for personal use only · 2010. 6. 10. · to report normalised earnings before interest and taxes...
TRANSCRIPT
Media Release 11th June 2010
Neptune Confirms FY2010 Earnings Guidance Following Stronger Second Half Performance
• Full year normalized* EBIT expected to be between $5.5 million and $6.5 million • H2 FY 2010 revenues are expected to be $91 million, up 8.3% on H1 2010
reported revenue of $84 million. • Increased tendering activity across all markets • Increased IRM activity expected following Gulf of Mexico oil spill • NMS continues to pursue longer term recurring revenue generating contracts • Regional Vice President for Asia and the Middle East appointed
Perth, Western Australia: Neptune Marine Services Ltd (ASX: NMS) today announced that it expects to report normalised earnings before interest and taxes (EBIT) for the year ending June 30, 2010 of between AUD$5.5 million – AUD$6.5 million. The performance from February to June 2010 is expected to generate normalised EBIT of between AUD$6.5 million ‐ AUD$7.5 million.
The result represents a significant improvement in performance in the second half of FY2010 compared to the first half given the normalised EBIT for H1 FY2010 was $0.8 million (reported EBIT for H1 FY2010 was AUD$0.3 million).
This confirms Neptune’s recovery in profitability during the second half of FY2010 and the expected return to growth from FY2011 onwards as announced by the company on 21 January 2010.
The improvement during the second half of FY 2010 is largely attributable to:
• Increased activity in the Australian offshore energy industry due to the development of major LNG projects in Western Australia, and in particular, the commencement of primary onshore construction.
• Contract awards and increasing tender activity in the Middle East resulting in improved vessel utilisation rates.
• Improved performance in the United States as a consequence of an increasing industry focus on Inspection, Repair and Maintenance (IRM) requirements expected to be further highlighted by the recent Deepwater Horizon incident in the Gulf of Mexico.
• Depreciation of the Australian dollar against the US dollar.
Following a significant softening of activity during the first half of FY2010, Neptune is encouraged by the turnaround in profitability and earnings during the second half.
*Net of IFRS adjustments.
For
per
sona
l use
onl
y
Neptune’s Managing Director and CEO, Christian Lange acknowledged there was evidence of both improved trading conditions, particularly in Australia and the Middle East, and an increasing emergence of prospects across all of its operating locations.
“Our performance from February 2010 reflects a considerable turnaround in profitability as a result of stronger conditions in our key markets, with the US in particular showing signs of recovery and improvement,” he explained.
“Additionally we are seeing a marked increase in tendering activity, particularly in the last few months, as the subsea construction and installation phases on some of the North West Shelf oil and gas projects come into play. On the Gorgon Project for example, we are currently providing support services to some of the civil construction works and we anticipate our involvement and scope of services will continue to expand as the construction of the project’s downstream components progresses.
“The Middle East is also an exciting region for us and the successful completion of our first phase of work for Qatargas has resulted in our tendering on significant opportunities which are pending. All of these factors bode very well for Neptune’s ongoing development into FY2011 and beyond,” he added.
Neptune will update shareholders when appropriate on any material contract awards and extensions and will provide further details on its FY2011 outlook when it reports full year earnings in August.
Further information:
Christian Lange Managing Director & CEO Neptune Marine Services Ltd Phone: +61 8 9424 1111
About Neptune Marine Services Limited Neptune Marine Services (ASX:NMS) is one of Australia’s leading providers of engineered solutions to the international oil and gas, marine and renewable energy industries. The company employs more than 600 people in Australia, the UK, USA and Asia and provides a full suite of innovative services including subsea and pipeline engineering; commercial diving; specialist fabrication; inspection, repair and maintenance; pipeline stabilisation and protection; ROV and vessel supply; hydrographic surveying and geophysical services; project management; rope access and tension netting IRM; and the patented NEPSYS® dry underwater welding technology. For more information visit www.neptunems.com
For
per
sona
l use
onl
y
Neptune Marine ServicesMarket Presentation
CHRISTIAN LANGEManaging Director & CEO11th June 2010
For
per
sona
l use
onl
y
Disclaimer
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS - Important Notice and Disclaimer
All information contained in this document (Information) is confidential and provided to you solely for your own information in connection with a proposed placement (Offer) of shares inAll information contained in this document (Information) is confidential and provided to you solely for your own information in connection with a proposed placement (Offer) of shares inNeptune Marine Services Limited (Neptune). This document is provided to you on the condition that you will hold the information in strict confidence and keep it secret, and not reproduce,disclose or distribute the information to any third party in whole or in part without the prior written consent of Neptune.
