A niche service provider to the offshore oil and gas industry

A niche service provider to the offshore oil and gas industry

Swiber Holdings LimitedCorporate Presentation

by Raymond Goh, CEO 21 April 2007


Corporate Profile

24 Nov 2006

• Purchased 4 vessels for US$28.1m (1 cargo barge + 3 AHT)

Key developments since listing

8 Nov 2006

• Trading debut - Stock opened at S$0.550, closed at S$0.505, a premium of 42% above S$0.355 a share issue price

13 Nov 2006

• Announced record revenue and earnings for 3QFY06 and nine months ended 30 Sept 2006.

16 Nov 2006

• Secured contracts worth US$9.36m

• Signed LOI worth US$5.75m with BG Exploration of India

4 Dec 2006

• Secured US$13.9m 3-yr charter contract with BG Exploration, commences April 07

11 Dec 2006

• Entered into JV in India

25 Jan 2007

• Secured US$14m 3-yr charter contract with BG Exploration, commences May 07

13 Feb 2007

• Secured single largest EPCIC contract with Shell Brunei worth US$147m

26 Feb 2007

• Reported a doubling of FY06 earnings to record US$12.2m on record sales of US$66.8m

Business overview

Swiber is a niche service provider to the offshore oil and gasoffshore oil and gasindustry, with a complementary business in offshore marine support

Engineering,

Procurement,

Construction,

Installation &

Commissioning (EPCIC) contractor

In-house marine support

capabilities

EPCIC solutions closely integrated withsupply of support vessels

The offshore world of Swiber

Exploration Field Development ProductionStages of an offshore O&G project

Swiber’s scope of Services

• Exploration drilling • Installation of production platform• Installation of offshore pipeline• Installation of Mooring system for FSO &

FPSOs

• Production support activities

• Jackup drilling barge• Towing tugs• Accomodation barge• Support barges• Crew boats

• Pipelay barge • Crane barge• Anchor handling tugs • Supply boats• Towing tugs • Crew boats• Support barge • Utility vessels• Accomodation barge

• FSO• FPSO• Platform supply

vessel• Crew boats• Utility vessels

Swiber’svessels

ExplorationExploration

ProductionProduction

PostPost--productionproduction

DevelopmentDevelopment

Installation of components

Launching and installationLaunching and installation of jackets at offshore of jackets at offshore production sitesproduction sites





Installation of components

Deck installation at offshore production sites





Engineering design & installation of offshore pipelines

Laying of offshore pipelines

Conventional Pipelay using a Pipelay bargePipelay using RentisMethod

Installation of mooring systems





Mooring of FSOs & FPSOson the seabed

SPM Buoy

Single point mooringTurret mooring systemSpread mooring system





Existing fleet of 13 offshore support vessels

6 tug boats (AHTS, towing tugs, utility tugs) 7 barges (flat-top barges and a launch barge)


Competitive Strengths

Competitive strengths at a glance

1 . Offshore engineering capabilities & diverse range of EPCIC services• Project planning and execution from

commencement to completion

• Ability to retain existing and attract new customers

• Expanded capabilities translate to better ability to support customers in the O&G industry

2 . Niche focus

• Builds expertise

• Tailoring marketing mix to specialisedmarket

• Familiar with project movements & customers’ requirements / decisions

• Higher rates for securing projects

• Less vulnerable to margin squeeze

4. Complementary duo-model business set-up

• One-stop solution for offshore projects

• Reduces risks of potential disruptions

• Manage costs more efficiently

3. Geographically diversified operations

• Allocate resources to specific geographical areas in accordance with

the weather conditions

5. Experienced management team

Management Team

Name

Francis WongCFO & Executive VP Corp. Services19 yrs experience

Darren YeoExecutive VP Offshore Marine Support10 yrs experience

Raymond GohExecutive Chairman & CEO14 yrs experience

Jean PersSenior Executive VP Engineering30 yrs experience

Name

Captain Hendrik Eddy PurnomoVP Indonesian Operations 18 yrs experience

Philippe SupperVP Onshore Fabrication & Construction 24 yrs experience

Nitish GuptaExecutive VP Offshore Construction 12 yrs experience

Don WoodVP Business Development42 yrs experience

Name

Captain O.M. BuggeMarine Advisor35 yrs experience

Chia Fook EngAdvisor the Board 40 yrs experience

Peter J. WorrallGM & Associate VP Offshore Construction36 yrs experience

Richard J.PursellAssociate VP HSE20 yrs experience


FY06 Financial Performance

Four Year Group Performance

66.8

15.59.6

18.4

0

10

20

30

40

50

60

70

2003 2004 2005 2006

12.1

6.2

2.5

0.9

0

2

4

6

8

10

12

14

2003 2004 2005 2006

US’m

Revenue Net Profit & MarginsUS’m

CAGR: 62.8%CAGR: 128.2%

Net profit margin

5.7% 25.8% 33.5% 18.2%

Order Book & Latest Contracts/LOI secured in 2007

Order book reflects continued strong growth momentum

Note:• Management accounts and indication

Total in US$’m

Outstanding order book as at 31 Dec 06 25.9

Contract and LOI secured in 1QFY07 160.6

TOTAL US$186.5 m


Review of the Industry -Outlook and Opportunities

Future Plans and Strategies

Opportunities in the offshore world

Continued strong growth in the offshore O&G sector from 2006 to 2010. All markets will retain ever higher levels of operating expenditure.

