swiber holdings limited 1q fy08 results...
TRANSCRIPT
A niche service provider to the offshore oil and gas industry
Page 1
Swiber Holdings Limited
1Q FY08 Results Briefing
15 May 2008
A niche service provider to the offshore oil and gas industry
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Financial Highlights
1Q 2008
A niche service provider to the offshore oil and gas industry
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Key highlights – a record quarter
19.3
70.9
151.2
0
40
80
120
160
FY07 FY08
1Q Full Year
3.6 10.4
49.7
0
20
40
60
FY07 FY08
1Q Full Year
1Q Y-O-Y: 266.9%
Revenue (US$’m) Net Profit (US$’m)
1Q Y-O-Y: 184.3%
A niche service provider to the offshore oil and gas industry
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1Q financial highlights
US$’m 1QFY08 (3M) 1QFY07 (3M) Chg (%)
Revenue 70.9 19.3 266.9
Gross profit 18.3 5.3 245.3
Profit before tax 11.3 4.0 181.3
Net profit 10.4 3.6 184.3
EPS Weighted average (US cts)* 2.43 0.99 145.5
* 1QFY08: 424,350,000 shares vs 1QFY07: 369,000,000 shares
A niche service provider to the offshore oil and gas industry
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A record quarter fuelled by …
Contribution from Kreuz Shipbuilding & Engineering
EPCIC projects
� Increased number of EPCIC projects executed in 1QFY08
included 3 pipeline and 2 platform installation projects in
Malaysia and Indonesia
� Successfully completed and delivered two floating crane
barges – OBT Alpha and OBT Omega – for Offshore Bulk
Terminal Pte Ltd, a wholly-owned subsidiary of OBT
Holdings Pte Ltd
� OBT Alpha and OBT Omega, with a total construction cost of
approx US$6.65 million each, are floating crane barges each
measuring approx 250 feet by 80 feet by 16 feet with a
Liebherr CBG 25(25)/30 crane mounted on a pedestal
A niche service provider to the offshore oil and gas industry
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The balance sheet is further strengthen by the earnings in 1Q FY2008.
Balance sheet highlights
41.6844.85NAV per share (US cents)
0.531.02Net Debt / Equity (times)
Key financial ratios
US$’m 31 Mar 2008 31 Dec 2007
Cash & bank balances 75.2 97.7
Trade receivables 146.5 100.7
Current assets 282.2 235.6
Non-current assets 229.7 134.4
Current liabilities 143.9 109.7
Non-current liabilities 177.1 82.8
Total equity 191.0 177.5
A niche service provider to the offshore oil and gas industry
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Cash flow
US$’m 1Q FY08 1Q FY07 FY07
Operating cashflow before movement in working
capital
13.8 4.3 29.3
Net cash used in operating activities (25.4) (3.7) (16.8)
Net cash used in investing activities (95.7) (8.7) (58.8)
Net cash from financing activities 109.0 6.3 148.5
Cash & cash equivalents at end of period 71.2 3.4 82.7
� Outflow for operating activities to fund operations
� Outflow for investing activities mainly due to purchase of vessels
� Increase in cash and cash equivalents attributable to proceeds from:
o Issuance of bonds: US$72 million (“MTN” programme)
A niche service provider to the offshore oil and gas industry
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Strategy for Continued Growth
A niche service provider to the offshore oil and gas industry
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Order book (US$’m)
187
350
0
100
200
300
400
Feb 2007 Feb 2008
• Record highs in oil prices
– Crude oil per barrel at record high
• Strong economic growth in Asia
• Increased level of offshore O&G
exploration, fields development and
production in Southeast Asia and India
� The estimated total bids submitted/ to be
submitted as at May 2008 is approximately
US$2.05 billion for jobs targeted for the
next 5 years
176.0
476.0
0
100
200
300
400
500
600
Mar 2007 Mar 2008
A niche service provider to the offshore oil and gas industry
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Our growth strategy
• Shipbuilding and engineering
• Subsea and deepwater
• Asia Pacific and Middle East markets
• Spread of offshore EPCIC vessels
• New designs and technologies
A niche service provider to the offshore oil and gas industry
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Continued fleet expansion
Our existing fleet and expected additions: Fleet expansion for up to 2009 will be be funded via
equity issuance, bond issue, internally generated cash and sale & leasebacks
Expand resources
Offshore Vessels FY 05 FY06 FY07 FY08F FY09F FY10F
Cargo/ flat Top Barge 3 4 10 10 10 10
Utility/ Towing Boat 3 4 4 8 8 8
AHTS/ AHT 2 2 9 12 16 18
Subsea Support Vessels 2 2
TOTAL 8 10 23 30 36 38
Construction Vessels FY 05 FY06 FY07 FY08F FY09F FY10F
Jack Up Barge 1 1 1 1
Pipelay Barge 1 2 3 3
Derrick Pipelay Barge 1 1 1
Accommodation Barge 3 3 3
Submersible Barge 2 2 2 2
Derrick Crane Barge 1 1 2 2
Deepwater Drilling Vessel 1
TOTAL 5 10 12 13
GRAND TOTAL 8 10 28 40 48 51
A niche service provider to the offshore oil and gas industry
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Investing in new designs and technologiesExpand resources
A niche service provider to the offshore oil and gas industry
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Continued focus on Asia Pacific and Middle EastExpand markets
� Swiber inked a MOU on 30 April 2008 with Thailand’s CUEL Limited, allowing both companies to jointly pursue offshore
EPCIC projects in Asia Pacific Region. CUEL is one of the region’s foremost offshore EPC fabrication contractors.
