Petra Energy Berhad Group information and updates RHB Oil ... · PETRA SERVICES SB (813597-T) PETRA...

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Petra Energy Berhad Group information and updates RHB Oil & Gas Corporate Day Presentation | 5 March 2014

Transcript of Petra Energy Berhad Group information and updates RHB Oil ... · PETRA SERVICES SB (813597-T) PETRA...

Petra Energy Berhad

Group information and updates

RHB Oil & Gas Corporate Day Presentation | 5 March 2014

Presentation Overview

Business OverviewBusiness Overview

Business UpdatesBusiness Updates

Corporate UpdatesCorporate Updates

Financial Highlights

Vision Statement

& Core Values

Integrity – Commitment – Teamwork – Professionalism

To Be an Oil & Gas Development Company

4

Corporate Updates

Petra Energy Berhad

Group information and updates

Corporate Structure - as at January 2014

Major Shareholders - as at 06 January 2014

Wasco Energy Ltd.

(26.90%)

Mohamed Nizam

Abdul Razak

(9.09%)

Shorefield Resources

Sdn Bhd (27.47%)

Lembaga Tabung Haji

(8.62%)

Remaining Public

Spread

(27.92%)

PETRA ENERGY BHD(718388-H)

Shareholding & Corporate Structure

PE INDUSTRIAL

RESOURCES SB(fka Petra Boilers S/B)

(452660-P)

PE MARINE LTD(LL09503

PE CHALLENGER LTD(LL10047)

PE SHIP

MANAGEMENT SB (841812-U)

• PE MARINE ONE LTD (LL06749)

BUMI SUBSEA SB

(863752-P)

PETRA

RESOURCES SB

(172962-D)

PETRA

FABRICATORS SB

(425817-H)

PE MARINE

CAPITAL SB

(1066572-A)

PETRA MARINE

SB

(812250-D)

PETRA SERVICES

SB

(813597-T)

PETRA ENERGY

DEVELOPMENT

SB

(806515-A)

PE VENTURES SB

(1050358-H)

JURUTERA

PERUNDING

AKAL SB

(400046-X)

100% 100% 100% 100% 100% 100% 70%100%

100%

30%

51%

PE DEVELOPMENT

LTD

(LL09925)

COASTAL ENERGY

KBM SB (1011855-

W)

100%

100%

PE RESOURCES LTD

(LL10146)

100%

100%

100%

100%

Board of Directors

Dato’ Anthony Bujang

Executive Director & CEO

Ahmadi bin Yusoff

Executive Director & Director of

Strategic Planning & Corporate

Services

Abdul Rahim bin Abdul Hamid

Senior Independent & Non Executive

Director

Ahmad Azra bin Salleh

Independent & Non Executive

Director

Gian Carlo Maccagno

Non Independent & Non Executive

Director

Corporate Milestones

• Petra Resources Sdn Bhd formed to undertake trading and supply activities for PSC’s /oil majors

1988

• Formation of Petra Perdana Berhad (now Perdana Petroleum Berhad)1995

• Petra Resources Sdn Bhd was acquired by Petra Perdana Berhad Group.

• Petra Perdana was also listed on the Malaysian Stock Exchange2000

• Petra Energy was incorporated (as Portfolio Hitech Sdn Bhd)2005

• Petra Energy Berhad was listed on the Main Market of the Malaysian Stock Exchange (Bursa Malaysia Securities Berhad).

2007

• Shorefield Resources Sdn Bhd acquired a total of 30% stake in Petra Energy Berhad.

2009

• Private placement to Mohamed Nizam Bin Abdul Razak, 9.09% 2011

• Entry of new shareholder - Wasco Energy Ltd.

• Wasco acquired Perdana Petroleum’s 26.9% stake in Petra Energy. 2012

• Raised capital through Rights Issue to fund SFRSC Project for the Kapal, Banang and Meranti fields

2013

• The Group’s business activities are strongly driven by a HSSE culture, that is

benchmarked against industry best practices.

• PEB is nurturing HSSE as ‘second nature’ in the conduct of its business.

Health Safety Security & Environment - Our Priority

• 1 million manhours without LTI Certificate - Petronas Carigali

• 2.5 million manhours without LTI Certificate from CAT 3 Contract - Shell

• 1,095 Goal Zero Days - provision of E & I Maintenance Services | Oct. 2009 - Sept.

