Interim Results Presentation 2005 February 2005 Investor Relations Presentation.
2005 Interim Statement
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Transcript of 2005 Interim Statement
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2005Interim Statement
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HALF YEAR HIGHLIGHTSHALF YEAR HIGHLIGHTS
Revenue £668m (2004 £540m)
EBITDA £32.9m (2004 £21.1m)
Operating profit £22.4m (2004 £11.9m)
Profit before tax £19.1m (2004 £10.2m)
Tax charge 35.1% (2004 33.3%)
Basic EPS 10.9p (2004 4.4p)
Interim dividend 2.0p (2004 1.5p)
+ 24%
+ 56%
+ 88%
+ 87%
+ 148%
+ 33%
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IFRS CONVERSION - POLICIESIFRS CONVERSION - POLICIES
Transition l January 2004
Goodwill not amortised
Dividends recognised when approved
Deferred tax on asset revaluations
Derivatives and hedge accounting (l January 2005)
No off-setting (bank balances, deferred tax, retirement plans, interest)
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IFRS CONVERSION - RESULTSIFRS CONVERSION - RESULTS
Excluding exceptional items:
June 2004 December 2004
UK GAAP
IFRS
UK GAAP
IFRS
RevenueOperating profitProfit before
taxBasic EPSTotal equity(Shareholders’
funds plus minorities)
Gearing
£581m £12.7m£10.1m
3.7p£163m
61%
£540m
£11.9m
£10.2m
4.4p£156m
64%
£1,255m
£30.8m
£25.2m11.9p
£118m
111%
£1,159m £29.6m £25.3m
13.1p£112m
117%
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June 2005 June 2004
Operating Profit – Six Months Ended
Others
Gibson Energy
Hunting Energy
OthersHunting Energy
Gibson Energy
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6 Months Ended
June 2005 June 2004
Revenue
£m
Operating Profit
£m Revenue £m
Operating
Profit£m
Gibson Energy - Marketing
Gibson Energy - OtherHunting EnergyTenkayOthers
443
86876
46225
9
472
- 13
349
70824
35191
4
331
1 8
668 22 540 12
Revenue and Operating ProfitRevenue and Operating Profit
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FinancialFinancial
June2005
June2004
Year2004
Net borrowings
Gearing
After rights issue and Cromar acquisition*
Interest Cover
£138m
108%
58%
6.8x
£147m
136%
-
3.2x
£131m
117%
-
4.4x
* If rights issue and Cromar acquisition had been completed on 30 June 2005
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Capital Expenditure
Jan – June2005£m
Jan – June2004£m
Gibson EnergyHunting EnergyTenkayOther activities
663
2
334
1
Split:MaintenanceNew
business
17
8 917
11
7 411
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Free Cash Flow
June 2005£m
June 2004 £m
Cash from operationsTaxCapital expenditureDividends & interest
24(2)
(17)(7)
7 9
(11)(7)
FREE CASH FLOW
(2) (2)
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Energy, Marketing & TransportationEnergy, Marketing & Transportation
Gibson Energy
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Favourable differentials for diluent and all oil grades
Increased capacities for storage and blending of crude oil and diluent
Diversification of wellsite fluid products
Energy, Marketing & TransportationEnergy, Marketing & Transportation
Marketing
Moose Jaw
Production of distillates, diesel and Naptha/gas oil increasing value from TOPS
Facilities operating year round New market for higher specification roof
flux asphalt
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Increased volume for Husky Oil to 100,000 bpd
Truck trailer utilisation for heavy oil, asphalt and diluent at full capacity
Energy, Marketing & TransportationEnergy, Marketing & Transportation
Truck Transportation
Canwest Propane
New distribution terminal to open in Tacoma Washington
Increase in demand from oilfield activities and Athabasca developments
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Increased ultra low sulphur diesel handling facilities for Suncor
Rail car loading agreement with Petro Canada
Edmonton North Terminal start up (Q4 2005)
Increased storage and blending facilities
Increased volume from Athabasca pipeline
Hardisty Terminal modification to enhance marketing opportunities
Energy, Marketing & TransportationEnergy, Marketing & Transportation
Terminal Activities
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Global Oilfield Services
Hunting Energy Services
Tubulars Manufacturing International
US Premium Production Tubing*US Patented Connections
ConnectionsCouplingsPup Joints
OEM Products forHalliburton,
Schlumberger, BakerDrill Stem for
Telecommunications*Casing and Tubing
ThreadingAccessories*
Slickline/Wireline ToolsMud Motors*Shock Tools
N. Sea Carbon & ChromeTubulars*
Patented ConnectionsAccessoriesBlast Joints
SE Asia-Chinese TubularsPerforating Guns
* Market Share Leadership
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Global Oilfield Services
Hunting Energy Services
Drilling Well Construction Well Completion
Drill Stem forTelecommunications
Mud MotorsShock Tools
Premium ConnectionsManufacturing
Accessories
Premium TubingManufacturing
AccessoriesSlickline/Wireline
ToolsChrome and Carbon
Casing
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Dominant position in telecommunications market
New mud motor designs and shock tools
Expansion into Grand Junction, Colorado
Global Oilfield Services
Drilling
Well Construction
Continued expansion of APRS
New, high speed machine tools
Development of “Deepwater” facility
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New facility for Premium Tubing
Co-development of Slickline tools with major oilfield service providers
Global Oilfield Services
Well Completion
Cromar Acquisition
Expansion of our Slickline/Wireline global “Footprint”
Introduction into pressure control market
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9 out of 12 wells drilling success8 Gas/1 Oil
Gas Production: 1,287,895 mcf
Oil Production: 47,537 bbl
Exploration and Production
Tenkay Resources
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Encouraging half year figures with tanker and dry cargo fixtures above 2004 levels
Strengthening of the US dollar has benefited margins
International Shipbroking
E A GIBSON SHIPBROKERS
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Proactive management team
Sourcing new products and pursuing new markets outside France
Good order book positions
Petrochemical Equipment Petrochemical Equipment
HUNTING ENERGY FRANCE
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Oil DemandOil Demand
20
30
40
50
60
70
80
90
75 85 95 05
Year
mmb/d
Growth trends are likely to continue
• 15% of world (OECD) uses 50 mmb/d• 85% of world (Rest) uses 35 mmb/d
Source: EIA, Simmons & Company
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Average Oil and Gas Prices Average Oil and Gas Prices
$5.00
$15.00
$25.00
$35.00
$45.00
$55.00
$65.00
2001 2002 2003 2004 2005
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
Avg Oil price
Avg Gas Price
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Average Rig CountAverage Rig Count
0
200
400
600
800
1000
1200
1400
2001 avg 2002 avg 2003 avg 2004 avg 2005 ytd
US
CAN
Intl
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Wells DrilledWells Drilled
0
10000
20000
30000
40000
50000
2001 2002 2003 2004 2005
US Canadian International
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Continued “Cost Efficiency” identification
Niche acquisition opportunities
Benefit from increased operator cap ex
Ongoing investment in “Human Capital”
Debt reduction
OutlookOutlook
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2005Interim Statement