A niche service provider to the offshore oil and gas industry. Swiber Holdings Limited Corporate Presentation

Transcription

1 A niche service provider to the offshore oil and gas industry Swiber Holdings Limited Corporate Presentation by Raymond Goh, CEO 21 April 2007

2 A niche service provider to the offshore oil and gas industry Corporate Profile

3 Key developments since listing 8 Nov 2006 Trading debut - Stock opened at S$0.550, closed at S$0.505, a premium of 42% above S$0.355 a share issue price 24 Nov 2006 Purchased 4 vessels for US$28.1m (1 cargo barge + 3 AHT) 25 Jan 2007 Secured US$14m 3-yr charter contract with BG Exploration, commences May Nov 2006 Announced record revenue and earnings for 3QFY06 and nine months ended 30 Sept Dec 2006 Secured US$13.9m 3-yr charter contract with BG Exploration, commences April Feb 2007 Secured single largest EPCIC contract with Shell Brunei worth US$147m 16 Nov 2006 Secured contracts worth US$9.36m Signed LOI worth US$5.75m with BG Exploration of India 11 Dec 2006 Entered into JV in India 26 Feb 2007 Reported a doubling of FY06 earnings to record US$12.2m on record sales of US$66.8m

4 Business overview Swiber is a niche service provider to the offshore oil and gas industry, with a complementary business in offshore marine support Engineering, Procurement, Construction, Installation & Commissioning (EPCIC) contractor In-house marine support capabilities EPCIC solutions closely integrated with supply of support vessels

5 The offshore world of Swiber Stages of an offshore O&G project Exploration Field Development Production Swiber s scope of Services Exploration drilling Installation of production platform Installation of offshore pipeline Installation of Mooring system for FSO & FPSOs Production support activities Swiber s vessels Jackup drilling barge Towing tugs Accomodation barge Support barges Crew boats Pipelay barge Crane barge Anchor handling tugs Supply boats Towing tugs Crew boats Support barge Utility vessels Accomodation barge FSO FPSO Platform supply vessel Crew boats Utility vessels

6 Installation of components Exploration Development Launching and installation of jackets at offshore production sites Production Post-production

7 Installation of components Exploration Deck installation at offshore production sites Development Production Post-production

8 Engineering design & installation of offshore pipelines Exploration Laying of offshore pipelines Development Production Post-production Conventional Pipelay using a Pipelay barge Pipelay using Rentis Method

9 Installation of mooring systems Exploration Mooring of FSOs & FPSOs on the seabed Development Production Post-production SPM Buoy Single point mooring Turret mooring system Spread mooring system

10 Existing fleet of 13 offshore support vessels Exploration Development Production Post-production 6 tug boats (AHTS, towing tugs, utility tugs) 7 barges (flat-top barges and a launch barge)

11 A niche service provider to the offshore oil and gas industry Competitive Strengths

12 Competitive strengths at a glance 1. Offshore engineering capabilities & diverse range of EPCIC services Project planning and execution from commencement to completion Ability to retain existing and attract new customers Expanded capabilities translate to better ability to support customers in the O&G industry 5. Experienced management team 2. Niche focus Builds expertise Tailoring marketing mix to specialised market Familiar with project movements & customers requirements / decisions Higher rates for securing projects Less vulnerable to margin squeeze 4. Complementary duo-model business set-up One-stop solution for offshore projects Reduces risks of potential disruptions Manage costs more efficiently 3. Geographically diversified operations Allocate resources to specific geographical areas in accordance with the weather conditions

13 Management Team Name Name Name Raymond Goh Executive Chairman & CEO 14 yrs experience Jean Pers Senior Executive VP Engineering 30 yrs experience Nitish Gupta Executive VP Offshore Construction 12 yrs experience Don Wood VP Business Development 42 yrs experience Peter J. Worrall GM & Associate VP Offshore Construction 36 yrs experience Richard J.Pursell Associate VP HSE 20 yrs experience Francis Wong CFO & Executive VP Corp. Services 19 yrs experience Captain Hendrik Eddy Purnomo VP Indonesian Operations 18 yrs experience Captain O.M. Bugge Marine Advisor 35 yrs experience Darren Yeo Executive VP Offshore Marine Support 10 yrs experience Philippe Supper VP Onshore Fabrication & Construction 24 yrs experience Chia Fook Eng Advisor the Board 40 yrs experience

14 A niche service provider to the offshore oil and gas industry FY06 Financial Performance

15 Four Year Group Performance Revenue Net Profit & Margins US m CAGR: 62.8% 66.8 US m CAGR: 128.2% Net profit margin 5.7% 25.8% 33.5% 18.2%

16 Order Book & Latest Contracts/LOI secured in 2007 Order book reflects continued strong growth momentum Total in US$ m Outstanding order book as at 31 Dec Contract and LOI secured in 1QFY TOTAL US$186.5 m Note: Management accounts and indication

17 A niche service provider to the offshore oil and gas industry Review of the Industry - Outlook and Opportunities Future Plans and Strategies

18 Opportunities in the offshore world Growth in O&G sector Continued strong growth in the offshore O&G sector from 2006 to All markets will retain ever higher levels of operating expenditure. Rapid technology advances Opportunities in offshore gas drive new explorations Increased focus on new cost-cutting technology and other commercial innovations. Challenge for technology developers is to convert new products into proven hardware. Skills shortage and experience shortage of people pose the greatest challenge to oil companies and their contractors. Offshore gas has considerable opportunities related to the advent of new gas production and conversion technologies LNG projects and the beginnings of a GTL industry kick-starting development of stranded fields, and encouraging new exploration in gas-prone areas. Higher O&G prices are here to stay The era of relatively low-cost O&G energy sources has ended. In this new resources-limited world and oil price collapse could only be driven by a world-scale economic and/or political crisis that interrupts demand growth Source: The World of Oil & Gas Production & Spend Forecast by Douglas-Westwood Limited 2006

19 Main growth drivers Expand resources Expand existing spread of vessels to include vessels commonly required for offshore EPCIC operations Market development Focus and expand on Asia Pacific markets and Middle East markets New designs & technologies Construction of Jackup Drilling Barge and development of 4,000 MT Sheerleg barge suitable for offshore operations

20 Capex commitment for 15 vessels Delivery 2007 No. Vessel Name Vessel Type 1 Swiber 254 Flat Top Barge 2 Swiber 282 Flat Top Barge 3 Swiber 123 Flat Top Barge 4 Swiber 331 Cargo Barge 5 AMH 2801 Cargo Barge 6 Swiber Jackup N1 Jackup Barge 7 Swiber Falcon Towing Tug Swiber Hawk Swiber Champion Swiber Navigator Towing Tug AHTS AHTS Total CAPEX: US$77.9 million (@ 31 Dec 06) 11 Swiber Explorer AHTS 12 Swiber Venturer AHTS 13 Swiber Voyager AHTS 14 Swiber Challenger AHTS 15 Swiber Conquest# Pipelay Barge # A launch barge built in 2005 which is being converted into a pipelay barge

21 Dalihao Crane Barge 2,500 Mtons To be delivered in 2007

22 Next wave of asset expansion plan Proposed Capex & 2009 Unit Type 1 unit Pipelay barge 1 unit 4,000 MT Sheerleg suitable for offshore lifting 1 unit 300-man accommodation barge 4 units 5,150 BHP AHTS Illustration: Pipelay barge 4,000 mton Sheerleg Barge suitable for offshore operations Considering sale and lease-back transactions to fund the next wave of asset expansion plan

23 Focus and expand on Asia Pacific markets and Middle East markets China Bangladesh Myanmar Middle East Thailand Vietnam Brunei Indonesia India Malaysia Singapore Australia Markets where Swiber has offices / presence Markets we are targeting

24 Rapid growth in new markets India US$33.75 m worth of new contracts with BG Exploration Secured US$5.75 m charter contract in Nov 06 Secured US$14.0 m 3-year charter contract in Dec 06 Secured US$14.0 m 3-year charter contract in Jan 07 Entered into a JV in Dec 06 to offer marine support services Swiwar: US$3.6 m investment for a 50-50% interest Brunei US$146m EPCIC Contract With Shell Single largest EPCIC contract to-date Maiden project in Brunei market First ever deal with Shell

25 New Designs and Technologies Jackup drilling barge 4,000 mton Sheerleg Barge suitable for offshore operations

26 Investment merits Sound operating model Offshore EPCIC services and complementary business in offshore marine support Established market position Strong financials Good industry prospects Proven track record & experience in EPCIC projects Experienced management team Pool of qualified engineers and support team Consistent profitability and growth Healthy profit margins Strong order book Increased levels of offshore oil & gas exploration, development and production activities in Asia Clear growth strategy Expand EPCIC capabilities Expand markets

27 A niche service provider to the offshore oil and gas industry Thank You