Growth and strategic development. 3 January 2019

Transcription

1 Growth and strategic development 3 January 2019

2 3 key messages 1) Strong foundation for development 2) Market environment with new opportunities 3) Clear growth strategy 2

3 3 Status

4 Some few examples from a unique track record Topsides, floaters & onshore facilities Jackets Concrete solutions 4

5 Globally recognised for predictable deliveries: All current projects on track Johan Sverdrup utility and living quarter topside Njord A upgrade Johan Castberg FPSO Valhall Flank West normally unmanned WHP Johan Sverdrup Riser Platform hook-up and modification Decommissioning projects Nord Stream 2 onshore facility West White Rose marine operations 5

6 Order backlog Order backlog per 3Q 18 NOK million Project example new topside EPC Project example modification / HUC % % 17% 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 Estimated scheduling as of : For execution in 2018 For execution in 2019 For execution in Own value creation Procurement Subcontractors 6 Note: Order backlog include scope of work in jointly controlled entities.

7 A rare expertise with great impact and value Integration of complex elements to a complete solution FEED Front-end engineering and design E Engineering P Procurement C Construction Hook-up, commissioning & installation DECOM 7

8 Parallel EPC execution + Precision = Value PROJECT MANAGEMENT FEASIBILITY & CONCEPT ENGINEERING PROCUREMENT CONSTRUCTION, HOOK UP AND COMPLETION INSTALLATION Each month earlier first oil = typically ~ MNOK increased value 8

9 Market opportunities & Strategy for growth 9

10 Clear growth objective Kvaerner today EPC delivery, Norway Financially robust Revenues 7 billion Strategic roadmap: Safe and predictable execution Reduced cost, increased productivity Standardisation & digitalisation Strategic long term partnerships Improved delivery model Low cost fabrication Develop people and facilities Build strength in growth segments Larger Kvaerner in 2022 Leading offshore and onshore EPC contractor within oil and gas Established in growth segments Wider product offering Increased international activity Attractive yield 10

11 Number of Plans for Development and Operation for larger projects expected to decline: Significant change in the market for newbuild platforms at NCS ~15 ~10 ~5 ~ : Larger newbuild contracts at NCS : Expected larger newbuild contracts at NCS = > Kvaerner NOK 3 bn2018 contract = NOK 750 mill NOK 3 bn contract

12 The 7 years behind us: Market opportunities transformed to predictable deliveries 29 quarters in a row ~ NOK 30 bn Annual adressable market Source: Kvaerner NOK billion Revenue Field Development Margin % 5,5 Adjusted EBITDA margin ,7 5 4,6 14 4,5 3,9 4,1 4,2 4,2 4 3,8 3,8 12 3,6 3,4 3,5 3,3 3, ,8 2,6 2,5 2,7 2,1 2,2 2,4 8 2,5 2,2 2 2, ,7 1,81,9 1,8 1,7 6 1,5 1 0,5 0 Q3'11 Q2'12 Q1'13 Q4'13 Q3'14 Q2'15 Q1'16 Q4'16 Q3'17 Q2'

13 Smaller prospects, incl. WHP / SoS, Decom., Marine ops., etc. Exciting market opportunities for a contractor with competitive power >16 prospects >17 prospects ~ NOK bn Growth segment prospects and international oil and gas prospects Growth segment prospects and international oil and gas prospects = Annual adressable market Offshore and onshore oil and gas prospects, Norway Offshore and onshore oil and gas prospects, Norway Source: Kvaerner : NCS, international and growth segment prospects Kvaerner can compete for = > NOK Kvaerner 3 bn contract = NOK 750 mill NOK 3 bn contract = < NOK 750 mill contract

14 Market Traditional segments Growth segments TOPSIDES FLOATERS CONCRETE JACKETS DECOMMISSIONING & RE-USE / RECYCLING UPGRADING & MODIFICATION ONSHORE PROCESS PLANTS MARINE OPERATIONS OFFSHORE WIND 14

15 EPCI expertise will benefit wind power market CONVERTER PLATFORMS CONCRETE GBS FOUNDATIONS STEEL JACKET SUBSTRUCTURES FLOATING FOUNDATIONS MARINE OPERATIONS EPCI contractor for converter platforms Gravity based wind turbine foundations in concrete Steel jackets and tripods for offshore wind turbines Steel or concrete floating substructures In-house marine operations 15

16 A clear strategic direction for growth Increased market share at NCS Growth in selected international markets 1 2 Increased business in growth segments 3 Fundamentals for success: a) HSSE: best in class b) Increased productivity, reduced costs c) Effective delivery models d) Competence profile fit for upcoming market 16

17 Questions & Answers 17

18 Copyright and disclaimer Copyright Copyright of all published material including photographs, drawings and images in this document remains vested in Kvaerner and third party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor used in any manner without express prior permission and applicable acknowledgements. No trademark, copyright or other notice shall be altered or removed from any reproduction. 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 about global economic conditions, the economic conditions of the regions and industries that are major markets for Kværner ASA and Kværner 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 Kvaerner 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 Presentation. Although Kværner ASA believes that its expectations and the Presentation 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 Presentation. Kværner ASA is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither Kværner ASA nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use. 18

19 Yard development positioning Kvaerner for the future Development progressing on time and budget FPSO construction Module off and on-loading (BOKA Vanguard) Modifications (Njord x2) FPSO + Modifications (Sevan Njord)

20 Kværner har, inkludert kontrakter i arbeidsfellesskap, til sammen vunnet kontrakter til Johan Sverdrup Fase 1 og Fase 2 for rundt 15,5 milliarder kroner og 2015: - Stålunderstell (jacket) for Stigerørsplattform og Boreplattform: Til sammen rundt NOK 3 mrd. Av det utgjør understellet til Stigerørsplattformen, som er Europas største plattformunderstell, nesten NOK 2 mrd. - Stålunderstell (jacket) for Prosessplattform 1: Rundt NOK 1 mrd - Plattformdekk for Kontrollsenter, støttesystemer og boligkvarter: NOK 6,7 mrd i Kværner-ledet arbeidsfellesskap med KBR 2017: - Kontrakt for oppkopling og støtte til operasjonsstart for Stigerørsplattformen: NOK 450 mill i arbeidsfellesskap med Aker Solutions 2018: - Kontrakt for levering av ny stor modul til Johan Sverdrup Fase 2 (modulen skal installeres på Stigerørsplattformen sammen med modifikasjonstjenster): NOK 3,4 mrd i arbeidsfellesskap med Aker Solutions - Kontrakt for oppkopling og støtte til operasjonsstart for Plattformen for Kontrollsenter, støttesystemer og boligkvarter. Gjennomføres i arbeidsfellesskap med Aker Solutions. Kværners andel: NOK 100 mill - Kontrakt for levering av stålunderstell (jacket) til Prosessplattform 2 til Johan Sverdrup Fase 2: NOK 900 mill HUC in ULQ Utility, Control & Living Quarter platform P1 Production platform DP Drilling platform RP Riser platform P2 Production platform