2012 - Nippon Oil

• 1,825 Goal Zero Days - provision of maintenance services of Caterpillar equipment -

Sabah Shell & Sarawak Shell | October 2007 - October 2012

• 1,825 Goal Zero Days - provision of Mechanical & Rotary MTCE workshop & services -

Shell (SSB/SSPC) | Feb 2007 - Jan 2012

• 1,500 LTI Free Manhours – provision of Offshore Services Contract (OSC) for Gumusut

– Kakap Development | Nov 2012 – Aug 2013

The Group was presented with a

Certificate of Appreciation for

implementation of the P&E

Strategy No. 8 by PCSB, which

demonstrates strengthened HSE

performance

Over the years the Group received many HSSE accolades and achievements from its key

clients namely, SHELL, Petronas Carigali and ExxonMobil, amongst others.

Health Safety Security & Environment - Our Priority

10

Petra Energy Berhad

Group information and updates

Business Overview

Business Overview

INTEGRATED BROWNFIELD MAINTENANCE & ENGINEERING

� Top-side Major Mainenance/Hook-up Construction & Commissioning

� Project Management, Procurement & Logistics

� Engineering, Operations & Maintenance

� Oil Field Optimisation

� Equipment, Packaging & Manufacturing

DEVELOPMENT & PRODUCTION (SMALL FIELD RSC)

� Dev. & Prod. of petroleum from Kapal, Banang & Meranti small fields offshore Terengganu

MARINE OFFSHORE SUPPORT

� 3 workboats, 4 workbarges & 1 AHTS

DESIGN, FABRICATION, SUPPLY & INSTALLATION

� Design & Fabrication of process and heat transfer equipment

� Engineering design & project management

ENGINEERING & PROJECT MANAGEMENT SERVICES

NEW BUSINESS

� Brownfield development

� Subsea services & Underwater IMR

Business Updates

Petra Energy Berhad

Group information and updates

• 5 year Contract - part of the Pan Malaysia

Cluster of jobs.

• Major milestone - biggest contract to-date.

• Scope of Work : HuC & Topside Maintenance

for PCSB’s facilities offshore Sabah &

Sarawak Waters. Project has been mobilized

last quarter of Year 2013 and currently in

operations.

HuC Contract

Pan Malaysia HuC

(SKO & SBO Waters)

Integrated Brownfield Maintenance & Engineering

• Tapis R - HUC Project (sub-contractor to

MMHE) ExxonMobil project.

• Scope of Work - Hook-up &

Commissioning.

• Scope of work - HUC - 16000 ton platform

(fabricated onshore) complete module

• Offshore Implementation - ~March 2014

HuC Contract

for ExxonMobil’s

Tapis R

First Deepwater Project - Provision of

Offshore Services Contract for the Gumusut-

Kakap Development Project by Shell.

Awarded - 25 October 2012

Scope of Work : HuCC, E&I, Piping etc.

Contract duration : 30 months.

• FPS installed - July 2013

• Offshore HuC in progress

• Manpower strength offshore - 250

• Manhours to date – 784k as at Feb 2014

• LTI Free days - 365

Gumusut Kakap

Deepwater

Project

Integrated Brownfield Maintenance & Engineering

Exploration of Marginal Field – RSC Contract

Development & Production of Small Field, Kapal Banang

and Meranti fields offshore Terengganu through RSC

contract developed together with Coastal Energy and

operating as Coastal Energy KBM Sdn Bhd (30% equity

stake owned by PEB Group).

Development & Production

• The RSC development project is underway & on-

going as scheduled and within budget.

• CAPEX for the RSC Project - USD300 million

• An eight year development project with the Kapal

field being in its first phase of production

• First oil achieved – 16 December 2013 – Kapal

field

• Initial production rates at 10,000 bopd with peak

production at 13,000 bopd

• Plan by Petronas to continue determining

potential production from the KBM cluster

• PEB participate in major onshore engineering and maintenance services for the

O&G industry. Major contracts undertaken by Kemaman (Terengganu) and

Piasau (Miri) being the main operational hub for these services.

• Engineering Operations & Maintenance provide a full range of repairs, overhaul

& maintenance services includes the following;

• Gas & diesel engine overhaul

• Mechanical equipment refurbishment

• Electrical & instrument maintenance

& calibration

• Plant engineering & shutdown, site

decommissioning, assembly & disassembly

& start-up

• Packaging and hydrostatic testing

• Crane operations and maintenance

• Compressor servicing

Engineering Operations & Maintenance

• Petra Fabricators, a subsidiary of PEB

specializes in the design and

manufacture of heat transfer equipment,

pressure vessels, process skid packages

and storage tanks, amongst others.

