Post on 16-May-2018
FY2014 : New Awards
3
Awarded 2 large FPSOs (EPCI + Charter) The 13th and 14th FPSO/FSO which
MODEC will provide in Brazil and it’s 6th and 7th in the pre-salt*
FPSO Carioca MV30 Petrobras Mero Pilot FPSO Client Petrobras
Contract EPCI+Time Charter (21 years) Field Sépia Field(Brazil)
Water Depth 2,200m Oil Production 180,000 bpd,
Gas Production 212 mmscfd Storage Capacity 1,400,000 bbls
Client Petrobras Contract EPCI+Time Charter (22 years)
Field Mero Field (Brazil) Water Depth 2,100m
Oil Production 180,000 bpd, Gas Production 424 mmscfd
Storage Capacity 1,400,000 bbls
*FPSO in the pre-salt owned by MODEC group FPSO Cidade de Angra dos Reis MV22 FPSO Cidade de São Paulo MV23 FPSO Cidade de Mangaratiba MV24 FPSO Cidade de Itaguaí MV26 FPSO Cidade de Caraguatatuba MV27
FY2017 : Highlights
4
New orders reached the highest level of 700.9 billion JPY
Awarded 2 charter contracts from Petrobras
New Orders Revenue
Revenue 191 billion JPY
Billion JPY
518.4
395.7
188.7
92.7
700.9
0
400
800
2013 2014 2015 2016 2017
254.4
378.5
295.5
229.9
191.1
0
200
400
2013 2014 2015 2016 2017
Billion JPY
FY2017 : Highlights
5
Operating Profit Ordinary Profit
Targets of the Mid-term Business Plan 2017 (Profit attributable to owners of parent & ROE 10%) were achieved for the second year in a row.
Proposed annual dividends of ¥50.00 per share including special dividend of ¥10.00 per share in accordance with the solid performance of this year.
3.7
8.5
5.0
18.0
11.4
0
5
10
15
20
2013 2014 2015 2016 2017
Billion JPY
15.8 18.3
12.8
29.4
24.3
0
10
20
30
2013 2014 2015 2016 2017
Billion JPY
Profit Attributable to Owners of Parent
Billion JPY
4.9 5.4 5.8
21.0 19.4
0
5
10
15
20
25
2013 2014 2015 2016 2017
Dividends per Share
30.00 32.50
35.00
37.50
50.00
10
20
30
40
50
2013 2014 2015 2016 2017
Yen
ROE
7.9 6.5
5.9
18.7
15.0
0
50
100
150
5.0
10.0
15.0
20.0
2013 2014 2015 2016 2017
Equity% Billion JPY
FY2017:EPC(I)
6
Stampede TLP FSO Ailsa
FPSO Cidade de Campos dos Goytacazes MV29
FPSO Carioca MV30
Petrobras Mero Pilot FPSO
Client Hess Maersk
Petrobras Petrobras Petrobras
Contract EPCM EPC EPCI + Time Charter (20 yrs)
EPCI + Time Charter ( 21 yrs )
EPCI + Time Charter ( 22 yrs )
Delivery (Planned)
May, 2017 2018 1H 2018 2Q 2021 2021
Field Stampede Culzean Tartaruga Verde & Tartaruga Mestiça
Sépia Mero
Location GOM
UK Brazil Brazil Brazil
Water Depth 1,020m 90 m 765 m 2,200 m 2,100 m
Storage/ Production
80,000 bpd 40 mmscfd
350,000 bbls 25,000 bopd inlet
1,600,000 bbls 150,000 bopd 176 mmscfd
1,400,000 bbls 180,000 bopd 212 mmscfd
1,400,000 bbls 180,000 bopd 424 mmscfd
Progress
Order received in October 2017
Order received in December 2017
EPC(I) / Charter / O&M Period
7
As of February 2018 EPC(I) period Time Charter fixed period Time Charter option period O&M period
Owned by MODEC group companies (%) Affiliates accounted for by the equity method Consolidated subsidiary
22y
21y
20y
10y
20y
20y
20y
20y
15y
12y
9y
9y
20y
8y
7y
10y
5y
7y+
15y
5y
17.5y
7.5y
7.5y
5y
5y
7y+
15y
15y
5y
1 Culzean FSO (EPC) Maersk
2 Stampede TLP (EPCM) Hess
3 (1) 20.1 Petrobras Mero Pilot FPSO Petrobras
4 (2) 20.1 FPSO Carioca MV30 Petrobras
