Konkurransedyktig for fremtiden. Stordkonferansen, 7. juni 2017 Jan Arve Haugan, konsernsjef

Transcription

1 Konkurransedyktig for fremtiden Stordkonferansen, 7. juni 2017 Jan Arve Haugan, konsernsjef

2 Agenda Kvaerner at a glance Key drivers for implemented improvements Further steps to be competitive for the future Our industry: A keystone for value creation and welfare

3 Complete offshore platforms and onshore plants Concrete solutions Steel jacket substructures Platform topsides Onshore oil and gas plants Market leader globally Market leader, Europe Leading position, Norway + world Market leader, Norway World leading position, projects in Arctic conditions Approximately 2 / 3 of all platforms at NCS 7 of Norway s 7 largest onshore oil and gas plants 49 offshore wind mill substructures Approx employees, 2 specialised facilities = Examples of delivered platforms and onshore plants 3

4 Agenda Kvaerner at a glance Key drivers for implemented improvements Further steps to be competitive for the future Our industry: A keystone for value creation and welfare

5 Wake-up calls in 2012 and 2013: Norwegian industry lost 0-7 Norwegian contractors were not good enough Also: Not all deliveries from Asia met expectations 5

6 Index: % change Competitiveness improved significantly Cost reduction initiatives Total costs for new topsides reduced 20-20% 120 Productivity improvements Streamlined org. Internal costs Project cost base Joint initiatives with clients ~20-25%

7 Focus on key performance drivers Before we can make step-change improvements to cost, technology, etc., we first have to control HSSE, quality and time 7 The Keystone Arch is the intellectual property of Kvaerner. All rights reserved.

8 Predictable delivery is part of the culture: The value of time and quality is enormous Just 1 month extra time before production start = 1/4 billion NOK! lost for licence + society* EPC from Kvaerner = 36 months or less. EPC from Asia = typically 43 months or more Total cost from Norwegian EPC contractors ~NOK 3,75 bill. lower than far east contractors** 8 * Incl. lost Net Present Value for typical field development at NCS in recent years ** Based on typical NOK 8 billion platform topsides

9 Internationally recognized for predictable deliveries: All current projects on track Johan Sverdrup riser platform jacket Johan Sverdrup utility and living quarters topside Nyhamna expansion Njord A Hebron GBS Aasta Hansteen completion assistance 9

10 Agenda Kvaerner at a glance Key drivers for implemented improvements Further steps to be competitive for the future Our industry: A keystone for value creation and welfare

11 We have just barely started our way to continuous improvement: Driving for industrialisation Standards Repetition Measuring Innovation = Industrialisation Technical specs Procedures Work processes Contract T&C Etc. Copy effect Streamlining Systematic learning Find Best Practice Update directions New ideas, solutions Continuous improvement Even better standardisation Focus on simplification and good enough 11

12 Digitalisation and robotisation: New successful improvement cases every quarter Digital NDT ACHIEVED RESULTS: Digitalisation has reduced NDT costs 70% 45 % automatic welding (up ~ 500%) Quality: < 6 cm rework on 15 km weld! No staff reductions due to digitalisation Costs level reduced by + 20% Competitiveness strengthened NEXT STEP IMPROVEMENTS: Increase digitalisation, robotisation, training of employees Harvest potential to further enhance quality Expand portfolio of products and services Service tower 12 Punch adm

13 Agenda Kvaerner at a glance Key drivers for implemented improvements Further steps to be competitive for the future Our industry: A keystone for value creation and welfare

14 The service and contracting industry realize Norway s oil and gas resources: Vital role for value creation and welfare 1 job with primary supplier = spin-off 3 additional jobs Total O&G employment effect: ~ pers. Big employment impact* in all regions, such as: 1) jobs in Rogaland 2) jobs in Hordaland 3) jobs in Oslo / Akershus region 4) jobs in NW coast, Norway 5) jobs in Trøndelag 6) jobs in Northern Norway Annual revenues, service / contracting industry ~ NOK 350 bill. domestic ~ NOK 150 bill. export 14 *= Jobs in oil and gas industry and employment effects for suppliers, etc. Sources: Norsk Industri, Menon, SSB, Oslo Economics, Norsk Olje & Gass, etc.

15 The service and contracting industry realize Norway s oil and gas resources: Vital role for value creation and welfare It has taken 50 years to develop the Norwegian O&G industry cluster For once, we have managed to combine: International competitiveness AND Big volume: Real impact re jobs+value creation To qualify for the term «the new oil», a new industry must provide: Value creation > NOK 7 mill per employee (average for other jobs: ~NOK ) Produce 15% of GNP, 40% of total export Deliver 20% of public income / budgets Yield for new pension fund > NOK bill. 15

16 Contracting industry with expertise and competence development of vital importance for Norway EPC-contractors are the hubs for much of the O&G cluster * EPC = vital tasks for apprenticeships (Kvaerner has ~120** / year) 4 top placements in NM Bronze in EM A group of Kvaerner s apprentices Statoil awards Njord project to Kvaerner 16 * Konkraft, signed by operators, contractors, suppliers, etc. ** Kvaerner total per year, incl. incoming + outgoing class

17 Concluding remarks HSSE remains as licence to operate Predictability wrt. quality and schedule is critical for total cost Norwegian suppliers are competitive if total costs is evaluation criteria Further improvements of industry is vital, but must have strategic perspective: Industry structure must be long-term sustainable Enable investments in competence, recruitment Kvaerner has the strength, capability and determination to invest if provisions are made for new activity Kvaerner s ambition is to always be able to offer the best total price 17

18 Thank you! We realise energy projects and values for customers and society 18

19 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. 19

20 Kvaerner is an integrator for key parts of the value chain: EPC-model can harvest potential for more effective interfaces FEED E P C HUC & I DECOM Concept development / FEED Engineering management Procurement Project Management Project management Fabrication Assembly Assembly HUC Tow-out / marine operations, installation, production start 20

21 Facing competitors with low cost labour: Large potential in digitalisation and robotisation Welding robot: Robot for percent of some jacket scope 5 times faster than manual process Progress & status reporting in the field MC punch administration in the field Welding robot Wending machine Tools & Equipment management app Vending machines for consumables Automation of yard logistics Digitalisation of scaffolding and rigging Digital Non-Destructive Testing Construction Management dashboard Mobile progress reporting on iphone Punch administration Tools & Equipment app 3D visualization of yard operations and tenders 21