![Page 1: Q2 2013 Highlights - Bumi Armada€¦ · 4 Revenue composition by geographical % Malaysia based international company Continued expansion across key regions 17.3% 47.1% 29.1% 6.5%](https://reader036.vdocuments.us/reader036/viewer/2022081402/5f0b2c087e708231d42f33f6/html5/thumbnails/1.jpg)
“Knots Ahead of the Rest”
Q2 2013 Highlights
20th August 2013
![Page 2: Q2 2013 Highlights - Bumi Armada€¦ · 4 Revenue composition by geographical % Malaysia based international company Continued expansion across key regions 17.3% 47.1% 29.1% 6.5%](https://reader036.vdocuments.us/reader036/viewer/2022081402/5f0b2c087e708231d42f33f6/html5/thumbnails/2.jpg)
Results Overview – YTD 2013 vs. YTD 2012 (in RM’mil)
2
Higher EBITDA in line with:
• Higher revenue from business
segments
• Share of profit from C7 FPSO contract
+34.8%
Operations on track and growth across all business segments
In line with EBITDA increase with benefit from:
• Lower finance costs as due to project debt
repayment
• Lower deferred tax estimates
+6.4%
+22.0%
*Attributable to Bumi Armada shareholders
YTD 2012 YTD 2013
Revenue
719.7
970.0
Higher revenue from:
• FPSO client VOs & candidate vessels
• New OSV vessels & increase in
utilisation
• T&I LukOil project, Hawk D1
installation and Saipem charter
468.2 498.3
YTD 2012 YTD 2013
EBITDA
181.6
221.6
YTD 2012 YTD 2013
Net Profit*
![Page 3: Q2 2013 Highlights - Bumi Armada€¦ · 4 Revenue composition by geographical % Malaysia based international company Continued expansion across key regions 17.3% 47.1% 29.1% 6.5%](https://reader036.vdocuments.us/reader036/viewer/2022081402/5f0b2c087e708231d42f33f6/html5/thumbnails/3.jpg)
33
Revenue composition by business units (in RM’mil)
Increase in the OSV fleet & higher
vessel utilisation Increase in FPSO client VOs, foreign exchange benefit
and revenue from FPSO candidate vessels.
(C7 recorded as part of share of profit of JCE)
Increase in revenue from LukOil project & Armada Hawk
on D1 installation and Saipem charter
+14.3%+24.4%
Improved performance in established sectors
+103.9%
-
100.0
200.0
300.0
400.0
500.0
YTD 2012 YTD 2013
FPSO
337.6386.0
-
50.0
100.0
150.0
200.0
250.0
300.0
350.0
YTD 2012 YTD 2013
T&I290.7
142.6
(Note: YTD 2012 revenue also include RM3.7m from OFS)
OFS remains an embryonic segment
235.8
293.3
150.0
200.0
250.0
300.0
350.0
YTD 2012 YTD 2013
OSV
![Page 4: Q2 2013 Highlights - Bumi Armada€¦ · 4 Revenue composition by geographical % Malaysia based international company Continued expansion across key regions 17.3% 47.1% 29.1% 6.5%](https://reader036.vdocuments.us/reader036/viewer/2022081402/5f0b2c087e708231d42f33f6/html5/thumbnails/4.jpg)
44
Revenue composition by geographical %
Malaysia based international company
Continued expansion across key regions
17.3%
47.1%
29.1%
6.5%
YTD 2012
14.1%
50.6%
30.9%
4.4%
YTD 2013
![Page 5: Q2 2013 Highlights - Bumi Armada€¦ · 4 Revenue composition by geographical % Malaysia based international company Continued expansion across key regions 17.3% 47.1% 29.1% 6.5%](https://reader036.vdocuments.us/reader036/viewer/2022081402/5f0b2c087e708231d42f33f6/html5/thumbnails/5.jpg)
55
Leverage and capitalization
Net Debt / EBITDA(1) Gearing ratio(2)
(1) Calculated based on annualised EBITDA
