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Aker Investor Presentation 2010
3526_rns_2010-05-07_ce204fb5-657f-41fe-b2f8-563a0210d634.pdf
Investor Presentation
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The preferred partner
AKER
Aker
Status and Outlook
Q1 2010
Øyvind Eriksen, President & CEO
Trond Brandsrud, CFO
Geir Sjøberg, CEO Aker Drilling
Oslo, 7 May 2010
Aker ASA
Agenda
- Status and outlook
- Øyvind Eriksen, President and CEO
- Financials 1Q10
- Trond Brandsrud, CFO
- Aker Drilling
- Geir Sjøberg, CEO
1
Active industrial ownership
Made by Norway
1Q2010 Status and outlook | 2
© Aker ASA | May 2010
2
Highlights
Reduced risk and solid foundation for greater value creation
- Strategic
- Aker strengthens ownership role
-
Focus on long-term strategic development
-
Industrial holdings
- Improvements in all companies
- Aker Drilling: Stable and well-managed operations
-
Refinancing of Aker BioMarine and Aker Drilling
-
Financial key figures
- NOK 20.4 bn net asset value (before dividends)
- 83 percent equity ratio (book 81 percent)
- NOK 2.7 bn gross interest-bearing debts
- NOK 6.9 bn net interest bearing receivables
- NOK 2.7 bn cash and cash equivalents
Net Asset Value¹ (NOK bn)
□ Net asset value (NAV) before dividend
Gross Asset Value¹ (NOK bn)
□ Other Treasury Share investments
Treasury (NOK bn)
□ Interest-free recob. Cash, cash equiv. Short-term recob. Long-term recob.
Debt (NOK bn)
□ Interest-free debt Internal debt External debt
¹ Market price at end of period for listed investments
102510 | Status and outlook | 4
© Aker ASA | May 2010
Active industrial ownership
Made by Norway
3
This is Aker
This is Aker
Distribution of assets¹
(values at 31.03.10)
¹ Value adjusted for Aker ASA and holding companies
31.03.10
31.12.09
10.8 bn (46%)
10 bn (42%)
23.6 bn
22.9 bn
Active industrial ownership
Made by Norway
¹ Data from Osto Stock Exchange
² Managed by Converto Cap Mgmt
³ Managed by Aker Asset Management
¹22510 | Status and outlook | 5
© Aker ASA | May 2010
4
Overview of Aker assets
Industrial holdings
- Aker Solutions: Best quarterly EBITDA
- EBITDA margin of 9.5 percent
- Order backlog NOK 55.7 billion
- Aker Drilling rigs in operation
- High revenue utilisation since commencement
- Det norske oljeselskap
- Hydrocarbons found in 3 of 5 wells in 1Q
- Aker BioMarine: Positive development
- Contributed positive EBITDA in the krill segment for the first time
- Continued growth for Superba™ Krill
- Aker Clean Carbon
- Positioned for full-scale facility in the UK
Active industrial ownership
Made by Norway
1/22/210 | Status and outlook | 7
© Aker ASA | May 2010
Overview of Aker assets
Financial holdings
- Converto Capital Fund
- Value of assets NOK 1.2 billion
- Plans for restructuring of Aker Seafoods being prepared
- Another good quarter for Aker Floating Production with excellent uptime for the Dhirubhai-1 FPSO
- AAM Absolute Return Fund
- First quarter returns of 1.66 percent in NOK tranche, 1.45 percent in USD tranche
Active industrial ownership
Made by Norway
1/22/210 | Status and outlook | 6
© Aker ASA | May 2010
5
Overview of Aker assets Treasury
- Strong liquidity position
-
NOK 2.7 bn in cash
-
NOK 6.9 bn receivables from Aker companies
- NOK 174 million loan increase to Aker Drilling
- Bond holdings decreased by NOK 0.5 billion
Active industrial ownership Made by Norway
1/22010 | Status and outlook | 9 © Aker ASA | May 2010
The preferred partner
Aker Industrial holdings
6
Industrial holdings
Aker Solutions
Global engineering & construction services, technology products and integrated solutions
% of gross asset values (31.03.10)
Market situation & competition
- Good long-term prospects in the deep water and harsh environment markets
- Aker Solutions positioned as a reputable and capable company in the relevant markets
- Strong focus on operations and strategic development of business areas
Aker's agenda
- Contribute to strategy development for business activities
- Identify and develop structural opportunities (M&A)
- Identify opportunities for operational improvements
- Simplify structure – increase transparency
| Key figures * | 1Q09 | 1Q10 | 2009 |
|---|---|---|---|
| Revenues | 14 975 | 11 556 | 54 077 |
| EBITDA | 1 124 | 1 278 | 4 368 |
| Backlog | 52 322 | 55 705 | 56 276 |
*in NOK million
1222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222
