for personal use only - asx · 2015. 6. 10. · source: infield, floating production systems:...
TRANSCRIPT
Matrix Composites & Engineering Ltd Euroz 2015 Industrials Tour 10 June 2015
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Overview
• Introduction to Matrix
• Business Operations and Outlook
• Plant Tour
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Introduction to Matrix WHO WE ARE AND WHAT WE DO
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Who we are
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Board & Management
Peter Hood Chairman Aaron Begley Managing Director Duncan Clegg Non-Executive Director Steven Cole Non-Executive Director Craig Duncan Non-Executive Director Peter Tazewell Chief Financial Officer Alex Vincan Chief Operating Officer
Major Shareholders
Max Begley Group 26.2% Allan Gray 18.1% Perennial Value 11.9% Northcape Capital 5.2% Management & Directors 5.3%
Corporate Details
ASX Code MCE Issued Shares 94,381,028 Share Price (4 June 2015) $0.54 Market Capitalisation $51m Average Daily Volume 80,000
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Share price ($)
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Volume Period average volume Share price
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What we do • Matrix manufactures and supplies engineered
products and integrated services to the global oil and gas industry
- Capital Drilling Equipment, SURF & Subsea Solutions, Well Construction Products & Offshore Services
• Leading manufacturer of subsea buoyancy systems
• Market leader in syntactic foam technology
• World’s largest, most technically advanced composites syntactic plant covering 20,000m2
- Higher quality product, shorter supply turnaround times, cost effective product
• Global service and distribution network spanning five continents
• 250 staff worldwide
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Matrix History 1980 TO 2015
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1980 1999 2000 to
2005
2007 to
2008 2009 2012 2014 2015
Begley Engineering established
Key processes and technologies developed
Matrix composites business
established
Acquired Begley Engineering and
Phoenix Polymers
Malaga facilities upgraded. ISO9001
accredited
Listed on ASX as MCE
Commenced Henderson plant
construction. Opened UK Office. API Q1
certification
Henderson plant completed.
Established US office.
Established Karratha Riser
Maintenance Base
Malaga & Henderson
operations fully integrated
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Matrix today OUR HENDERSON FACILITIES
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Key Operating Metrics
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Annual Buoyancy Capacity 20,000 units
FY15 Utilisation 50 per cent
FTEs 250
Operating Locations
Perth, Western Australia Alnwick, United Kingdom Houston, USA Agents in Singapore, Korea, China and India
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Business Operations & Outlook
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Matrix Group
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BUSINESS STRUCTURE
Matrix Composites & Engineering
Offshore
DRBM
CDE/ services
SURF Products
Well Construction
Centralizers
Tubular Products
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Matrix Group
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Offshore • Drilling Riser Buoyancy
– Riser buoyancy provides partial flotation for marine riser systems. Allows the rig to deploy, operate and recover the riser to the depth capability of the drilling vessel
• Offshore Services (Riser Service and Rig maintenance) – Riser inspection and maintenance (Karratha base)
– CDE equipment maintenance
SURF products • permanent buoyancy systems, polymer pipeline and riser ancillaries,
subsea installation buoyancy, Deepwater ROV and AUV buoyancy used for conventional and deep water applications
Well Construction • Centralizers convey well screens, completion tools strings and casing an
tubing screens into deviated/ challenging horizontal wellbores
SOLUTIONS FOR THE GLOBAL ENERGY INDUSTRY
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Servicing the Global Energy Industry OUR CLIENTS
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Outlook
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• Backlog in excess of US$90m
• Falling oil price has resulted in rig cancellations, delayed order conversions and accelerated fleet retirements
• Near term outlook (Graph 1) supports current production rate
• Longer term outlook (Graph 2) supports an acceleration of newbuilds beyond CY16
• Sanction price for deepwater developments falling as exploration development costs are compressed
OFFSHORE
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5
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15
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25
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35
2009 2010 2011 2012 2013 2014 2015E 2016E 2017E 2018E 2019E 2020E
Graph 1 – World No. Confirmed Newbuilds
Built Under Construction Ordered
~50 Vessel requirement not yet confirmed
0%10%20%30%40%50%60%70%80%90%100%
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50
100
150
200
250
300
350Graph 2 - Floater Supply-Demand Model
Contracted Demand Marketed Supply Marketd Utilisation
Company Data, February 2015 Company Data, February 2015
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Outlook
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SURF PRODUCTS
• Delays expected in short term FPS and deepwater developments. Australasia gaining market share for FPS – projected 15% of spend to 2017 (Graph 4)
• Forecast Australasian spend on FPS developments - US$3.7b in 2017 (Graph 5)
• expected slow market in 2015/2016 with recovery in 2017 onwards
• Milestone deliveries: – Installation Buoyancy – Gorgon and
Wheatstone projects (WA)
– Distributed Flexible Flowline Buoyancy – major project in West Africa
– Installation Buoyancy (150MT) and Mid Water Arch syntactic foam elements (3 x 225MT) for a major project off the WA coast
Africa 19%
Asia 14%
Australasia 15%
Europe 8%
Latin America 26%
Middle East & Caspian
Sea 5%
North America
13%
Graph 4: FPS Expenditure (%) by REGION 2013-17
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25,000
30,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017U
S$m
Year
North AmericaMiddle East & Caspian SeaLatin AmericaEuropeAustralasiaAsiaAfrica
Graph 5: FPS Expenditure (US$m) by Region 2008-17
Source: Infield, Floating Production Systems: Market Report to 2017.
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Outlook
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SURF PRODUCTS
• Backlog and forecast data supports increased subsea Capex spend to 2020 (Graph 6)
• Deepwater FPS developments > 1500msw exhibit strongest expected growth of 33% total spend to 2017 (Graph 7)
• API 17L approval for distributed buoyancy expected in Q1 FY2016, finally opens new market after three years of R&D
• Ongoing development/ qualification of Distributed Buoyancy Systems with major EPIC contractors and OEMs
0-99 20%
100-499 21%
500-999 7%
1000-1499 19%
1500-1999 14%
>1999 19%
Graph 7: FPS Expenditure (US$m) by WATER DEPTH(m) 2013-2017
Graph 6: Offshore Backlogs: OFS Majors
Source: Infield, Floating Production Systems: Market Report to 2017.
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Outlook
• Centralizers convey well screens, completion tools strings and casing an tubing screens into deviated/ challenging horizontal wellbores
• Centralizer sales below expectations although still growing – Sales expected to continue growing in FY15
– Significant new markets developed in Asia and Middle East
• Total market for centralizers continues to grow although NA sales have declined with fall in oil price
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WELL CONSTRUCTION
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2011 2012 2013 2014 2015 2016 2017 2018 2019
No.
Hor
izon
tal O
il W
ells
Oil Wells drilled by Region
USA - Horizontal Oil Wells
Canada- Horizontal Oil Wells
01,0002,0003,0004,0005,0006,0007,0008,000
2011 2012 2013 2014 2015 2016 2017 2018 2019
No.
Gas
Wel
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Gas Wells drilled by Region
USA - Horizontal Gas Wells Canada- Horizontal Gas Wells
Baker Hughes, Spears & Associates, January 2015
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Strategy
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Strategy Activities
Volume Growth • Pursue product diversification
• Application of new products in new industries
• Technical innovation to drive volume
Operational
Improvement
• Cost down initiative
• Ongoing plant optimisation
• Development of new supply sources
Technical Leadership • Ongoing materials R&D
• Development of superior technical solutions to
customer problems
Step Out Strategies • Consider M&A opportunities that leverage core skills
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Peter Tazewell
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Chief Financial Officer T +61 8 9412 1200
Contact details
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