Growth in O&G sector

Rapid technology advances

Increased focus on new cost-cutting technology and other commercial innovations. Challenge for technology developers is to convert new products into proven hardware.“Skills shortage” and “experience shortage” of people pose the greatest challenge to oil companies and their contractors.

Opportunities in offshore gas drive new explorations

Offshore gas has considerable opportunities related to the advent of new gas production and conversion technologiesLNG projects and the beginnings of a GTL industry kick-starting development of stranded fields, and encouraging new exploration in gas-prone areas.

The era of relatively low-cost O&G energy sources has ended.In this new resources-limited world and oil price collapse could only be driven by a world-scale economic and/or political crisis that interrupts demand growth

Higher O&G prices are here to stay

Source: “The World of Oil & Gas Production & Spend Forecast 2006 – 2010” by Douglas-Westwood Limited 2006

Main growth drivers

Expand existing spread of vessels to include vessels commonly required for offshore EPCIC operations

Focus and expand on Asia Pacific markets and Middle East markets

Construction of Jackup Drilling Barge and development of 4,000 MT Sheerleg barge suitable for offshore operations

Expand resources

Market development

New designs & technologies

Capex commitment for 15 vessels – Delivery 2007

No. Vessel Name Vessel Type

1 Swiber 254

Swiber 282

Swiber 123

Swiber 331

AMH 2801

Swiber Jackup N1

Swiber Falcon

Swiber Hawk

Swiber Champion

Swiber Navigator

Swiber Explorer

Swiber Venturer

Swiber VoyagerSwiber Challenger

Swiber Conquest#

2

Flat Top Barge

Flat Top Barge

Flat Top Barge

Cargo Barge

Cargo Barge

Jackup Barge

Towing Tug

Towing Tug

AHTS

AHTS

AHTS

AHTS

AHTSAHTS

3

4

5

6

7

8

9

10

11

12

1314

15 Pipelay Barge

Total CAPEX:US$77.9 million

(@ 31 Dec 06)

# A launch barge built in 2005 which is being converted into a pipelay barge

Dalihao Crane Barge

• 2,500 Mtons• To be delivered in 2007

Next wave of asset expansion plan

Unit Type

1 unit Pipelay barge

1 unit 4,000 MT Sheerleg suitable for offshore lifting

1 unit 300-man accommodation barge

4 units 5,150 BHP AHTS

Proposed Capex - 2008 & 2009

Considering sale and lease-back transactions to fund the next wave of asset expansion plan

Illustration: Pipelay barge

4,000 mton Sheerleg Barge suitable for offshore operations

Malaysia

Indonesia

India

Brunei

Singapore

Thailand

Vietnam

China

MyanmarBangladesh

Australia

Middle East

Markets where Swiber has offices / presence

Focus and expand on Asia Pacific markets and Middle East markets

Markets we are targeting

Rapid growth in new markets

US$33.75 m worth of new contracts with BG Exploration– Secured US$5.75 m charter contract in Nov 06– Secured US$14.0 m 3-year charter contract in Dec 06– Secured US$14.0 m 3-year charter contract in Jan 07

Entered into a JV in Dec 06 to offer marine support services– Swiwar: US$3.6 m investment for a 50-50% interest

US$146m EPCIC Contract With Shell– Single largest EPCIC contract to-date– Maiden project in Brunei market– First ever deal with Shell

IndiaIndia

BruneiBrunei

New Designs and Technologies

4,000 mton Sheerleg Barge suitable for offshore operationsJackup drilling barge

Investment merits

Sound operating Sound operating modelmodel

Established Established market positionmarket position

Strong financialsStrong financials

Good industry Good industry prospectsprospects

Clear growth Clear growth strategystrategy

Expand EPCIC capabilitiesExpand markets

Offshore EPCIC services and complementary business in offshore marine support

Proven track record & experience in EPCIC projectsExperienced management teamPool of qualified engineers and support team

Consistent profitability and growthHealthy profit marginsStrong order book

Increased levels of offshore oil & gas exploration, development and production activities in Asia


Thank You

A niche service provider to the offshore oil and gas industry

Documents

Transcript of A niche service provider to the offshore oil and gas industry