ANALYST BRIEFING - mhb.com.my€¦ · OSX-3 FPSO External Turret ... MHB’s most recent turret,...

E n g i n e e r e d f o r G r o w t h

2Q FYE December 2011 Financial Results & Updates 18 November 2011

ANALYST BRIEFING

Disclaimer

2

This Presentation is not intended to form the basis of any investment decision with respect

to Malaysia Marine and Heavy Engineering Holdings Berhad (MHB). Neither this

presentation nor anything contained herein shall form the basis of, or be relied upon in

connection with, any contract or commitment whatsoever. No representation or warranty,

express or implied, is or will be made by MHB in relation to, and no responsibility or liability

is or will be accepted by MHB as to the accuracy and completeness of, the Information

made available, and any liability therefore is expressly disclaimed.

This Presentation may contain “forward-looking statements”. Forward-looking statements

by their nature involve known and unknown risks, uncertainties and other factors that are in

many cases beyond MHB’s control. Although MHB believes that the expectations of its

management as reflected by such forward-looking statements are reasonable based on

information currently available to it, no assurances can be given that such expectations will

prove to have been correct. Accordingly, you are cautioned not to place undue reliance on

such forward-looking statements. In any event, these statements speak only as of their

dates, and MHB undertakes no obligation to update or revise any of them, whether as a

result of new information, future events or otherwise.

This Presentation and its contents are strictly confidential and must not be copied,

reproduced, distributed, summarized, disclosed referred or passed on to others at any time

without the prior written consent of MHB. Except for the yard facilities in the photographs,

none of the vessels/structures belong to MHB.

Analyst Briefing – 2Q FYE December 2011

Highlights

Operational

• Strengthened project management team at

Gumusut-Kakap FPS

• Kinabalu Topside is 80% completed

• Commenced work on Tapis-R and Tapis-Q

Financial

• Revenue -52% QoQ

• Operating profit +28% QoQ

• Net profit +2% QoQ, providing interim

normal tax rate pending further ITA

New contracts

• OSX-3 FPSO External Turret

• Telok Gas Development

• Tapis Enhanced Oil Recovery (EOR) Project

3 Analyst Briefing – 2Q FYE December 2011

4

Topic

1 Operational Review

2 2Q FYE December 2011 Results

3 New Contracts

4 Updates On Initiatives

5 Q&A


Gumusut-Kakap FPS


Kinabalu NAG Topside


FPSO Cendor


Floating Storage Unit (FSU) Lekas


Marine Repair, Energy Vessel


12

Topic



3 New Contracts


5 Q&A



Income Statement, 3-Month 2Q FYE December 2011

Revenue -52% QoQ

• E&C, project in Turkmenistan nears

completion, Gumusut Kakap at advance

fabrication stage

• MRC, less repair business volume despite

higher contribution by new projects

Operating profit +28% QoQ

• E&C, reversal in provision of projects near

completion

• MRC, yet to recognize profit from FSU

Lekas and FPSO Cendor conversions

Operating profit margin at 18.3%

• E&C, benefited from reversal in provision

13

91

867 958

83

380 463

MRC E&C 1QD11 MRC E&C 2QD11

Revenue RM million

6

52 66

6

72 85


Op Profit RM million

6.3% 6.0% 6.9% 7.7%

19.0% 18.3%


Op Profit Margin %

1QD11 – 1st Qtr of Financial Year Ending December 2011 (Apr-Jun 2011)

2QD11 – 2nd Qtr of Financial Year Ending December 2011 (Jul-Sep 2011)


Income Statement, 3-Month 2Q FYE December 2011

Pretax profit +4% QoQ

• Share of profit in jointly controlled entities

(JCE) reflects project status in Turkmenistan

• No finance cost, Group is in a net cash

position

Net profit +2% QoQ

• Less tax credit from Investment Tax

Allowance (ITA)

Per Share

• Net EPS of 5.0 sen per share in 2Q

14

0

30

96

0 15

100

Fin.Cost JCE 1QD11 Fin.Cost JCE 2QD11

PBT RM million

-17

0

79

-20

0

80

Tax MI 1QD11 Tax MI 2QD11

Net Profit RM million

1QD11 – 1st Qtr of Financial Year Ending December 2011 (Apr-Jun 2011)

