Mitä Norjan markkinat voivat tarjota suomalaiselle yrityksille

Kokemuksia Norjan markkinoista

Heidi Palmgren

Managing Director

Kvaerner Finland Oy

Satakunnan ELY-keskus, 04 Feb 2015

© Kvaerner 2013 12.06.2013

Contents

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1. Kvaerner AS

2. Kvaerner Finland Oy

3. Market

4. Opportunities

© Kvaerner 2013 12.06.2013

Kvaerner is an international company

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Kvaerner well positioned in booming markets as well as “blue oceans” –

but still actively looking for new areas to expand

Kvaerner offices

Target markets

© Kvaerner 2013 12.06.2013

The upstream offshore oil and gas value chain – Kvaerner is

focusing on EPCI projects in the field development phase

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Licensing Exploration Field Development Production Abandonment

Feasibility,

concept, FEED

Procurement

Assembly and

Integration

Studies to

evaluate

potential field

development

solution

Global design

of chosen

solution

Completion &

Commissioning

Engineering

Construction

Marine

operations

Engineering

management

System

definition

Detailed

design/volume

engineering

Follow on

engineering

Technical

procurement

Commercial

procurement

Sourcing

Labour

Subcontractors

Construction

management

Shop

engineering

Pre-fabrication

Fabrication

Logistics

Assembly

procedures

Assembly

Integration

Tow-out

Tie-ins

HUC

Start up and

testing

Seismic data

Government

auctions and leases

to operators

Reservoir info

Exploration drilling

Appraisal drilling

Well completion

Front End

EPC projects

Ready for

operations

Production drilling

Field maintenance

Reservoir stimulation

Logistics and supply

Decommissioning

Abandonment

(plugging the well)

2-3 years 1-2 years 1-2 years ~4-8 years ~10-40 years

© Kvaerner 2013 12.06.2013

Kvaerner business areas

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Topsides

Floaters

Leading EPC contractor

to the North Sea market

LNG facilities

Gas receiving and

processing plants

Major modifications

Large steel jackets for

oil & gas installations

European leader in steel

jackets

Global North Sea

Intl. markets

North Sea

Intl. markets

North Sea

Intl. markets

CONCRETE

SOLUTIONS JACKETS TOPSIDES ONSHORE

Onshore upstream

facilities

Global leader in

gravity based

concrete structures Concrete substructures

CONDEEPTM GBS

Floating concepts

LNG production

and receiving terminals

Specialised in engineering, procurement, construction and installation (EPCI)

Stock listed in Norway July 2011

2013 Revenues of NOK 12.8 billion (~2.2 bn USD)

Order backlog of NOK 19.4 billion (~3.6 bn USD) at Q3 2014

Executed 20.2 million hours or 12 000 man years in 2014

Capability, Products, Technology

© Kvaerner 2013 12.06.2013

Current project portfolio

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© Kvaerner 2013 12.06.2013 7

Aasta Hansteen Upending & Hook-up

Milestone contract signing for first Sverdrup

substructure

© Kvaerner 2013 12.06.2013 8

Kvaerner Stord Yard

Annual throughput capacity: 20 000 tonnes

Parallel fabrication capacity: 1-2 Oil & Gas

topsides

Lifting capacity 800 tonnes

200.000 m2

© Kvaerner 2013 12.06.2013 9

Kvaerner Verdal Yard

Annual throughput capacity: 20 000 tonnes

Parallel fabrication capacity: 1-2 Jackets

650.000 m2

© Kvaerner 2013 12.06.2013

Innovation still ongoing

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SOS® Mindset to be maintained