5 (3) 20.1 FPSO Cidade de Campos dos Goytacazes MV29 Petrobras
1 20.1 FPSO Prof. John Evans Atta Mills Tullow
2 20.1 FPSO Cidade de Caraguatatuba MV27 Petrobras
3 20.1 FPSO Cidade de Itaguai MV26 Petrobras
4 29.4 FPSO Cidade de Mangaratiba MV24 Petrobras
5 34.0 FPSO Cidade de Sao Paulo MV23 Petrobras
6 42.5 FPSO Cidade de Angra dos Reis MV22 Petrobras
7 50.0 FPSO Cidade de Santos MV20 Petrobras
8 45.0 FPSO Cidade de Niteroi MV18 Petrobras
9 65.0 FSO Rang Dong MV17 JVPC
10 40.6 FSO Cidade de Macae MV15 Petrobras
11 40.6 FPSO Cidade do Rio de Janeiro MV14 Petrobras
12 42.0 FSO Rong Doi MV12 KNOC
13 50.0 FPSO Baobab Ivoirien MV10 CNR
14 60.0 FPSO MODEC Venture 11 Santos
- 40.0 FPSO Stybarrow Venture MV16 available
1 FPSO Raroa OMV
2 FPSO Kwame Nkrumah MV21 Tullow
3 FPSO Pyrenees Venture BHPB
4 FPSO Fluminense Shell
2004
2006
2008
2010
2012
2014
2016
2018
2020
2022
2024
2026
2028
2030
FY2018 : Outlook
8
Revenue Operating Profit Profit Attributable to Owners of Parent Ordinary Profit
8.5
5.0
18.0
11.4 10.0
0
5
10
15
20
2014 2015 2016 2017 2018
Billion JPY
18.3
12.8
29.4
24.3
20.0
0
10
20
30
40
2014 2015 2016 2017 2018
Billion JPY
378.5
295.5
229.9
191.1
220.0
0
200
400
2014 2015 2016 2017 2018
Billion JPY
Assumed exchange rate for FY2018: 110 yen/USD MV29 to start charter in 2018 1H FSO Alisa to be delivered in 2018 2H
Billion JPY
5.4 5.8
21.0 19.4
14.0
0
5
10
15
20
25
2014 2015 2016 2017 2018
FSO Ailsa FPSO Cidade de Campos dos Goytacazes MV29
Profit & Loss
10
2016 2017 Variance Million JPY
Revenue 229,987 191,182 (38,805)Gross Profit 31,544 24,804 (6,740)
Selling, General and Administrative Ecpenses 13,526 13,356 (170)Operating Income 18,018 11,448 (6,570)
Other Income (A) 14,736 15,770 1,034Other Expenses (B) 3,346 2,895 (451)
Total Other Income/Expenses (C=A-B) 11,390 12,875 1,485
(Equity in Earnings of Affiliates andUnconsolidated Subsidiaries included in C)
9,618 9,686 68
(Exchange gain/loss and Gain/loss onrevaluation of derivatives included in C)
(1,410) (1,415) (5)
Ordinary Profit 29,409 24,322 (5,087)Extraordinary Profit - 741 741Extraordinary Loss 1,632 0 (1,632)
Income before Income Taxes and Non-controlling Interests
27,776 25,064 (2,712)
Profit Attributable to Owners of Parent 21,012 19,454 (1,558)Exchange Rate (USD) ¥116.49 ¥113.00 (¥3.49)
Revenue and gross profit decreased due to a decline in the number of EPCI projects
Operating profit decreased by 6.5 billion yen due to decreased gross profit
Profit due to liquidation of SPCs
New Orders / Revenue / Order Backlogs
11
518.4
395.7
188.7
92.7
700.9
254.4
378.5
295.5 229.9
191.1
896.6
987.9
761.6
648.9
1,144.4
551.2
703.8 636.1
494.7
569.4
0
400
800
1,200
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
Billion JPY
New Orders Order Backlogs Revenue
Order backlogs for MODEC Group’s share in the “Lease, Charter and O&M services” of the affiliates accounted for by the equity method
Mero Sépia
FSO Ailsa MV29
Stampede MV27
MV25 MV26 MV24 OSX-3
EPC(I) period
2013 2014 2015 2016 2017 2018
Coral South
Operating Income/ Equity in Earnings of Affiliates
12
Operating Profit (as if consolidating affiliates basis) Equity in Earnings of Affiliates
53 56
69
83 86
0
50
100
2013 2014 2015 2016 2017