The Information is being provided to you as, and by receiving this document you represent and warrant that you are: (a) if you are in Australia, a professional investor or sophisticatedinvestor (as those terms are defined in s708 of the Corporations Act 2001 (Cth) (Act); or (b) if you are outside Australia, a person to whom an invitation or offer to subscribe for shares inNeptune and any issue of such share is permitted by the laws of the jurisdiction in which you are situated without the need for any registration, lodgement or other formality.Despite anything stated in this notice or elsewhere in the Information none of the Information (whether considered separately or together) constitutes an offer invitation solicitation adviceDespite anything stated in this notice or elsewhere in the Information, none of the Information (whether considered separately or together) constitutes an offer, invitation, solicitation, adviceor recommendation with respect to the issue, purchase or sale of any shares in Neptune. The Information does not purport to contain all the information that the recipient may require toevaluate an acquisition of shares in Neptune and does not take into account the investment objectives, financial situation or needs of any particular investor. The recipient should conduct itsown independent review, investigation and analysis of Neptune and obtain any professional advice they require to evaluate the merits and risks of an investment in Neptune, before makingany investment decision based on their investment objectives.
Certain statements contained in this presentation may constitute statements about future matters and forward-looking statements. These forward-looking statements are by reference tocircumstances only as of the date of this presentation The forward looking statements involve known and unknown risks uncertainties contingencies and other factors that could causecircumstances only as of the date of this presentation. The forward-looking statements involve known and unknown risks, uncertainties, contingencies and other factors that could causeNeptune’s actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements.Neither Neptune, nor any other person, gives any representation, warranty, assurance or guarantee that the occurrence of events expressed or implied in any forward-looking statements inthis presentation will actually occur. This document has been prepared by Neptune based on information available to it. All information in this document is believed to be reliable but none ofNeptune, its related bodies corporate (as defined in the Act), nor any of their respective directors, officers, employees, advisors or representatives (together, Beneficiaries) make anyrepresentation or warranty, express or implied, as to the fairness, accuracy, completeness or correctness of the Information, including the accuracy, likelihood of achievement orreasonableness of any forecast returns, yields, future income or other statements in relation to future matters. Nothing contained in this document is, or shall be relied upon, as a promise orrepresentation by Neptune or any other Beneficiary whether as to the past present or future To the maximum extent permitted by law the Beneficiaries shall have no liability for any loss orrepresentation by Neptune or any other Beneficiary, whether as to the past, present or future. To the maximum extent permitted by law, the Beneficiaries shall have no liability for any loss orliability of any kind arising in respect of the information contained, or not being contained, in this document.
No action has been taken to register securities of Neptune or otherwise permit a public offering of the securities in any jurisdiction. The securities to be offered and sold in the Offer have notbeen and will not be registered under the US Securities Act of 1933 (the Securities Act). This document does not constitute an offer of securities for sale, or a solicitation of an offer to buysecurities, in the United States or to, or for the account or benefit of, any US person (as defined in Regulation S under the Securities Act) (US Person). Securities may not be offered or soldin the United States or to, or for the account of benefit of, US Persons absent registration under the Securities Act or an exemption from registration under the Securities Act. The distributionof this document outside Australia may be restricted by law In particular this document or any copy of it must not be taken into or distributed in the United States or distributed to any USof this document outside Australia may be restricted by law. In particular, this document or any copy of it must not be taken into or distributed in the United States or distributed to any USperson as defined in the Securities Act. Persons who come into possession of this document should seek advice on and observe any such restrictions. Any failure to comply with suchrestrictions may constitute a violation of applicable securities laws.
By receiving this document, you agree to the above restrictions.
