Aker Status and outlook January - June 2008

Transcription

1 Aker Status and outlook January - June 2008 Oslo, 15 August 2008 Aker Jan-June 2008 Agenda Highlights Leif-Arne Langøy, Chairman & CEO, Aker Aker 2Q08 financials Bengt A Rem, Senior Partner & CFO, Aker Outlook and perspectives Leif-Arne Langøy, Chairman & CEO, Aker Jan-June 2008 Status and outlook 2 1

2 Aker tradition Innovation throughout generations Est 1841 Peter Steenstrup First CEO Kjell I Røkke Main owner 1850 Jan-June 2008 Status and outlook 3 Norcem (offshore, cement) J M Johansen (fisheries) RGI Davy/John Brown/Trafalgar Oluf A Onsum, founder Kværner Masa-Yards Aker Solutions Aker Seafoods Aker Philadelphia Aker Drilling Aker Float Prod Aker BioMarine Aker Exploration Aker Oilfield Serv Aker Clean Carbon This is Aker employees Operations in 35 countries NOK 62 bn revenues 51.1 % Aker Floating Production 100 % Aker Drilling 41.0 % Aker Solutions Energy, maritime, seafoods & marine biotech industries 82.9 % Aker BioMarine % Aker Seafoods 50 % Aker DOF Supply 77 2 % Aker Oilfield Services 61.2 % Aker Exploration % Aker Clean Carbon 50.3 % Aker Philadelphia Shipyard Key investments Aker ownership shown (in %) 1 Held by Aker Holding, adjusted for shares hold by Aker Solutions 2 Including shares owned by Aker Solutions Jan-June 2008 Status and outlook 4 2

3 Headlines Jan-June 2008 Staying the course Delivering on our promises Key companies confirm plans Sound financial base supports growth ambitions Asset values affected by short term fluctuations in financial markets Strong market fundamentals Energy and maritime sectors driven by rising energy consumption and demand expectations Marine & Biotech segment supported by consumers focus on health and life style Jan-June 2008 Status and outlook 5 Aker ASA and holding companies Adjusted net asset value per share 1 NOK % Discount % 30 % 378 NAV per share % Share price Share price Q 04 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q % 0 % 14 Aug 08 1 At end of period except 2Q 2008 Jan-June 2008 Status and outlook 6 3

4 Aker ASA and holding companies balance sheet Sound financial platform Incl investments in bonds in subsidiaries For future dividends, add-on investments and acquisitions Long-term IB items Cash and equivalents Total assets 1 NOK 30 bn Other Investments by industry Other Maritime Seafoods & marine Fundamentals are strong, driven by increased demand for energy and proteins Investments Energy 1 as of 30 June 2008, investments adj to market on 14 August Jan-June 2008 Status and outlook 7 Aker Financials January - June

5 Aker ASA and holding companies Balance sheet Q 1Q 2Q Mkt 1 (in NOK million) value Tangible & non-tangible fixed asset Long-term interest bearing items Long-term financial assets Other current assets Cash and interest bearing rec bls Total assets Shareholder s equity Non-interest bearing liabilities Interest bearing liabilities (internal) Interest bearing liabilities (external) Equity and liabilities Net interest bearing debt Equity ratio 85 % 88 % 85 % 91 % 92 % 1) Market value Aker share holding as of 14 August 2008 Jan-June 2008 Status and outlook 9 Aker ASA and holding companies Debt and liabilities overview Interest bearing debt NOK mill Maturity Bond AKER Bond AKER Bond AKER 06/ Bank debt and other 83 Total external Internal debt 193 Total Interest bearing assets NOK mill Cash + liquid assets Interest-bearing fixed assets Total Net int-bearing items Jan-June 2008 Status and outlook 10 1) Whereof Bonds issued by subsidiaries and associated companies NOK mill 5

6 Aker ASA and holding companies Profit and loss statements 2Q 2Q YTD YTD Year (in NOK million) Sales gains Operating expenses (40) (41) (74) (87) (151) EBITDA (40) Depreciation (1) (5) (3) (9) (8) Net financial items Profit before tax Jan-June 2008 Status and outlook 11 Aker group consolidated Income statement 2Q 2Q YTD YTD Year (in NOK million) Operating revenues Operating profit (EBITDA) 19 (226) 102 (377) (34) Depreciation and amortization (58) (72) (114) (136) (267) Impairment ch./non-rec. items (95) Operating profit 0 (298) 18 (513) (396) Net financial items Share of earnings in ass.comp Other income Profit before tax Income tax expense (24) Net profit from cont. operations Discontinuing business Profit for the period Minority share (200) Majority share Jan-June 2008 Status and outlook 12 6

