khm fy2013 results briefing ppt v030314 (fpr) v6 final · construction of mcdermott lb32 pipelay...
TRANSCRIPT
This presentation may contain forward looking statements which are subject to risks and uncertainties that could
cause actual results, performance or achievements to differ materially from such statements. Such risks and
uncertainties include industry and economic conditions, competition, and legal, governmental and regulatory changes.
The forward looking statements reflect the current views of Management on future trends and developments as at
the date of this presentation.
The Group makes no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness
of the information in this presentation, and neither the Group nor any of its directors, officers or employees shall have
any liability to you or any other persons resulting from your use of the information in this presentation.
The Group undertakes no obligation to publicly update or revise any forward looking statements in this presentation.
Disclaimer
2
An established integrated offshore and marine value chain services provider
Offshore Rig Services & Supply Chain Management
•Offshore Rig Services•Supply Chain Management
6
Introducing Kim Heng…
Vessel Sales & Newbuild
Offshore Rig Services
Construction and fabrication works of sections or components of
drilling rigs & drillships
Installation of offshore production modules and systems
Afloat repairs, maintenance and refurbishment of offshore rigs,
platforms & vessels
Supply of offshore drilling and production equipment
7
88
Reactivation, commissioning & refurbishment of drillship and drilling rig
Reactivation of Drillship and Jackup Rig
999
Drillship component removal & installation
Thruster Removal and Installation for DrillshipProviding a 10 years old drillship a further 5years of operational integrity, replaceexisting 6 unit of azimuth thrusters with 6fully rebuilt thrusters
1313
Assembly of Subsea equipment
Receipt of Riser Spider and Gimbal
Setting of Gimbal on Load Plate
Completion of Installation and Assembly
1515
Removal, installation and servicing of offshore oil rig components
Mobilization of Crane Barge and Equipments along the Rig
Lifting of Thruster Unit
Removal of Barnacles and Marine Growth from Thruster Unit.
Thrusters Removal
Supply Chain Management
Provision of offshore supply vessels and heavy-lift equipment
Provision of logistics, general shipping and crew management
16
Vessel Sales & Newbuild
Purchase and refurbishment of vessels for onselling
Newbuilding of vessels
19
Construction of McDermott LB32 pipelay barge Retrofitting of Jascon 25 pipelay barge
Construction of APC Aussie 1 pipelay bargePower Barge Conversion for KPS Alican Bey
Experienced Management Team
Mr. Thomas TanExecutive Chairman and CEO
Responsible for overall operations, sales and marketing activities, customer service, securing new projects and negotiating contracts for the Group. Has more than 35 years of experience in the offshore oil & gas industry
Ms. Yeo Seh Hong Executive Director and COO
Responsible for overall operations, sales and marketing of products and services, product development and review, tenders and proposals and overseeing of the Group’s activities to ensure compliance with safety requirements and ISO standards. Has more than 25 years of experience in the offshore oil & gas industry
Mr. Tan Keng Hoe Melvin General Manager –Supply Chain Management
Responsible for supervising and managing of materials & logistics of the Group. Has more than 26 years of experience in the offshore oil & gas industry
Ms. Chen BiqingGeneral Manager –Marine and Support Services
Responsible for the marketing and operations for vessel movements, rental, sale and purchase of maritime and offshore equipments and assisting in marine and logistics operations within the Group. Has experience and exposure both locally and in Australia’s offshore oil & gas industry
