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Building Solutions for the Energy Industry Kimberly Stewart, Head of Investor Relations Jefferies Energy Conference, Houston, November 11 & 12, 2015

Building Solutions for the Energy Industry - Jefferies · Building Solutions for the Energy Industry ... This presentation does not constitute an offer or invitation to purchase any

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Building Solutions for the

Energy Industry

Kimberly Stewart, Head of Investor Relations

Jefferies Energy Conference, Houston, November 11 & 12, 2015

Safe Harbor

his presentation contains both historical and forward-looking statements. These forward-looking statements are not based on historicalfacts, but rather reflect our current expectations concerning future results and events and generally may be identified by the use offorward-looking words such as “believe”, “aim”, “expect”, “anticipate”, “intend”, “foresee”, “likely”, “should”, “planned”, “may”, “estimates”,“potential” or other similar words. Similarly, statements that describe our objectives, plans or goals are or may be forward-lookingstatements. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause ouractual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed orimplied by these forward-looking statements. Risks that could cause actual results to differ materially from the results anticipated in theforward-looking statements include, among other things: our ability to successfully continue to originate and execute large servicescontracts, and construction and project risks generally; the level of production-related capital expenditure in the oil and gas industry aswell as other industries; currency fluctuations; interest rate fluctuations; raw material, especially steel as well as maritime freight pricefluctuations; the timing of development of energy resources; armed conflict or political instability in the Arabian-Persian Gulf, Africa orother regions; the strength of competition; control of costs and expenses; the reduced availability of government-sponsored exportfinancing; losses in one or more of our large contracts; U.S. legislation relating to investments in Iran or elsewhere where we seek to dobusiness; changes in tax legislation, rules, regulation or enforcement; intensified price pressure by our competitors; severe weatherconditions; our ability to successfully keep pace with technology changes; our ability to attract and retain qualified personnel; theevolution, interpretation and uniform application and enforcement of International Financial Reporting Standards, IFRS, according towhich we prepare our financial statements as of January 1, 2005; political and social stability in developing countries; competition; supplychain bottlenecks; the ability of our subcontractors to attract skilled labor; the fact that our operations may cause the discharge ofhazardous substances, leading to significant environmental remediation costs; our ability to manage and mitigate logistical challengesdue to underdeveloped infrastructure in some countries where we are performing projects.

Some of these risk factors are set forth and discussed in more detail in our Annual Report. Should one of these known or unknown risksmaterialize, or should our underlying assumptions prove incorrect, our future results could be adversely affected, causing these results todiffer materially from those expressed in our forward-looking statements. These factors are not necessarily all of the important factors thatcould cause our actual results to differ materially from those expressed in any of our forward-looking statements. Other unknown orunpredictable factors also could have material adverse effects on our future results. The forward-looking statements included in thisrelease are made only as of the date of this release. We cannot assure you that projected results or events will be achieved. We do notintend, and do not assume any obligation to update any industry information or forward looking information set forth in this release toreflect subsequent events or circumstances.

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This presentation does not constitute an offer or invitation to purchase any securities of Technip in the United States or any otherjurisdiction. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Theinformation contained in this presentation may not be relied upon in deciding whether or not to acquire Technip securities.

This presentation is being furnished to you solely for your information, and it may not be reproduced, redistributed or published, directly orindirectly, in whole or in part, to any other person. Non-compliance with these restrictions may result in the violation of legal restrictions ofthe United States or of other jurisdictions.

