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Oceaneering.com Rod Larson President and CEO Scotia Howard Weil 46 th Annual Energy Conference March 27, 2018 New Orleans, Louisiana 1

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  • Oceaneering.com

    Rod LarsonPresident and CEO

    Scotia Howard Weil 46th Annual Energy ConferenceMarch 27, 2018New Orleans, Louisiana

    1

  • Forward-Looking Statements

    Statements we make in this presentation that express a belief, expectation, or intention are forward looking. Forward-looking statements are generally accompanied by words such as “estimate,” “project,” “predict,” “believe,” “expect,” “anticipate,” “plan,” “forecast,” “budget,” “goal,” or other words that convey the uncertainty of future events or outcomes. These forward-looking statements are based on our current information and expectations that involve a number of risks, uncertainties, and assumptions. Among the factors that could cause the actual results to differ materially from those indicated in the forward-looking statements are: industry conditions, prices of crude oil and natural gas, our ability to obtain and the timing of new projects, and changes in competitive factors. Should one or more of these risks or uncertainties materialize, or should the assumptions underlying the forward-looking statements prove incorrect, actual outcomes could vary materially from those indicated.

    For additional information regarding these and other factors, see our periodic filings with the Securities and Exchange Commission, including our most recent Reports on Forms 10-K and 10-Q.

    2

  • Why Oceaneering?

    • Provider of integrated technology solutions

    • Strong portfolio of diversified services and products

    • Geographically dispersed asset base and revenue streams

    • Serves blue chip customers

    • Strong market positions

    • Solid balance sheet, and the financial flexibility to invest and grow the company

    3

  • Phase Exploration Development Production Decommissioning

    Market Driver Operating Floating Drilling Rigs

    Subsea Tree Installations

    Subsea Trees In Service

    Field Abandonments

    • ROV Services

    • Survey (SP)

    • Tooling (SSP)

    • ROV Services

    • Survey (SP)

    • Tooling (SSP)

    • IWOCS – Installation & Workover Control Systems (SSP)

    • Subsea Hardware (SSP)

    • Umbilicals (SSP)

    • Vessel-based Installation Services (SP)

    • Inspection Services (AI)

    • Seabed Preparation/ Trenching (SP)

    • ROV Services

    • Tooling (SSP)

    • Subsea Work Systems (SSP)

    • IWOCS – (SSP)

    • Subsea Hardware (SSP)

    • Vessel-based Installation Services (SP)

    • Inspection Services (AI)

    • ROV Services

    • Tooling (SSP)

    • Subsea Work Systems (SSP)

    • IWOCS – (SSP)

    Business Segment Product and Service Revenue Streams

    KEY

    ROV = Remotely Operated Vehicles

    SSP = Subsea Products

    SP = Subsea Projects

    AI = Asset Integrity

    In All Phases of the Offshore Oilfield Lifecycle

    4

  • Five Operating Segments

    5

    Remotely Operated Vehicles (ROVs)

    Subsea Products

    Subsea Projects

    Asset Integrity

    Advanced Technology

    Energy:

    Non-Energy:

  • Financial Overview

    6

    23% 20% 16% 20%

    30% 33%

    0

    49% 41%

    21%15%

    0

    22%

    9%

    12%12%

    0

    5%

    10%

    14%20%

    0

    8%20%

    0%

    25%

    50%

    75%

    100%

    Adtech

    Asset Integrity

    Subsea Projects

    Subsea Products

    ROV

    Revenue Operating Income

    $1.9B$2.3B

    2016 2017

    $10.7M $2.3M

    2016 2017

  • 0%

    25%

    50%

    75%

    100%

    International United States Services Products

    Revenue Overview

    7

    Geographic Area Services and Products

    43% 49%

    34% 39%

    66% 61%57% 51%

    $2.3B $1.9B $2.3B $1.9B

    2016 2017 2016 2017

  • 2018 Outlook

    • Decreases in three energy segments, partially offset by increases in Asset Integrity and Advanced Technologies

    • EBITDA guidance is $140 million to $180 million, with positive EBITDA contributions from each operating segment

    • $12 million to $18 million increase in Unallocated Expenses, and to be in the upper-$20 million range per quarter

    • Higher net interest expense

    • Effective tax rate about 5% before discrete items and any potential adjustments to our provisional estimates related to the recently passed U.S. tax reform recorded in 2017

    8

    Lower 2018 operating income than 2017 on slightly lower revenue

  • We provide ROVs, which are tethered submersible vehicles remotely operated from the surface, to customers in the energy industry for drilling support and vessel-based services, including subsea hardware installation, construction, pipeline inspection, survey and facilities inspection, maintenance and repair.