20
Mr. Tan Kah Seng CFO
Oversees the finance and accounting function of our Group, which includes the review and evaluation of the Group’s business performance, cash flow management , and budgeting
Supporting Infrastructure – Our Yards
With a combined waterfront of 205 metres, our shipyards at 9 Pandan Crescent and 48 Penjuru Road enable us to carryout afloat repairs, fabrication, newbuild, painting and blasting works
Yards and fabrication workshops are well-equipped with crawler, gantry and overhead travelling cranes, forklifts, primemovers, CNC cutting, welding and drilling machines
Land Area: 19,512m2 Waterfront: 68mLand Area: 19,512m2 Waterfront: 68m
Penjuru Shipyard Pandan Shipyard
Land Area: 34,125m2 Waterfront: 137mLand Area: 34,125m2 Waterfront: 137m
21
Supporting Infrastructure –Vessels & Equipment
22
Wide range of heavy-lift equipment
16 cranes ranging from 70 tonnes to 550 tonnes
15 trailers
6 prime movers
Forklifts, specialist tools, welding and testing equipment and low beds
Fleet of barges including flat top deck cargo barges, flat top ballastable deck cargo barges and crane barges fitted with side
walls or stanchions
8 tugs / passenger launches ranging from 240 bhp to 3,200 bhp
28 barges ranging from 80ft to 300ft
Corporate MilestonesStarting Up
23
1968 –Founding of Kim Heng Tugboat
Company
1982 –Expansion into repair
and maintenance
in the offshore and
marine industry
1988 –Venture into repair and
maintenance activities for offshore oil
rigs
2009 –Constructed and delivered
first accomodation
and pipelaybarge
2013 –Completed first
re-activation and
refurbishment of a jack-up rig
TODAY – An established integrated offshore &
marine value chain services
provider
Kim Heng currently caters to world renowned customers from over 25 countries in the
regions of Southeast Asia, USA, Latin America, Australasia, Middle East and Europe.
Our prominent customers include:
25
A Worldwide Customer Base
Transocean Ltd Seadrill Limited Noble Corporation McDermott International, Inc Saipem S.p.A
Financials
27
Profit and Loss
*Computed based on the pre-Invitation share capital of 550,000,000 shares
S$’000 Audited FY2012
Unaudited FY2013
FY2013 Y-o-Y PerformanceComments
Revenue 86,728 84,813Revenue fell 2%• Mainly due to reduced contribution from Vessel Sales and Newbuild segment
Gross Profit 37,177 36,454 • In line with lower revenue recorded
Gross Profit Margin (%) 42.9% 43.0% • Maintained healthy GPM on robust core business
Profit/(Loss) before taxation 21,102 20,346Profit before tax fell 4%• Mainly due to incurrence of S$1.4 mil in listing related expenses
Profit/(Loss) for the year 17,285 17,093Core profit increased • Excluding the one-off listing expenses, the Group would have recorded 6~7% gain in net profit
Net Profit Margin (%) 19.9% 20.2% • Improved NPM despite listing costs
EPS (cents)* 3.1 3.1 -
Financials
28
86.7
37.2
21.117.3
84.8
36.5
20.3 17.1
0102030405060708090100
Turnover Gross Profit Net profitBefore Tax
Net profit AfterTax
FY2012 FY2013S$’ mil
29
Balance Sheet
*Computed based on the pre-Invitation share capital of 550,000,000 shares**Computed based on ratio of Net Debt Less Cash & Total Equity
***Proposed dividend is subject to shareholders’ approval
Financials
S$’000 Audited as at 31 December 2012 Unaudited as at 31 December 2013
Current assets 26,142 34,174
Non-current assets 60,648 57,823
Current liabilities 31,431 24,634
Non-current liabilities 11,998 9,863
Total equity 43,361 57,500
Cash and cash equivalents** 1,114 3,504
NTA per share (cents)* 7.9 10.5
Net Gearing Ratio 0.41 0.08
Dividend (cents)*** N.A. 0.5
3131
Prospects
Month
Drillships Jackups Semisubs
Deployed Total Fleet UtilisationRate Deployed Total Fleet Utilisation
Rate Deployed Total Fleet UtilisationRate