Financial capacity intact to undertake more projects
4.9x5.1x
4.8x
1.9x
2.3x2.4x 2.6x
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
2008 2009 2010 2011 2012 Q1 2013 Q2 2013
3.4x
4.0x3.9x
0.9x0.7x 0.7x 0.8x
0.0x
0.5x
1.0x
1.5x
2.0x
2.5x
3.0x
3.5x
4.0x
4.5x
2008 2009 2010 2011 2012 Q1 2013 Q2 2013
(2) Gearing = Gross Debt / Shareholders Equity
![Page 6: Q2 2013 Highlights - Bumi Armada€¦ · 4 Revenue composition by geographical % Malaysia based international company Continued expansion across key regions 17.3% 47.1% 29.1% 6.5%](https://reader036.vdocuments.us/reader036/viewer/2022081402/5f0b2c087e708231d42f33f6/html5/thumbnails/6.jpg)
As at 30 June 2013, the Group’s order book stood at RM7.5 billion compared to RM7.9 billion asat 31 March 2013. Upon expiration of the firm contract period, certain contracts contain extensionoptions which are renewable on annual basis with a total potential contract sum of RM4.3 billionover the entire option periods.
� The breakdown of order book with firm contract period by business segments (fleets) is as follows:
� The breakdown of order book with optional contract period by business segments (fleets) is as follows:
Firm contract period Optional extension period
Firm contract period order book: RM7.5bn* Optional extension period order book: RM4.3bn*
Quality firm backlog of RM7.5b
* Excludes Lukoil supplementary contract of
RM567.6m announced on 5 July 2013
FPSOs, RM5.2 bn,
70%
T&I, RM1.3 bn, 17%
OSVs, RM1.0 bn,
13%
FPSOs, RM3.3 bn,
77%
OSVs, RM1.0 bn,
23%
Order book as at 30 June 2013
![Page 7: Q2 2013 Highlights - Bumi Armada€¦ · 4 Revenue composition by geographical % Malaysia based international company Continued expansion across key regions 17.3% 47.1% 29.1% 6.5%](https://reader036.vdocuments.us/reader036/viewer/2022081402/5f0b2c087e708231d42f33f6/html5/thumbnails/7.jpg)
“Knots Ahead of the Rest”
Sector Outlook
![Page 8: Q2 2013 Highlights - Bumi Armada€¦ · 4 Revenue composition by geographical % Malaysia based international company Continued expansion across key regions 17.3% 47.1% 29.1% 6.5%](https://reader036.vdocuments.us/reader036/viewer/2022081402/5f0b2c087e708231d42f33f6/html5/thumbnails/8.jpg)
Emerging Trends in the FPSO Sector – NOC’s and Majors
Source: IHS Herolds; Rystad Energy; Bain
Majors face the same issues
Daily Oil & Gas Production for selected NOC’s and major’s from 2007-2011 (Kboe/d) and CAGR (%)
NOC’s struggle to increase production
2% -1%
-2% 1%3%
3% -6% -1%
0
2000
4000
6000
8000
10000
12000
Kb
oe/d
2007 2008 2009
2010 2011
2%-2%
-1%
0%0%
-3% -2%
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
Kb
oe/d
2007 2008
2009 2010
2011
![Page 9: Q2 2013 Highlights - Bumi Armada€¦ · 4 Revenue composition by geographical % Malaysia based international company Continued expansion across key regions 17.3% 47.1% 29.1% 6.5%](https://reader036.vdocuments.us/reader036/viewer/2022081402/5f0b2c087e708231d42f33f6/html5/thumbnails/9.jpg)
Emerging Trends in the FPSO Sector –Independent Oil Companies
• Small independents plan growth form a small base
• Peer average growth over 7%
• Independents on track to doublescale over 10 years
• Leading independents have growthabove 7%
Daily Oil & Gas Production for selected Independent’s from 2007-2011 (Kboe/d) and CAGR (%)
