AMEC plc Deutsche Bank investor trip to Middle East

Transcription

1 AMEC plc Deutsche Bank investor trip to Middle East Alan McLean - Executive Vice President, Middle East, Africa and CIS 20 March 2012

2 Important information Certain statements in this presentation are forward looking statements. By their nature, forward looking statements involve a number of risks, uncertainties or assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward looking statements. These risks, uncertainties or assumptions could adversely affect the outcome and financial effects of the plans and events described d herein. Forward looking statements t t contained in this presentation regarding past trends or activities should not be taken as representation that such trends or activities will continue in the future. You should not place undue reliance on forward looking statements, which apply only as of the date of this presentation. This presentation does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase any shares in the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment or investment decisions relating thereto, nor does it constitute a recommendation regarding the shares of the Company. Past performance cannot be relied upon as a guide to future performance. 2

3 Agenda The market - MENA AMEC s position and strategy t for growth Project examples Appendix 3

4 The market - MENA Regional drivers and trends Substantial investment in energy-based projects over next 5 years Growing affluence of population combined with expansion of state provided services Re-building effort in conflict affected countries Gas increasingly important to meet internal growth Oil & gas important to fund infrastructure expansion with investment also in alternative energy, power and water Opportunities differ by country (commodity, maturity, need for refurbishment etc) Surplus revenues being generated for sovereign wealth funds Libya Lebanon Israel/ Palestine Egypt Syria Iraq Jordan Kuwait Qatar UAE Saudi Arabia Oman Yemen Significant energy investment opportunities in the MENA region 4

5 The market - MENA Regional drivers and trends Areas of highest activity 2012+: upstream, refining and gas processing Lebanon Israel/ Palestine Syria Iraq Kuwait and Saudi potentially the largest markets EPC segment dominated by Koreans and Europeans Libya Egypt Jordan Saudi Arabia Kuwait Qatar UAE State-to-state to agreements between Korea and GCC countries Oman Margins under pressure Need for local content continues Yemen Requirements differ country-to-country Significant energy investment opportunities in the MENA region 5

6 The market - MENA Regional drivers and trends Iraq Libya Kuwait Oman Qatar Saudi Arabia UAE Country overview Market looking to Iraq opportunity Drive to regain preconflict production levels Refining largest projects depending on 4th refinery and clean fuel projects Focus on tight gas production and asset support Moratorium on North field not due to lift till 2015 Limited LNG & GTL CAPEX activity Petrochemicals drive volumes refinery conversions & speciality chemicals projects Investment in offshore will increase O&G production Forecast capex spend to 2015* - - $90bn ($38bn upstream; $36bn downstream) $8.3bn (excluding Khazzan) $15-20bn $ bn (15-20 bn/yr) $50bn Forecast capacity to 2015* 1. Oil 2015E (b/d) 2. Gas 2015E (cf./d) 3. Refining 2015E (b/d) 4. LNG (t/y) m m 1. 1m k 4. 10m 1. 1m k 4. 77m 1. 12m bn 3. 4m m m m Opportunities differ by country Source: MEED & various 6

7 AMEC s position MENA profile Countries Clients Sectors Services Strategy Iraq, Kuwait, Libya, Qatar, UAE, Saudi Arabia (operating in region for 30+ years) Key IOCs / NOCs and others Oil & gas, minerals & metals, clean energy, environmental & infrastructure Typically act as owner s engineer Value-based, life of asset services Top 3 provider in consultancy, project management consultancy and FEED services in core countries Libya Lebanon Israel/ Palestine Egypt Syria Iraq Jordan Kuwait Qatar UAE Saudi Arabia Oman Yemen Strengthen current capability across MENA : organically and via acquisition Focus on engineering: specialist engineering, lump sum engineering Multi-sector approach - deploy full suite of integrated AMEC services Long history and track record platform for growth 7

8 AMEC s position Business model and core services Existing Incremental Expanding foundation growth position Project management consultancy (PMC) Engineering services In-region FEED capability Out of region multisector expertise Integrated services Across oil & gas, minerals & metals, clean energy, environment & infrastructure markets Organic and focused acquisition Asset support Qatar and Libya Asset development NOC s and IOC s Across region Transitioning from oil & gas dominated business to multi-sector 8