A niche service provider to the offshore oil and gas industry
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Classification of business into 3 areas
Offshore Support Services
(OSS)Offshore Construction Services
(OCS)
Offshore Drilling Services
(ODS)
• Supply rig and crew
• Well services
• Work over services
• Drilling and service
applications
Expand capabilities
• Transportation and installation
of offshore platforms
• Transportation and installation
of subsea pipelines
• Floating Production Systems
• Subsea field commissioning
• FPSO, FSO, CALM Buoy Mooring
installation services
• Vessel life extension
• Platform construction
• Project management
• Marine transportation
• Charter of offshore marine
support vessels
• Provision of diving support vessels
• Shipyard facilities
• Ship repair and maintenance
services
• Shipbuilding services
• Conceptual and feasibility
• Front end engineering design
• Mooring systems design
• Basic and detailed engineering
• Start up and commissioning
• Operation and maintenance
A niche service provider to the offshore oil and gas industry
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OSS updates
• 26 Mar 08: Christening launch of OBT Alpha & OBT Omega
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OSS updates
Date Customer From Work scope Delivery Value
29 Apr 08 NuCoastal (Thailand) Ltd Thailand Engineering, procurment, supply
and construction of a SPM calm
buoy
4Q08 S$7.8
million
26 Feb 08 Oil company (recurring
customer)
Malaysia Design, engineering & fabrication
of a SPM buoy
2Q08 US$3.4
million
26 Feb 08 OBT Holdings Pte Ltd Singapore Construction & installation of 2
floating crane barges
4Q08 US$17.0 -
18.0
million
Kreuz Shipbuilding and Engineering - Current construction projects:
A niche service provider to the offshore oil and gas industry
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OCS updates
Updates on offshore installation and related projects:
Date Customer Region Work scope Duration Value
7 Mar 08 BG India India Design, engineering, procurement,
fabrication, surveys, load out, tie-
down/sea fastening/sail out,
transportation, installation, hook up
and pre-commissioning of various
facilities
1Q08 to
2Q09
US$127.0
million
12 Mar 08 International oil
major (extension)
Malaysia Installation & engineering of pipelines 2Q08 to
3Q09
US$29.0
million
17 Mar 08 CUEL Limited
(various clients)
Thailand Installation, engineering &
transportation of jackets, piles,
topsides & pipelines
1Q to 4Q
from 2009
to 2013
Estimated
US$50.0 m
per yr for
5 yrs
A niche service provider to the offshore oil and gas industry
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ODS updates
• US$25m project for drilling offshore wells, Gulf of Thailand
– Customer: NuCoastal (Thailand) Limited, a wholly owned subsidiary of
Coastal Energy Company
– Duration: 12-mth contract from June 2008, option to extend for a
further 12-mth
– Scope: Offshore drilling and associated responsibilities; supplying the
spread of marine vessels, including the drilling unit, Swiber Jack-Up 1
and accommodation barge; providing and operating equipment;
providing trained personnel; and carrying out other auxiliary operations
and services.
• Deepwater drilling barge, The Equatorial Driller
– Key revenue contributor in the future
– To be delivered in 2010 and deployed in Southeast Asia and India
A niche service provider to the offshore oil and gas industry
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Deepwater drilling
Deepwater oil and gas industry is set for
continued growth through to 2012…
The World Deepwater Market Report 2008-2012, Douglas-Westwood
A niche service provider to the offshore oil and gas industry
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Thank You