McCONNELL DOWELL - Aveng · From metro tunnels in Singapore, geothermal energy production in New...
Transcript of McCONNELL DOWELL - Aveng · From metro tunnels in Singapore, geothermal energy production in New...
INVESTOR CONFERENCE │ 19 & 20 OCTOBER 2015
AGENDA
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OVERVIEW
STRATEGY
MARKET
OUTLOOK Q & A
OPERATIONAL REVIEW
INVESTOR CONFERENCE │ 19 & 20 OCTOBER 2015
OVERVIEW | Background to McConnell Dowell
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Scott CumminsChief executive officer
Where we operate23 locations throughout Australia, Asia, New Zealand, Pacific Islands and the Middle East.
Key geographies: Australia New Zealand & the Pacific South East Asia
Singapore ThailandPhilippines IndonesiaMalaysia Hong KongBrunei
ChinaShanghai
Middle East Dubai Saudi ArabiaAbu DhabiQatar
What we doMcConnell Dowell is a major engineering, construction and maintenance contractor experienced in delivering complex projects in the building, infrastructure and resources industry sectors.
INVESTOR CONFERENCE │ 19 & 20 OCTOBER 2015
OVERVIEW | Management team
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Dale MorrisonChief financial officer
Daryl YoungManaging director – Built Environs
Jim FrithExecutive general manager - Pipelines
Jim WallerExecutive general manager
John HearstExecutive director operations
Russell RooneyExecutive general manager – Tunnel & Underground
Wilma StuartExecutive general manager – Human Resources
Samantha JohnsonExecutive general manager - HSEQ
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OVERVIEW |Business background
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With 5,600 employees and professional engineering and construction teams in Australia, New Zealand, Asia and the Middle East, our clients benefit from our unique mix of local knowledge and international experience
Since 1961, built thousands of quality assets and facilities for clients and communities
Expertise has grown steadily to span building, civil, electrical, fabrication, marine, mechanical, pipelines, rail, tunnel and underground construction
We engage in all types of business relationships, from fixed price contracts through to risk-reward based systems such as Early Contractor Involvement
Our culture is founded on expertise, creativity and progressive thinking
We constantly challenge ourselves and our partners to find the best solution for every project. This attitude, along with our safe, high-quality, systematic and structured approach, has earned us the trust and loyalty of our clients
The Creative Construction Company for
clients who want to build better
communities through safe,
smart, efficient infrastructure
Driving progress through more
than 50 years of creative
construction
INVESTOR CONFERENCE │ 19 & 20 OCTOBER 2015
THE FOUNDATION OF TODAY’S URBAN COMMUNITIES
From metro tunnels in Singapore, geothermal energy production in New Zealand, to award winning desalination plants in Australia, McConnell Dowell is building better communities through safe, smart, efficient transport, power and water infrastructure
MARKETS
POWER
WATER & WASTE WATER
TRANSPORT
THE BACKBONE OF ECONOMIES
McConnell Dowell is driving progress and supporting growth and prosperity in cities and rural communities through the delivery of new oil, gas and mining facilities, marine terminals, process plants and modules, cross-country pipelines and underground mines
MARKETS
MINING & METALS
OIL & GAS
PETROCHEMICAL
THE FABRIC OF OUR CITIES
Built Environs, our full-service building group, leads the way in delivering architecturally stunning and environmentally sustainable facilities. Including commercial, defence, accommodation, education, entertainment, government, health, industrial, office, retail, sport and transport related buildings
MARKETS
GOVERNMENT
COMMERCIAL / INDUSTRIAL
SOCIAL
OVERVIEW | Market sectors
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INFRASTRUCTURE RESOURCES BUILDING
We have a reputation for delivering what we promise in 3 key sectors:
INVESTOR CONFERENCE │ 19 & 20 OCTOBER 2015
OVERVIEW | Capabilities
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RAILEquipped with rail
plantDedicated plant yard
and workshopFull maintenance of
fleetWork on or near live
railways
MARINE Industry leaders Partner of choiceOver 50 years of
award-winning solutions for wharves, Jetties, Ocean outfalls, Breakwaters, Causeways and Submarine Pipelines Innovation is our
hallmark
TUNNEL & UNDERGROUNDRight technology
and approach Alleviate traffic
congestionExtend rail networksGenerate
sustainable hydropowerUnlock precious
resources Sustain communities
through new clean water supplies
PIPELINESLeading
international contractorExperts in large
diameter construction In-house specialist
skills and plantStrong client
collaboration Effective community
consultation Environmental management
FABRICATIONFully equipped steel
fabrication facilities Comprehensive and
