Aker Solutions Asa · OSL:AKSO
Aker Solutions Asa — Q2 2012 Earnings Presentation
36 slides from Aker Solutions Asa's earnings presentation, Aug 14, 2012
Slide 1: 2nd quarter results 2012
Preferred partner 2nd quarter results 2012 Fornebu 14 August 2012 Øyvind Eriksen and Leif Borge Public © 2012 Aker Solutions Preferred partner
Slide 2: Agenda | Q2 2012
Agenda | Q2 2012 Introduction Øyvind Eriksen Executive chairman Financials Leif Borge President & CFO Q&A session Øyvind Eriksen Leif Borge Q&A Photo: Skandi Aker Public © 2012 Aker Solutions Slide 2 14 August 2012 2nd quarter results 2012 Preferred partner
Slide 3: Operational improvements, predictable performance
Operational improvements, predictable performance Q2 2012 Our commitment A positive trend Double in size ■ Growth in line with plan. Profitability improved but still behind peers from 2010 to 2015 ■ Prosperous market. High tender activity. Strong order intake. And contract awards which could turn ou
Slide 4: Q2 2012 | Key figures
Q2 2012 | Key figures Revenues and EBITDA Order intake and backlog NOK billion NOK billion Revenues EBITDA Intake Backlog 11.9 54.0 23.0 1.4 2011 2012 2011 2012 2011 2012 2011 2012 Public © 2012 Aker Solutions Slide 4 14 August 2012 2nd quarter results 2012 Preferred partner
Slide 5: Strong order backlog notwithstanding tender discipline
Strong order backlog notwithstanding tender discipline Subsea tree awards: 2012 Q2 Subsea tree awards: 2012 YTD (1 HY) 39 102 1 3 13 84 28 5 21 26 64 14 14 17 13 29 13 7 80 28 4 13 0 3 9 7 13 11 30 29 2 13 4 1 1 3 8 Aker Solutions FMC Cameron GE DQ Aker Solutions FMC Cameron GE DQ 13 17 29 40 1 10 3
Slide 6: Q2 2012 | By business area
Q2 2012 | By business area Profitability Growth Percentage EBITDA margin Percentage growth versus Q2 2011 Q2 2012 28 % 25% OMA -22 % Revenue Backlog Q2 2011 growth growth 19 % 20 % WIS 18 % OMA 173 % NA 14 % SUB 91 % -7 % MLS 13 % ENG 78 % -17 % 12 % DRT 12 % DRT 46 % 17 % ENG 10 % 11 MMO 23 % -4 %
Slide 7: YTD 2012 Profit margins compared with peers
YTD 2012 Profit margins compared with peers Maintenance, Drilling modifications Well Intervention Subsea Technologies and operations Services Engineering versus peers versus peers versus peers versus peers versus peers 26,2 26.2 22,8 21,4 22.8 21.4 18,9 17,4 17.4 18.9 14,0 14.0 12,2 10,7 10,0 12.2 1
Slide 8: Q2 2012 Trading multiple – benchmarking with peers
Q2 2012 Trading multiple – benchmarking with PEERS Current EV/EBITDA 2012 trading Product Solutions Engineering Share price performance against peers YTD peers peers Aker Solutions WIS MMO peers peers Oslo Stock Exchange Philadelphia O.S. Index FMC 14.0x NOV Cameron 14.0x 10.8x 9.9x 9.4x 9.2x 9.1x 7
Slide 9: Investments to support growth
Investments to support growth ■ Capacity investments continue: USD 100 million for DRT in Brazil. Another USD 140 million in SUB and UMB in Malaysia and Norway ■ Established engineering hub in London in 2011 – plan to grow to 1,700 people ■ Acquisition of subsea companies Subsea House and SSH Engine
Slide 10: Acquisition of NPS Energy
Acquisition of NPS Energy Growth opportunities for many of our businesses Surface trees Wireline tractors Drilling tech Process systems Engineering Revenues and profits are in NOK and for 2010. Market capitalisation as of 1 February 2012 ■ Engineering office to be established in the United Arab Emir
Slide 11: Market outlook | Will shale change the game?