*in NOK million
1102010 | Status and outlook | 11
© Aker ASA | May 2010
Industrial holdings
Aker Drilling
Owns and operates two highly sophisticated drilling rigs for deepwater and harsh environment operations
% of gross asset values (31.03.10)
Market situation & competition
- Oil companies resume rig contracting activities
- Harsh environment market expected to strengthen
- Aker Drilling well positioned
Aker's agenda
- Stable operations for both rigs
- Aker Spitsbergen upgrade 2Q
- Evaluate strategic alternatives
| Key figures* | 1Q09 | 1Q10 | 2009 |
|---|---|---|---|
| Revenues | - | 384 | 764 |
| EBITDA | -112 | 111 | -115 |
*in NOK million
1102010 | Status and outlook | 12
© Aker ASA | May 2010
Aker's industrial ownership
Made by Norway
7
Industrial holdings
Det norske
Second largest oil company on Norwegian continental shelf in terms of exploration acreage and drilling
Equity
NOK bn 1.3
% of gross asset values (31.03.10)
Market situation & competition
- Activity levels on NCS picking up – several new development projects and transactions announced during last quarter
- Barents Sea border agreement represents an important step for further exploration activity in the far north
- Investors appetite for small scale E&P seems to be higher
Aker's agenda
- Focus on production growth
- Reach correct investment decision for the Frøy development
- Maintain high level of exploration activity
1Q 2010 figures to be published on 12 May
Industrial holdings
Aker BioMarine
Integrated biotech company – uniquely positioned for krill harvesting and processing
NOK bn 0.4
Receivables 1.0
% of gross asset values (31.03.10)
Market situation & competition
- Increased demand for Omega-3 supplements, krill demand growing rapidly
- Superba™ Krill has further potential in indication specific applications
Aker's agenda
- Efficient operations and organic growth
- Important value drivers:
- Increased sales to customers with own brands
- Distribution through all sales channels
- New geographic markets (USA, EU, Asia)
| Key figures* | 1Q09 | 1Q10 | |
|---|---|---|---|
| 1Q10 | 2009 | ||
| Revenues | 20 | 52 | 145 |
| EBITDA | -48 | -11 | -147 |
*in NOK million
1Q2010 | Status and outlook | 14
6-Mar ASA | May 2010
Active industrial ownership Made by Norway
8
Industrial holdings
Aker Clean Carbon
Global provider of cost-effective CO2 capture technology and solutions
Equity
NOK bn 0.1
% of gross asset values (31.03.10)
Market situation & competition
- Demo and pilot projects main market
- Increased public funding
- EU/Europe in the lead on development
- Driver: assessment of future cost of CO2 emissions
- Increased focus on carbon capture
Aker's agenda
- Norway: Complete TCM according to contract
- Internationally:
- Develop an execution model in alliance with local partners
- Win Feed contracts
Active industrial ownership Made by Norway
1Q2010 | Status and outlook | 15 © Aker ASA | May 2010
The preferred partner
Aker Financials 1Q2010
9
Aker ASA and holding companies
Balance sheet
| (in NOK million) | 31.12 | 31.03 |
|---|---|---|
| 2009 | 2010 | |
| Tangible and non-tangible fixed asset | 905 | 884 |
| Long-term interest bearing items | 7 051 | 6 304 |
| Long-term financial assets | 9 426 | 8 903 |
| Other current assets | 209 | 335 |
| Short-term interest bearing items | 104 | 623 |
| Cash and cash equivalents | 2 694 | 2 692 |
| Total assets | 20 389 | 19 741 |
| Shareholder's equity | 16 377 | 15 926 |
| Non-interest bearing liabilities | 1 113 | 1 109 |
| Interest bearing liabilities (internal) | 373 | 375 |
| Interest bearing liabilities (external) | 2 526 | 2 331 |
| Equity and liabilities | 20 389 | 19 741 |
| Net interest bearing debt(-)/receivables(+) | 6 950 | 6 913 |
| Equity ratio | 80 % | 81 % |
Active industrial ownership
Made by Norway
1/22015 | Status and outlook | 17
© Aker ASA | May 2010
Aker ASA and holding companies
Interest-bearing items
Interest bearing debt
| NOK mill | Maturity | |
|---|---|---|
| Bond AKER 02 | 410 | 2012 |
| Bond AKER 04 | 500 | 2012 |
| Sea Launch (guarantee) | 487 | 2010 |
| Bank debt | 850 | 2014 |
| Other | 84 | |
| Total external | 2 331 | |
| Internal debt | 375 | |
| Total | 2 706 |
Interest bearing assets
| NOK mill | |
|---|---|
| Short-term int-bear. | 623 |
| Cash + cash equiv. | 2 692 |
| Interest-bearing fixed assets | 6 304 |