Wireline operation on SOS® : Kværner Integrated Standardised Systems –

iKværner™

Well intervention equipment development

– Split of equipment between SOS and boat

– Service, supply and utility at boat as main

solution

– Reduce weight and size of the equipment

© Kvaerner 2013 12.06.2013

CONDEEP™ Deep Floater

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© Kvaerner 2013 12.06.2013

Kvaerner Organization Chart

Business Development

Risto Neuvo

SVP, London

Business Support

Knut Johan Malvik

SVP, Oslo

President & CEO

Jan Arve Haugan

Oslo

CFO

Eiliv Gjesdal

EVP, Oslo

Legal & Compliance

Henrik Inadomi

SVP, Oslo

Topsides

Steinar Røgenes

EVP, Stord

Jackets

Sverre Myklebust

EVP, Verdal

Concrete Solutions

Arnt Knudsen

EVP, Oslo

Onshore

Olav Jan Støve

EVP, Oslo

© Kvaerner 2013 12.06.2013

Kvaerner Finland Oy

Kvaerner Finland Oy, Ulvila

100% owned subsidiary of Kvaerner AS

Founded 2001, part of Kvaerner since 2008

Turnover abt 5 MEur

34 Employees

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© Kvaerner 2013 12.06.2013 02.0

2.20

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© Kvaerner 2011 14

Kvaerner Finland

Strategy :

Resource and Service Provider to Kvaerner, Aker and

third party companies

Own competence and qualified Finnish subcontractors

Construction/Project Management

Procurement & logistics, Construction management, Project planning &

support/administration, incl. Experience in Russian projects

Engineering services

Steel structures & Outfitting, Piping:

Engineering, all phases – FEEDs, basic, detail and workshop engineering

© Kvaerner 2013 12.06.2013

Kvaerner’s international EPC project execution

model is based on partnerships

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Kvaerner Intl. scope

Partner/Subcontractor

scope

Senior personnel

highly competent at

early phase

appraisal and

concept selection

Sufficient senior

engineering

capability to control

project risk and

manage

subcontractors

Efficient and knowledgeable

procurement capabilities with ability

to cater for local content requirements

Sufficient construction

management capability to

ensure delivery on time and

quality

Partners

Business Development

& Front End E(15-20%) P(50-60%) C(25-35%)

Flexibility of choice to comply with local content requirements, customer furnished partners etc.

Flexibility of choice to comply with local content requirements, e.g. COOEC Marystown Dubai Dry Docks L&T Etc.

Concept studies Pre FEED FEED Oslo London Houston

Engineering mgmt System engineers Discipline leaders High value engineering centers

Strong global procurement capability Oslo London Beijing

Construction mgmt Wholly or partly owned yards, e.g. Aktau, Zhuhai, etc. JVs (risk sharing)

Project management - process mentality and understanding from A-Z required for optimal execution

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© Kvaerner 2013 12.06.2013

Current major development in NS and major short

term focus for Kvaerner

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Current focus is Johan Sverdrup Tendering for first platform on-going

Will consume majority of Kvaerner resources

Kvaerner is looking for growth from international projects Stord resources essential to ensure execution according to Kvaerner PEM, systems

and tools

International projects will be based on partnerships

02.02.2015 © Kvaerner 2011 17

2014 and forward

Manage through the storm

11 platforms in Norway w/ oil price 60

5 platforms in UK w/ oil price 60-80

Oversupply

Demand below expectations

Weaker global economy

Headwind from Russia

STEP

= Statoil Technical Efficiency Program

Projects in hold

Too high cost level > Back to basics

Huge oversupply for at least 6-12

months, oversupply till 2019?

Samsung Hyundai and Saipem profit

warnings

Project cost cut > -20%

Predictability is key to success:

16 May 2014 was illustrative ….

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On time

On budget

Right quality

> 2 years delay

Numerous quality issues

~2,5 bn USD cost overruns

© Kvaerner 2013 12.06.2013

Experience in nut shell

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Resources and services

highly qualified and mobile specialists are welcome

high mobilisation costs tends to eat the salary difference

work performed in Finland is beneficial for both parties

Subcontracting

Norway looks for 15 – 20% project cost cut

Total value chain productivity

Bigger entities/constructions/modules needed > Team up

Sales, sales, sales and sales

© Kvaerner 2013 12.06.2013

Subcontracting opportunities Procurement is complex and require close focus throughout the

project

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11 500 tonnes

structure steel

4 900 tonnes

mechanical

equipment

2 500 tonnes pipes

6 800 valves

340 000 metres of cable

installed

25+ nationalities 250 companies

involved

~3 900 000 working hours on site

Total of 3 500 people involved in the

project

Ormen Lange example

Typical procurement

value of NOK 3-4 billion

© Kvaerner 2013 12.06.2013

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

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

21