    Remotely Operated Vehicles

    20% 20%0%

    25%

    50%

    75%

    100%

    Revenue Operating Income

    2017

    9

  • Floating Rig Demand HistoryOceaneering has 56% drill support market share as of December 31, 2017

    10

    0%

    25%

    50%

    75%

    100%

    0

    50

    100

    150

    200

    250

    300

    2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

    % w

    ith O

    II RO

    Vs

    Co

    ntr

    acte

    d F

    loat

    ing

    Rig

    s at

    Per

    iod

    En

    d

    Contracted Floaters, Working Contracted Floaters, Not Working % of Contracted Floaters with OII ROVs

    Source: Rig data, IHS Petrodata, December 2017

  • Oceaneering ROV Drill Support/Vessel-Based Fleet MixFleet mix was 64% in drill support and 36% in vessel-based activity for 2017

    11

    0

    25,000

    50,000

    75,000

    100,000

    0%

    25%

    50%

    75%

    100%

    2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

    RO

    V D

    ays on

    Hire

    Dri

    ll Su

    pp

    ort

    / V

    esse

    l Fle

    et M

    ix

    Drill Support Vessel Based ROV Days on Hire

    * Based on number of actual working days.

  • Oceaneering ROV Days on Hire and Fleet UtilizationApproximately 80% of our ROVs earned revenue at some point during 2017

    12

    0

    25,000

    50,000

    75,000

    100,000

    2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

    0%

    20%

    40%

    60%

    80%

    100%

    Days o

    n H

    ireFl

    eet

    Uti

    lizat

    ion

    Rat

    e

    Drill Support Days Vessel Based Days ROV Fleet Utilization

    Source: Rig data, IHS Petrodata, December 31, 2017

  • Oceaneering ROV Average Revenue per Day on HireImpacted by geographic mix

    13

    0%

    25%

    50%

    75%

    100%

    2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

    $1,000

    $2,000

    $3,000

    $4,000

    $5,000

    $6,000

    $7,000

    $8,000

    $9,000

    $10,000

    $11,000

    Ave

    rage

    Rev

    enu

    e p

    er D

    ay o

    n H

    ire

    Revenue / Day on Hire ROV EBITDA Margin

  • ROV TechnologiesEnabling better control and video imaging, precise tool manipulation, and adherence to industry requirements

    14

    E-ROV

    Resident ROVTraditional ROV system

    Mission support centers Stavanger (Norway), Houston (Texas), and

    Morgan City (Louisiana)

    Communications via 4G, fiber, and satellite

    E-ROV concept winner 2017 World Oil New Horizons Idea Award

    Freedom ROV Concept

  • ROVs – Increase in Activity, Lower Operating Income

    Reduced average pricing• Shift in geographic mix

    • Continued competitive pricing

    More fleet days on hire• Slight shift in fleet mix more towards drill-support utilization

    Increase in ROV market share for drill support

    Fleet utilization in the low 50% range

    ROV EBITDA margin in the low 30% range

    15

    2018 outlook versus 2017

  • While most of our subsea products

    are sold, we also rent tooling, and

    provide IWOCS and subsea work

    systems as a service, including

    hydrate remediation, riserless light

    well intervention, well stimulation,

    dredging, and decommissioning.

    Subsea Products

    33%41%

    0%

    25%

    50%

    75%

    100%

    Revenue Operating Income

    2017

    16

  • Subsea Products

    17

    Production Control Umbilicals

    Supply electric and hydraulic power to subsea trees and inject chemicals into reservoirs and well streams.

    Specialty Subsea Hardware

    Field development hardware used to connect production trees to umbilicals and flow lines. Also includes connectors and valves - Oceaneering Grayloc, Oceaneering Pipeline Connection & Repair Systems (PCRS) and Oceaneering Rotator.

    64%

    % of Total Subsea Product 2017 Revenue

    Manufactured Products

  • Subsea Products

    18

    Installation and Workover Control Systems (IWOCS)

    A temporary control system designed for both rig- and vessel-based operations used for tree installation, completion, workover, intervention and decommission of subsea wells.

    Tooling and Subsea Work Systems

    Provide more than 4,000 ROV tools for rental. Supports well intervention, drilling, construction, field maintenance, and plugging and abandonment activities.