| Total | 9 619 |
| Net int-bearing items | 6 913 |
| --- | --- |
Active industrial ownership
Made by Norway
1/22015 | Status and outlook | 18
© Aker ASA | May 2010
10
Aker ASA and holding companies
Profit and loss statements
| (in NOK million) | 1Q | Year | 1Q |
|---|---|---|---|
| 2009 | 2009 | 2010 | |
| Sales gains | - | 391 | - |
| Operating expenses | (59) | (229) | (49) |
| EBITDA | (59) | 162 | (49) |
| Depreciation | (4) | (17) | (4) |
| Exceptional op. items | - | (447) | - |
| Value change | (347) | 103 | (587) |
| Sea Launch guarantee liab. | - | (776) | - |
| Net other financial items | (38) | (35) | 233 |
| Profit before tax | (448) | (1 010) | (407) |
Active industrial ownership
Made by Norway
1Q2010 | Status and outlook | 19
© Aker ASA | May 2010
Aker Drilling
- Both rigs in operation on long term contracts
- HSE results very good
- Uptime more than 90%, no major incidents
- New bond of 1.5 bill. NOK in place
- Market outlook for harsh environment/Norway positive
Active industrial ownership
Made by Norway
1Q2010 | Status and outlook | 20
© Aker ASA | May 2010
11
Experienced and skilled organization
- Fully manned, 423 employees, of which 28 onshore as per 31.03.2010
- Low employee turnover in 2009 (2.7 %), well within the target and below industry average
- Aker Drilling remains an attractive employer with its two state-of-the-art drilling rigs and two long term contracts on the Norwegian continental shelf
- Management team with experience from leading international drilling companies
- Well qualified and experienced crews:
AKD Employees per May 2010
Breakdown by former employers
Active industrial ownership
Made by Norway
1/2/2015 | Status and outlook | 21
© Aker ASA | May 2010
Aker Spitsbergen & Aker Barents
The world's most advanced drilling units
- The versatile H-6e is designed to drill and complete wells in water depths ranging from 100 to 3000 m and in harsh environment
- Enhancement of the Aker H-4.2 semi submersible hull
- Configured for dynamic positioning to 3000 m WD and mooring up to 500m WD
- Drilling depth: 10,000 m
- Variable Drilling Load: 7,000 mt in all three conditions; transit, operating and survival
- Diesel Generators: 8 x 5 300 kW, 720 rpm, Rolls Royce
- Thrusters: 8 x 800 kN bollard pull, variable speed, fixed pitch, Rolls Royce
- Living Quarters: 140 single bed cabins, extendable to 160, Lervik Module Technology
- Helicopter Deck: Sikorsky S92 and S-61N, Superpuma AS332L2, EC225 and EH-101.
- Deck cranes: 2 ea, max capacity: 85mt at 17m max reach 51m, Kenz Figee
| Topside of Hull weight | Deck size | Displacement |
|---|---|---|
| 15,000 | ||
| 17,000 | 30 | |
| X | ||
| 70m | 64,500L Operating Draft 33 m | |
| 59,600L Survival Draft 18m | ||
| 44,500L Transit |
Active industrial ownership
Made by Norway
1/2/2015 | Status and outlook | 22
© Aker ASA | May 2010
12
Aker Spitsbergen & Aker Barents
Advantages of Aker H-6e
The past meets the future
Motion comparison
- Large payload and storage capacity
- Excellent and proven motion characteristics
- High drilling and completion efficiency
- Double RamRig™
- Vertical riser and casing racking
- Independent handling of BOP and X-mas trees
- Maximum parallel activities
- Large working space for safe and efficient operations
- Protected working and storage areas
- Ample bed capacity
- Low emissions to the environment
- Zero harmful discharge to sea
- Real time remote drilling systems diagnostic capabilities
- Prepared for full winterization
...and performance to date has met or exceeded our expectations
Active industrial ownership Made by Norway
1/22015 | Status and outlook | 23 © Aker ASA | May 2015
Aker Spitsbergen & Aker Barents
Rapidly improving performance with experience
- Well functioning and experienced crew supported by key resources from company and suppliers
- Significant improvement well by well
- Clear and measurable improvement from well #1 to #4 for Aker Barents, solid performance on Aker Spitsbergen
- Rig features and high specifications showing results:
- DP operations
- Dual operations
- Riserless Mud Return
- Stationkeeping / Motion Characteristics
- Living Quarters
- Winterisation
Active industrial ownership Made by Norway
1/22015 | Status and outlook | 24 © Aker ASA | May 2015
Aker Drilling Operations 2009-2010
Aker Barents
On
contr
26Jul
Start
operations
9 Aug