Source: IHS Herolds; Rystad Energy; Bain
6%1%
3%
0
100
200
300
400
500
600
700
800
Apache BG Group Anardarko
Kb
oe/d
2007 2008 2009 2010 2011
14%
1%
45%
0
20
40
60
80
100
120
140
160
180
Cairn Energy Tullow Oil Afren
Kb
oe/d
2007 2008 2009 2010 2011
![Page 10: Q2 2013 Highlights - Bumi Armada€¦ · 4 Revenue composition by geographical % Malaysia based international company Continued expansion across key regions 17.3% 47.1% 29.1% 6.5%](https://reader036.vdocuments.us/reader036/viewer/2022081402/5f0b2c087e708231d42f33f6/html5/thumbnails/10.jpg)
Emerging Trends
10
![Page 11: Q2 2013 Highlights - Bumi Armada€¦ · 4 Revenue composition by geographical % Malaysia based international company Continued expansion across key regions 17.3% 47.1% 29.1% 6.5%](https://reader036.vdocuments.us/reader036/viewer/2022081402/5f0b2c087e708231d42f33f6/html5/thumbnails/11.jpg)
The leading indicators
� Oil prices forecast to remain above USD100/barrel in throughout 2014.
� E&P hurdle rates remain stable at $55-60/barrel.
� World consumption set to remain strong on the back of a global recovery.
11
Source: IEA
![Page 12: Q2 2013 Highlights - Bumi Armada€¦ · 4 Revenue composition by geographical % Malaysia based international company Continued expansion across key regions 17.3% 47.1% 29.1% 6.5%](https://reader036.vdocuments.us/reader036/viewer/2022081402/5f0b2c087e708231d42f33f6/html5/thumbnails/12.jpg)
August 2014 NYMEX deliveries are firm
� Current NYMEX deliveries are trading in the USD94-96/barrel range.
12Source: Bloomberg
96.21
![Page 13: Q2 2013 Highlights - Bumi Armada€¦ · 4 Revenue composition by geographical % Malaysia based international company Continued expansion across key regions 17.3% 47.1% 29.1% 6.5%](https://reader036.vdocuments.us/reader036/viewer/2022081402/5f0b2c087e708231d42f33f6/html5/thumbnails/13.jpg)
Steel prices
� Remain low; conducive for our newbuilds and new projects.
13Source: Bloomberg
643/t
![Page 14: Q2 2013 Highlights - Bumi Armada€¦ · 4 Revenue composition by geographical % Malaysia based international company Continued expansion across key regions 17.3% 47.1% 29.1% 6.5%](https://reader036.vdocuments.us/reader036/viewer/2022081402/5f0b2c087e708231d42f33f6/html5/thumbnails/14.jpg)
Second8hand tanker prices
� Low tanker prices as weakness in the shipping sector persists.
14
Source: Fearnley Offshore
![Page 15: Q2 2013 Highlights - Bumi Armada€¦ · 4 Revenue composition by geographical % Malaysia based international company Continued expansion across key regions 17.3% 47.1% 29.1% 6.5%](https://reader036.vdocuments.us/reader036/viewer/2022081402/5f0b2c087e708231d42f33f6/html5/thumbnails/15.jpg)
E&P capex outlook to 2014
� A sample of Majors, NOCs and independents have budgeted 6% growth in E&P spending in 2013. Spending momentum expected to level off.
15Source: Pareto Sec, Oil Companies
![Page 16: Q2 2013 Highlights - Bumi Armada€¦ · 4 Revenue composition by geographical % Malaysia based international company Continued expansion across key regions 17.3% 47.1% 29.1% 6.5%](https://reader036.vdocuments.us/reader036/viewer/2022081402/5f0b2c087e708231d42f33f6/html5/thumbnails/16.jpg)
Costs control will be critical
� Capex and opex costs have effectively more than doubled over the last 10 years.
� Uptrend will continue.
