pareto’s oil and offshore conference · via “presentation information” in the “kvaerner”...

© Kvaerner 2016

Edit date:

Via “Presentation Information” in the “Kvaerner” menu

or

via Slide Master “View”/”Master”/”Slide Master”

14.09.2016

Pareto’s oil and offshore conference Jan Arve Haugan, President & CEO

© Kvaerner 2016

Edit date:


or


14.09.2016

Well positioned for future market opportunities

2

1) Leading contractor within proven track record

2) Competitive position strengthened a) Delivering projects predictably: Safely, on time, with right

quality b) Improved cost position

3) Solid financial platform

4) Near term market opportunities in selected regions

© Kvaerner 2016

Edit date:


or


14.09.2016

175th anniversary: 1841 - 2016

Leading contractor with proven track record:

3

CONCRETE SOLUTIONS TOPSIDES ONSHORE JACKETS

2 700 employees in 8 countries

Revenues of NOK 12 billion (2015)

Order backlog of NOK 10.2 billion (as of 30 June 2016)

Global leader in

gravity based

concrete

structures

Substructures

CONDEEPTM

GBS

Floating concepts

LNG terminals

European leader

in steel jackets

Steel jackets

Other steel

structures

Piping

technology

Leading EPC

contractor to the

Norwegian Shelf

Topsides

Floating platforms

Hook up

Completion

Leading

Norwegian EPC

contractor for

offshore plants

Upstream plants

Treatment

facilities

© Kvaerner 2016

Edit date:


or


14.09.2016

Our competitive edge:

HSSE - Expertise - Execution model - Predictability

4

MARTIN LINGE

P Procurement

E Engineering

C Construction

FEED Hook-up

&

completion

Photo: Lundin Norway

PREDICTABLE DELIVERY

ENGINEERS AND PROJECT

MANAGERS WITH

EXTENSIVE EXPERIENCE

SECIALISED FACILITIES

AND IN-HOUSE YARDS

GOOD HSSE – OUR

LICENCE TO OPERATE

© Kvaerner 2016

Edit date:


or


14.09.2016

Delivering as committed:

All projects on track for predictable delivery

5

Njord A: Frame agreement for for upgrading of

the semi-submersible platform

Hebron: Detailed engineering, procurement,

construction and installation (EPCI) of GBS

Marine installation

Johan Sverdrup: EPC for the utility and living

quarters topside

Nyhamna: EPCM onshore contract with options for

Maintenance and Modifications to 2022.

Johan Sverdrup: EPC contracts for the Riser,

Drilling and Process platform steel jackets

Aasta Hansteen: A sub-contract to provide

services for inshore and offshore hook-up and

commissioning assistance for the topsides

© Kvaerner 2016

Edit date:


or


14.09.2016

Solid financial platform

Activity level estimated at around NOK 10 billion for 2016

Improved project portfolio

EBITDA margin increase in 2016 vs. 2015

Re

ve

nu

es

&

EB

ITD

A

Net cash of NOK 2.5 billion

Robust capital structure with NOK 2.0 billion in undrawn facilities

Working capital of negative NOK 1.47 billion

Ba

lan

ce

sh

ee

t U

se

of

fu

nd

s

2016: Capex of NOK 200 million incl. 3 new cranes

Annual maintenance capex of NOK 30-50 million

Strategic development

6

Note: All figures as reported in 2nd quarter 2016.

© Kvaerner 2016

Edit date:


or


14.09.2016

Documented improvements of competitiveness:

Further improvements may trigger more new projects

7

New operating model

Reductions to capacity and administration

Refined and leaner organisation

Most Norwegian operations in one unit

15% improved cost base by Q1 2015

Joint industry

improvement initiatives

Dialogue re-new step

changes with selected clients

More effective execution model

Reducing internal costs by

NOK 250 million (2015-2016)

© Kvaerner 2016

Edit date:


or


14.09.2016

Market: Focus on selected geographic regions

8

Near term market

Studies and FEEDs ongoing

Some few but important prospects of moderate size: Completion, hook-up and commissioning, decommissioning, modifications

Greenfield / brownfield EPC for offshore platforms and onshore facilities

© Kvaerner 2016

Edit date:


or


14.09.2016 9

Based on core competence, solid financial platform and credibility in the market

Strategic development

Leading EPC & HUC contractor

Subsea on a stick

Platform mod.

Decommissioning Arctic driller

Arctic LNG solutions




© Kvaerner 2016

Edit date:


or


14.09.2016

Well positioned for future market opportunities

10

Safe and predictable execution

Competitive position strengthened

Solid financial platform

Pursuing specific prospects

Interesting strategic opportunities

HSSE – core value and

licence to operate

Maintain and develop home

markets

Develop global delivery model

for Norway and abroad

Hands-on management

© Kvaerner 2016

Edit date:


or


14.09.2016

Copyright

Copyright of all published material including photographs, drawings and images in this document remains vested in Kvaerner and third party contributors as appropriate.

Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor used in any manner without express prior permission and applicable

acknowledgements. No trademark, copyright or other notice shall be altered or removed from any reproduction.

Disclaimer

This Presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to

differ. These statements and this Presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the

regions and industries that are major markets for Kværner ASA and Kværner ASA’s (including subsidiaries and affiliates) lines of business. These expectations, estimates and

projections are generally identifiable by statements containing words such as “expects”, “believes”, “estimates” or similar expressions. Important factors that could cause actual

results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets

for Kvaerner’s businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange

rates and such other factors as may be discussed from time to time in the Presentation. Although Kværner ASA believes that its expectations and the Presentation are based

upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Presentation. Kværner ASA is

making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither Kværner ASA nor any of its directors,

officers or employees will have any liability to you or any other persons resulting from your use.

Copyright and disclaimer

Copyright

Copyright of all published material including photographs, drawings and images in this document remains vested in Kvaerner and third party contributors as appropriate.

Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor used in any manner without express prior permission and applicable

acknowledgements. No trademark, copyright or other notice shall be altered or removed from any reproduction.

Disclaimer

This Presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to

differ. These statements and this Presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the

regions and industries that are major markets for Kværner ASA and Kværner ASA’s (including subsidiaries and affiliates) lines of business. These expectations, estimates and

projections are generally identifiable by statements containing words such as “expects”, “believes”, “estimates” or similar expressions. Important factors that could cause actual

results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets

for Kvaerner’s businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange

rates and such other factors as may be discussed from time to time in the Presentation. Although Kværner ASA believes that its expectations and the Presentation are based

upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Presentation. Kværner ASA is

making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither Kværner ASA nor any of its directors,

officers or employees will have any liability to you or any other persons resulting from your use.

Copyright and disclaimer

12

pareto’s oil and offshore conference · via “presentation information” in the “kvaerner”...

Documents