bjc heavy industries pcl · bjchi snapshot (end of 9m2019) 4 101 i. who we are 45,000 0.29...

BJC Heavy Industries PCL

Opportunity Day

3Q2019

www.bjc1994.com 2

Disclaimer:

This presentation herein should be used for investor information only. It should not

be used as an offer or invitation to purchase or sell BJCHI shares.

Additionally, this presentation contains forward-looking statements and assumptions

that are subject to risks and uncertainties. Investors or readers using this material

need to be prudent when they make investment decisions.

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Contents

I. Who we areII. Industry Outlook

III. Project Update

IV. 3Q2019 Operating ResultV. Potential Projects

VI. Q&A

BJCHI Snapshot (End of 9M2019)

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101

I. Who we are

45,000

0.29

Experience over Area

Cash on Hand

Steel Structure Capability

25

892

Gross Profit Margin

17.6

0.21

Debt to Equity

3,500

Backlog

5

Ongoing Projects

Million Baht

Tons a yearYears National Soccer Fields

Baht per share

%

Average Dividend

times

Million Baht Projects

Since SET Listing

for 9M2019

Including additional work in Oct 19

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Steel Fabrication Modularization Site Erection Pre-cast concrete

Products & Services

I. Who we are

Steel Structures, Piping

Spools, Heaters &

Reformers, Tanks and

Pressure Vessels

Modules for FPSOs,

Mining, LNG and Other

Industrial Plant

Projects

Site Erection

Projects in Mining

and Power

industries

Core Loc Breakwater, Port

Construction Mat’l, Railway

Sleepers, Pre-stressed

Concrete

Project Reference (FPSO Project)

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M01 : C02 Compression M04 : Exportation Gas

M07 : Gas InjectionM06 : Main Gas and VRU Completed FPSOs

I. Who we are

BJCHI Footprint

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Successfully delivered major projects for well-known, established clients across 6 continents

I. Who we are

BJCHI Dividend

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I. Who we are

Operating Period Type of Dividend Dividend per Shares (Baht) Dividend Yield

2018 Cash Dividend 0.100 5.2%

2017 No Dividend Payment N/A




2014 Stock Dividend (4:1) 0.063 0.84%


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New Facilities

I. Who we are

Main Manufacturing Site (Head Office) is located nearby

the port for modularization works.

New Fabrication Shop New Grating Shop

New manufacturing shops are being built to serve the increased project activities

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Strategic Locations

I. Who we are

Main Manufacturing Site (Head Office) is located nearby

the port for modularization works.

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ContentsI. Who we are

II. Industry OutlookIII. Project Update

IV. 3Q2019 Operating ResultV. Potential Projects

VI. Q&A

• Trade Tension between US and China is creating more project opportunities for BJCHI because

most US project developers are seeking Fabricators in SEA.

• To stimulate domestic economy, Thai government aims to continue its Mega Infrastructure

Projects where also provide more business opportunities for BJCHI.

• Previous clients are also looking for long-term business relationship with BJCHI which can

help them not only reduce unnecessary costs but also provide exceptional quality of work.

• Even the economic slowdown, 2020 global oil consumption is expected to reach 102 mbd, rising

2% from that in 2019. Some Oil and gas companies also continue to increase their investment

budget in 2020. ExxonMobil increases capex by 10-17% from 30 billion USD in 2019 to 33-35

billion USD in 2020.

• Major mining companies like Rio Tinto have recently announced 2020 capax, increasing from

5.5 billion USD to 7 billion USD, 27% increase due to its bright prospect for mining sector in

the mid and long term.

II. Market EnvironmentIndustry Outlook

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II. Industry Outlook

III.Project UpdateIV. 3Q2019 Operating ResultV. Potential Projects

VI. Q&A

III. Project Update

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No. Project Industry Location Work Scope Status

1 Crisp Oil & Gas Singapore / Onshore Downstream SMP Plant Modules Ongoing

2 Santos Gas Australia / Onshore Upstream Wellhead Separator Ongoing

3 UPGN Oil & Gas Brazil / Onshore Downstream SMP Plant Modules Ongoing

4 PTTLNG Gas Thailand / Onshore LNG Tank Ongoing

5 Linde Gas US / Onshore Downstream SMP Plant Modules Ongoing

III. Project Update

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Santos Project

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Mechanical Assembly

Electrical Installation

Wellhead Separator (Lean Skid) Wellhead Separator (2Pipe Skid)

Vessel Fabrication Structure Skid base

III. Project Update

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UPGN Project

Pre-Assembly steel structure

Photo Photo Photo

Photo Photo Photo

Assembly Structure at Yard

Pipe Spool PaintingPFP for structure

Vessel Painting Transport Skid to Yard

III. Project Update

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PTTLNG Project

Client Inspection before cuttingMaterial received at BJC Beam bending inspection

Roof sectors assembly

(Reference Project)Roof sectors assembly

(Reference Project)Roof sectors assembly

(Reference Project)

III. Project Update

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Linde Project

Pre-Assembly structurePre-Assembly structure

Structure ErectionStructure Welding

Shape steel mark cut and bevel

Structure Erection

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III. Project Update

IV.3Q2019 Operating ResultV. Potential Projects

VI. Q&A

IV. 3Q2019 Operating Result

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Key Financial Figures

▪ In 3Q2019, Contracted Revenue decreased by 47% in line with the reduction in COGs. Gross Profit Margin

decreased to 13.5% due to the concluding phases of existing projects and the ramping up phases of new projects.