7 Aker group consolidated Balance sheet Year (in NOK million) Tangible and non-tangible fixed assets Other fixed assets Cash and interest bearing receivables Other current assets Total assets Shareholders equity Minority interests Interest-bearing debt Interest-free debt Equity and liabilities Net interest bearing assets Equity ratio (%) 63 % 54 % 64 % 55 % 68 % Jan-June 2008 Status and outlook 13 Aker Company updates 7

8 Business overview Aker Solutions Good operations, steady performance Strengthening of well services with acquisition of Qserv Continued strong markets High bidding and negotiation activity Growth in high margin areas Increased delivery of after sales and services Major MMO contract awarded in July 2008 Aker Solutions 2Q 2Q YTD YTD Year (in NOK million) Revenues EBITDA Order intake Order backlog RapidSolution is a fast-track delivery programme for subsea fields 1 At end of period Jan-June 2008 Status and outlook 15 Business overview Aker Drilling Rigs ready to start operations Aker Spitsbergen in Q Aker Barents in Q High market activity, bidding for new contracts Rig dayrates continue to rise An attractive employer Recruitment process on track Aker Drilling 2Q 2Q YTD YTD Year (in NOK million) Revenues EBITDA Aker Spitsbergen and Aker Barents in final stages of completion at Stord Jan-June 2008 Status and outlook 16 8

9 Business overview Aker Exploration Attractive portfolio of 16 licenses on the northern part of Norwegian shelf Farm-in agreements with 10 oil companies Awarded 6 licenses in the APA 2007 Participation in first well (Stetind) Dry well, plugged and abandoned Planning for Aker Barents drilling campaign Ready for operation in 1Q 2009 Aker Exploration 2Q 2Q YTD YTD Year (in NOK million) Revenues EBITDA Net result Farm-in agreements with 7 operators Jan-June 2008 Status and outlook 17 Business overview Aker Philadelphia Shipyard Proposal to distribute dividend NOK 2.50 per share Strong financial performance Delivering on promises Further improvements in productivity Growth in profitability Tanker new-build program on plan Jim Miller, new CEO, in place Keel laying hull 011 AKPS 2Q 2Q YTD YTD Year (in NOK million) Revenues EBITDA Order intake Order backlog Jan-June 2008 Status and outlook 18 Overseas Texas City floated out 1 At end of period 9

10 Business overview Aker Seafoods Strengthened position for fresh fish Recorded growth in France, Denmark and Sweden New international opportunities pursued Prices reduced due to strong NOK, fuel prices increased 50% since Q MSC certified saithe Better product mix and increased sales Cod quota expected to increase, possibly 30 % over next 3 years MSC certification focus on sustainable catch Aker Seafoods 2Q 2Q YTD YTD Year (in NOK million) Revenues EBITDA Vesttind Jan-June 2008 Status and outlook 19 Business overview Aker Oilfield Services first-class organization in place 60 dedicated professionals hired to date On track for operations start-up Strong market interest Unique position offering conventional subsea well intervention services Oil companies interest reflects urgent need for cost efficient solutions Pioneering deepwater subsea well services Jan-June 2008 Status and outlook 20 10

11 Business overview Aker Clean Carbon First international agreement Pre-qualified in UK competition with Scottish Power Positioning for Norwegian projects Mongstad Test Center Full scale captura plant at Mongstad and Kårstø Major research programme SOLVit to further develop CO 2 -capture technology Partnership with Sintef and NTNU Mobile capture facility Construction to be completed in Q3 Signing up to the SOLVit programme Mobile CO 2 -capture unit under completion Jan-June 2008 Status and outlook 21 Business overview Aker Floating Production Dhirubhai 1 arrived in India Naming ceremony at yard 29 June, only 17 months after LOI. First oil in 3Q08 Agreement with Reliance USD 80 million covering change orders Positive market development New CEO, in place 14 August: Arrival India First Indian chopper touch-down AKFP 2Q 2Q YTD YTD Year (in NOK million) Revenues EBITDA Order intake Order backlog At end of period Jan-June 2008 Status and outlook 22 11