• Today, Petra Energy’s process

equipment unit caters to international

markets in Angola, Australia, Brazil,

Brunei Darussalam, India, Myanmar,

New Zealand, Nigeria, Qatar, Saudi

Arabia, Syria, Thailand, UK, UAE etc. for

various clients

Design & Fabrication of Process Equipment

• PEB’s through its trading arm unit offers

packages, supplies and commissions

equipment used extensively in the oil and

gas, petrochemical, refining and other

related industries

• Types of Engineered Equipment :

Equipment Packaging & Manufacturing

• Centrifugal and Vertical Pump Packages

• Air Compressor Skids

• Reciprocating Pump Packages

• Rotary Screw Air Compressors

• Horizontal Centrifugal Pump Packages

• Vertical Firewater Pumps

• Gas & Diesel Power Generators

• Vertical Service Water Pumps

• Water Makers

• Chemical Injection Pumps

• Control Systems (Electrical & Pneumatic)

• Other services for packaged equipment

Subsea & Underwater Services

A new business segment completed through

acquisition and active in pursuing opportunities

within subsea & underwater services.

Currently this business segment has been

participating in major ITB’s includes;

� Being the top 3 contender for a 5-years

campaign by Sarawak Shell Underwater

Inspection and Maintenance Services.

� Participate in selected ITB’s for Well Integrity

and Subsea services of Brunei waters.

� Participate in selected ITB’s for various

Subsea services within Petronas fields.

• The Group’s TMM/HuCC operations are

supported by our offshore marine spread,

comprising four (4) accommodation &

work barges and three (3) workboats and

one (1) AHTS vessel.

• One (1) additional workboat, slated for

long term charter, is currently being built

• Support vessels are chartered on

contractual basis to provide additional

requirements.

• Future investment in modernising the fleet

Offshore Marine Support

Offshore Marine Support

KasMarine 1

AHTS DP1/FIFI-1

5150BHP / 60MT Bollard Pull

Year 2008

Petra Challenger

300 men accommodation and

work barge

Crane capacity – 124 MT

Year 2004

Petra Lyra(formerly known as Otto 3)

300 men accommodation and

work barge

Crane capacity – 68 MT

Year 2009

Petra Endeavour

300 men accommodation

and work barge

Crane capacity – 68 MT

Year 2007

Anis

199 men workboat

Crane capacity – 45 MT

Year 2013

Petra Discovery

300 men accommodation

and work barge

Crane capacity – 50 MT

Year 2005

Petra Orbit

189 men workboat

Crane capacity – 23 MT

Year 2008

Petra Galaxy

189 men workboat

Crane capacity – 23 MT

Year 2008

Petra Workshop, Miri (Piasau)~554 sqm of covered work area. established in 1988. Undertakes crane operations & maintenance, E&I and mechanical/rotating equipment for clients such as Shell, Carigali, Nippon, Murphy and Talisman

Petra Fabrication Yard, Labuan~3,218 sqm of covered work area capacity : steel work average production 40-50 metric tonnes. Piping - 2000 dia” / month. Undertakes fabrication work to support the Group’s Shell TMMHuCC and PCSB’s HuCC contract

Fabrication Facility, Shah Alam~5,669 sqm of covered work areacapacity : on average 400 metric tonne per workshop / month in operations since 1997

Petra Workshop - Kemaman~1021 sqm of covered work area,set-up in 1997, undertakes service and repair of rotating equipment (valve, engine), for ExxonMobil, PCSB and Petronas Gas

Minor Fabrication Yards & Workshops

Our long term goal is to create a high performing, ethical and commercially-

driven culture within Petra Energy Berhad

Human Capital – Our People

� More than 50% of the Technical &

Non-Technical personnel have

been directly assigned to ongoing

projects.

� Offshore personnel are all actively

participating in the current ongoing

projects.

Offshore Personnel (sub-con, daily crew)

2136

Onshore – Technical & Non-Technical

700

Our Focus : To strategically develop & deploy talents group wideOur Focus : To strategically develop & deploy talents group wide

TalentPool

Talent Assessment

Leadership Talent Training &

Development Program

Talent Mobility, Career &

Succession Planning

Phase 1:

Know itPhase 2: Develop &

Utilize it

Phase 3: Sustain &

Stretch it

•Identification of potential

candidates

Talent Management Activities

•Leadership Competencies Model

•Leadership Assessment &

Evaluation•360 Assessment

•Executive Role Profiling•Group Interaction

•Management Profiling

•Leadership Learning Development

•Executive Coaching Mentoring – for 360•External Executive• Learning Experience

•Internal Executive Forum•Action Learning

Programme

•Executive Reviews•Stretch

Assignments•Placements

Top ManagementSenior Management /Middle Management

First Line Management

THREE TRACKS

Debrief of Talent Management Framework / Process

Human Capital – Talent Development

25

Financial Highlights

Petra Energy Berhad

Group information and updates

92.4126.0 115.0 159.4

492.8

131.3172.6 159.8

190.4

654.1

Q1 Q2 Q3 Q4 FYE

2013

2012

74% 78% 75%81%

45%53%

97%91% 97% 97% 100% 92% 98%

0%0%

20%

40%

60%

80%

100%

PetraChallenger

Petra Discovery PetraEndeavour

OTTO 3 Petra Orbit Petra Galaxy Anis

Financial Highlights: FYE 31 December 2013 unaudited

RM 'million

Revenue By Segment

430.2, 87%

550.4, 84%

34.8, 7%

37.0, 6%

27.7, 6%

6.7,10%

FY2013 (Unaudited) FY2012 (Audited)