16Source: IHS Cera
![Page 17: Q2 2013 Highlights - Bumi Armada€¦ · 4 Revenue composition by geographical % Malaysia based international company Continued expansion across key regions 17.3% 47.1% 29.1% 6.5%](https://reader036.vdocuments.us/reader036/viewer/2022081402/5f0b2c087e708231d42f33f6/html5/thumbnails/17.jpg)
“Knots Ahead of the Rest”
Q2 2013 Operational
Highlights
![Page 18: Q2 2013 Highlights - Bumi Armada€¦ · 4 Revenue composition by geographical % Malaysia based international company Continued expansion across key regions 17.3% 47.1% 29.1% 6.5%](https://reader036.vdocuments.us/reader036/viewer/2022081402/5f0b2c087e708231d42f33f6/html5/thumbnails/18.jpg)
FPSO
� 2013: 6 lease FPSO contracts awarded so far
� Bumi Armada has 12 ongoing tenders
18
Company Client Field
Bumi Armada ONGC C7
Modec Petrobras Iracema Norte
Modec Tullow TEN
SBM Petrobras Lula Alto
SBM Petrobras Lula Central
SBM Shell Stones
![Page 19: Q2 2013 Highlights - Bumi Armada€¦ · 4 Revenue composition by geographical % Malaysia based international company Continued expansion across key regions 17.3% 47.1% 29.1% 6.5%](https://reader036.vdocuments.us/reader036/viewer/2022081402/5f0b2c087e708231d42f33f6/html5/thumbnails/19.jpg)
FPSO – Global Projects
19
![Page 20: Q2 2013 Highlights - Bumi Armada€¦ · 4 Revenue composition by geographical % Malaysia based international company Continued expansion across key regions 17.3% 47.1% 29.1% 6.5%](https://reader036.vdocuments.us/reader036/viewer/2022081402/5f0b2c087e708231d42f33f6/html5/thumbnails/20.jpg)
FPSO – Madura BD
20
FPSO Details
� Storage: 370,000 bbls
� Gas Handling: 110 mmscfd
� Condensates: 7,500 bpd
� Produced Water: 2,500 bpd
� Sulfur recovery unit required to handle 20 tonnes of sulfur per day
� Design life: 20 years
� 12 point spread mooring
Field Details
� Client/Operator: Husky-CNOOC Madura Limited (HCML)
� Country: Indonesia
� Location: Madura Strait East Java, about 65 kmeast of Surabaya and about 16km south ofMadura Island.
� Water depth: Approximately 182 feet (~55m)
![Page 21: Q2 2013 Highlights - Bumi Armada€¦ · 4 Revenue composition by geographical % Malaysia based international company Continued expansion across key regions 17.3% 47.1% 29.1% 6.5%](https://reader036.vdocuments.us/reader036/viewer/2022081402/5f0b2c087e708231d42f33f6/html5/thumbnails/21.jpg)
FPSO – Kraken
21
Field & FPSO Details
�Client/Operator: EnQuest Plc.