integrated design, procurement construction and fabrication serviceProvide structural
steel and marine structures, steelwork and process piping, process modules and pre-assembled racks, concrete structures and concrete modules
MECHANICALDelivering complex
mechanical and electrical construction projects Specialist skills in oil
and gas, mining and minerals, chemical processing and waterComplex and
challenging projects under all contract models
BUILDINGBuilding projects
include those of Government, Social and Commercial / IndustrialWorking with Built
Environs provides clients with the benefits of the McConnell Dowell Group namely a strong balance sheet and 3rd party accredited systems
INVESTOR CONFERENCE │ 19 & 20 OCTOBER 2015
OVERVIEW | Safety
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A new approach to safety leadership development has been initiated
The workshop incorporates the shift away from lag indicators and ‘failure’, to a new Safety 2 concept of lead indicators, design/engineering solutions and hard controls
These initiatives have paid dividends with our ratio of potential for harm reports (hazards and near misses) to all injuries measuring 104:1 against a target of 50:1
Significant improvement on last year’s result of 49:1
Our lag indicators are also showing similar levels of improvement with our recordable injury frequency rate (RIFR) at 5.2 compared to 8.5 last year, and our lost time injury frequency rate (LTIFR) at 0.5 compared to 0.7
Per mil man hour
INVESTOR CONFERENCE │ 19 & 20 OCTOBER 2015
OVERVIEW | Achievements
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SAFETY ACHIEVEMENTS OTHER
Pipelines Received 30 industry awards for safety and
environmental success
McConnell Dowell have been selected as the 2015 finalists for the NSCA Foundation / GIO Workers Compensation National Safety Awards of Excellence in the following categories: Best Work Health and Safety (WHS) Training Program Best Communication of Safety Message
Top 20 Australian Gas Leaders Emerging companies of 2015
Riverbank pedestrian bridge Shortlisted for British Construction Industry Awards
Waitaki Bridges Replacement project recognised as finalist in the New Zealand Transport Authority (NZTA) GEM Awards for 2015
Built Environs received a prestigious SA Master Builders Association (MBA) Building Excellence Award
Two employees (Storm Nuttal and Winnie Zhu) of McConnell Dowell won awards at the National Association for Women in Construction (NAWIC) for Outstanding Contribution to Construction Award and Young Achiever Award for work done on the Roy Hill Iron Ore Project and FMG Rail projects.
Maintain Gold Standard employee satisfaction score
INVESTOR CONFERENCE │ 19 & 20 OCTOBER 2015
MARKET | Current market conditions
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Declining investment in infrastructure development exacerbated by the sharp decline in oil & gas prices and further reductions in iron ore and coal prices
Good opportunities in social and transport-related infrastructure projects
Competitive market conditions as a result of foreign entrants and decelerating workload
More onerous contracting conditions
Reasonable opportunities in Southeast Asia and strong growth in New Zealand
Construction spend reducing in Australia
INVESTOR CONFERENCE │ 19 & 20 OCTOBER 2015
MARKET | Opportunities
Overall McConnell Dowell is tracking approximately AUD8billion worth of projects
New project wins in Australia, New Zealand and South East Asia A few Built Environ projects in the pipeline:
o Campbell Baracks for Department of Defence o The Holiday Inn Express Hotel o Carmelite Views at Myrtle Bank SAo Calvary Private Hospital o Brougham Place
Despite the relative health of the pipeline, competition remains fierce across all regions
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INVESTOR CONFERENCE │ 19 & 20 OCTOBER 2015
MARKET | Opportunities per region & sector
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Key features of the opportunity pipeline are:
Australia remains the most active region with 45% of tender activity by value, followed by SEA (25%), New Zealand (25%) and Middle East (5%)
Transport remains the largest market by value (50%), followed by Oil & Gas (17%) and Water (15%). Compared to this time last year, the number of transport opportunities has almost doubled. Mining & Metals is now only 9% of the pipeline by value
D&C and EPC contracts are the most prevalent contract types at 53%, followed by Construct Only at 36%. This time last year Construct Only was the most prevalent contract type at 63%. D&C trend augers well for ability to develop differentiated offers
8%9%
17%
1%50%
15%
Work in Hand by Sector
Building Mining & MetalsOil & Gas PowerTransport Water
9%
33%
20%
6%
28%
4%
Revenue by Sector
INVESTOR CONFERENCE │ 19 & 20 OCTOBER 2015
OPERATIONAL REVIEW | New project wins
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NEW ZEALAND
NZ Transport Agency awarded McConnell Dowell a design and construct contract for a new, two-lane bridge at Kawarau Falls in Queenstown, New Zealand
