new corporate organization - scoar company showcase.pdf · kbr wins logcap contract to support the...
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2Privileged & Confidential
Matthew NissenBIOGRAPHY
»Matthew NissenSr. Manager Business Development
KBR Power and Industrial Group
»Matthew has over 30 years of
experience in Engineering and
Construction industry, having held
positions in project and construction
management. Nissen holds a
bachelor of Building Construction
from University of Florida.
3Privileged & Confidential
KBR History
1900Kellogg is founded by Morris W. Kellogg as a small pipe fabrication company
1919Brown & Root is founded as a road construction company in Houston, Texas by George and Herman Brown along with their brother-in-law Dan Root
1947Brown & Roots builds the world‟s first offshore platform 43 miles south of Morgan City, Louisiana, beyond the sight of land
1956Kellogg builds the firstCrude oil-based liquid Ethylene cracking facilityIn Europe.
1977Kellogg constructs Skikda LNGIn Algeria, its first LNGliquefaction plant.
1965Brown & Root builds the first offshore platform in the North Sea for Conoco, which would later become a major offshore hub.
1997KBR wins LOGCAP contract to support the U.S. military with base camps and other life support services.
1997Brown & Roots starts construction of the automated People Mover system, which connects terminals at Houston‟s Bush Intercontinental Airport.
1998M.W. Kellogg Company merges with Brown & Root to form Kellogg Brown & Root (KBR).
2004KBR draws upon its extensive experience designing CO2
compression systems to help build the world‟s first full-scale CO2 capture project in Algeria.
2005KBR begins Pearl GTL in Qatar, its first GTL project and what will be the largest GTL plant in the world.
2006KBR proceeds with separation from Halliburton and an Initial Public Offering of KBR shares receives positive public reception.
2008Acquisition of BE&K
2008Acquisition of Wabi
2000The Astros‟ Minute Maid Park, which features a unique retractable roof, is completed in a record 27 months under the direction of KBR.
4Privileged & Confidential
KBR Business Overview
»FY 2009 Revenue: $12.1 Billion
»Backlog as of 2Q2010: $12.4 Billion
»No long term debt
»$1.2 Billion Cash and Equivalents (2Q2010)
»Ranked No. 3 - ENR Top 400 Contractors
»Headquarters in Houston, Texas
»100+ years of operating history,
»~57,000 employees (~5,000 engineers) in over 45
countries
»Publicly traded on the NYSE (KBR)
5Privileged & Confidential
Safety - Commitment
Chairman’s Safety Award
Achieved 1,000,000 hours without
a lost time incident on 29 Projects
(Achieved on 5 Sites)
North American Safety Statistics 1,000,000 Hour Club
Accomplishments Voluntary Protection Program
» EMR = 0.41
» Recordable Incidents = 0.65
» Lost Time Incidents = 0.10
(7 Times)13 ContractorSafety Awards
Excellence in Safety AwardExcellence in Safety Award
UPDATE: Our Richmond County project has just
passed 1MM hours without a lost time or recordable
for a new total of 30 projects!
6Privileged & Confidential
New KBR Organization
CEOBill Utt
OPERATIONSDennis Calton
SERVICESDavid Zimmerman
VENTURESMark Barry
HYDROCARBONSJohn Rose
NON-HYDROCARBONSMark Williams
• Downstream
• Gas Monetization
• Oil & Gas
• Technology
• Power & IndustrialJim Stewart, President
• N.A. Government & Defense
• Intl. Government & Defense
• Infrastructure & Minerals
COMMERCIAL
& STRATEGY
ADMINISTRATION
CFO
LEGAL
7Privileged & Confidential
SHARED SERVICES
A&F, Legal, Human Resources
D. Joehl, N. Bouler, C. Hicks
New Organization
Power & Industrial
Business Unit President
Jim Stewart
SalesPower
Lance Hendrix
Industrial
Stuart Stoves
Group President
Power & Industrial Business Unit
OperationsEngineering
Project Oversight & Controls
Purchasing & Material Mgmt.Paul Turner
Construction Execution
Kenny Smith (B’ham)
8Privileged & Confidential
KBR Power
VP & Gen. Mgr
Lance Hendrix
VP, Operations
TBD
Mgr of Projects
Steve Johnson
Mgr of Projects
Tony Calderone
Construction
Kenny Smith
Engineering
Bill Nelson
Startup
TBD
Safety
Larry Webb
Procurement
Ross Cates
Project Controls
& Estimating
Dave Trent
Human
Resources
Clay Hicks
Legal
Nick Bouler
Services
Shared Services
9Privileged & Confidential
Power Project Map