9 AMEC s position Opportunity by country Iraq Libya Kuwait Oman Qatar Saudi Arabia UAE Attractiveness ( low, high) AMEC opportunity By market Upstream, midstream, downstream Onshore/ offshore Project opportunities Key customers Oil & Gas Clean Energy E&I* Oil & Gas Clean Energy E&I* Oil & Gas E&I* Oil & Gas E&I* Oil & Gas Minerals & Metals E&I* Upstream Upstream Significant onshore up / mid / downstream Upstream Significant midstream, upstream Oil & Gas Clean Energy Minerals & Metals E&I* Significant onshore upstream Oil & Gas Clean Energy E&I* Significant upstream + mid / downstream Onshore Both Both Onshore Both Onshore Both Upstream field developments Field rehabilitation Water & infrastructure projects IOC led consortia s Upstream field development Pipelines Brownfield remediation Re-entry NOC and IOC s Redevelopment activity Gas trains New refineries & upgrades Undeveloped northern area KOC, KNPC, KJO Production enhancement Gas developments NOC consortia s and mining Upstream production, Asset support Brownfield engineering Water projects NOC, IOC, mining and E&I* Production increases Onshore upstream Infrastructure Mining NOC and Mining Upstream development Refinery development & upgrade Nuclear NOC and IOC PSA clients Opportunities differ by country *Environment & Infrastructure 9

10 AMEC s position Target customers by country Libya Kuwait Qatar Saudi Arabia UAE Iraq AMEC s position 30 years in Libya focus on re-entry and develop incountry engineering Strongest position In-country engineering gand PMC In JV with Blackcat focus on asset support including brownfield engineering, AMEC E&I has existing infrastructure projects Technical services to O&G market; consulting services and engineering studies for mining PMC and FEED services for O&G; consulting services for nuclear Engineering and environmental services to Oil & Gas market. One- AMEC approach: E&I and S2V NOCs ZOC; WAHA; KOC: PMC & major Qatar Petroleum Saudi Aramco, ADMA-OPCO:, SOC, NOC and Harouge; Agoco upstream projects 2013 Al-Khafji Joint operations KNPC: eng and PM services Sabic, Ma daan Adgas, Zadco, Adco others IOCs Shell; Chevron; NOC dominated market ExxonMobil:, Total, NOC consortia BP Sharjah, Conoco Kogas Total, BP; Oxy, Maersk, Shell, dominated market Phillips Verenex:, Repsol, Qatargas BP Wintershall Shell Examples Provision of technical services, FEED engineering, detailed design and consultancy services FEED and detailed design for gas and oil field developments Distributed engineering in AMEC London Old Street for complex FDP Contracts for offshore brownfield modifications OSBV crucial markets for Shell and Dolphin access platforms New market entry for feasibility engineering and PMC services PMC for various customers, engineering scope increasing One-AMEC approach for asset support projects (S2V, Pi, qedi ) Commissioning and completion support within southern Iraq FDP planning and engineering for new field development Expanding beyond strong position in core markets 10

11 AMEC s strategy for growth MENA Middle East is key to Vision 2015 Grow organically and via focused acquisition Key areas: Iraq, Libya, Qatar, Kuwait, Saudi Arabia, UAE Multi sector approach Full suite of integrated services Focus on project management services and engineering Specialist engineering i PMC services Lump sum engineering g Value services across multiple sectors 11

12 Project examples MENA Project Management Consultancy Oil & Gas KOC, Kuwait Project Acting as an integral part of the KOC capital project organisation in managing portfolio of major projects across KOC oil production facilities in Kuwait AMEC skills and services Consultancy services in project management, FEED, contract and construction management Portfolio of managed contracts includes 12 capital projects (total value $6 billion) Greenfield GC24 project (value $750 million) North Kuwait, completed 6 months ahead of schedule 85 million managed contractor man hours without a LTI* achieved by innovative and rigorous HSE management and supervision Project team were winners of Chief Operating Officer s annual safety award Consulting services Oil & Gas KOC, Kuwait Project Project management and engineering services for the oilfield rehabilitation project, early phases AMEC skills and services Environmental impact assessments, field development reviews and archaeological reviews Example of AMEC sector growth, E&I also working in Qatar, major ongoing 2012 pursuits in Kuwait, Qatar, Libya with environmental, oil & gas and water sectors Strong base * Lost time incident 12

13 Project examples MENA Project Management Consultancy (PMC) Oil & Gas 5-Year PMC Oil & Gas ADMA-OPCO* UAE ZADCO Project Project Management Consultant for EPC execution stage of the Nasr Phase 1 and Umm Lulu Phase 1 projects to manage EPC contractor & EPC activities until start up commissioning of both the projects. 2 greenfield sites located offshore which will be developed in two phases. Phase 1 will produce a total 44,000 to 50,000 bpd of oil. Nasr - minimum facilities, Umm Lulu will have 2 new wellhead towers, infield pipelines, export pipeline, water injection facilities and modifications to existing facilities for tie-ins. AMEC skills and services Project control, HSE, design engineering, procurement, construction and installation management, commissioning & start-up EPC contract is valued at US$ 500 million (approx) 2012 major growth Project Largest oil-related PMC contract ever awarded by ZADCO Development of the east and west areas of the field Programme to increase offshore capacity from 500k to 750k bbl/day Replacement of 60km subsea oil pipeline Expansion of onshore/offshore gas treatment facilities AMEC skills and services Engineering, consultancy, project management services Concept stage through FEED, design, construction management and commissioning on the multi-billion dollar Upper Zakum full field development programme. (Note: FEED complete EPC underway, completion planned 2016) Upper Zakum is the most significant of ZADCO s fields, the field covers 1,200 square kilometers of the Arabian Gulf, and is part of the Zakum field the fourth largest field in the world Project includes reclamation of 4 islands in shallow water to provide drilling pads and production facilities * Abu Dhabi Marine Operating Company 13