2QD11 – 2nd Qtr of Financial Year Ending December 2011 (Jul-Sep 2011)


Income Statement, 6-Month FYE December 2011

Revenue -35% YoY

• E&C, novated Turkmenistan’s project in

January 2011. Gumusut Kakap at advance

fabrication stage

• MRC, lower contribution by repairs of energy

vessels

Operating profit -23% YoY

• E&C, contribution by Turkmenistan’s project

at JCE level

• MRC, previous period had contract closed

out on FPSO Ruby II. Yet to recognize profit

from FSU Lekas, FPSO Cendor conversions

Operating profit margin at 10.6%

• E&C, from key ongoing projects

• MRC, previous period had contract closed

out on FPSO Ruby II

15

193

2,003 2,196

174

1,246 1,421

MRC E&C Sep10 MRC E&C Sep11

Revenue RM million

60

113

197

12

124 151


Op Profit RM million

31.3%

5.6% 9.0%

7.0% 9.9% 10.6%


Sep10 – 6-month period during Financial Year Ended March 2011 (Apr-Sep 2010)

Sep11 – 6-month period in Financial Year Ending December 2011 (Apr-Sep 2011)

Op Profit Margin %


Income Statement, 6-Month FYE December 2011

Pretax profit

• Share of profit in JCE increased after

novation of Turkmenistan’s project

• No finance cost in 6-month to Sep 2011

Net profit -15% YoY

• Providing for interim normal tax rate pending

approval of tax credit from Investment Tax

Allowance (ITA) on Yard Optimisation

Per Share

• Net EPS of 10.0 sen per share in 6 months

16

-1

1

197

0 46

197

Fin.Cost JCE Sep10 Fin.Cost JCE Sep11

PBT RM million

-8

0

188

-37

0

159

Tax MI Sep10 Tax MI Sep11

Net Profit RM million

Sep10 – 6-month period during Financial Year Ended March 2011 (Apr-Sep 2010)

Sep11 – 6-month period in Financial Year Ending December 2011 (Apr-Sep 2011)