    36%

    % of Total Subsea Product 2017 Revenue

    Service and Rental

  • Subsea Products FinancialsBacklog $276 million at December 31, 2017

    19

    2008 2009 2010 2011 2012 2013 2014 2015 2016 2017$0

    $300

    $600

    $900

    $1,200

    $1,500

    Sub

    sea

    Pro

    du

    cts

    ($ in

    Mill

    ion

    s)

    Subsea Products Revenue Subsea Products Backlog

  • Optimism in More Final Investment Decisions (FIDs)

    • FIDs recovered strongly in 2017

    • Globally, 25 major offshore projects* (>50 mmboe) were sanctioned in 2017, and nearly half were for deepwater

    • Wood MacKenzie estimates 39 pre-FID offshore projects* (>50 mmboe) in 2018, and about 40% are for deepwater

    • Based on the above, along with discussions with customers and bid activity, we envision our book-to-bill for 2018 exceeding 1.0

    20

    * Offshore Projects = >+400 Meters (1320 feet)

  • Subsea Installations Forecast

    21

    305

    349319

    295 280243 243

    267282

    2013 2014 2015 2016 2017 2018F 2019F 2020F 2021F0

    100

    200

    300

    400

    500

    Sub

    sea

    Tree

    s O

    nst

    ream

    Source: Tree data - Infield, A Wood Mackenzie Business, December 2017.

    Trees OnstreamY/Y Growth %2017: -5%2018F: -13%2019F: No Change2020F: +10%2021F: +7%

  • Proven Well Access Capabilities

    • IRIS and BORIS - rigless, riserless light well intervention systems

    • Reliably perform in depths to 10,000 feet and pressures to 10,000 psi

    • Maximize production and increase the recovery rate from offshore oil and gas reservoirs or, alternatively, prepare wells to be plugged and abandoned

    22

    Riserless Intervention System winner 2017 World Oil Best Well Intervention Technology Award

  • Subsea Products – Stronger Book-To-Bill, Lower Operating Income

    Underutilized plant capacity• Lower manufacturing throughput as we enter 2018 with less backlog

    compared to 2017, and the natural lag between FIDs and order awards

    Lower pricing

    Margins weaken into the low- to mid-single digit range

    Envision book-to-bill to exceed 1.0

    23

    2018 outlook versus 2017

  • We provide project management, survey, subsea installation and inspection, maintenance, and repair services. We service deepwater projects with dynamically positioned vessels that have our ROVs onboard, and shallow water projects with our manned diving operations, utilizing dive support vessels and saturation diving systems.

    Subsea Projects

    15%9%

    0%

    25%

    50%

    75%

    100%

    Revenue Operating Income

    2017

    24

  • Subsea Projects Overview

    25

    • Deepwater Multi-Purpose Supply Vessels**

    Spot or Contract Location

    CharterEnd

    3 Owned

    *Ocean Intervention

    *Ocean Intervention II

    *Ocean Evolution (delivering 2018 Q2)

    Spot

    Spot

    Spot

    GOM

    GOM

    GOM

    N/A

    N/A

    N/A

    • Diving Support Vessels

    • Survey/Autonomous Underwater Vehicles (AUV) Services

    • Ecosse SCAR Seabed System (acquired March 2018)

    • Global Data Solutions

    * Jones Act Vessel** Supplemented with short-term vessel charters, as necessary

  • Acquired Ecosse Subsea Limited

    Provider of offshore engineering, seabed preparation, route clearance and trenching services

    Benefits:• Expand service line capabilities

    • Grow market position

    • Optimize customer’s installation projects with proven tools

    Accretive to 2018 cash flow and earnings

    Results included in Subsea Projects segment

    26

  • Subsea Projects – Lower Operating Income

    Continued competitive pressures on vessel dayrates in the spot market in the U.S. GOM

    Reduced international vessel and diving activity

    Entering 2018 with no meaningful fixed-term vessel contracts

    Partially mitigated by operating income from Ecosse Subsea Limited acquisition

    27

    2018 outlook versus 2017

  • We provide asset integrity management, corrosion management, inspection and nondestructive testing services, principally to the oil and gas, power generation, and petrochemical industries.

    Asset Integrity

    12% 10%

    0%

    25%

    50%

    75%

    100%

    Revenue Operating Income

    2017

    28

  • Asset Integrity – What We DoOur optimized, industry-leading inspection services and integrity management solutions assure our customers are equipped with the data required to make informed, value-adding decisions.

