Aker Solutions Asa · OSL:AKSO
Aker Solutions Asa — Investor Presentation (December 2013)
29 slides from Aker Solutions Asa's investor presentation, December 2013
Slide 1: Aker Solutions Investor Presentation
Preferred partner Aker Solutions December 2013 Investor Presentation © 2013 Aker Solutions Preferred partner
Slide 2: This is Aker Solutions
This is Aker Solutions Aker Solutions brings together engineering, technologies and services for oil and gas drilling, field development and production Exploration Development Production Decommissioning Geological Concept, Process Tie-ins Drilling Planning of safe interpretation FEEDs op
Slide 3: This is Aker Solutions
This is Aker Solutions ■ Provides oilfield products, systems and services for customers in the oil and gas industry world-wide ■ Built on more than 170 years of industrial tradition ■ Employs approximately 28 000 people in more than 30 countries Employees: 21 500 Contract staff: 6 500 Revenues: 44.9
Slide 4: From reservoir to production
From reservoir to production ■ Aker Solutions brings 10 together engineering, 4 technologies and services for 8 7 oil and gas drilling, field 9 12 2 13 development and production 1. Geology and geophysics 3 2. Deepwater drilling 3. Drilling risers 5 4. Surface trees 6 5. Subsea systems 6. Umbilicals
Slide 5: Where we are – a global footprint
Where we are – a global footprint Countries: 31 Locations: ~ 80 - engineering hubs - service bases - manufacturing plants - sales offices - project management Angola Canada Finland Indonesia Norway Norway [cont.] Singapore UK Luanda Calgary Helsinki Batam Asker Stord Singapore Aberdeen St. John’s Ul
Slide 6: Markets and strategy
Markets and strategy Investor Presentation © 2013 Aker Solutions Slide 6 December 2013 Investor presentation Preferred partner
Slide 7: E&P spending – growth strengthens
E&P spending – growth strengthens Global E&P CAPEX spend Rebounded in 2011, expected to be 644bn USD in 2013, up from 604bn USD in 2012 Exploration at the forefront of spending growth Growth for next 5 years 10-15% Source: Barclays Capital Equity Research, Global E&P Spending Update, 4 Decembe
Slide 8: Market outlook by region
Market outlook by region 25 bn USD Expected total E&P spending 2013-2017 per country Source: Rystad DCube, 14 Nov 2012; Selection: offshore purchases, USD million for the years 2013-2017, sf5 © 2013 Aker Solutions Slide 8 December 2013 Investor presentation Preferred partner
Slide 9: Majors dominate offshore spending
Majors dominate offshore spending Petrobras Statoil Shell Chevron Global offshore spend 2013 - 2017 ExxonMobil BP Total Pemex Eni Saudi Aramco 600 000 Million USD Abu Dhabi NOC 500 000 Woodside 400 000 ConocoPhillips 300 000 CNOOC 200 000 Inpex 100 000 ONGC (India) 0 Noble Energy 2005 2007 2009 2011
Slide 10: NCS a very attractive and exciting market
NCS a very attractive and exciting market ■ Aker Solutions’ accessible market Expected offshore E&P spend in 2013-2017 by country BnNOK segments is ~100 billion NOK in 2017 1 400 ■ The NCS is the second biggest offshore 1 200 market over the next 5 years 1 000 800 ■ NCS offshore spending expected to
Slide 11: Subsea market continues strong growth
Subsea market continues strong growth Market size by product group MUSD 19 184 Subsea trees & control pods Quest May 2013 +22% 15 699 Tree control packages Quest Feb 2013 12 515 Subsea manifolds 10 460 9 588 Subsea production umbilicals installed 8 319 7 055 6 295 5 723 6 185 5 233 3 272 3 767 4 145
Slide 12: Offshore spending to grow in key markets
Offshore spending to grow in key markets Global ~ 8% CAGR UKCS NCS over the period MUSD South & East Asia North America Shipyards in Asia are counted through operation in regions where operated South America West of Africa Australia CAGR in graphs: Compound Annual Growth Rate for 2012-2017 Source: R
Slide 13: Growth in regions
Growth in regions Norway World’s largest offshore market N America 53% 46% Deep-water Share Share of picking up. Europe & of empl revenues 5% 7% Africa Share Share of Deepwater fields. of empl revenues 16% 17% Share Share of Asia Pacific of empl revenues Gas demand drive our markets. 18% 22% MENA Sh
Slide 14: Business areas
Business areas Engineering Drilling technologies Subsea Umbilicals Process systems Maintenance, Oilfield services modifications and and marine assets operations © 2013 Aker Solutions Slide 14 December 2013 Investor presentation Preferred partner
Slide 15: Positive market outlook for all drilling segments