2
For
per
sona
l use
onl
y
Contents
FY10 Earnings Update
Improving Market Landscape
Regional Strategic Response
Strengthened Management Team
Evolving Capacity
Integrated projects – Qatargas & Gorgon
Opportunities
Australia’s LNG Potential
Annexure A: Blue Chip Client Base
Annexure B: Business Structure
3
For
per
sona
l use
onl
y
FY10 Earnings Update
FY10 earnings guidance update – $5.5 to $6.5m normalised* EBITFY10 earnings guidance update $5.5 to $6.5m normalised EBIT
Revenues remain in line with FY09
FY10 impacted by:12,000
14,000
FY10 impacted by:
o pressure on margins,
o lower than expected vessel tili ti 4,000
6,000
8,000
10,000
000)
utilisation
o the depressed US market
o and a loss on the Pluto (2,000)
0
2,000
,
EBIT
A$'
0
fabrication scope
Earnings trending upward in the second half provides basis for improved FY11 performance
(8,000)
(6,000)
(4,000)
Q3 FY09 Q4 FY09 Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 FcastO h limproved FY11 performance Other PlutoVessels USANorm EBIT (LHS)
* Less IFRS adjustments
4
For
per
sona
l use
onl
y
Improving market landscape
Regions 1st Qtr to 3rd Qtr FY2010 4th Qtr FY2010 and FY2011Regions 1 Qtr to 3 Qtr FY2010 4 Qtr FY2010 and FY2011
AustraliaLower margins experienced due to deep discounting by key competitors in some sectors
Strengthening of the Australian offshore energy industry underpins activity in Neptune’s key marketMajor LNG projects hold significant potential
Asia/ME
Deferral of a large number of IRM projects in SE Asia that negatively impacted on vessel and ROV utilisation ratesLower margins and deep discounting to
Ongoing recovery in key Asian/Middle Eastern markets evidenced by increase in contracted work, bidding and tendering activity during Q3 and Q4 FY10
g p gmaintain/win market share
FY10
USASudden and significant decline in drilling and exploration activity in the US due to US recession/GFC/collapse in natural gas pricing
Recent Deepwater Horizon incident in Gulf of Mexico expected to result in more stringent IRM requirements for offshore drilling operationsrecession/GFC/collapse in natural gas pricing requirements for offshore drilling operations
UK/ Europe
Increased competition in the fabrication of specialised sub‐sea equipment. The depreciation in the GBP v. AUD has
Contract wins and increasing tender activity in Neptune’s new target markets eg Libyan contract
Europenegatively impacted reported earnings.Lower margins
Utilisation rates improving
Significant strengthening of the $A (from circa US$0 63 to US$0 90)
Stabilisation of A$ currency against US$Macro/ General
US$0.63 to US$0.90)Cancellation and/or postponement of significant exploration budgets throughout most operating regions
Strong client focus on full service offering and cost of delivery is well suited to Neptune’s service offering
5
For
per
sona
l use
onl
y
Regional strategies implemented
Asia/Middle EastAsia/Middle EastAsia/Middle EastAsia/Middle EastRegional VP appointed
Alignment to major development projects, particularly LNG
Entry into new and emerging markets with high potential (Qatar)
UK/ EuropeUK/ EuropeRegional VP appointed
Contracts & Risk Manager appointed
Entry into new and emerging markets with high potential (Libya)
Aberdeen
Burleson
p (Q )g p ( y )
Houston
SingaporeDarwinIndonesia
PERTH(Head office)
USAUSARegional VP appointed
Strategy to focus on partnership/ alignment with asset operators who require various IRM services and guarantee work scopes
AustraliaAustraliaT d i i i i l fid t k t
g p
Decreasing reliance on drilling and exploration
Position the business to take advantage of opportunities that stem from recovering economy
Tendering in an increasingly confident market;
Regional VP appointed
Alignment to major development projects, particularly LNG
Development of inspection capabilities within the IRM sphere
6
IRM sphere
For
per
sona
l use
onl
y
Strengthened management team
NEPTUNE’S REGIONAL VICE PRESIDENTS:NEPTUNE S REGIONAL VICE PRESIDENTS:Recent senior regional appointments to lead delivery of integrated service offering into each target market.
Australia: Decision expected 30th June 2010
A i & Middl E t BENOIT BARBIERAsia & Middle East: BENOIT BARBIERJoined Neptune after almost 30 years with Schlumberger. Brings considerable experience inBusiness Development, Marketing and Operational Management from a range of positionsheld in North America, Asia, the Middle East and North & West Africa.
Europe & West Africa: LO VAN WACHEMJoined Neptune from Subsea 7 where he held the positions of Operations Manager, WestAfrica and Chief Operating Officer, Brazil over a six year period.Africa and Chief Operating Officer, Brazil over a six year period.