McConnell Dowell Hawkins Joint Venture awarded the City Rail Link (CRL) Enabling Contract Two in Auckland, New Zealand
McConnell Dowell awarded contract by North Otago irrigation company for expansion of irrigation scheme
AUSTRALIA
McConnell Dowell has been awarded the Jetty Pipeline and Mechanical Works contract as part of the Port Bonython Fuels project in South Australia
McConnell Dowell Constructors (Aust) Pty Ltd has been awarded the contract to revamp the below ground pipework coating at 25 stations by APA Group
Contract awarded by Transport for NSW (TfNSW) to construct the Barangaroo Ferry Hub in Sydney
Modbury Hospital Redevelopment awarded by Department of Planning, Transport, Infrastructure (DPTI) & SA Health
SOUTH EAST ASIA
McConnell Dowell Indonesia has been awarded the Phase-2 Works by Donggi-Senoro LNG ("DSLNG") for the construction of the Condensate Export Facility
INVESTOR CONFERENCE │ 19 & 20 OCTOBER 2015
GEOGRAPHY Port Hedland, Western Australia
CLIENT Samsung C & T
PROJECT START October 2013
COMPLETION STATUS Current
MARKET Mining
CAPABILITIES Marine, Mechanical, Electrical
OVERVIEW Design and construction of the Port Marine Works, scope of work
includes an abutment, a drive station, three transfer stations and all SMPE&I (structural, mechanical, piping, electrical & instrumentation)
OPERATIONAL REVIEW | Key current projects
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ROY HILL
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GEOGRAPHY Victoria Australia, Australia
CLIENT Australia's Port of Melbourne Corporation
PROJECT START January 2014
COMPLETION STATUS Current
MARKET Transport
CAPABILITIES Marine works
OVERVIEW Construction of a wharf that will service the expanded world
class terminal, Deliver improved waterside infrastructure to Webb Dock
OPERATIONAL REVIEW | Key current projects
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WEBB DOCK
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GEOGRAPHY Jurong Kechil, Singapore
CLIENT Singapore Land Transport Authority
PROJECT START March 2009
COMPLETION STATUS Current
MARKET Transport
CAPABILITIES Tunnel & Underground
OVERVIEW The contract entails the design and construction of two MRT tunnels,
a new underground station including station entrances, subway links, architectural finishes and external landscaping. The new station will not only link commuters from the north western part of Singapore to the Marina Bay area, but it will also double as a civil defence shelter
OPERATIONAL REVIEW | Key current projects
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BEAUTY WORLD STATION
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GEOGRAPHY Thailand
CLIENT PTT Public Company Limited
PROJECT START March 2010
COMPLETION STATUS October 2015
MARKET Resources – Oil & Gas
CAPABILITIES Pipelines
OVERVIEW Construction of over 60km of 42 inch high pressure gas pipelines
and major facilities spread over 300km of challenging terrain and traversing six provinces of Thailand, between Nakhon in the north and Rayong in the south
OPERATIONAL REVIEW | Key current projects
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FOURTH PARALLEL TRANSMISSION PIPELINE
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GEOGRAPHY Auckland, New Zealand
CLIENT NZTA
PROJECT START August 2011
COMPLETION STATUS Early 2017
MARKET Building
CAPABILITIES Tunnel & Underground
OVERVIEW Building two 2.4km long, 13.1m diameter bored tunnels up to
45m beneath central Auckland, Constructing The Great North Road Interchange - four ramps that total 1.7km in length to connect the South western and North western motorways
OPERATIONAL REVIEW | Key current projects
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WATERVIEW CONNECTION
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OPERATIONAL REVIEW | Key business risks
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ORDER BOOK Decline in the order book - We continue to pursue and bid with conviction but competition is fierce
Strong focus on growth in our offshore locationsFocus on road and rail transport infrastructure, as well as available opportunities in the resources, defence and water sectors
RESTRUCTURING Recognise that we will be a smaller business in short term Given the nature of our business our numbersfluctuate and 2015 saw a considerable reduction from last year. This was mainly driven by the completion of some major projects and significant changes in market conditions impacting our work in hand
COST SAVING INITIATIVES Cost saving initiatives are in place Head count reduction in line with revenueNo non-critical travelTighter approvals around all discretionary spend Streamlining of management systems and procedures to reduce duplication and waste
GOLD COAST RAPID TRANSIT (GCRT)
Completion was achieved July 2014 subject to a list of close out items. As at September 2015 the GCRT claim has not been settled
