity a constraint ■ 9-15% revenue growth p. a. ■ Inflation a concern ■ 3-4% margin improvement ■ Partnerships and closer cooperation ■ Ensuring quality even with h
Slide 9: Market outlook by region
Market outlook by region North America North Sea Middle East Utilize and Committed to Potential in develop current leverage excess of set up position current presence Brazil West Africa Asia Pacific Unchanged Possible Expand activity commitment and investment to in attractive high ambiti
Slide 10: Market outlook | Subsea
Market outlook | Subsea Strong subsea markets ■ Quality issues jeopardized profits ■ New management team and business turn around, SUB but still a way to go Subsea ■ Attractive market prospects in West Africa, Brazil, North 22 % Sea, Asia Pacific of group ■ Interesting opportunities in revenues in S
Slide 11: Market outlook | Drilling Technologies
Market outlook | Drilling Technologies Crucial moments in deepwater drilling ■ Awards for newbuilds in Brazil expected in H1 2012 ■ High North Sea activity, DRT several ongoing tenders in Drilling Technologies Asia ■ Activity picking up in other 19 % regions of group ■ High activity for Drilling rev
Slide 12: Market outlook | MMO
Market outlook | MMO Prospects extended in North Sea market ■ Strong market position ■ Could reach 2015 target three years early MMO ■ Mainly a North Sea activity, Maintenance, Modifications and expected market growth of Operations 12-13% p.a. ■ Ekofisk and Eldfisk among 26 % the largest modificatio
Slide 13: Market outlook | Engineering
Market outlook | Engineering Leading in front end and concept studies ■ Engineering capability a key differentiator ■ Great market opportunities – ENG high FEED activity Engineering ■ Increasing capacity and building presence in new 9% locations ■ Revival of the North Sea, of group revenues in many
Slide 14: Corporate centre update
Corporate centre update Customer relations Performance Get closer to customers quality and HSE and markets with key High commitment to accounts and regional improve quality in management performance Technology People and teams More proactive Effort to recruit and retain approach to Research 100 000
Slide 15: Agenda
Agenda Q4 2011 Topic Speaker Introduction Øyvind Eriksen | Executive Chairman Financials Leif Borge | President & CFO Q&A session 4th quarter results 2011 – 17 February 2012 Slide 15 © 2012 Aker Solutions part of Aker
Slide 16: Consolidated income statement
Consolidated income statement1 (NOK million) Q4 11 Q4 10 2011 2010 Operating revenues and other income 11 600 9 794 36 474 33 365 EBITDA 1 047 808 3 445 3 308 Of which related to non-recurring items - - 7572 1823 Of which related to hedging (2) 22 44 17 Depreciation and amortisation (277) (221) (876
Slide 17: Consolidated cash flow, NCOA and net debt
Consolidated cash flow, NCOA and net debt Net current operating assets (NCOA) NOK million 4 000 3 000 2 000 Net debt of NOK 3.5 billion (Q3: net 1 000 debt of NOK 2.4 billion) 0 Cash and bank deposits of NOK -1 000 1.3 billion -2 000 Gross interest bearing debt of Q1 10 Q2 10 Q3 10 Q4 10 Q1 11
Slide 18: Engineering Product Solutions
Engineering Product Solutions Engineering Process Systems ■ Strong results from the North Sea, India ■ Extra cost related to delivery of SRU and Malaysia project to P58/P62 in Brazil ■ Åsgard and Ekofisk Zulu reached important ■ Good performance in Midsund, France milestones and Australia Revenues,
Slide 19: Product Solutions
Product Solutions Drilling Technologies Mooring and Loading Systems ■ 4 topside packages successfully ■ P58/P62 mooring projects delivered on completed schedule ■ 2 drilling risers completed ■ Good contribution from both marine and ■ Solid contribution from services offshore segments ■ 5 topside pac
Slide 20: Product Solutions
Product Solutions Subsea Umbilicals ■ Operations according to revised plan in Brazil ■ Good progress on projects in Asia and ■ High activity in the North Sea the North Sea ■ Åsgard and Skuld reached important ■ Executing on some lower margin milestones projects ■ Good contribution from services ■ Wr
Slide 21: Field Life Solutions
Field Life Solutions MMO Well Intervention Services ■ Strong revenues from both maintenance ■ Bad weather and product mix impacting and modifications projects EBITDA contribution in the North Sea ■ Ekofisk Zulu and Kristin LPP reached important milestones ■ High capacity utilisation Revenues, EBITDA