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Technip Today

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World Leader Bringing Innovative Solutions to the Energy Industry

A world leader in project management, engineering and construction for oil & gas,

chemicals and energy companies

Services provided to clients in segments: Onshore/Offshore and Subsea

36,000 people in 48 countries

2014 Adjusted Revenue: €10.7 billion; Adjusted Operating margin of 7.7%*

* Adjusted operating income from recurring activities after Income/(Loss) of Equity Affiliates, divided by adjusted revenue

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(1) Former Duco

Evanton

Orkanger

Flexibras:

Vitória

Flexibras:

Açu

Macaé

Port of Angra

Pori

Asiaflex Products:

Tanjung LangsatBatam

Flexi France:

Le Trait

Perth

Angoflex: Lobito

Dande

Technip Umbilicals(1) Inc:

Houston

Mobile

Houston

Kuala Lumpur

Rome

London

4 Flexible Pipe Plants

4 Umbilicals Plants

4 Spoolbases

1 Construction Yard

3 Logistic Bases

Regional Headquarters

Operating Centers

Technip Umbilicals(1) Ltd: Newcastle

5

Calgary

Claremont

Weymouth

Boston

Port-Of-SpainCaracas

Bogota

Ciudad del CarmenMexico City

AccraLagos

LisbonBarcelona

Warsaw

St. Petersburg

Moscow

Antwerp

Lyon

Cairo

Athens

New Delhi

Mumbai

Chennai

Abu Dhabi

Al-Khobar

Doha

Kuwait

Seoul

Shanghai

Jakarta

Balikpapan

BangkokRayong

Ho Chi Minh City

St. John’s

Singapore

Milton Keynes

Aberdeen Oslo

Rio de Janeiro

Marseille

Paris Frankfurt

Zoetermeer Düsseldorf

Luanda

Stavanger

Global Business with Unique Worldwide Footprint

Gas treatment

LNG

(Liquefied Natural Gas)

GTL (Gas-to-Liquids)

Ethylene

Polyolefins

Aromatics

Fertilizers

Hydrogen

Clean fuels

Heavy oil upgraders

Braskem Ethylene XXI, FEED & EPC, Mexico

CPChem polyethylene plants, EPC, USA

Sasol Ethane Cracker, FEED & EP&Cm, USA

ASCENT, PDP & License, USA

DUSLO Ammonia plant, EPC, Slovakia

Phu My Ammonia plant, EPC, Vietnam

Burgas refinery, EPC, Bulgaria

Petronas RAPID, FEED & PMC & EPCm,

Malaysia

Basra Refinery Upgrading Project, PMC, Iraq

MIDOR Refinery, early works, Egypt

Fengzhen LNG Plant, EP, China

Yamal LNG, EPC, Russia

Browse FLNG, FEED, Australia

Gas Monetization

Refining

Petrochemicals

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Technip Onshore: Leader in Gas Monetization, Refining and Petrochemicals

7

Technip Offshore: A Complete Range of Products, Technologies & Services

Fixed Facilities

Floating Facilities

Services

Conventional

Fixed Platforms

Self-Elevating

(TPG 500)GBS Artificial Islands

Floatover

Installation

HUC –

Modifications

FPSO Semi-Submersible Spar TLP FLNG

GBS: Gravity Base Structure

HUC: Hook-Up & Commissioning

FPSO: Floating Production Storage & Offloading

TLP: Tension Leg Platform

FLNG: Floating Liquefied Natural Gas

Umbilicals

(Power & control)

Electrically Trace

Heated Pipe-in-pipe

In-line Monitoring

Technologies

Integrated

Production Bundle

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Agnostic Solutions

Proprietary Technologies

Integrating Technip subsea

proprietary technologies and

offshore platform know-how with

third party processing equipment to

provide innovative development

Providing independent architecture

development and component selectionImproving equipment and installation

converge in subsea architecture

Vendor Based Solutions

Technip Subsea: Broader Integrated Solutions from the Conceptual Stage

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EPCI Projects

(Subsea)

Technology

EPC Projects

(Onshore/Offshore)

Vessel services

EP&Cm

Project Management Consultancy

Manufacturing

Conceptual and FEED

Life-of-field services

Diversified Revenue Streams Across our Segments

Focus on Technip Financials & Cost Reduction Initiatives

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Subsea

€8.4 billion

2015

(3 months)