Americas: KEN NIMITZJoined Neptune from an 18 year career with Schlumberger spanning Schlumberger OilfieldSer ices Schl mberger O erseas and Schl mberger Well Ser ices Considerable e perience
7
Services, Schlumberger Overseas and Schlumberger Well Services. Considerable experiencein team leadership, mentoring and the management of international operations.
For
per
sona
l use
onl
y
Australia’s LNG Potential
Significant potential for Neptune to diversify its involvement in thisSignificant potential for Neptune to diversify its involvement in this burgeoning industry sector
2010 2011 2012 2013 2014 2015 2016+
PLUTOPLUTO
SUNRISESUNRISE
Neptune fabricated of tie in spools and Pluto jacket installation (survey ROV)
GORGONGORGON
BROWSEBROWSEBROWSEBROWSE
ICHTHYSICHTHYS
8
WHEATSTONEWHEATSTONE
Capacity for IRM opportunities post construction
For
per
sona
l use
onl
y
Evolving integrated capacity
2007/08 2008/09 FC 2009/10 FC 2010/112007/08 2008/09 FC 2009/10 FC 2010/11
Simpson Pipeline Replacement Project
NEPSYS® RepairGulf of Mexico
Cable ProtectionHong Kong
Gorgon Project Bids(~$150m)
Survey and ROV construction support
NEPSYS® RepairNorth Sea
Qatar Project Bids(~$150m)
S d ROV j k tCombined services International NEPSYS®
Survey and ROV jacket installation support
ConocoPhillips Australia
Potential(~$40m)
Combined servicesEngineering &
Combined services Qatargas
Fabrication Bids(~$100m)
IRM Platforms NW Shelf
Combined services Apache Energy
11
$8.0m$8.0m $440m$440m9
For
per
sona
l use
onl
y
Integrated approach ‐ Qatargas
Neptune is focussed on securing longer term projects that deliver more predictable and recurring revenues and to better utilise its multi‐service capability. Neptune has demonstrated this capability via the ongoing work performed for Qatargas (contract value circa $20 million)
VESSELS PIPELINE STABILISATION
HYDROGRAPHICSURVEY DIVING
10ROVs
For
per
sona
l use
onl
y
Gorgon
For large development projects such Gorgon, there is a long lag time between onshore construction activity and Neptune’s potential participation in subsea construction activity...
Gorgon Project TimelineNMS potential target zone
SEPT 2009ProjectAnnounced
2014First Gas
2010 2011 2012 2013
• Primary OnshoreConstruction
• NMS Support Contracts
• Secondary Onshore Construction• Subsea Construction & Installation
NEPTUNE CONTRACT OPPORTUNITIES INCLUDE:
Fabrication installation & Deepwater Acoustic PositioningUnderwater Construction Fabrication, installation & testing of pipeline spools
Deepwater Acoustic Positioning & ROV Support Services
Underwater Construction In‐water Survey and Inspection
11
Pipeline Installation and Tie‐in Management
Pipeline support and stabilisation
For
per
sona
l use
onl
y
Opportunities
$Australia’s $200b LNG project developments
• Pluto, Gorgon, Wheatstone, Sunrise, Browse, Ichthys
Qatar Petroleum
• 3 year / 365 days per year
• Q1 FY2011• Q1 – FY2011
Gorgon Subsea Construction Phase ‐ H1:FY2011
US Inspection Program ‐ H1:FY2011
12
For
per
sona
l use
onl
y
Annexures
Annexure A: Blue Chip Client Base
Annexure B: Business StructureAnnexure B: Business Structure
13
For
per
sona
l use
onl
y
A: Blue Chip Client Base
EPIC ContractorsEPIC ContractorsEPIC ContractorsEPIC Contractors
Oil & GasOil & GasOperatorsOperators
Drilling Drilling ContractorsContractors
14
For
per
sona
l use
onl
y
B: Business Structure
Offshore Services
VesselsVessels PipelinePipeline AssetAsset
Engineering Services
DivingDiving Vessels Vessels & ROVs& ROVs SurveySurvey Pipeline Pipeline
StabilisationStabilisationAsset Asset
IntegrityIntegrity EngineeringEngineering FabricationFabrication NEPSYS®NEPSYS®
15
For
per
sona
l use
onl
y
Engineering Services
FEED, detailed design and IRM capabilities across complete subsea sphere
Perth and Aberdeen facilities and resources (70‐80 engineers worldwide)
Services include:
Pipeline design, modification and repair
Emergency Pipeline Repair Systems
Project engineering
Project managementProject management
Subsea hardware design
Installation / intervention / operations planning & supervision