Market outlook | Will shale change the game? The (only?) real hot topic this summer Public © 2012 Aker Solutions Slide 11 14 August 2012 2nd quarter results 2012 Preferred partner
Slide 12: Selected market trends and recent events
Selected market trends and recent events Legend North Sea ■ Trends ■ Discoveries in new horizons ►Aker Solutions ■ Drive towards fIeld life events extension ►Record-high tender activity Asian yards ►Cat B contract award ■ Ruling the market for rigs and FPSOs ►Break-through with M East, N Africa Nort
Slide 13: Agenda | Q2 2012
Agenda | Q2 2012 Introduction Øyvind Eriksen Executive chairman Financials Leif Borge President & CFO Q&A session Øyvind Eriksen Leif Borge Q&A Photo: Skandi Aker © 2012 Aker Solutions Slide 13 14 August 2012 2nd quarter results 2012 Preferred partner
Slide 14: Consolidated income statement
Consolidated income statement1 (NOK million) Q2 12 Q2 11 YTD 2012 YTD 20111 2011 Operating revenues and other income 11 893 7 809 21 730 16 313 36 474 EBITDA 1 357 636 2 397 2 076 3 445 Of which related to non-recurring items 1652 - 1652 7573 7572 Of which related to hedging 37 19 63 6 44 Depreciati
Slide 15: Consolidated cash flow, capex and NCOA
Q2 2012 | Consolidated cash flow, capex and NCOA ■ Cash flow from operations negative NOK 500 million in the quarter ■ Group NCOA of NOK 2.7 billion (Q1: NOK 1.3 billion) ■ NCOA expected to decrease in H2 Cash flow Net current operating assets (NCOA) NOK million NOK million 4 000 5 300 3 000 2 000 4
Slide 16: Q2 2012 | Investment programme
Q2 2012 | Investment programme ■ USD 100 million investment in new multi-purpose drilling service site in Brazil ■ Further capacity investments in Subsea and Umbilicals, NOK 850 million announced ■ NPS acquisition with equity value of USD 350 million and approx. USD 110 million in NIBD to be assumed
Slide 17: Q2 2012 | Financial position
Q2 2012 | Financial position Debt maturity profile NOK million Note: Revolving credit facility of NOK 6 billion, drawn approx. NOK 1.5 billion, maturing in 2016 ■ Q2 2012 net debt of NOK 5.3 billion 6 000 (Q1: net debt of NOK 4.4 billion) 5 000 ■ Net debt reduced by approx. NOK 1.2 billion in Q2 wit
Slide 18: Engineering and Process Systems
Engineering Product Solutions Engineering Process Systems ■ High activity on JV projects with other Aker ■ Delayed awards and lower activity in Norway Solutions businesses and Brazil ■ Strong results from the North Sea and ■ Good results in Midsund and Asia Pacific Malaysia ■ Lower activity in the d
Slide 19: Product Solutions: Subsea and Umbilicals
Product Solutions Subsea Umbilicals ■ Revenue growth 91% compared to Q2 2011 ■ Delayed progress on some projects in ■ High activity in the North Sea with strong Norway progress on hardware deliveries ■ Delayed awards and lower activity in Mobile ■ Good contribution from both greenfield and (US) brow
Slide 20: Product Solutions: Drilling and Mooring
Product Solutions Drilling Technologies Mooring and Loading Systems ■ Strong performance on main drilling projects ■ Good performance on existing backlog ■ Good results from service ■ Order intake affected by delayed awards ■ Acquisition of Herman Hansen and Lyngdal Mekaniske gives increased capacit
Slide 21: Field-Life Solutions: MMO and Well Intervention
Field-Life Solutions MMO Well Intervention Services ■ Revenue growth of 23% compared to Q2 ■ Good activity in the North Sea with 2011 International and the UK growing in ■ High activity on JV projects with other Aker significance Solutions businesses ■ High activity in Saudi Arabia and lower rig ■ G
Slide 22: Field-Life Solutions: Oilfield Services and Marine Assets
Field-Life Solutions Oilfield Services and Marine Assets Revenues, EBITDA NOK million Cat-B (Statoil) ■ Eight-year, USD 1.9 billion contract Skandi Aker (Total) ■ On Elgin well kill campaign for Total in Q2 ■ Re-started earlier aborted test, training and mobilisation programme in mid-June ■ Ongoing