2017 & beyond2016

Onshore/Offshore

€9.0 billion

2015 (3 months)

2017 & beyond2016

9 months(Actual)*

9 months(Actual)*

*Adjusted Revenue 9 months 2015

€4.4billion

€1.3billion

€4.2billion

€2.9billion

€4.7billion

€1.5billion

€4.4billion

€3.1billion

Estimated Backlog Scheduling

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Onshore / Offshore

Adjusted revenue over €6 billion

Adjusted underlying operating income from recurring

activities(2) between €210 to €230 million

Subsea

Adjusted revenue over €5.5 billion

Adjusted operating income from recurring activities(1) at

around €840 million

2015 Objectives:Operating Profit Confirmed, Revenue Increased

(1) Adjusted Operating Income from Recurring Activities after Income/(Loss) of Equity Affiliates(2) Adjusted Operating Income from Recurring Activities after Income/(Loss) of Equity Affiliates excluding Exceptional Items

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34,000

36,000

38,000

40,000

Jan. Feb. Mar. Apr. May June July Aug Sept.

One-off charge of €14 million in the

quarter

€585 million taken in total so far, out of

€650 million announced

Exit of some countries through

closures or sales continues

Sale of Technip in Belgium completed in

October

Closure of Myanmar office

In the first nine months of 2015,

Group workforce fell by ~2,300

2015 Technip Workforce Worldwide Restructuring Plan Highlights

End December 2014: ~38,300 total

headcount

15% contracted

End September 2015: ~36,000 total

headcount

13% contracted

Restructuring Plan Announced July 6th on Track

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Costs

SG&A(1)

reduced by nearly €20 million

year-on-year

Capex

Net capex reduction on track

Net capex

9 months:

SG&A(1)

9 months:

521479 461

9 months

2013 2014 2015

424

258213

9 months

2013 2014 2015

(1) Selling, General and Administrative Costs

Continued Focus on Capex and Cost Discipline

Fleet reduced from 36 vessels in 2013 to 23 vessels in 2015

Technip in the Current Market Environment

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Bering

Sea

8 modules offloaded and being installed

Erection of the first site pre-assembled

pipe rack on-going

On-the-ground construction

infrastructures well advanced

Yamal, RussiaLoad out and sail away of the first site pre-

assembled pipe rack in July 2015

Load out and sail away of 6 electrical

buildings in August 2015Eastern route through

Bering Strait

Western route through

Suez Canal

Route to Module Intermediate

Storage Yard

Engineering

Phase 1 nearing

completion

Two vessels navigated

through Bering Strait, an

industry breakthroughParis, France

Yokohama, Japan

Batam, Indonesia

Achieving 2015 Key Milestones on Time: Yamal LNG Project

Penglai, China

Early engagement to bring added value for a more

cost- and schedule-effective solution

Links the know-how and expertise for the design and

construction gained on Prelude FLNG by our teams

Client: Woodside and Shell

Consortium with Samsung Heavy Industries

Location: Development of 3 fields: Brecknock, Calliance & Torosa,

located 425 kilometers North of Broome, Western Australia

Scope of work*:

FEED for three FLNG units signed with Shell, then novated

to Woodside as operator

EPCI of the three FLNG units subject to clients’ FID at the

end of the FEED

Award Overview

*Order intake recognized: in 2Q15 only for firm part of award: FEED

Australia

Browse

Basin

Browse FLNG Development

Picture courtesy of Shell

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Bringing Together our Unique Combination of Expertise: Browse FLNG

Making Marginal Fields Development Viable: Juniper Project

FEED Engineering contracts

Execution phase

separate contracts for:

Detail Engineering & Procurement Services for

Platform

Detail Engineering & Procurement Services for

Subsea and Pipelines Scope

Fabrication Contracts for Jacket/Piles &

Topsides

Installation Contract for Jacket/Piles &

Topsides

Installation Contract for Subsea & Pipelines

Hook-up & Commissioning Contract

Client staff required to manage both

technical and commercial contracts &

interfaces

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FEED Engineering contract

EPCIC for platform, subsea and

Pipelines

Original Project Delivery Model by Client Final Project Delivery Model by Technip

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Client: Sasol

Joint venture between Technip (50%) and Fluor (50%)

World-scale ethane cracker and derivatives complex to be

located in Lake Charles, Louisiana, USA

Project Overview

FEED(1) & Technology Supply EP(2) EP&Cm(3)

Early involvement to design an

effective project execution

scheme with license and FEED

for the ethane cracker

Supply one of the most critical

part of the cracker, the furnaces

thanks to Technip Stone &

Webster Process Technologies

EP&Cm of the ethane cracker to

accompany client throughout

project life

Sasol ethane cracker, USA

Source: Sasol

Technip key differentiators: proprietary technologies and

strong project management capabilities

(1) Front-End Engineering and Design(2) Engineering and Procurement(3) Engineering, Procurement and Construction Management

Accompanying Clients Throughout the Project Lifecycle: Sasol, Lake Charles

2010-2011 2012-2015 2015 and beyond

Group commitment to

R&D taking pre-salt

development further

First pilot award for the

Tupi field: demonstrated

feasibility of flexibles

technology

New investment decision

to expand manufacturing

footprint in Brazil

Strong backlog built

throughout the period

thanks to qualification of

flexible pipe solution led

with momentum of awards

New Açuflex flexible pipe

plant opened in 2014:

world’s most technologically

advanced manufacturing

plant

Additional R&D to overcome

pre-salt technical challenges

led to first extended well-

test award for Libra field

Client investments

confirmed for upstream

developments with FPSOs

ordered

Technip flexible

pipe awards

Future pre-salt

developments

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Iracema Norte

Iracema Sul

Sapinhoa Norte

Libra

Lula Nordeste

Lula Alto

São Paulo

Açuflex Plant, Brazil

Confirming Leadership for the Brazilian Pre-Salt Market

Santos

Basin

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€ million

Group R&D Investments Subsea Technologies Examples

0

15

30

45

60

75

90

2010 2011 2012 2013 2014

Electrically Trace

Heated Pipe-in-Pipe

DIESTA: Dual

enhanced heat

transfer surfaces for

tubes in air fin coolers

Swirl Flow Tube

technology

Process Technologies Examples

Technology is a clear differentiator in today’s market

Al Cable Power

Umbilical

Sustaining Technology Investment

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Clients New projects delayed

Capex/opex discipline, strong focus on cash flow

management

Willingness to engage earlier and work differently

Additional capex budget cuts

Increased pressure on supply chain

Strategic projects prioritized

Accelerated standardization and simplification

Contractors and supply chain Industry structural change

Aggressive cost reduction plans

Price deflation, but not uniform

Further cost base reductions

Efficiency improvements (technology, innovation)

Capabilities integration (alliances, M&A)

Address overcapacity

Market opportunities Pockets of resilience in offshore and subsea

markets

Opportunities in onshore

Pockets of geographic resilience:o Brazil pre-salt developments

o Downstream in North America, Eastern Europe

and Africa / Middle East

New contracting models

Increased momentum in Technip / FMC Alliance

What we have seen What we expect

Market Environment

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Technip Priorities

Executing projects with discipline and

improved efficiency

Reducing client project costs through

standardization and innovation

Reducing our cost base and

increasing our competitiveness

Seizing opportunities in targeted

markets

Best position ourselves for the future

Strong balance sheet

QHSE(1) culture

Global business with worldwide

footprint

Early involvement and fully integrated

approach

Technology, innovation and

expertise Technip

Strengths

Technip Strengths in a Challenging Environment

Solid backlog of €17.5 billion

at end 3Q15

Diversifiedrevenue streams

Thank you