January 2014 85 93 91.4% 369 426 86.6% 170 189 89.9%
December 2013 84 91 92.3% 360 424 84.9% 168 189 88.9%
November 2013 79 89 88.8% 355 416 85.3% 171 189 90.5%
October 2013 77 89 86.5% 355 412 86.2% 172 189 91.0%
September 2013 75 87 86.2% 359 409 87.8% 172 188 91.5%
August 2013 75 85 88.2% 354 406 87.2% 173 188 92.0%
WORLDWIDE OFFSHORE RIG UTILISATION
Source: Rigzone Rig Data Center
32
Prospects
INTERNATIONAL RIG MARKET ANALYSIS BY REGION AS OF FEB 2014
Asia Pacific Africa Med/Mid East Latin America World Total
SS DS JU SS DS JU SS DS JU SS DS JU SS DS JU ALL
Working 30 17 119 15 19 22 4 1 132 47 26 45 164 84 384 632
Idle 16 6 16 11 3 4 6 0 32 4 2 25 54 14 129 197
UtilisationRate 65.2 73.9 88.1 57.7 86.4 84.6 40.0 100 80.5 92.2 92.9 64.3 75.2 85.7 74.9 76.2
Source: Petrodaily™ Rigs
333333
ProspectsAVERAGE DAY RATES V TOTAL CONTRACTED UTILISATION
Source: HIS Offshore Rig Day Rate Trends
34343434
ProspectsAVERAGE DAY RATES V TOTAL CONTRACTED UTILISATION
Source: HIS Offshore Rig Day Rate Trends
Prospects
35
Source: IHS Petrodata World Rig Forecast: Short Term Trends, December 2013
GLOBAL JACKUP RIG FORECAST FOR FY2014
36
Global E&P spending to hit record high in 2014
According to Barclays’ Global 2014 E&P Spending Outlook report
1. Global E&P spending is poised to reach a new record of $723 billion in 2014, up 6.1% from
$682bn in 2013
2. High oil Prices is expected to be sustained into 2014 on increase in global capital
expenditure budgets forecast for 2014
3. Expected delivery of a large number of offshore rigs in both 2014 and 2015 to drive E&P
spending36
Prospects
Asia Pacific E&P remains a bright spotAccording to Credit Suisse Singapore O&M report
1. Demand for rigs is expected to be supported by continued growth in Asia Pacific E&P
spending, which is expected to increase 22%YoY in 2014
2. Demand for high-spec jackups is likely to remain resilient, driven by rising dayrates and
replacement of older fleet, dayrates for jackups is expected to increase by another 5- 10%
in 2014
3. Malaysia is expected to see strong E&P activity as Petronas continues to award contracts as
part of its planned five-year RM300 billion capex programme. Number of wells drilled in
Malaysia in 2013-18 is expected to increase by 30% to 159 wells per year, with jack-up
market to grow 33% from an average of 15 contracted rigs in 2012 to 20 rigs in 2018
37
Prospects
Future Plans
Enhancement of yard facilities and expansion of fleetYard facilities enhancement
• 9 Pandan Crescent – Yard optimisation; construction of workers’ accommodation block; and
office block
• 48 Penjuru Road – Construction of CNC and subsea engineering workshop
Fleet Expansion
• Potential tender, repair and refurbishment of 8 vessels for operational usage;
39
40
Future Plans – Growth Strategies
Expansion and diversification of our business and service
offerings in the offshore O&G industryPotential Business Opportunities*
• Turnkey Rig Refurbishment Project – Refurbishment and conversion of a Jack-up Rig
to Accommodation Rig.
• Turnkey Rig Refurbishment Project – Refurbishment and conversion of a Jack-up Rig
to Offshore Production Unit
Potential M&A Opportunities*
• Subsea equipment servicing & engineering company
• Subsea equipment servicing company with intellectual property in coupling design
*As at the date of this presentation, we have not entered into definitive agreements with any potential party to undertake such projects and/or opportunities. We will carefully consider and undertake extensive review and evaluation prior to entering into such transactions, and further announcements will be made by via SGXNET as and when there are any material developments regarding the above in compliance with the listing rules
Investor Relations | Financial PR Pte LtdRomil SINGH, John TAN
T: +65 6438 2990 F: +65 6438 0064 [email protected]
Thank You!
45