    29

    Permanently Installed Monitoring Systems (PIMS)

    Rope AccessPipeline InspectionAdvanced Inspection Services Non-Destructive Testing (NDT) – CapEx / In-Service

    Subsea InspectionIntegrity ManagementInspection and Condition

    Monitoring

  • Asset Integrity – Where We WorkWe work onshore and offshore -- upstream, midstream and downstream, encompassing the entire energy spectrum, oil and gas, nuclear, and renewables.

    30

    Onshore Midstream Onshore Downstream Offshore Topside Offshore SubseaOnshore Upstream

    Subsea InspectionIntegrity ManagementInspection and Condition

    Monitoring

  • Asset Integrity Increase in Operating Income

    31

    Continuing to respond to the needs

    of our customers for a more cost-

    effective method of ensuring the

    integrity and availability of their

    critical infrastructure.

    2018 outlook versus 2017

  • We provide engineering services and related manufacturing, principally to the U.S. Department of Defense, NASA and its prime contractors, and the commercial theme park industry. We also develop, implement, and maintain innovative, turnkey logistic solutions based on automated guided vehicle technology.

    Advanced Technologies

    20% 20%

    0%

    25%

    50%

    75%

    100%

    Revenue Operating Income

    2017

    32

  • Dry Deck Shelter Planning Yard/ Maintenance & Submarine

    Maintenance

    We support the U.S. Navy’s Deep Submergence community by performing complex overhauls, planned maintenance, and emergency repair tasks for the Navy’s six dry deck shelters.

    U.S. Navy Submarine Rescue System

    We perform major, complex overhauls, repairs, and modernization of all submarine classes forward and aft, from the top of the sail to the keel.

    Entertainment Systems “Dark Ride” Vehicles

    We developed and patented an evolutionary motion-based system capable of delivering high-energy thrills in fully immersive 3D media-based attractions at a fraction of the cost of other ride vehicles.

    Advanced Technologies Overview

    33

    33

    Government Businesses Commercial Businesses

    Automated Guided Vehicle (AGV) Systems

    We develop, implement, and maintain innovative, turnkey logistic solutions based on AGV technology.

  • Advanced Technologies Increase in Operating Income

    34

    • Increased activity in entertainment group within Commercial businesses

    • Stable activity levels within Government businesses

    2018 outlook versus 2017

  • Strong Balance Sheet and Liquidity

    Liquidity at December 31, 2017• $430 million of cash

    • $500 million undrawn revolving credit facility, $500 million available until October 2021, and $450 million available until January 2023

    • First debt maturities - $500 million in November 2024

    Organic capital expenditures• Expect to range from $80 million to $120 million in 2018, and include $40 million to $50 million maintenance

    Acquisitions • Continue to strengthen our portfolio of services and products by investing in our current and adjacent market niches,

    with more focus on our customers’ operating expenditures

    Dividends• Suspended until we see significant improvement in market outlook and projected free cash flow

    35

  • Key Enablers to Offshore Energy

    • Shortened project development life cycles

    • Reduced development costs

    • Recognized efficiency gains from technology advancements

    • Customer focus on developing high-graded “core of the core” offshore assets

    • Customer confidence in commodity price stabilization

    36

  • Long Term - Offshore Oil Remains Essential Incremental production growth through 2020 requires significant investment in both on- and offshore

    37

    50

    60

    70

    80

    90

    100

    110

    2016 2017F 2018F 2019F 2020F

    Tota

    l Liq

    uid

    s M

    MB

    /D

    Offshore is 23% of total incremental barrels to 2020

    Current Sources of Production

    Other Onshore

    Offshore

    Shale

    Source: Morgan Stanley Research , Wood Mackenzie, Rystad Energy, and Company Data – June 2017.

  • Mobile Robotics

    ROVAdvanced Technologies

    Subsea Projects

    Riserless

    Intervention & P&A

    Subsea ProductsSubsea Projects

    Offshore

    Renewables

    ROVSubsea ProductsSubsea Projects

    Asset Integrity

    Subsea ProductsSubsea ProjectsAsset Integrity

    Pipeline Solutions

    Subsea ProductsSubsea Projects

    Asset Integrity

    Potential Growth Areas

    38

  • Expanding into Offshore Renewable Energy Markets

    Applying existing Oceaneering technologies to provide innovative solutions to the offshore wind market

    Expecting pull through in demand from integrated solutions and technologies offerings

    Awarded survey services contract for Maryland Offshore Wind Project

    Winner in the Carbon Trust Wind Accelerator competition• Selected for our techniques to address the inspection of

    welds on monopiles and jacket foundations

    Awarded three-year agreement with Van Oord Offshore Wind B.V.