6 weeks
at quayside
for repairs
- Two deepwater wells for Shell
- Sub-let from Det norske
- Both wells in the 1500 water depth range
- Prospects "Gro" and "Dalsnuten" considered the most exciting wells in Norway 2010
Aker Spitsbergen
On contr
27 Aug
Start
operations
26 Jan
- 10 weeks at quayside for upgrading
- Planned upgrades to enhance completions capabilities
- additional deck space
- x-mas tree handling system
- Various other maintenance and modification work
- Will return to field to work for Statoil on Halten Nordland
Aker Spitsbergen & Aker Barents
Long term contracts with two leading NCS operators
Aker Barents
Contract period: 3 years firm to July 2012, plus 2x1 year options
Remaining value fixed term as of start 2010 approx. MUSD 550
Aker Spitsbergen
Contract period: Firm to July 2013, plus 5x2 year options - potentially until summer 2023
Remaining value fixed term as of start 2010 approx. MUSD 620
Aker Spitsbergen
Firm Contract
Options
Available
Active industrial ownership
Made by Norway
1Q2015 | Status and outlook | 26
© Aker ASA | May 2010
14
Aker Spitsbergen & Aker Barents
Strong market fundamentals
- The two H6e rigs are well placed in the market:
- Deepwater capabilities
- Winterised and can work in harsh environments
- Certification to operate in Norway
- Norway floater market strengthening, with recent long term contracts at comfortable rates
- Norway is a specialised market segment with high entry barriers
- Our current client relationships are long-term in nature and our two units are suited to the long-term drilling outlook in Norway
- Overall output
- Average
-
EBI TDA
-
Overall output
- Average
-
EBI TDA
-
Operational expenses of USD 200' per rig including all onshore costs
- Cash flow from operations exceeding USD 600' per day
- Significant net cash flow going forward
Active industrial ownership
Made by Norway
11/2015 | Status and outlook | 26
© Aker ASA | May 2015
15
Industrial Holdings
Treasury
Financial Holdings
Reduced risk and solid foundation for greater value creation
Active industrial ownership Made by Norway
1/22015 | Status and outlook | 20 © Alser ASA | May 2010
Q&A
Active industrial ownership Made by Norway
1/22015 | Status and outlook | 20 © Alser ASA | May 2010
16
Active industrial ownership
Made by Norway
1/22015 | Status and outlook | 31
© Aker ASA | May 2010
Aker group
IR Contacts
| Company (Ticker) | Name | Phone | |
|---|---|---|---|
| Aker (AKER) | Atle Kigen | ||
| Communication & IR | +47 24 13 00 08 | [email protected] | |
| Trond Brandsrud | |||
| CFO | +47 24 13 00 00 | [email protected] | |
| Aker Solutions (AKSO) | Lasse Torkildsen | ||
| SVP Investor relations | +47 67 51 30 39 | [email protected] | |
| Aker Seafoods (AKS) | Gunnar Aasbø | ||
| CFO | +47 24 13 01 81 | [email protected] | |
| Aker Philadelphia Shipyard (AKPS) | Jeffrey Theisen | ||
| CFO | +1 (215) 875-2678 | [email protected] | |
| Aker Floating Production (AKFP) | David Bandele | ||
| CFO | +47 22 94 73 91 | [email protected] | |
| Aker BioMarine (AKBM) | Fredrik Nygaard | ||
| CFO | +47 24 13 00 05 | [email protected] | |
| Det norske oljeselskap (DETNOR) | Knut Evensen | ||
| Head of IF | +47 95 07 76 22 | [email protected] |
Active industrial ownership
Made by Norway
1/22015 | Status and outlook | 32
© Aker ASA | May 2010
Disclaimer
-
This Document 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 Document 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 Aker ASA and Aker 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 Aker'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 Document. Although Aker ASA believes that its expectations and the Document 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 Document. Aker ASA is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Document, and neither Aker ASA nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use.
-
The Aker group consists of many legally independent entities, constituting their own separate identities. Aker is used as the common brand or trade mark for most of this entities. In this document we may sometimes use "Aker", "Group, "we" or "us" when we refer to Aker companies in general or where no useful purpose is served by identifying any particular Aker company.
A
Active industrial ownership Made by Norway
1/22013 | Status and outlook | 33 © Aker ASA | May 2013