Positive market outlook for all drilling segments Floaters Jack-ups Fixed installations Yearly number of newbuilds, Number of newbuilds per 2015-2020 (estimates) delivery year (contracted, per Nov 2012) Internal 2008 29 20-25 analyses 2009 23 Several current and Nordea 25 2010 16 upcoming prospects
Slide 16: MMO market CAGR in our regions of interest: 5-8%
MMO market CAGR in our regions of interest: 5-8% Atlantic ~6% Norway ~6% Canada 25 19 1,6 2,1 2012 2017 United ~5% 2012 2017 Malaysia ~8% Kingdom 22 17 9 6 Gulf of ~5% Mexico 2012 2017 2012 2017 1,4 1,7 Brunei Australia ■ Aims to double their ■ Large upcoming LNG 2012 2017 production capacity develo
Slide 17: Engineering global market outlook
Engineering global market outlook Global engineering offshore CAPEX Key highlights MNOK/year 70 000 ■ High activity in FEED, study and detailed engineering markets 60 000 North Sea ■ Global CAGR 2012-2017 of 12.2 % (NCS, UKCS) ■ About 50-50% spending split on fixed and 50 000 Brazil floating facilit
Slide 18: Global market available for front end services
Global market available for front end services ■ The current global market is estimated to NOK 6 bn ■ The market is expected Brazil to grow 33% over the KL/Perth next 5 years ■ This is a “local” market London requiring local presence ■ close dialogue and Houston cooperation with the customers ■ use
Slide 19: Field-Life Solutions
Field-Life Solutions Oilfield Services and Marine Assets Asset values Total NOK 5.3 bn Skandi Aker (Total) ■ Commencement of two-year year firm contract achieved in 500 Aker Oilfield Services September following the successful completion of final 800 contractual deepwater test Ezra Skandi Santos (Pe
Slide 20: Key financials
Key financials Investor Presentation © 2013 Aker Solutions Slide 20 December 2013 Investor presentation Preferred partner
Slide 21: Consolidated income statement
Consolidated income statement (NOK million) 3Q 13 3Q 12 YTD 2013 YTD 2012 2012 Operating revenues and other income 10,930 11,158 33,897 32,888 44,922 EBITDA 1,074 1,122 2,888 3,519 4,739 Of which related to non-recurring items - - - 1651 3251 Of which related to hedging (35) (2) (59) 61 36 Depreciat
Slide 22: Key figures
Key figures Revenue and EBITDA Order intake and backlog NOK billion NOK billion Revenue EBITDA Intake Backlog 14 1,4 30 80 12 1,2 25 60 10 1,0 20 10.9 60.6 8 0,8 1.1 15 40 6 0,6 10 4 0,4 11.9 20 5 2 0,2 0 0,0 0 0 2Q 3Q 4Q 1Q 2Q 3Q 2Q 3Q 4Q 1Q 2Q 3Q 2Q 3Q 4Q 1Q 2Q 3Q 2Q 3Q 4Q 1Q 2Q 3Q 2012 2013 2012
Slide 23: 3Q 2013 | By business area
3Q 2013 | By business area Revenue Profitability NOK million versus 3Q 2012 Percentage EBITDA margin versus 3Q 2012 SUB 3,289 SUB 10.9 2,899 8.7 MMO 2,514 MMO 6.8 2,877 8.1 DRT 2,326 DRT 9.8 2,156 12.7 ENG 830 ENG 5.3 1,117 12.7 WIS 593 WIS 25.5 587 17.2 UMB 488 UMB 7 518 1.5 PRS 466 PRS 1.3 428 5.4
Slide 24: 3Q 2013 | Consolidated cashflow, capex and NCOA
3Q 2013 | Consolidated cashflow, capex and NCOA ■ Cashflow from operations positive NOK 576 million in the quarter ■ NCOA of NOK 4.7 billion (Q2 2013: NOK 4.2 billion) Cashflow Net current operating assets (NCOA) NOK million NOK million 9600 600 900 9900 5000 4000 3000 2000 1000 0 Net debt Cash from
Slide 25: 3Q 2013 | Financial position
3Q 2013 | Financial position ■ Net debt of NOK 9.9 billion (2Q 2013: NOK 9.6 billion) ■ Liquidity buffer of NOK 5.0 billion Debt maturity profile LTM EBITDA, NIBD and NIBD/LTM EBITDA NOK million NOK million Note: Revolving credit facility of NOK 6 billion, drawn approx. NOK Note: NIBD and LTM EBITDA
Slide 26: Shareholder information
Shareholder information Top 10 shareholders [Nov 2013] Shareholders per category [Nov 2013] Investor Shares of total Aker Kværner Holding1 110 333 615 40.27% Folketrygdfondet 11 249 797 4.11% Goldman Sachs & Co 8 091 673 2.95% State Street Bank & Trust 7 441 619 2.72% Danske Bank 6 589 276 2.40% 43%
Slide 27: Our vision and values
Our vision and values Our vision is to be the preferred partner for solutions in the oil and gas industry through living our values. © 2013 Aker Solutions Slide 27 December 2013 Investor presentation Preferred partner
Slide 28: Development and growth
What can you expect from Aker Solutions? Development and growth Customer relations Organic expansion Technology Mergers Performance quality Acquisitions People Strategic alliances © 2013 Aker Solutions Slide 28 December 2013 Investor presentation Preferred partner
Slide 29: 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
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