    • Providing ROV and trenching support services

    Acquired Ecosse Subsea Limited• Providing offshore engineering, seabed preparation,

    route clearance and trenching services39

  • Offshore Wind Global Market SizeRepresents a large investment and growth opportunity

    40

    0

    10,000

    20,000

    30,000

    40,000

    50,000

    60,000

    70,000

    2017 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F

    Cu

    mu

    lati

    ve M

    egaw

    atts

    Northern Europe Rest of Europe USA Rest of World

    Source: Renews Global Offshore Wind Report 2017 – Nov 2017

    12%

    34%

    20%

    CAGR % from 2017

  • Conclusion

    • 2018 will be challenging, but the offshore oilfield markets seem to be showing signs of resilience

    • Encouraged by certain improvements in long-term industry drivers and fundamentals

    • Maintaining a strong balance sheet

    • Looking for opportunities to invest and grow the company

    • Maintaining or growing our market share

    • Gaining efficiencies through continuous improvement and controlling costs

    • Continuing to innovate and deliver value added solutions to our customers

    • Continuing superior safety performance

    41

  • Supplemental Information

    42

  • EBITDA Reconciliation to Net IncomeEarnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP financial measurement. Oceaneering’s management uses EBITDA because we believe that this measurement is a widely accepted financial indicator used by investors and analysts to analyze and compare companies on the basis of operating performance, and that this measurement may be used by some investors and others to make informed investment decisions. You should not consider EBITDA in isolation from or as a substitute for net income or cash flow measures prepared in accordance with generally accepted accounting principles or as a measure of profitability or liquidity. EBITDA calculations by one company may not be comparable to EBITDA calculations made by another company. The following table provides a reconciliation between net income (a GAAP financial measure) and EBITDA (a non-GAAP financial measure) for Oceaneering’s historical and projected results on a consolidated basis for the periods indicated:

    43

    * Forecast Net Income excludes Provision for Income Taxes

    Period Ended 2014 2015 2016 2017 2018F 2018F(USD in millions) Low* High*

    Net Income $ 428.3 $ 231.0 $ 24.6 $ 166.4 $(110.0) $ (80.0)

    Depreciation & Amortization 229.8 241.2 250.2 213.5 210.0 220.0

    Subtotal 658.1 472.2 274.8 379.9 100.0 140.0

    Interest Expense/Income, Net 4.4 23.4 20.3 19.3 40.0 40.0

    Income Tax Expense 195.2 105.3 18.8 (184.2) - -

    EBITDA $ 857.7 $ 600.9 $ 313.9 $ 215.0 $ 140.0 $180.0

  • Free Cash Flow (Through the Cycle)“Free Cash Flow” (FCF) is a non-GAAP financial measurement. FCF represents cash flow provided by operating activities less organic capital expenditures (i.e., purchases of property and equipment other than those in business acquisitions. Management believes that this is an important measure because it represents funds available to reduce debt and pursue opportunities that enhance shareholder value, such as making acquisitions and returning cash to shareholders through dividends or share repurchases.

    44

    Period Ended 2014 2015 2016 2017(USD in millions)

    Net Income $ 428.3 $ 231.0 $ 24.6 $ 166.4

    Depreciation & Amortization 229.8 241.2 250.2 213.5

    Other Changes in Cash Provided by

    Operating Activities 63.7 88.2 65.7 (243.4)

    Cash Provided by Operating

    Activities 721.8 560.4 340.5 136.5

    Purchases of Property & Equipment (386.9) (200.0) (112.4) (93.7)

    Free Cash Flow $ 334.9 $ 360.4 $ 228.1 $ 42.8

  • Oceaneering ROV Fleet – 279 ROVsGeographic profile – December 31, 2017

    45

    78

    52

    75

    21

    34

    19

    20 16 32 6 7 80

    10

    20

    30

    40

    50

    60

    70

    80

    90

    100

    GOM Africa North Sea Brazil Asia/Pac Other

    RO

    Vs

    ROV Count Vessel Based, 89

  • Oceaneering ROV Leading Market Position

    46

    27928%

    OII Subsea 7 Fugro DOF Subsea C-Innovations Helix Saipem TMT Technip IKM Group Other

    8256%

    Ownership Drill Support Market Share

    Source: ROV Ownership - Infield, A Wood Mackenzie Business, December 2017.

  • Investor Relations Contact

    Suzanne SperaDirector, Investor [email protected]

    47