affin investment conference - mhb · 2 3 147 213 107 168 112 335 548 655 732 3 1,012 mar09 12mth...
TRANSCRIPT
“Transformation for Success” 8th April 2014
AFFIN INVESTMENT CONFERENCE
Disclaimer 2
This Presentation is not intended to form the basis of any investment decision with respect
to Malaysia Marine and Heavy Engineering Holdings Berhad (MHB). Neither this
presentation nor anything contained herein shall form the basis of, or be relied upon in
connection with, any contract or commitment whatsoever. No representation or warranty,
express or implied, is or will be made by MHB in relation to, and no responsibility or liability
is or will be accepted by MHB as to the accuracy and completeness of, the Information
made available, and any liability therefore is expressly disclaimed.
This Presentation may contain “forward-looking statements”. Forward-looking statements
by their nature involve known and unknown risks, uncertainties and other factors that are in
many cases beyond MHB’s control. Although MHB believes that the expectations of its
management as reflected by such forward-looking statements are reasonable based on
information currently available to it, no assurances can be given that such expectations will
prove to have been correct. Accordingly, you are cautioned not to place undue reliance on
such forward-looking statements. In any event, these statements speak only as of their
dates, and MHB undertakes no obligation to update or revise any of them, whether as a
result of new information, future events or otherwise.
This Presentation and its contents are strictly confidential and must not be copied,
reproduced, distributed, summarized, disclosed referred or passed on to others at any time
without the prior written consent of MHB. Except for the yard facilities in the photographs,
none of the vessels/structures belong to MHB.
Affin Investment Conference – April 2014
Topic
1 Overview
2 Track Record
3 Financials
4 Moving Forward
5 Q&A
3
Affin Investment Conference – April 2014
Macro Perspective
Supportive Domestic Environment
External environment
• Stagnated oil price
• Unconventional-frontier projects cost
• Development time frame
• IOCs easing back on capex programme
Domestic environment
• 2013
• PETRONAS production growth +5.8%
• 10 exploration discoveries, RRR 1.3x
• +2% to 22.6bn boe petroleum resources
• Coming up
• 24 IOR/EOR projects
• 5-year umbrella contract for design and
engineering services to 4 local contractors
• Re-alignment of organisational structure
4
37.1 34.9 30.8
41.2 45.0
56.6
FY10 FY11 PE2011 2011 2012 2013
Petronas Total Capex RM billion
Affin Investment Conference – April 2014
-20%
-13%
-5% -5% -2%
6% Selected IOCs 2014 Capex % Change
Among Malaysian Yards
Preeminent Fabricator
Infrastructure and facilities
• Largest yard capacity of 130k MT
• Heaviest loadout facility at 55k MT
• Biggest C&A Workshop
• Largest drydock at 450,000 dwt
• Complete conversion capabilities
5
MMHE East Yard MMHE West Yard
Affin Investment Conference – April 2014
Enhanced Yard Facilities Further
Yard Optimisation
MMHE West Yard
• 55,000MT bulkhead and quaywall
• Fabrication of dock gate No.1
• Auto-blast and primer workshop
MMHE East Yard
• 25,000MT bulkhead & east wharf extension
6
1
2
3
147 213
107 77 168
112
335
548 655
732
900 1,012
Mar0912mth
Mar1012mth
Mar1112mth
Dec119mth
Dec1212mth
Dec1312mth
YO Capital Expenditure RM million
3,000
1,000
500
YO Capex
Cumulative YO Capex
1 2
3
Affin Investment Conference – April 2014
7
Topic
1 Overview
2 Track Record
3 Financials
4 Moving Forward
5 Q&A
Affin Investment Conference – April 2014
Business Unit-Centric Organization Structure
Overall Track Record
Offshore BU
• Full EPCIC workscope
• Completed 160 projects
• 56 topsides and 49 substructures
• 11 FPSO/FSO/FSU conversions
• 17 turret projects
Marine Repair BU
• Repaired more than 3,700 vessels
• Focus on energy vessels
• Extending to LNG/rig repair/refurbishment
• Complements Offshore BU
• Majority 3rd party vessels
8
Drydocking, Repair, Refurbishment And Upgrading Of 3rd Party LNG Vessel Telok-B Topside For Telok Gas Development
Affin Investment Conference – April 2014
Completed Projects
Supporting Frontier Developments 9
Deepwater
• Kikeh Dry Tree Unit Truss SPAR, 2006
• 1st SPAR installed outside GoM
• Gumusut-Kakap FPS, 2013
• Largest, fully built, integrated on land
• Tension Leg Platform (TLP) Malikai
Gumusut-Kakap FPS
High-pressure, high-temperature (HPHT)
• Kinabalu NAG Topside
• 1st gas production topside for HPHT field
• Fabrication completed 2012
• Manage HUC in 2013
Kinabalu NAG Topside
Affin Investment Conference – April 2014
Projects Near/Recent Completion