12 Business overview Aker BioMarine Scaling up Superba dietary supplement production Production challenges have been resolved Strong market interest across continents Dietary supplement will be launched in Q Increased sale of Qrill-meal in Q2 Solid profit at Argentina operations Driven by good surimi production and high prices AKBM 2Q 2Q YTD YTD Year (NOK million) Revenues EBITDA Life Europe is ready to launch Superba Krill Oil Great interest for Suberba at trade fairs in US and Europe Jan-June 2008 Status and outlook 23 Aker Perspectives in the offshore oil & gas business 12

13 Aker in offshore oil & gas Advanced technology and smart solutions Jan-June 2008 Status and outlook 25 Aker in offshore oil & gas Advanced technology and smart solutions Projects, products and services to the energy and process industry Efficient drilling operations in ultra-deep waters and harsh environment areas Exploration company with focus on northern part of Norwegian shelf Owner and operator of floating production, storage and offshore loading units for benign water Subsea services company, performing subsea installation/completion work and well interventions Builder of shuttle tankers for crude oil transportation from field to shore, primarily in the US Jan-June 2008 Status and outlook 26 13

14 Aker in offshore oil & gas Double-digit growth in deepwater and arctic Arctic regions Deepwater regions Advanced technology and smart solutions are key value drivers for oil companies... and for integrated solutions providers such as Aker Jan-June 2008 Status and outlook 27 Key drivers Energy demand set to grow Primary energy mix (IEA World Energy Outlook 2006) Billion tonnes of oil equivalents Gas Oil Coal Jan-June 2008 Status and outlook 28 Other renewables Biomass & waste Hydro Nuclear Fossil fuels, hydrocarbons (80 % of total in 2030) Daily energy consumption per capita 0 x1000 Kcal Primitive agricultural man Advanced agricultural man Industrial man Technological man Transportation Industry & farming Home & commerce Food 14

15 Easy oil already on stream Surge for deepwater resources Global Deepwater CAPEX (USD million) Asia-Pacific (14 % of total projected deepwater market in 2011) Americas (50 %) Western Europe (3 %) Eastern Europe, FSU (1 %) Africa (33 %) Jan-June 2008 Status and outlook 29 Easy oil already on stream The next frontier Arctic potential 1 Oil: 90 billion barrels Gas: 1,669 trillion cubic feet NGL: 44 billion barrels... of which 84 % is expected to occur in offshore areas For comparison Norwegian shelf production to date Oil: 21 billion barrels Gas: 44 trillion cubic feet Source: NPD Jan-June 2008 Status and outlook 30 Map: USGS 1 Undiscovered conventional resources according to recent US Geological Survey assessment 15

16 Surge for deepwater resources 90+ drilling floaters under construction Cumulative number of floaters In order book and with contract confirmed % 1Q 06 Total number of floaters With confirmed contract 34 47% 2Q Q % 44% 4Q % 1Q % 2Q % 3Q 07 72% 4Q % 1Q % 2Q 08 Market Fundamentals Global oil production increasing ~2% annually towards % growth in mid- and deepwater production required to cover anticipated demand Current floater fleet fully utilised; new build volume not sufficient to grow deepwater production ¾ of deepwater floaters under construction are contracted Offshore Brazil triggers new wave of new builds (1) 68 units with known contract dates from Source: IEA, OPEC, RS Platou, Aker Solutions study Jan-June 2008 Status and outlook 31 Deepwater drilling Strong demand expected to continue Drilling floaters 1) by year of delivery Industry experts average AKSO Q407 estimate Delivered or under construction Current industry concensus '95 '00 '05 '10 '15 1) Floaters = drillships and semi-submersible rigs Sources: RS Platou, Douglas-Westwood, As forecast by Aker Solutions in December 2007 Jan-June 2008 Status and outlook 32 16

17 Deepwater drilling Strong demand expected to continue Ultra-deepwater drilling units worldwide (Contract status & expected demand) Demand (existing contracts, options, planned and possible requirements) continues to grow Indication of 100 per cent utilization of drilling fleet into 2011 Number of units involved in development drilling and completion activities Source: Fearnley Offshore Jan-June 2008 Status and outlook 33 Solutions from Aker Life of field approach Subsea well completions MMO facility services Exploration Seismic interpretation Design, deliver production facilities Lease out, operate production facilities Exploration and development drilling Production profile, typical field Enhanced oil recovery, well intervention etc Field decommissioning Exploration Development Prod Peak Enhance & maintain production Decomm Jan-June 2008 Status and outlook 34 17