Southern Company
Scherer Baghouses
Scherer Limestone
Macon, GA
Progress Energy
Richmond County Combined Cycle
Rockingham, NC
Progress Energy
Weatherspoon Biomass
Lumberton, NC
Palm Beach County SWA
Waste to Energy Retrofit
Palm Beach Gardens, FLADA ES
Activated Carbon Facility
Red River, LALCRA
Fayette Scrubbers
LaGrange, TX
UNITED KINGDOM
LEGEND
Current Projects
Completed Projects
Estimates in Progress
National Grid
Barrow Wind Farm
Scottish & Southern PMC
Entergy
CalpineSouthernPower
TallahasseeRepowering
OglethorpeDynegyJEA
SouthernCompany
Dynegy
FP&L
CPS Energy ProgressEnergy
Confidential
Confidential
10Privileged & Confidential
Total Domestic Power Market Addressable Domestic Power Market
$46.5$45.0
$37.1
$31.7
$44.0
$-
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
2008 2009 2010 2011 2012
US
$ b
illi
on
s
$4.84$4.26
$13.22
$11.03
$5.30
$-
$2
$4
$6
$8
$10
$12
$14
2008 2009 2010 2011 2012
US
$ b
illi
on
s Status Quo
Impact of new Strategies
KBR Power
1. Increase Current Domestic Market Share in Gas
and AQCS
– Increase Business Development Coverage
– Add Power Operations Personnel to Support Growth
– WorleyParsons Engineering Alliance
2. Penetrate International Power Market via KBR Footprint
– Initial focus on United Kingdom, Australia, & South Africa
Strategy
3. Position for “Emerging” Power Generating Technologies
• Renewables (immediate focus on biomass)
• Transmission (emerging EPC market)
• Nuclear (may be some opportunities with GE)
• Carbon (KBR, OEMs technology)
Premise: The Power Market Wants Another Large Power EPC Contractor
11Privileged & Confidential
Domestic Expansion
Washington
Oregon
California
Nevada
Idaho
Montana
Wyoming
Utah
Colorado
Kansas
Oklahoma
Missouri
Arkansas
Louisiana
Mississippi
Alabama Georgia
Florida
Tennessee
Kentucky
Virginia
MDDE
West
Virginia
North
Carolina
South
Carolina
Texas
New
Mexico
Arizona
Nebraska
Iowa
South
Dakota
North
DakotaMinnesota
Wisconsin
Michigan
IllinoisIndiana
Ohio
PennsylvaniaNJ
New York
Maine
Massachusetts
CT
VT NH
RI
Canada
Southeast
Gulf Coast
Middle Atlantic
West
Midwest
Canada
Northeast
Predominately Union Construction
13Privileged & Confidential
KBR Power Services
»Engineering
– Major Design Engineering
Outsourced Projects
– Options Analysis, FEL Studies
– Seconded Engineers/Designers
(AllStates)
»Construction
– Large packages or GC projects
– Small Construction packages
(SW&B)
– Boiler Outages
– Full Outsourced Maintenance
14Privileged & Confidential
Birmingham Engineering
VP/General ManagerPaul Turner
VP/Chief EngineerKen Collier
Engineering
Managers
Project ControlsDanny ScottCivil/Struct/Arch
Danny Armstrong
Mechanical ServicesDavid Templin
Power & ControlsBill Reitzammer
Chemical ProcessJohn Winters
Scheduling
Cost
Document Ctrl
Secretaries
Industrial ProcessBarry Seidel
Drew Ricketts
Bryan Reed
Power Staff
15Privileged & Confidential
Monterrey
1,297 Employees
Engineering Centers
Perth
308 Employees
Houston
3,193 Employees
Leatherhead
3,051 Employees
Jakarta
268 Employees
Birmingham
575 Employees
Raleigh
112 Employees
16Privileged & Confidential
Birmingham Engineering
»KBR Birmingham
– Build Power engineering resume
(the future of the Birmingham office)
– KBR provides „turn the crank‟ detail design
– Can provide:
»Lower costs (multiplier, W2 Wage Rate, Travel, etc.)
»Lower travel costs
»Competent detail design engineering
»EPC based engineering (detail for construction, constructability, etc.)
»EPC based engineering controls (scheduling, document control,
EVMS, etc.)
»BE&K Management Commitment
17Privileged & Confidential
Construction Capabilities
Large ConstructionProjects
Small ConstructionProjects
Boiler Outages Maintenance
19Privileged & Confidential
Summary
»We view the new Power & Industrial Group as a reaffirmation of the
basic purchase of BE&K
– Rebuild the historic Brown & Root domestic construction business
– Leverage BE&K capabilities and experience, with KBR financial and large
project acumen, to „enter‟ the Power market as an EPC Contractor
– BE&K name will gradually go away
»KBR Executive Management feels that Domestic Power is a major
KBR growth engine
»The Power & Industrial Group business will be headquartered in
Birmingham
»We are committed to adding Power personnel to enhance our
capabilities