Subsea South-East Networking Event 22 September 2016 Bleeding Heart Restaurant
OVERVIEW 2
ABOUT US World-class provider of the technologies and services that connect the global energy market Through specialist engineering teams, experienced project management and innovative designs, JDR provides optimally configured products, enabling the transmission of power and control across the seabed Subsea control & power umbilicals MV/HV power cables IWOC Systems Engineered equipment Product and installation services Engineering services 3
EXECUTIVE MANAGEMENT TEAM DAVID CURRIE IVAN COYARD RICHARD TURNER JAMES YOUNG Chief Executive Officer Chief Financial Officer Chief Operating Officer Chief Technology Officer Joined as CEO in 2015 +30 years of global energy experience Previously held senior positions in Aker Solutions and FMC Joined as CFO 2015 +25 years of energy finance experience Previously with Reef Subsea, Acergy & Technip Joined JDR in 2014 Previously with Technip/DUCO and construction equipment companies Komatsu and Terex Joined in 2000 as senior design engineer and appointed CTO in 2016 Previously with BICC and Dowty 4
OUR MARKETS Renewables Inter-array and export MV/HV power cables for offshore wind, wave and tidal energy projects. Increasing technology overlap Oil & gas Global offshore subsea intervention, production and control/processing installations. Interconnectors Subsea power transmission cables to connect international and local electric grid networks. Product and Installation Services Offshore product services for the renewable and oil & gas markets. We support customers from project installation through commissioning and life of asset. 5
PRODUCTS AND SERVICES 6
KEY PRODUCTS: OIL & GAS IWOCS Subsea Production Umbilicals Steel Tubing Umbilicals Subsea Power Cables Up to 15,000 psi and 3000m WD Low methanol permeation & reduced cost hose range Qualified steel tube / thermoplastic hybrid Supported by renewable products 200+ field proven Low cross-talk Corrosion resistance 75+ qualified umbilical designs Low-attenuation communication cables Super duplex tubing Armouring, sheathing & termination options Umbilical & reeler system Field proven armouring & sheathing Patented self-supporting umbilicals 20+ ISO qualified designs Large pay-off capacity Large-bore centre tube option available Long-length multi-core ESP cables Subsea power units, hubs and boxes 7
KEY PRODUCTS: RENEWABLES Inter-array Cables Export Cables Best in class water-blocking 36 & 72 kv wet-design coilable cables approved by CIGRE & IEC 36 & 72 kv factory flexible joints compliant to Statoil TR3127 UNDER DEVELOPMENT 8
PRODUCT AND INSTALLATION SERVICES Services & Support Supports customers from project installation through commissioning and the life of an asset: Global network of qualified technicians 24/7 service support team Services available on JDR and non-jdr products Global network of service & refurbishment facilities 9
FACILITIES 10
GLOBAL OPERATIONS Over 500 employees around the globe. We stand ready, 24/7, to innovate and assist your subsea projects
INTERNATIONAL FACILITIES Strategically located manufacturing, service and R&D facilities LITTLEPORT, UK IWOC Centre of Excellence HARTLEPOOL, UK Long length, large diameter subsea cables & umbilicals CAMBRIDGE, UK R&D, Design, Engineering Analysis & Automation HOUSTON, TX Product and installation services and IWOC assembly/services MACAÉ, BRAZIL Product and installation services and IWOC assembly/services SINGAPORE Product and installation services and IWOC assembly/services 12
HARTLEPOOL: MANUFACTURING FACILITY Manufacturing established in 2009 Specialist engineering design and project management teams Latest in subsea umbilical and cable production technology 12 meter deep-water quayside with heavy lift capability Direct access to the North Sea shipping lanes 13
HARTLEPOOL: CENTRE OF EXCELLENCE IN CABLE MANUFACTURING VLM Customer Rep Offices Production / HSE Production Meeting Rooms HLM Customer Reception JDR Office Facility JDR Training Centre 14
LITTLEPORT MANUFACTURING FACILITY Centre of excellence for hose and cable manufacturing Bespoke equipment for IWOCS umbilical production: Vertical Helical Lay-up Horizontal Helical Lay-up SZ Lay-up Armouring Sheathing up to 180mm Ø 120 Tonne Load-out 15
MARKET 16
OFFSHORE WIND: RAPIDLY GLOBALISING MARKET Gaining Traction Established Market Significant Opportunities US Growing opportunities across the eastern seaboard UK Largest offshore wind market Germany Established industry China Significant government targets set 17
OFFSHORE WIND IS SHOWING MAJOR GROWTH Renewable energy is growing in importance as operators and utilities look to diversify their energy portfolio out-with traditional oil & gas, and governments strive to deliver alternative clean energy solutions. Offshore wind in particular is emerging as the leading solution worldwide, with 2015 being a record breaking year for the industry as new capacity additions totalled 4.1 gigawatts (GW), bringing the total installed capacity to 12.94GW worldwide. - The global market is currently led by Europe which added 3GW of new offshore wind capacity in 2015; reaching a cumulative installed capacity of over 11GW. - By the end of 2015, China had an installed capacity of over 1GW, making it the largest market in Asia and 4th largest globally. Chinese activity is expected to pick up considerably from 2016 onwards, with forecasts estimating an installed capacity of over 10GW by 2020. Increased offshore wind activity is expected globally, with the US expected to deliver its first commercial project by the end of 2016. Support For Offshore Wind Emissions Policy & Subsidy Displacement Of Aging Thermal Generation No Pollutant Legacy Increased Power Output (Over Land Based Units) 15 10 5 0 12.1 4.1 Global Offshore Wind Installation Forecast 2015-2020 (GW) 13.9 1.8 18.5 4.6 2015 2016 2017 2018 2019 2020 United Kingdom Netherlands Germany France Denmark China Other Cumulative Capacity 24.1 5.6 30.6 6.5 40.8 10.2 Source: Bloomberg New Energy Finance, 4C Offshore 18
INSTALLED CAPACITY The total installed capacity as at August 2016 stands at 13.53GW worldwide, with a further 4.32GW of wind power capacity under construction. Whilst Denmark, Belgium and the Netherlands hold a significant market share, China, Germany and the United Kingdom are considered the market leaders due to their large project pipelines, supported by government commitments and legislation. Strong support from the German government has ensured a steady stream of projects have reached the construction phase, but the UK has been the global market leader since 2009. Global Installed Capacity By Country Netherlands 7% China 9% Denmark 9% Belgium 5% Germany 29% Other 3% United Kingdom 38% Location Installed Capacity (MW) United Kingdom 5,128 Germany 3,867 Denmark 1,271 China 1,187 Netherlands 920 Belgium 712 Sweden 202 Vietnam 99 Japan 80 Finland 32 Ireland 25 South Korea 5 Norway 2 Source: 4C Offshore Wind Report 19
LEADING GLOBAL CUSTOMER BASE Renewables / Utilities Oil & Gas Operators Service Companies & Contractors 20
UNIQUE MARKET POSITION Major oil & gas companies are driving new investment in offshore wind. Oil & Gas Renewables 21
UKEF SUPPORT 22
HOW UKEF HAS BEEN SUPPORTING JDR - BONDING A large majority of our revenues are achieved on the export market; Most Oil & Gas and Renewable clients ask for : - Advance Payment Bonds - Performance Bonds - Warranty Bonds UKEF has been a key partner over the past years in underwriting some of the Bonding risks; The Commercial bank remains in front of client but risk is mitigated; JDR growth would not have been as steep without the UKEF Support. 23
HOW UKEF HAS BEEN SUPPORTING JDR CLIENT FUNDING While European wind farm developers would usually not require financing, offering an export financing can make a difference for the O&G market; Support for 2 years+ finance terms through the Buyer Credit/Direct Lending Facilities offered by UKEF can make a difference on our tenders: - We are paid as though we have a cash contract - The buyer or borrower has time to pay over a number of years and can borrow at fixed or floating rates - Either a lending bank receives a guarantee from UKEF for full repayment of the loan to the borrower plus interest or in some circumstances UKEF can provide the loan itself Advantage for our client but also for JDR credit risk. 24
SUMMARY 25
SUMMARY UKEF is a key partner to secure export contracts: Good reactivity; Strong network; Main focus is the support for bonds to our clients; Financing becoming key to our clients; Allows SME to diversify funding help banks with smaller balance sheet. 26
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