Million USD
3.7
8.5
5.0
18.0
11.4
16.6
24.3
27.4
40.3
35.6
16.6
28.6 29.7
39.1
29.3
0
10
20
30
40
2013 2014 2015 2016 2017
Billion JPY
MV24
MV26
MV27 MV25
A A + B A + B + C
A : Consolidated Operating Profit B : Operating Profit (equity method portion) C : Influence of Deferred/Realized Profits
Ordinary Profit
13
15.8
18.3
12.8
29.4
24.3
17.3
24.7
20.5
31.5
21.7
0
10
20
30
40
2013 2014 2015 2016 2017
Billion JPY
Influence of Deferred/Realized Profits Ordinary Profit (as if consolidating affiliates basis
-3.0
-7.6 -8.2 -7.9
-2.2
3.0 3.3
5.8
9.0 8.5
11.9
16.2
18.5 17.4
11.1
(10)
(5)
0
5
10
15
20
2013 2014 2015 2016 2017
Deferred Realized Balance
Billion JPY
A A + B + C
A : Consolidated Ordinary Profit B : Ordinary Profit (equity method portion) C : Influence of Deferred/Realized Profits
Balance Sheet
14
2016 2017 Variance Million JPY
Accounts Receivable - trade 95,544 98,188 2,644
Short-term Loans Receivable 55,012 46,282 -8,730
Total Current Assets 218,042 198,035 -20,007
Property and Equipment 14,161 6,863 -7,298
Intangible Assets 7,420 7,446 26
Investments and Other Assets 93,624 108,819 15,195
Total Fixed Assets 115,206 123,129 7,923
Total Assets 333,249 321,165 -12,084
2016 2017 Variance
Accounts Payable - trade 96,738 80,335 -16,403
Short-term Loans Payable 7,812 14,467 6,655
Total Current Liabilities 142,536 128,581 -13,955
Long-term Loans Payable 42,478 31,586 -10,892
Total Long-term Liabilities 56,102 44,197 -11,905
Total Liabilities 198,639 172,778 -25,861
Total Shareholders Equity 118,200 135,468 17,268
Total Accumulated Other Comprehensive Income 4,849 1,032 -3,817
Minority Interests in Consolidated Subsidiaries 11,560 11,885 325
Total Net Assets 134,609 148,387 13,778
Total Liabilities, Net Assets 333,249 321,165 -12,084
Short-tem loans receivable decreased due to collection of loans receivable from SPCs
Transfer to long term lease receivable from fixed asset due to extended lease term of owned FSO
Investments and other assets increased due to investment in MV25 and MV27 in addition to the recognition of equity in earnings of affiliates and unconsolidated subsidiaries
Accounts payable decreased in line with EPC(I) progress
Foreign currency translation adjustments decreased due to yen appreciation
Long-term loans payable decreased due to scheduled repayment
Total current assets decreased mainly due to investment in MV25 and MV27.
Key Financial Indicators
15
Interest-Bearing Debt EBITDA
ROE ROA Equity Ratio
2.7 1.9 1.7
6.1 5.9
1.0
3.0
5.0
7.0
2013 2014 2015 2016 2017
%
7.9 6.5 5.9
18.7
15.0
4.0
8.0
12.0
16.0
20.0
2013 2014 2015 2016 2017
%
115.3
222.7 202.8
166.1 161.6
3.6
5.1 4.3
2.9 3.0
2.0
3.5
5.0
6.5
0
100
200
300
2013 2014 2015 2016 2017
Total interest-bearing debt(after adjustment*) Total interest-bearing debt/EBITDA
X times Billion JPY
31.9
43.9 47.1
57.8 53.3
6.7 7.7
7.0 8.2
7.2
2.0
4.0
6.0
8.0
10.0
12.0
0
20
40
60
2013 2014 2015 2016 2017
EBITDA(after adjustment*) EBITDA Instant Coverage Ratio
X times Billion JPY
32.8 27.8 28.7
36.9 42.5
0
50
100
150
20.0
30.0
40.0
50.0
2013 2014 2015 2016 2017
Equity% Billion JPY
*Adjustment: Adding MODEC group’s share in affiliates accounted for by the equity method