Capital Markets Day 10 January 2013

Transcription

1 Capital Markets Day 10 January 2013 Time Topic Speaker Introduction Jan Arve Haugan, President & CEO Concept / Front End, Engineering and Procurement Janne H. Rasten, EVP Project Support Tony Allen, EVP International Construction Sverre Myklebust, EVP Jackets Tony Allen, EVP International Jim Miller, EVP E&C Americas Q&A part I Break Completion and Decommissioning Lars Eide, EVP North Sea Arctic opportunities Bjørn Gundersen, EVP Concrete Solutions Financial update Eiliv Gjesdal, CFO Summary and Q&A part II Lunch

2 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. 2

3 Construction Sverre Myklebust, EVP Jackets Tony Allen, EVP International Capital Markets Day 10 January 2013

4 The topside is a complex delivery of assembled modules Utility Helideck Space for drilling rig Flare Living quarter Process and wellhead Jacket 4

5 Topside assembly facilities at Stord Surface protection STORD ambitions Annual throughput capacity: tonnes Parallel fabrication capacity: 1-2 Oil & Gas topsides Lead time large topside: 36 months Assembly crane Assembly hall Dry dock Administration office Camp Cutting shop Construction management office Outfitting quay Heated ware house/ service center Prefabrication Deepwater quay 5

6 On-going topside and onshore projects - Norway ELDFISK TOPSIDE NYHAMNA ONSHORE EDVARD GRIEG TOPSIDE Client ConocoPhillips Project EPC contract to deliver topside and bridges the Eldfisk 2/7 S platform Ordered 18 March 2011 Contract value NOK 5.5 billion Delivery Early 2014 Client A/S Norske Shell Project EPCM for modifications and projects at the Ormen Lange/Nyhamna onshore facilities Ordered 19 April 2012 Contract value NOK 11 billion Delivery 6 years and 2+2 year options Client Lundin Norway AS Norway Project EPC of the topside for the Edvard Grieg platform Ordered 3 May 2012 Contract value NOK 8 billion Delivery April

7 The steel jacket solution Steel substructure for topside Normally 4 or 8 legs Lifted or launched 4 topside guide pins Kvaerner own fabrication Subcontractor fabrication Drilling deck Horizontal elevations to support caissons and conductors Caissons (w/pumps for water supply) Risers for wellstream and oil and gas export Leg (subcontracted) Pile Cluster; pile sleeves & mudmats Bracings (subcontracted) Cluster (subcontracted) Edvard Grieg Jacket J-tube for umbilicals and control cables 7

8 VERDAL ambitions Annual throughput capacity: tonnes Parallel fabrication capacity: 2-3 large Oil&Gas jackets Lead time large O&G steel jacket: 24 months Verdal the yard of possibilities Jacket assembly Surface protection Jacket prefabrication New assembly area and quay facilities Offshore wind assembly Offshore wind prefabrication 8

9 On-going jacket projects North Sea CLAIR RIDGE NORDSEE OST EDVARD GRIEG MARTIN LINGE Client BP United Kingdom Client RWE Innogy Germany Client Lundin Norway AS Norway Client Total E&P Norway Project Clair Ridge Project Nordsee Ost, 49 jackets Project Edvard Grieg Project Martin Linge Ordered 12 July 2010 Ordered 17 June 2010 Ordered 19 January 2012 Ordered 13 February 2012 Delivery Spring 2013 Delivery 2012/2013 Delivery April 2014 Delivery Spring 2014 DP Jacket QU Jacket Height Height 168 m 167 m Height metres Height 134 m Height m 9

10 Our scope of construction Project management Construction management Bulk procurement Method work Shop engineering Assembly and integration Testing and commissioning 10

11 Clair Ridge Jacket 11

12 Kvaerner has a proven track record internationally Hibernia, 1996 Laminaria, 1999 Sable Tier II, Kashagan epf, Sea Rose, 2005 Sakhalin II PA-B, 2005 Sakhalin II LUN-A, 2005 Adriatic LNG, 2008 Blind Faith, 2008 Kashagan HUC, 2012 Sakhalin 1 A-D, 2012 Hebron,

13 Substantial number of opportunities internationally Selected sample prospects BROWSE EQUUS LAVERDA AMAULIGAK GUNFLINT ARCTIC DRILLING FACILITY WHITE ROSE Y. KORCHAGIN STAMPEDE SOUTH PILTUN 13 This list is not exhaustive nor indicative of Kvaerner target priorities

14 Flexible international construction model VOSTCO yard Nakhodka, Russia Bull Arm yard, Canada COOEC yard Qingdao, China Strategic partnership (e.g. GBS projects in Far East Russia) Joint Venture with lease of construction site (e.g. Hebron in Canada) Contracting either within consortium or as a pure subcontract (e.g. Asia Pacific projects) 14

15 Asia Pacific delivery model Kvaerner and COOEC collaboration consolidated with completion of a demonstration module in 2011 Developing into a top tier international yard COOEC yard Qingdao, China COOEC a natural partner for a long term relationship Long track record with increasing international scope COOEC Kvaerner demonstration module 15

16 Browse Dry Tree Units a platform for growth Rigorous risk evaluation Technical Comprehensive FEED performed Simple process train Partnering Strong relationship Execution Proven track record of Tension Leg Platform (TLP) delivery Well managed risk profile 16

17 High value fabrication required for longer term market positioning and growth Sustainable access to regional, low cost fabrication is a pre-requisite for the international delivery model Additional construction capacity required to maintain NCS market share International diversification brings low cost fabrication to NCS Increased market share globally and domestically 17

18 Sustainability through low cost fabrication and strategic partnerships Kvaerner current construction sites Kvaerner potential future construction sites Current target markets CANADA NORWAY Verdal Stord NW RUSSIA POLAND CASPIAN FE RUSSIA Low cost fabrication 18

19 Our differentiators make us an attractive global partner Value driven HSSE performance STATFJORD A (1977) Predictability through project execution excellence Seamless EPC deliveries through state of the art processes, methods, systems and tools Diverse product portfolio Highly qualified workforce able to adapt to new realities Successful deliveries of quality solutions for more than 35 years Predictable deliveries. Predictable performance. 19