14 Project examples MENA AMEC Blackcat JV Iraq Qatar Field Development Planning Project Various Project AMEC are designing the surface facilities for a field in Iraq AMEC Blackcat skills and services FEED, brownfield engineering for both onshore and offshore customers to enhance production and integrity management, project executed using 100% in country engineering i resources. AMEC skills and services Engineering and consultancy services Concept stage through FEED stage where we shall pursue this opportunity through 2012 AMEC E&I has supported for environmental scope Multi-sector growth prospects 14

15 AMEC plc Deutsche Bank investor trip to Middle East Q&A

16 Appendix Biographies Alan McLean AMEC Executive VP Middle East, Africa, CIS Alan has been with AMEC for over 18 years after spending his initial career in the mining and consultancy sectors. He is currently responsible for AMEC s business in the Middle East, Africa and the Commonwealth of Independent States. Whilst working for AMEC, Alan has had a variety of senior roles in Aberdeen, Baku, London and now the Middle East, leading elements of AMEC s business covering Capital Projects and Asset Support. Most recently, Alan was Operations Director in London, where a number of projects for the Middle East, Africa and CIS were executed during his tenure. Simon Lyons MBA AMEC Business Development Director Simon s recent roles include the General Manager and Director for an AMEC joint venture business within China and Country Manager for AMEC in Libya, North Africa and Qatar in the Middle East. Responsibility at present is around building on the successful existing business, seeking new opportunities for growth and developing these in a sustainable manner locally. Since joining AMEC Simon has gained extensive local and international experience within Capital Projects and Asset Support projects within the Oil and Gas, Petrochemical, Chemical, and Industrial industries. With over 20 years experience of working with most IOC s and NOC s in regions he has vast experience in delivering customer and internal business objectives, operationally, commercially and to HSEQ minimum conditions of satisfaction. 16

17 Appendix AMEC MENA history KNPC- 5 th Gas Train Study & FEED at Mina Al Ahmadi Refinery (Kuwait) MAPEL inspection Oilfield rehabilitation Berri e Ehane Plant KNPC, General services (Libya) (Kuwait) EPC Engg Services (Saudi Arabia) (Kuwait) 1970s Black Cat JV (Qatar) AMEC Intl Ltd. Nasr-1 & UL-1 PMC for EPC (UAE) 2011 KWSA Engineering Services (Saudi Arabia) Haradh GOSP - PMS (Saudi Arabia) KOC Southern oilfields PMC (Kuwait) ZADCO- UZ750K Major Projects Programme Management Contract (UAE) Harouge. FEED Engineering Services (Libya) ADCO Energy Efficiency Improvement All Fields (UAE) Wafra Joint Operations (Saudi Chevron & Kuwait Gulf Oil Co.) FEED- Central Gas Utilisation Project (Kuwait) 17

18 Appendix AMEC - key facts FTSE 100 company Market cap c. 3.7 billion Sector classification Oil equipment and services Revenue c. 3.3 billion Employees over 27,000 Locations over 40 countries Net cash c. 520 million Customers include Focused on delivering high-value services in core markets 18

19 Appendix AMEC - a balanced portfolio Growth markets Oil & Gas Minerals & Metals Clean Energy Environment & Infrastructure Sectors Revenue by sectors FY 2011 Government services: 6% Industrial/Commercial: 4% Transport/Infrastructure: 3% Water/Municipal: 3% Renewables / Bioprocess: 8% Transmission & Distribution: 4% Power: 6% Nuclear*: 8% Minerals & Metals: 15% Oil & Gas: 30% Unconventional Oil & Gas: 13% High-value services Consulting Engineering Project and construction management Supply chain management Geographic spread Revenue by geography FY 2011 UK Canada US ROW Business model Expanding footprint to 2015 Services across asset life Asset light Cost-plus / reimbursable contracting style Capex/Opex mix Current locations Investment focus Positioned to deliver excellence to our customers * Does not include the equity accounted Sellafield decommissioning contract 19

20 Appendix Delivering Vision 2015 target ahead of schedule EPS>100p before 2015 Context Strategy Priorities Market environment Vision 2015 Delivery and growth Growing demand for energy and resources Increased complexity Environment and sustainability imperative Customers People Growth Integrated services Delivery excellence Growth Focus on delivery and growth 20

21 Appendix Health and safety - group level (KPIs) We track a number of metrics to help us understand our progress towards Vision 2015, including: Lost time incident frequency rate Per 200,000 exposure hours Total recordable case frequency rate Per 200,000 exposure hours 21