▪ New projects are expected to ramp-up activities since 4Q2019 onwards.

Description (mil.bt) 3Q19 2Q19 Change %

Total Revenue 422 786 -46%

Contracted Revenue 411 773 -47%

Other Income 11 13 -11%

Other - FX Gain/Loss -13 -79 84%

COGS 355 621 -43%

SG&A 46 73 -36%

Earnings Before Taxes 7 12 -41%

Net Income 6 12 -49%

GPM 13.5% 19.7%

NPM 1.5% 1.6%


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Contracted Revenue Breakdown

The decrease in Contracted Revenue is due to the transition period after Ophir Project has been completed in 2Q2019.

At the moment, the Company has been entered into preparation work for new awarded projects which are significantly

expected to start recognizing revenue since 4Q2019 onwards.

3Q2019 Contracted Revenue Breakdown

21 14

229

536

206

12 31

4

2468

87

110

2

33

106

116

459

10830

29

21

24

0

100

200

300

400

500

600

700

800

900

3Q18 4Q18 1Q19 2Q19 3Q19

UPGN Panama Ophir Santos PTTLNG Linde Other

mil.bt

UPGN 50%

Linde 14%

Santos 28%

Other 7%

165 143

382

773

411


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Backlog as of 3Q2019

3,154 mil.bt Backlog as of 3Q2019

Remaining Backlog is mainly in oil and gas project from both local and international projects

30.42 USD/THB as of 30 September 2019

Upstream2%

Downstream98%

Local6%

Oversea94%


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Financial Status

BJCHI still maintained its solid financial positions and this trend will continue in the future.

mil.bt

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III. Project Update


V. Potential Projects VI. Q&A

V. Potential Projects

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Various mega projects seek for appropriate contractors

While increasing demand from customers has been triggering the potential business opportunities.

Total USD 390 m

No Industries Workscope EXP. PeriodProject Value

(M.USD)

1 Mining Structural Steel & Platework 2020 22

2 Mining

Structural Steel, Platework,

Mechanical Items, Piping & Cable

ladder support

2020 13

4 Port & Marine Work Supply 300Ton of Hot Dip

Galvanized Trashrack Panels 2020 1

5 Oil & Gas Shop Fabrication & Modularization 2021-2026 300

6 Port & Marine Work Civil Construction & Marine Work 2020-2022 54

V. Potential Projects

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30.42 USD/THB as of 30 September 2019

Our well-experienced-and-diversified footprint are supportive

Projects are across in local and international markets among various industries to reduce project risk

By Locations By Industries

Total USD 390m (THB 12,000 m)

Local91%

Oversea9%

Mining9%

Oil & Gas77%

Port & Marine Work14%

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Opportunities in Map Ta Phut Industrial

Port Development Project Phase 3

▪ Map Ta Phut Industrial Port

Development Phase 3 has

been included in EEC

development project list.

▪ IEAT, the responsible

agency, aims to develop the

project as the strategic

location in storing

petrochemical and LNG

which are imported from

oversea to stabilize national

energy.

▪ The project worth is

approximately 55.5 billion

Bahts (1.8 billion USD).

▪ Land reclamation is

scheduled to commence in

2020.

V. Potential ProjectsStrategic Project

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▪ The project owner has planned

to executed its strategic gas

supplying project.

▪ This area is expected to supply

2/3 of gas production in

Thailand.

▪ The total project is valued at 1

trillion Bahts (32 billion USD)

▪ Long-term project with the

working period is approximately

5 years.

▪ Several wellhead platforms

would be installed in this area.

Opportunities

in Gas development Project

V. Potential ProjectsStrategic Project

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BJC HEAVY INDUSTRIES PUBLIC COMPANY LIMITED

Address : 594 Moo 4, Makhamkoo Sub-district, Nikompattana District ,

Rayong, Thailand

Telephone : +66-(0)-3889-3709 - 10

Fax : +66-(0)-3889-3711

Website : www.bjc1994.com

E-mail : [email protected]

NEW FORCE IN HEAVY INDUSTRIES

To be a world- class integrated engineering, procurement,

fabrication and modularization service provider

bjc heavy industries pcl · bjchi snapshot (end of 9m2019) 4 101 i. who we are 45,000 0.29...

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