pareto’s oil and offshore conference · via “presentation information” in the “kvaerner”...
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14.09.2016
Pareto’s oil and offshore conference Jan Arve Haugan, President & CEO
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Well positioned for future market opportunities
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1) Leading contractor within proven track record
2) Competitive position strengthened a) Delivering projects predictably: Safely, on time, with right
quality b) Improved cost position
3) Solid financial platform
4) Near term market opportunities in selected regions
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175th anniversary: 1841 - 2016
Leading contractor with proven track record:
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CONCRETE SOLUTIONS TOPSIDES ONSHORE JACKETS
2 700 employees in 8 countries
Revenues of NOK 12 billion (2015)
Order backlog of NOK 10.2 billion (as of 30 June 2016)
Global leader in
gravity based
concrete
structures
Substructures
CONDEEPTM
GBS
Floating concepts
LNG terminals
European leader
in steel jackets
Steel jackets
Other steel
structures
Piping
technology
Leading EPC
contractor to the
Norwegian Shelf
Topsides
Floating platforms
Hook up
Completion
Leading
Norwegian EPC
contractor for
offshore plants
Upstream plants
Treatment
facilities
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Our competitive edge:
HSSE - Expertise - Execution model - Predictability
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MARTIN LINGE
P Procurement
E Engineering
C Construction
FEED Hook-up
&
completion
Photo: Lundin Norway
PREDICTABLE DELIVERY
ENGINEERS AND PROJECT
MANAGERS WITH
EXTENSIVE EXPERIENCE
SECIALISED FACILITIES
AND IN-HOUSE YARDS
GOOD HSSE – OUR
LICENCE TO OPERATE
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Delivering as committed:
All projects on track for predictable delivery
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Njord A: Frame agreement for for upgrading of
the semi-submersible platform
Hebron: Detailed engineering, procurement,
construction and installation (EPCI) of GBS
Marine installation
Johan Sverdrup: EPC for the utility and living
quarters topside
Nyhamna: EPCM onshore contract with options for
Maintenance and Modifications to 2022.
Johan Sverdrup: EPC contracts for the Riser,
Drilling and Process platform steel jackets
Aasta Hansteen: A sub-contract to provide
services for inshore and offshore hook-up and
commissioning assistance for the topsides
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Solid financial platform
Activity level estimated at around NOK 10 billion for 2016
Improved project portfolio
EBITDA margin increase in 2016 vs. 2015
Re
ve
nu
es
&
EB
ITD
A
Net cash of NOK 2.5 billion
Robust capital structure with NOK 2.0 billion in undrawn facilities
Working capital of negative NOK 1.47 billion
Ba
lan
ce
sh
ee
t U
se
of
fu
nd
s
2016: Capex of NOK 200 million incl. 3 new cranes
Annual maintenance capex of NOK 30-50 million
Strategic development
6
Note: All figures as reported in 2nd quarter 2016.
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Documented improvements of competitiveness:
Further improvements may trigger more new projects
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New operating model
Reductions to capacity and administration
Refined and leaner organisation
Most Norwegian operations in one unit
15% improved cost base by Q1 2015
Joint industry
improvement initiatives
Dialogue re-new step
changes with selected clients
More effective execution model
Reducing internal costs by
NOK 250 million (2015-2016)
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Market: Focus on selected geographic regions
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Near term market
Studies and FEEDs ongoing
Some few but important prospects of moderate size: Completion, hook-up and commissioning, decommissioning, modifications
Greenfield / brownfield EPC for offshore platforms and onshore facilities
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Based on core competence, solid financial platform and credibility in the market
Strategic development
Leading EPC & HUC contractor
Subsea on a stick
Platform mod.
Decommissioning Arctic driller
Arctic LNG solutions
Arctic LNG solutions
Arctic LNG solutions
Arctic LNG solutions
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Well positioned for future market opportunities
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Safe and predictable execution
Competitive position strengthened
Solid financial platform
Pursuing specific prospects
Interesting strategic opportunities
HSSE – core value and
licence to operate
Maintain and develop home
markets
Develop global delivery model
for Norway and abroad
Hands-on management
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© Kvaerner 2016
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Disclaimer
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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
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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.
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.
Copyright and disclaimer
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