18 Products from Aker Advanced technology components Drilling equipment & technology Upstream process technology Drilling risers Crude loading & offloading technology Mooring technology & systems Marine operations & subsea installation Reservoir evaluation services Steel tube umbilicals Well interventions & technology Subsea technologies and systems Jan-June 2008 Status and outlook 35 Arctic solutions from Aker Proven project execution capabilities Ormen Lange Snøhvit Kashagan Hibernia Sakhalin II Jan-June 2008 Status and outlook 36 18

19 Aker total offering Building integrated solutions Other Deepwater field developments 1) Subsea and well intervention, EOR 2) Arctic drilling and field development 3) Exploration early production 4) Brazil, West Africa, US GOM, NW Europe, South and South East Asia Well-established deepwater plays, ie Brazil, West Africa, US GOM, NW Europe Norwegian and Russian shelves, Caspian Sea New offshore regions, West Africa, India etc ED&S P&T Subsea Typical projects: 1) Reliance project, India. 2) Petrobras well intervention contract, Brazil. 3) Sakhalin, Kashagan and Stockman. 4) Projects under consideration Jan-June 2008 Status and outlook 37 Business idea We create long-term value for all stakeholders by building premier companies in sectors where we have strong knowledge and execution capabilities Jan-June 2008 Status and outlook 38 19

20 Appendixes Business overview Key holdings Jan-Jun Selected key figures Aker Market Jan-June EBITDA 1 (All amounts in NOK milllion) holding value Aker Solutions (OSE) 41.0 % Aker BioMarine (OSE) (C) 82.9 % (13) Aker Philadelphia Shipyard (OAAX) (C) 50.3 % Aker Drilling 3 (C) % N/A - (30) (109) Aker Seafoods (OSE) (C) 65.0 % Aker Floating Production (OSE) (C) 51.1 % (27) (83) Aker Exploration (OAAX) 4 (C) 61.2 % (100) (241) Odim (OSE) 35.5 % N/A 101 N/A Bjørge (OSE) 39.9 % N/A 27 N/A American Shipping Co (OSE) % C = Consolidated in Aker Group accounts. Others are reported as associated companies. OSE = Trading on Oslo Stock Exchange. OAAX = Trading on Oslo Axess. 1 EBITDA = Earnings before interests, tax, depreciation and amortization. 2 Market value Aker share holding as 14 August Not listed. 4 Before tax. 5 Aker reduced its holding to 19.9 % early June. Aker s financial exposure in American Shipping Co, including shares covered by a total return swap agreement, equals 53.2 % of American Shipping Co Jan-June 2008 Status and outlook 40 20

21 Aker ASA and holding companies Ownership in listed companies Ownership No of Book value in per cent shares NOK mill Aker Solutions ASA 60% of Aker BioMarine ASA Aker Exploration ASA Aker Floating Production ASA Aker Philadelphia Shipyard ASA Aker Seafoods ASA American Shipping Company ASA Bjørge ASA Genesis Petroleum Corporation Odim ASA Total Ownership as of 14 August, book value as of 14 August 2008 Jan-June 2008 Status and outlook 41 Aker group IR Contacts Company (Ticker) Name Phone (dir line) Aker Geir Arne Drangeid gad@akerasa.com (AKER) Senior Partner & EVP Bengt A Rem bar@akerasa.com Senior Partner & CFO Aker Solutions Lasse Torkildsen lasse.torkildsen@akersolutions.com (AKSO) VP Investor relations Aker Seafoods Gunnar Aasbø gunnar.aasbo@akersea.com (AKS) CFO Aker Philadelphia Shipyard Jeffrey Theisen +1 (215) jeffrey.theisen@phillyshipyard.com (AKPS) CFO Aker Floating Production David Bandele david.bandele@aker-fp.com (AKFP) CFO Aker BioMarine Nils Brendemo nils.brendemo@akerbiomarine.com (AKBM) CFO Aker Exploration Alan J McIntyre alan.mcintyre@aker-exploration.com (AKX) CFO Jan-June 2008 Status and outlook 42 21

22 Disclaimer This Document 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 Document are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for Aker ASA and Aker ASA s (including subsidiaries and affiliates) lines of business. These expectations, estimates and projections are generally identifiable by statements containing words such as expects, believes, estimates or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for Aker's businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time in the Document. Although Aker ASA believes that its expectations and the Document are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Document. Aker ASA is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Document, and neither Aker ASA nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use. The Aker group consists of many legally independent entities, constituting their own separate identities. Aker is used as the common brand or trade mark for most of this entities. In this document we may sometimes use Aker", "Group, "we" or "us" when we refer to Aker companies in general or where no useful purpose is served by identifying any particular Aker company. Jan-June 2008 Status and outlook 43 22