�Location: UKCS Block 9/02b, 400 km North Eastof Aberdeen and 40 km west of the Frigg Field
�Water Depth: 117m
�Peak Liquids Production Rate: 460,000 bpd
�Oil Production: 80,000 bpd
�Water Injection: 275,000 bpd
�Internal turret
�Heavy oil: 14° API
Kraken
Field
![Page 22: Q2 2013 Highlights - Bumi Armada€¦ · 4 Revenue composition by geographical % Malaysia based international company Continued expansion across key regions 17.3% 47.1% 29.1% 6.5%](https://reader036.vdocuments.us/reader036/viewer/2022081402/5f0b2c087e708231d42f33f6/html5/thumbnails/22.jpg)
Gas
• Focusing on small-scale FSRU/ FLNG conversion; niche market
• Conversion provides fast track solution for clients and lower CAPEX
• Currently tendering for several FSRU projects
22
![Page 23: Q2 2013 Highlights - Bumi Armada€¦ · 4 Revenue composition by geographical % Malaysia based international company Continued expansion across key regions 17.3% 47.1% 29.1% 6.5%](https://reader036.vdocuments.us/reader036/viewer/2022081402/5f0b2c087e708231d42f33f6/html5/thumbnails/23.jpg)
OSV – Steel On Water 2
� Continue to build on the platform of the original “Steel on Water” fleet expansion
� Focus on adding higher specifications, “greener”, cleaner, safer and fuel efficient (GCSE) vessels
� Enhanced services offering to the customers such as ROV, DSV, IMR or light installation services through MPSVs
� Plans to grow current OSV fleet from 40+ to 80+ vessels in 5 years
23
![Page 24: Q2 2013 Highlights - Bumi Armada€¦ · 4 Revenue composition by geographical % Malaysia based international company Continued expansion across key regions 17.3% 47.1% 29.1% 6.5%](https://reader036.vdocuments.us/reader036/viewer/2022081402/5f0b2c087e708231d42f33f6/html5/thumbnails/24.jpg)
OSV – Continued Fleet Expansion
� Placed order for four newbuild MPSVs from Nam Cheong in February 2013 as part ofthe Steel on Water 2 newbuild program.
� Purchased four new PSVs from Sentinel Offshore for approx. USD80 million to bedelivered over the course of Q3 and Q4 2013. BAB has taken delivery of the first vessel,renamed the Armada Tuah 303, which has already secured a 6-month charter.
24
Armada Tuah 303
![Page 25: Q2 2013 Highlights - Bumi Armada€¦ · 4 Revenue composition by geographical % Malaysia based international company Continued expansion across key regions 17.3% 47.1% 29.1% 6.5%](https://reader036.vdocuments.us/reader036/viewer/2022081402/5f0b2c087e708231d42f33f6/html5/thumbnails/25.jpg)
T&I – Building Track Record
� Secured its second Filanovsky EPIC contract from Lukoil worthUSD178.5 million utilising the Armada Installer.
25
![Page 26: Q2 2013 Highlights - Bumi Armada€¦ · 4 Revenue composition by geographical % Malaysia based international company Continued expansion across key regions 17.3% 47.1% 29.1% 6.5%](https://reader036.vdocuments.us/reader036/viewer/2022081402/5f0b2c087e708231d42f33f6/html5/thumbnails/26.jpg)
T&I – Building Track Record
� Armada Hawk is currently working in Vietnam for Saipem and hasanother job lined up in Vietnam upon completion of its currentcharter.
� Armada Condor, which joined the fleet in March 2013, is currently inDurban, South Africa and being marketed.
� SURF 1: Deepwater subsea & SURF installation DP3 newbuild to add toexisting T&I fleet in order to execute projects in deeper water andmore complex environment.
26Armada Condor
![Page 27: Q2 2013 Highlights - Bumi Armada€¦ · 4 Revenue composition by geographical % Malaysia based international company Continued expansion across key regions 17.3% 47.1% 29.1% 6.5%](https://reader036.vdocuments.us/reader036/viewer/2022081402/5f0b2c087e708231d42f33f6/html5/thumbnails/27.jpg)
OFS
• Looking for alliance/collaboration opportunities in well intervention
• Offer vessel based well intervention service to field operators
27
![Page 28: Q2 2013 Highlights - Bumi Armada€¦ · 4 Revenue composition by geographical % Malaysia based international company Continued expansion across key regions 17.3% 47.1% 29.1% 6.5%](https://reader036.vdocuments.us/reader036/viewer/2022081402/5f0b2c087e708231d42f33f6/html5/thumbnails/28.jpg)
“Knots Ahead of the Rest”
Video
![Page 29: Q2 2013 Highlights - Bumi Armada€¦ · 4 Revenue composition by geographical % Malaysia based international company Continued expansion across key regions 17.3% 47.1% 29.1% 6.5%](https://reader036.vdocuments.us/reader036/viewer/2022081402/5f0b2c087e708231d42f33f6/html5/thumbnails/29.jpg)
“Knots Ahead of the Rest”
Thank You