Continuous efforts to finalise and resolve the claim, JV partner working with the client to get final sign off agreement
QCLNG The QCLNG arbitration hearing is scheduled to start in November 2015 and we are engaging with the client simultaneously in an effort to expedite a commercial settlement
Ongoing negotiations with the client
KEY ISSUE STATUS ACTION
INVESTOR CONFERENCE │ 19 & 20 OCTOBER 2015
Structured approach to winning new work – immediate, emerging and future options (3 horizons)
Continued leverage of discipline & geographic diversity
Pre-contracts improvements through better bid decisions and estimating processes
Effective clean-up of legacy projects
Uncompromising delivery discipline on all current and new projects
Strong, positive cash flow and overheads maintained relative to work in hand
Foster a high performance, accountability driven culture based on our values
Reviewing the overall structure of the business in collaboration with the Executive Team in line with current market
Improved governance and review procedures – 3 lines of defence, start up audits, peer reviews, internal audit, project review process
Ongoing push to simplify our business, our processes and increase accountabilities
STRATEGY | Recover and Stabilise
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STRATEGIC THEME “RECOVER, STABILISE AND POSITION FOR GROWTH”
Foster a high performance driven culture based on our values
INVESTOR CONFERENCE │ 19 & 20 OCTOBER 2015
OUTLOOK | Position for Growth
Continuing to adapt to the changed and challenging market conditions
Continued focus on winning new work in all regions
Pursuing attractive opportunities with a focus on transport (road, rail, bridges and ports) and commercial buildings
Well positioned for the next phase of major tunnelling developments, and ports and airports remain a key focus
Our Mechanical and Pipeline teams will continue to pursue available opportunities in the oil and gas, mining and water sectors
In building, Built Environs is well positioned to capitalise on opportunities in the defence, civic, retail, health, aged care, andresidential sectors
The future outlook for infrastructure in New Zealand looks very strong with transport and water and wastewater projects in Auckland and Christchurch dominant
Diversity remains the company’s strength – FY15 showed growth in SEA and NZ of + 50%, while Australia contracted significantly
Australia will continue to provide opportunities but is a high cost / risk environment
Strong focus on growth in our offshore locations – SEA, NZ Pacific and Middle East
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INVESTOR CONFERENCE │ 19 & 20 OCTOBER 2015
GEOGRAPHY Western Australia, Australia
PROJECT START February 2013
COMPLETION STATUS August 2015
MARKET Transport
CAPABILITIES Building
OVERVIEW Construction of the facilities to service the international and
domestic terminals and delivered underground services and structural foundation works
ANNEXURE | Past projects
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PERTH AIRPORT
INVESTOR CONFERENCE │ 19 & 20 OCTOBER 2015
GEOGRAPHY Western Australia, Australia
PROJECT START September 2011
COMPLETION STATUS May 2015
MARKET Mining
CAPABILITIES Marine works
OVERVIEW Construction of 2 additional iron ore export berths
ANNEXURE | Past projects
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RAPID GROWTH PROJECT 6 MARINE WORKS
INVESTOR CONFERENCE │ 19 & 20 OCTOBER 2015
GEOGRAPHY Australia
PROJECT START March 2014
COMPLETION STATUS June 2015
MARKET Transport
CAPABILITIES Marine
OVERVIEW Reconstruct seven modern, flood resilient terminals including a
new terminal at Milton and moorings at Dutton Park and St Lucia
ANNEXURE | Past projects
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BRISBANE RIVER FERRY TERMINALS
INVESTOR CONFERENCE │ 19 & 20 OCTOBER 2015
GEOGRAPHY Queensland, Australia
PROJECT START June 2011
COMPLETION STATUS July 2014
MARKET Transport
CAPABILITIES Rail
OVERVIEW Construction of light rail system, Upgrade of underground
services, Construction of light rail stations, Construction of bridges, Landscaping and Urban design
ANNEXURE | Past projects
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GOLD COAST LIGHT RAIL
INVESTOR CONFERENCE │ 19 & 20 OCTOBER 2015
GEOGRAPHY New Zealand
PROJECT START January 2011
COMPLETION STATUS June 2014
MARKET Power
CAPABILITIES Building
OVERVIEW Te Mihi is one of two new geothermal power stations planned for
the Taupo region, designed to replace the world's second largest power station - the 50 year old Wairakei Power Station
ANNEXURE | Past projects
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TE-MIHI GEOTHERMAL POWER STATION
INVESTOR CONFERENCE │ 19 & 20 OCTOBER 2015
GEOGRAPHY Hong Kong, China
PROJECT START December 2011
COMPLETION STATUS October 2013
MARKET Oil & Gas
CAPABILITIES Pipelines
OVERVIEW Replace existing gas pipelines previously constructed by
McConnell Dowell 36 years ago
ANNEXURE | Past projects
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SUBMARINE PIPELINE