Slide 23: Contracts and order intake
Contracts and order intake Q2 2012 announced order intake of around NOK 16.5 billion Largest orders Client Deliverable NOK million OMA Statoil Eight-year contract for Cat-B rig 11 000 ENG/MMO Kværner EPC at Edvard Grieg 1 500 ENG/MMO Kværner EPCM at Ormen Lange/Nyhamna 850-950 MMO ExxonMobil Frame a
Slide 24: Order backlog and subsequent events
Order backlog and subsequent events Order backlog by execution date Order backlog by business area NOK million NOK million Other MMO SUB DRT ENG 19 500 19 000 50 000 19 000 40 000 18 500 18 000 18 000 30 000 17 500 17 000 20 000 17 000 10 000 16 500 - 16 000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2012 2013 L
Slide 25: Agenda | Q2 2012
Agenda | Q2 2012 Introduction Øyvind Eriksen Executive chairman Financials Leif Borge President & CFO Q&A session Øyvind Eriksen Leif Borge Q&A Photo: Skandi Aker Public © 2012 Aker Solutions Slide 25 14 August 2012 2nd quarter results 2012 Preferred partner
Slide 26: Q&A
Q&A 2nd quarter results 2012 Fornebu 14 August 2012 Øyvind Eriksen and Leif Borge Public © 2012 Aker Solutions Slide 26 14 August 2012 2nd quarter results 2012 Preferred partner
Slide 27: Public © 2012 Aker Solutions Slide 27 14 August 2012
Public © 2012 Aker Solutions Slide 27 14 August 2012 2nd quarter results 2012 Preferred partner
Slide 28: Additional information
■ Additional information Public © 2012 Aker Solutions Slide 28 14 August 2012 2nd quarter results 2012 Preferred partner
Slide 29: Consolidated cash flow
Consolidated cash flow (NOK million) Q2 11 Q3 11 Q4 11 Q1 12 Q2 2012 Net cash flow from operating activities 237 1 227 1 182 (122) (487) Net cash flow from investing activities (413) (1 058) (2 223) (708) 461 Net cash flow from financial activities (992) (27) 939 698 (441) Translation adjustment (10
Slide 30: Consolidated assets
Consolidated assets (NOK million) Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Property, plant and equipment 6 970 7 343 7 409 7 732 8 179 Intangible assets 5 911 6 409 6 843 6 776 7 040 Financial assets (non-current) 1 165 859 856 1 000 1 208 IB receivables (non-current) 649 673 704 702 767 IB receivables (curren
Slide 31: Consolidated debt and equity
Consolidated debt and equity (NOK million) Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Shareholders' equity 12 494 10 201 10 797 11 360 10 790 Minority interests 163 181 169 173 159 Non IB liabilities (non-current) 2 532 2 764 2 797 2 660 2 756 Interest bearing debt (non-current) 4 637 4 506 5 371 6 044 6 561 Non
Slide 32: Split per business segment in Aker Solutions
Split per business segment in Aker Solutions Revenues Q1 2011 Q2 2011 Q3 2011 Q4 2011 FY 2011 Q1 2012 Q2 2012 Product Solutions 4 345 4 306 4 514 6 541 19 706 5 394 6 620 Field Life Solutions 2 643 2 899 2 920 3 716 12 178 3 261 3 709 Engineering Solutions 625 692 766 1 170 3 253 995 1 229 Corporate
Slide 33: Split per business segment in Aker Solutions
Split per business segment in Aker Solutions Revenues Q1 2011 Q2 2011 Q3 2011 Q4 2011 FY 2011 Q1 2012 Q2 2012 Subsea 1 657 1 782 1 927 2 638 8 004 2 445 3 401 Umbilicals 435 506 420 685 2 046 413 506 Drilling Technologies 1 614 1 471 1 595 2 408 7 088 1 974 2 146 Process Systems 408 293 358 410 1 46
Slide 34: Split per business segment in Aker Solutions
Split per business segment in Aker Solutions Order intake Q1 2011 Q2 2011 Q3 2011 Q4 2011 FY 2011 Q1 2012 Q2 2012 Subsea 2 555 4 415 2 473 1 991 11 434 2 423 3 203 Umbilicals 419 1 080 283 524 2 306 297 790 Drilling Technologies 1 012 4 427 2 259 2 073 9 771 2 927 2 157 Process Systems 223 324 390 5
Slide 35: Public © 2012 Aker Solutions Slide 35 14 August 2012
Public © 2012 Aker Solutions Slide 35 14 August 2012 2nd quarter results 2012 Preferred partner
Slide 36: Copyright and disclaimer
Copyright and disclaimer Copyright 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 for