Technical specifications/ PEER review / design assurance
Site representation and QA/ QC
16
For
per
sona
l use
onl
y
Fabrication Services
Full range of engineering and fabrication services to the oil &Full range of engineering and fabrication services to the oil & gas, general construction & renewable energy industries
Fabrication bases in Perth and Aberdeen
Fabrication services include:
Design and fabrication of piping, structural and mechanical equipment and subsea structuresequipment and subsea structures
On‐site assembly and installations
Piping and machining
Design, drafting and fabrication of winches, skids, deployment systems & containers
Test and assembly of subsea systemsTest and assembly of subsea systems
Riser handling systems and transportation baskets
17
For
per
sona
l use
onl
y
Diving Services
Complete range of commercial diving services to the offshore dindustry
Regional capabilities with bases in Perth, Darwin and Texas
Proven track history and established reputationProven track history and established reputation
Commercial diving resources include:
5 fully certified offshore dive systems in Perth and Darwin
ROV surveys
Test equipment – including UT / CP / Eddy Current and access to ACFM & MPI
Core base of project managers and diving supervisors plusextensive diver resource database
FPSO diver launch and recovery system (doesn’t require welding to deck of facility)FPSO diver launch and recovery system (doesn t require welding to deck of facility)
Geotechnical Coring Rig and Rock Bolting Rig
18
For
per
sona
l use
onl
y
NEPSYS®
Dry Underwater Welding TechnologyDry Underwater Welding Technology
Patented in Australia, USA and Europe
Can be applied to repair or structural enhancement
of offshore / subsea assets
Permanent repair solution
h l l ‘ b l ’ d dHigh quality results to ‘as built’ standards
Class approved
Cost effective solutionCost effective solution
Portable and customised to specific application
Minimal impact on operationsp p
Test and training tank facilities in Perth & Texas
20
For
per
sona
l use
onl
y
Hydrographic Survey
Provision of a diverse array of offshore marine survey & geotechnical services
Specialised deepwater & geophysical divisions
O ti b d i P th d Ab dOperations based in Perth and Aberdeen
Extensive experience providing:Geophysical and site hazard surveys
Geotechnical surveys
Pipeline route investigation surveys
Multibeam bathymetry surveysMultibeam bathymetry surveys
Subsea and ROV positioning & construction support
Jack‐up and semi‐sub rig move positioning (for Apache BHPBP & Coogee Resources)(for Apache, BHPBP & Coogee Resources)
Environmental sampling
Consultancy services
21
For
per
sona
l use
onl
y
ROV & Vessel Supply
ROV services and subsea tooling solutionsROV services and subsea tooling solutions
Growing fleet of latest technology ROV’s
Owner and operator of offshore vessels to supportOwner and operator of offshore vessels to support
global construction activities
Assets include:
DP1 MV Neptune ROV Supporter (Asian market)
DP2 AHTS Neptune Trident (International market)
C h i fl f W k d I i Cl ROVComprehensive fleet of Work and Inspection Class ROVs
22
For
per
sona
l use
onl
y
Pipeline Stabilisation
Engineering design, manufacture, supply and installationEngineering design, manufacture, supply and installation
of pipeline stabilisation and protection systems
Operations in Perth, Singapore and Indonesia
Representation in UAE and South Korea
Pioneered ROV installation of pipeline supports
Pipeline protection and stabilisation products:
1. SEAMAT
2 ANCHORMAT2. ANCHORMAT
3. GROUTMAT
4. BITUMAT
Freespan rectification services
23
For
per
sona
l use
onl
y
Asset Integrity
Specialist access solutions and NDT servicesp
Operation based in Perth
Full member of IRATA
Specialist training provider (access and inspection)
Services include:
NDT inspection services
Integrity management
Mechanical fitting and rigging
Pipe fitting, cutting and welding
Fl ti i t d h tFlare tip maintenance and change outs
Tension netting
24
For
per
sona
l use
onl
y