For Brown Field Developments
Enhanced Oil Recovery (EOR) Project
• Tapis EOR
• 1st full-field domestic EOR
• Tapis-Q topside and jacket completed
• Tapis-R deck completed
• More EOR projects in the pipeline
Additional field development
• FPSO Cendor
• MMHE’s 11th FPSO/FSO conversions
• Completed, sailed away
• Operational performance for future project
deliveries
10
Affin Investment Conference – April 2014
Sail Away Of FPSO Cendor Tapis-R Deck For Tapis EOR Project On The Installation Vessel
Projects Near/Recent Completion
For Green Field Developments
Topside
• Kebabangan Northern Hub Development
• 18,000 MT single integrated platform
• Fabricated at MMHE East Yard
• Near completion. Preparing for loadout
Complete offshore structure
• F14/F29 project
• 3 structures
• Topside, substructure, process module
• Damar project. Topside and jacket
11
F14/F29 Process Module Deck For The Kebabangan Northern Hub Development Project
Affin Investment Conference – April 2014
12
Topic
1 Overview
2 Track Record
3 Financials
4 Moving Forward
5 Q&A
Affin Investment Conference – April 2014
Financial Updates
Income Statement And Balance Sheet 13
Balance Sheet RM m Dec 2013 Dec 2012
Non-Current Assets
Inventories
1,901.6
12.6
1,800.9
11.6
Receivables
Cash
2,193.9
623.2
2,114.4
890.3
Others 1.9 0.1
Total Assets 4,733.2 4,817.3
Shareholders’ Funds 2,583.9 2,506.1
Payables
Others
1,841.2
308.1
2,281.7
29.5
Total 4,733.2 4,817.3
NTA Per Share RM1.58 RM1.53
Note: Because of rounding, numbers may not tally with the total
Income Statement RM m 2013 2012
Revenue
Offshore
Marine
2,884.5
2,599.9
284.6
3,329.8
2,981.3
348.5
Operating Profit
Offshore
Marine
196.3
104.9
70.4
242.8
153.7
80.8
Share Of Profit/(Loss)
Of JCE
1.3
(25.1)
Profit Before Taxation 197.6 217.7
Taxation
MI
39.6
0.7
25.5
1.2
Net Profit 236.5 242.0
EPS Per Share 14.8 sen 15.1 sen
Affin Investment Conference – April 2014
Financial Updates
Order Intake & Backlog 14
FPSO Cendor KBB
Tapis Kinabalu
MBU Others
SK316
TLP Malikai
Backlog RM million
Dec 2013
RM2,556.4m
Order Intake RM million
5,827
3,727
2,180 2,937
1,772 2,556
1,430
1,270
919
Mar09 Mar10 Mar11 Dec11 Dec12 Dec13
Backlog RM million
SK316 reflects MHB’s 50% share
2,004
2,934
1,701
2,559
Mar09 Mar10 Mar11 Dec11 Dec12 Dec13
238 191
Turkmenistan Block 1 Phase 1
Backlog (Above) / Order Intake (Below)
Affin Investment Conference – April 2014
Foreign Investors 2.01%
Other Malaysian Shareholders
9.54%
EPF 3.02%
PNB & PNB Unit Trust
Funds 4.31%
Lembaga Tabung Haji
6.12%
Technip SA 8.50%
Foreign Investors 2.06%
Other Malaysian Shareholders
9.13%
EPF 3.33%
PNB & PNB Unit Trust
Funds 4.35%
Lembaga Tabung Haji
6.13%
Technip SA 8.50%
Corporate Updates
Shareholding Information 15
As At
Mar 2014
1-Year Share Price RM
As At
Dec 2013
Affin Investment Conference – April 2014
16
Topic
1 Overview
2 Track Record
3 Financials
4 Moving Forward
5 Q&A
Affin Investment Conference – April 2014
Leveraging On Technip’s Partnership
TLP Malikai Deepwater Project
Scope of work
• Detailed engineering for hull by Technip
MHB Hull Engineering. Fabrication and
commissioning by MHB with Technip’s input
• Malikai Topside and TLP Hull
• Total weight 26,400 MT
17
TLP Malikai Topside In Fabrication Phase At MMHE West Yard PDMS Image Of TLP Malikai
Affin Investment Conference – April 2014
Leveraging On Technip’s Partnership
SK316
Scope of work
• FEED followed with Early Detailed
Engineering Work (EDEW) and EPCIC
• CPP, WHP, interconnecting bridge between
CPP and WHP, and 2 Jackets
• Total weight 33,100 MT
18
SK316 Topside Fabrication At MMHE East Yard PDMS Image Of SK316
Affin Investment Conference – April 2014
Leveraging On Technip’s Partnership
Milestone EPCIC Contract
Evolving, challenging landscape
• Lump sum, faster project delivery
• Full EPC work scope
SK316 model
• Open competitive bidding.
• Combining/complementing JV partners’
experience, expertise and assets
19
Transformation
Partnership
Expansion
Growth
A B
C D
Current
epC
Future
EPCC
FEED
rollover
50:50 JV Project Management
CPP
WHP
Bridge Link
& Jackets
Detailed
Engineering
Procurement
Subcontracting
T&I
HUC
Install
Pipe-
line Fabrication
Construction
& Onshore
Pre-Commissioning
Technip (FEED Competition Stage)
Technip-MMHE JV
Technip
MMHE
Affin Investment Conference – April 2014
“Transformation for Success”
MALAYSIA MARINE AND HEAVY ENGINEERING HOLDINGS BERHAD
Level 31, Menara Dayabumi, Jalan Sultan Hishamuddin
50050, Kuala Lumpur, Malaysia
Investor Relations Contacts
Telephone: +60 (3) 2275 3876
Wan Mashitah Bte Wan Abdullah Sani
Chief Financial Officer
Chang Kong Meng
Website: http://www.mhb.com.my/
http://www.mmhe.com.my/
Thank You Terima Kasih