Slide 22: Field-Life Solutions
Field-Life Solutions Revenues and EBITDA Oilfield Services and Marine Assets NOK million 199 Skandi Santos 141 143 138 Record high performance in Q4 - 98% 101 uptime Skandi Aker Final preparation for first LWI campaign -26 -23 (3+3 months) in Nigeria -48 -31 Negotiations for long term LWI
Slide 23: Contracts and order intake
Contracts and order intake Announced order intake of NOK 1.6 billion Business area Client Deliverable Value, NOK million Subsea Statoil Subsea production system Svalin 400 MMO Statoil Extension of modifications contract Mongstad 360 Drilling Technologies DSME Drilling riser 280 Subsea Statoil Subsea
Slide 24: Order backlog by execution date and business area
Order backlog by execution date and business area Order backlog by execution date Order backlog by business area NOK million NOK million 30 000 28 000 25 000 Other SUB DRT MMO 50 000 20 000 40 000 15 000 30 000 11 000 10 000 20 000 10 000 5 000 2 000 - 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2013 Later 2010
Slide 25: Key focus and outlook
■ Key focus ● Quality in operations ● Capacity expansions to meet demand ■ Outlook ● Continued good tender activity in our core segments 4th quarter results 2011 – 17 February 2012 Slide 25 © 2012 Aker Solutions part of Aker
Slide 26: 4th quarter results 2011 – 17 February 2012 Slide 26 © 2012 Aker Solutions
4th quarter results 2011 – 17 February 2012 Slide 26 © 2012 Aker Solutions part of Aker
Slide 27: Additional information
Additional information 4th quarter results 2011 – 17 February 2012 Slide 27 © 2012 Aker Solutions part of Aker
Slide 28: Consolidated assets
Consolidated assets (NOK million) Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Property, plant and equipment 7 494 7 217 6 970 7 343 7 409 Intangible assets 7 270 7 183 5 911 6 409 6 843 Financial assets (non-current) 897 1 417 1 245 930 958 IB receivables (non-current) 225 671 649 673 704 IB receivables (current)
Slide 29: Consolidated debt and equity
Consolidated debt and equity (NOK million) Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Shareholders' equity 10 165 13 566 12 703 10 408 11 148 Minority interests 189 168 163 181 169 Non IB liabilities (non-current) 2 229 2 473 2 403 2 628 2 548 Interest bearing debt (non-current) 7 508 4 635 4 637 4 506 5 371 Non
Slide 30: Consolidated cash flow
Consolidated cash flow (NOK million) Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Net cash flow from operating activities 3 658 1 181 237 1 2271 1 182 Net cash flow from investing activities (281) 3 492 (413) (1 058) (2 223) Net cash flow from financial activities (1 634) (2 798) (992) (27) 939 Translation adjustm
Slide 31: Split per business segment in Aker Solutions
Split per business segment in Aker Solutions Revenues Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 FY 2010 FY 2011 Product Solutions 4 022 4 469 4 170 5 737 4 345 4 306 4 514 6 541 18 398 19 706 Field Life Solutions 2 466 2 678 2 816 3 136 2 643 2 899 2 920 3 716 11 096 12 178 Eng
Slide 32: Split per business segment in Aker Solutions
Split per business segment in Aker Solutions Order intake Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 FY 2010 FY 2011 Product Solutions 4 506 5 442 4 084 4 800 4 377 10 509 5 682 5 272 18 832 25 840 Field Life Solutions 1 953 5 925 2 001 5 908 4 195 2 630 1 338 2 069 15 787 10 23
Slide 33: Split per business segment in Aker Solutions
Split per business segment in Aker Solutions Revenues Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 FY 2010 FY 2011 Subsea 1 512 1 476 1 355 2 290 1 657 1 782 1 927 2 638 6 633 8 004 Umbilicals 188 407 472 504 435 506 420 685 1 571 2 046 Drilling Technologies 1 896 2 056 1 728 2 20
Slide 34: Split per business segment in Aker Solutions
Split per business segment in Aker Solutions Order intake Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 FY 2010 FY 2011 Subsea 1 881 3 031 1 890 2 140 2 555 4 415 2 473 1 991 8 942 11 434 Umbilicals 1 385 127 371 287 419 1 080 283 524 2 170 2 306 Drilling Technologies 337 2 034 972
Slide 35: Copyright and disclaimer
Copyright and disclaimer Copyright of all published material including photographs, drawings and images in this document remains vested in Aker Solutions and third party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor used