Keppel Offshore & Marine Pareto Oil & Offshore Conference 2010 1 2 September 2010 Tong Chong Heong Chief Executive Officer About Keppel Group Keppel Corporation Offshore & Marine Rig building, offshore conversion, shiprepair and specialised shipbuilding Infrastructure Environmental engineering Power generation Logistics and data centres Property Property developer Manager of property funds Market capitalisation of S$15bn * * as at end July 2010 1
About Keppel Offshore & Marine Keppel Offshore & Marine Keppel FELS Keppel Shipyard Keppel Singmarine Overseas Operations Offshore Shiprepair & Conversions Specialised Shipbuilding Jackups FPSOs Offshore support Semisubmersibles FPUs FSRUs Drillship enhancements vessels Harbour tugs FSOs Ice Class vessels Specialised workboats Keppel AmFELS Keppel FELS Brasil/ BrasFELS Caspian Shipyard Keppel Norway Keppel Philippines Marine Arab Heavy Industries Keppel Verolme Keppel Kazakhstan Keppel Nantong Vision, Mission & Core Values Vision To be the provider of choice and partner for solutions in the global offshore and marine industry Mission We will develop and execute our business profitably, with Safety and Innovation, guided by our three key business thrusts of Sustaining Growth, Empowering Lives and Nurturing Communities Core Values 2
Partner for Solutions Execution Excellence Proven track record Commitment to Technology Development New products and new solutions Near Market, Near Customer Global network of 20 yards Solutions Provider of Choice Meeting Customers Needs Forging partnerships and long term relationships with customers Financial Highlights S$m 1H 2010 1H 2009 FY 2009 Revenue 2,923 4,377 8,273 EBITDA 583 548 1,129 Operating Profit 523 487 1,004 Profit Before Tax 575 523 1,081 Net Profit 447 394 810 Secured S$1.9bn new orders to date Orderbook of S$5bn with deliveries into 2013 3
Market Outlook Near term outlook remains uncertain as global recovery momentum impacted Gulf of Mexico moratorium puts new rig orders on hold Global energy demand continues to grow driven by emerging economies Oil prices expected to stabilise at between US$70 to US$90/barrel for rest of 2010 Over next few years, strong growth expected in both shallow and deepwater drilling and production Fortifying Fundamentals 4
Strengthening Execution Excellence Deliveries in 2009 14 rigs 6 major conversions 14 specialised vessels 17 rig/vessel repair and upgrades Completed in 1H 2010 5 rigs 1 accommodation semi 4 semis upgrade / repair 4 FPSO conversions /upgrades 8 specialised vessels Rest of 2010 8 rigs 1 semi repair 3 drillship outfitting and upgrade 2 FPSO conversions 11 specialised vessels 2011 2013: 30 additional deliveries Towards Safety Excellence Opened $6 million integrated safety training centre in Singapore gp Key element of Safety Excellence 2015 initiative Aims to fortify safety culture Safety partnerships with customers including ExxonMobil, Shell, Prosafe, Statoil and Maersk 5
Enhancing Productivity Productivity Improvement Taskforce Maximise financial incentives from Government Optimise use of foreign labour Proactive knowledge sharing Technology Development Strategy 6
Technology Development Structure Keppel O&M s Technology Focus Keppel Offshore & Marine Technology Centre (KOMtech) Offshore Technology Development (OTD) Deepwater Technology Group (DTG) Marine Technology Development (MTD) Offshore& marine competencies R&D in new technologies and processes Jackuprigs Semis Offshore and their critical Other floating support vessels components structures Tugboats Sustaining Growth 7
Reinforcing Near Market Near Customer Brazil Acquisition of shipyard in Santa Catarina Expanding capacity of Angra yard Caspian Region JV for stake in new shipbuilding and shiprepair yard in Baku Complements existing Caspian Shipyard Middle East Nakilat KOM yard operational end 2010 Largest shiprepair facility in Qatar for LNG carriers and other vessels Gulf of Mexico Brownsville yard well positioned for repair/upgrade works to meet stricter safety regulations Positive Outlook in Brazil (left) BrasFELS Yard in Angra dos Reis, Rio de Janeiro; (right) FPU P 51 Petrobras is investing US$119bn in E&P from 2010 to 2014 US$78bn on new offshore production infrastructure US$12bn on maintaining and upgrading existing production assets With our yard and track record in Brazil, we are able to meet the future needs of Petrobras 8
Leveraging Competitive Edge BrasFELS Yard Actively pursuing orders in Asia Pacific, Caspian Region and North Europe Growth opportunities lie in deepwater, harsh environments and arctic regions Our suite of proprietary solutions are designed meet the needs of these frontiers Keppel s proprietary icebreakers (top) and DSS TM Series semisubmersible (bottom) Seeking Growth in Offshore Wind Keppel FELS multi purpose self elevating platform (KFELS MPSEP) Newly commercialised KFELS MPSEP is equippedto install andmaintain wind turbines and their components Supports a wide range of offshore oil & gas activities, including accommodation, well intervention, construction and decommissioning services in the North Sea Designed by Keppel Offshore Technology Development (OTD) KFELS MPSEP design (top and bottom) 75/25 JV company formed between KFELS and Seafox to build and own the vessel 9
Seeking Growth in Offshore Wind Cont d Engineered to operate in the North Sea, year round round at water depths of up to 65 metres Safe handling in turbulent weather, providing a wider installation window A highly versatile and cost effective solution to the offshore industry KFELS MPSEP design (top and bottom) Innovative Drillship Designs DrillDeep DS12000 One of the first compact drillship designs in the market Topsides fully integrated within the hull Cost effective, more energy efficient and easier to maintain Technical Specifications Length Max. drilling depth Max. water depth Transit speed Equipped with DP3 198 m 40,000 ft 12,000 ft 14 knots Suitable for ultra deep realms of Brazil, Gulf of Mexico and West Africa Jointly designed by Keppel s Deepwater Technology Group (DTG) and SBMGustoMSC 10
Innovative Drillship Designs Slim Drillship Design Economically and effectively perform subsea well maintenance, intervention and light drilling operations Slim high pressure riser allows intervention tool access into wells containing hydrocarbons, eliminating need to fill well with drilling mud Riser also enables drillship to bore through sections of old wells which have been depleted and cannot be accessed by traditional drillships Design is jointly developed by KOMtech, Keppel FELS and Stena Drilling Technical Specifications Length Max. drilling and well intervention work depth Max. water depth Equipped with DP2 145 m 22,500 ft 7,500 ft Well positioned to meet the Well positioned to meet the increasingly sophisticated demands of the energy industry 11
Pareto Oil & Offshore Conference 2010 Thank You Q & As 12