Balance Sheet

Strong balance sheet

• Fixed assets +1% QoQ to RM1.1bn

• Cash +15% QoQ to RM2.3bn

• Shareholders’ funds at RM2.4bn

• Able to accommodate corporate exercise

and business expansion

17

Total Assets

RM million

Total Liabilities

RM million


Cash 2,309.7

Others 80.7

Trade Receivables

961.9

Fixed Assets 1,112.0

Inventories 22.3

Shareholders Funds 2,377.6

Others 111.2

Trade Payables 1,997.8

Sep 2011

RM4,486.6m

Sep 2011

RM4,486.6m


Order Book

Orderbook consist mostly of

• FPSO Cendor

• Gumusut-Kakap FPS

• Kinabalu Topside

• Turkmenistan Block 1 Phase 1

Contract wins since Sep 2011

• OSX-3 FPSO External Turret

• Telok Gas Development

• Tapis Enhanced Oil Recovery (EOR) Project

18

Order Book RM million

MMHE has transferred the EPCIC contract for the Turkmenistan Block

1, Phase 1 gas development project to MMHE-TPGM by novation with

effect from 1st January 2011. Order book reflects MMHE’s 60% interest

Sep 2011

RM1,885.5m

Gumusut Kakap 464.2

Kinabalu 175.6

Others 186.7

Turkmenistan 192.9

FSU Lekas 88.6

FPSO Cendor 775.5

Foreign Investors 8.68%

Other Malaysian Shareholders

9.06%

EPF 3.61%

PNB & PNB Unit Trust

Funds 4.15%

Technip SA 8.00%

Shareholding Information

19

Foreign Investors 6.33%

Other Malaysian Shareholders

8.64%

EPF 4.10%

PNB & PNB Unit Trust

Funds 6.43%

Technip SA 8.00%

As At

Sep 2011


Market Capitalisation RM billion

6

7

8

9

10

11

12

13

14

15

2010 2011

Listing

Sector

Bursa Malaysia Main Market

Trading/Services

Index Component • FTSE Bursa Malaysia KLCI

• MSCI Malaysia

As At

Jun 2011

20

Topic



3 New Contracts


5 Q&A


OSX-3 FPSO External Turret

Salient points

• Contract value ~RM38 million

• Contract type Lump-sum

• Customer Sofec, Inc

• Work scope Procurement,

construction

• Weight 3,500MT

• Complete by 4Q 2012

Project description

• Upon completion, the External Turret would

be installed on OSX-3 FPSO

• The FPSO would be utilized within block

BM-C-39 of the Campos Basin, offshore

Brazil. OSX-3 FPSO would be moored in

approximately 110 meters water depth

21

MHB’s most recent turret, the BP Angola external turret. Successfully installed on FPSO PSVM


Telok Gas Development

Salient points

• Contract value RM236 million


• Customer ExxonMobil (EMEPMI)

• Work scope Procurement, fabrication,

onshore testing, load-out,

offshore hookup,

commissioning

• Structures Telok A, B topsides

Telok A, B jackets

• Total weight Approximately 11,160MT

• Complete overall

contract by 1Q 2013

Project description

• An Entry Point Project under the Economic

Transformation Programme

• Telok field is about 200km from shore. New

platforms would be tied back to the existing

Guntong E gas platform

22

PDMS Image Of Telok A/B


Tapis Enhanced Oil Recovery (EOR) Project

Salient points

• Contract value RM1,553 million


• Customer ExxonMobil (EMEPMI)

• Work scope Procurement, fabrication,

testing, load-out,

transportation,

installation, offshore

hookup, commissioning

• Structures Tapis Q, R topsides

Tapis Q jacket

2 inter-platform bridges

• Total weight Approximately 23,700MT

• Complete overall

contract by 2Q 2013

23

PDMS Image Of Tapis-R


Tapis Enhanced Oil Recovery (EOR) Project

Project description

• Field located 200km offshore Kerteh,

Terengganu at a water depth of 65 meters

• Produces among the world’s highest quality

crude – extra-light and low-sulphur

• The 1st full-field EOR project in Malaysia

• Tapis R and Tapis Q would be installed

adjacent to the existing Tapis B platform

24

PDMS Image Of Tapis-Q


25

Topic



3 New Contracts


5 Q&A


Yard Optimisation Programme

YO Programme at Pasir Gudang

• Current ongoing projects

• 25k MT skid track, bulkhead, dredging

• Infrastructure work at Idemitsu land

• Autoblast and priming workshop

• 80MT Luffing crane at 40MT bulkhead

Capital expenditure

• Invested RM36m in 6-month period of

current financial period

Strategies with 2 yards

• Market positioning and specialisation

• Integration of facilities and operations

• Optimisation of asset utilisation/productivity


Strengthening Execution & Capabilities Development

Developing fresh talents

• MMHE-Technip Capability Development

collaboration

• 3 internal development programme

Internalising external capabilities

• Select from MSO’s talent pool

• Alignment with MHB’s objectives

Strengthening execution

• New organisation

• Focused on project execution


E n g i n e e r e d f o r G r o w t h

MALAYSIA MARINE AND HEAVY ENGINEERING HOLDINGS BERHAD

Level 31, Menara Dayabumi, Jalan Sultan Hishamuddin

50050, Kuala Lumpur, Malaysia

Investor Relations Contacts

Telephone: +60 (3) 2275 3876

Wan Mashitah Bte Wan Abdullah Sani

Chief Financial Officer

Email: [email protected]

Chang Kong Meng

Investor Relations & Business Research

Email: [email protected]

Website: http://www.mhb.com.my/

http://www.mmhe.com.my/

Thank You

Merci

ANALYST BRIEFING - mhb.com.my€¦ · OSX-3 FPSO External Turret ... MHB’s most recent turret,...

Documents

Transcript of ANALYST BRIEFING - mhb.com.my€¦ · OSX-3 FPSO External Turret ... MHB’s most recent turret,...