Marine Offshore Support Services Segment

Design, Fabrication, Supply and Installation Services

Integrated Brownfield Maintenance Services (IBF)

2013 2012

Revenue

Revenue trends:

• The 24% reduction in revenue is in tandem with vessel

utilisation rate due to closure of Shell TMMHuCC contract

• Q4’13 increase was largely contributed by PCSB Pan

Malaysia & Shell Gumusut-Kakap projects.

RM 'million,

Revenue % composition

Annual Vessel Utilisation Rate

Average Utilisation: 72% (FY2012: 96%)

Financial Highlights: FYE 31 December 2013 unauditedIBF- FY2013 Revenue By project

53%, 2012: 62%

20%

11%, 2012: 30%

7%1% 8%,

2012: 8%

Shell TMMHuCC

PCSB Pan Malaysia

PCSB UmbrellaContract

Shell Gumusut-Kakap

Major factors affecting EBITDA:

• Lower revenue by 24% in FYE 2013 compensated by 10% reduction in overall OPEX in 2013 vs. 2012.

• Recovery from Kumang project upon contract closure of RM13.2 mil in Q1’13.

• Despite higher revenue for Q4’13, EBITDA was lower due to:

• Shell TMMHuCC: Reduction in final approved claims previously recognized & settlement of disputes with

vendor.

• PCSB Umbrella: Deficit margin due to further costs subsequent to full revenue recognised in prior period.

• Gumusut-Kakap: Higher manpower supply during the quarter, which provides lower margin compared to

offshore services, that were claimed in the previous period.

Key project margin commentaries:

• Shell TMMHuCC margins were low due to unfavourable unit rates and amplified in 2013 by inflationary effect

upon closure of the long-term contract.

• PCSB Umbrella contract comprised of 75% cost plus works which generate low margins especially marine spread

which was provided by 3rd parties.

EBITDA by

Segment RM’milIBF

Onshore Civil

Eng. Serv.

Marine

Offshore

Supp. Serv.

Design, Fab.,

Supp. & Inst.

Serv.

Inv.

HoldingGroup Adj. Total

2013 33.8 13.2 8.4 (2.3) 4.5 (17.2) 40.5

2012 68.4 7.9 1.4 (4.9) 7.5 (24.5) 55.9

EBITDA

13.6 13.8

8.0 5.1

40.5

19.623.5

13.2

-0.4

55.9

Q1 Q2 Q3 Q4 FYE

2013

2012

RM 'million

2.2

14.7

-4.1 -1.1

11.7

7.29.1

5.1

-13.9

7.5

Q1 Q2 Q3 Q4 FYE

2013

2012

RM 'million

Financial Highlights: FYE 31 December 2013 unaudited

0.42

RM1.49

3.65 sen

RM1.62

0.56

3.48 senEPS

NA/SHARE

DEBT/EQUITY

31 Dec 2013 31 Dec 2012

PATAMI movements are largely impacted

from:

• Negative goodwill of RM12.8 mil. arising from

acquisition of KAS Ship Group in Q2’13.

• Impairment loss on a vessel of RM8.9 mil to

write down to its recoverable amount in Q4’13.

• Reversal of Deferred Tax Liability of RM10.5

mil in Q4’13.

Major factors affecting the ratios:

• Enlargement of share capital arising from

rights issue in Q2’13.

• Refinancing of two vessels to retire debts of

less favourable terms.

Working capital has improved due to:

• Completion of the acquisition of Otto 3 in

Q4’13 leading to the conversion of finance

lease to normal term loan.

• Substantial settlement of trade & other

payables.

RM’000 2013 2012

Current Assets 441,406 370,944

Current Liabilities 277,870 404,388

Net current assets / (liabilities) 163,536 (33,444)

PATAMI

0.18 0.26NET DEBT/EQUITY

Working Capital

Key Financial Position Ratios

Determining Factors for 2014Improve utilisation of vessels with revised & more favourable daily charter rates.

Revenue Mix

Anis

Alia

Petra Challenger

Petra Galaxy

Petra Orbit

Petra Lyra (fka Otto 3)

Petra Discovery

KAS Marine-1

Mobilised in Nov

2013

Ready by Q3 2014

Target Average Future Utilisation:

More than 80% (Actual FY2013: 72%)

62%16%

5%5%4%

2%6%

PCSB PanMalaysia

Subsea

Shell Gumusut-Kakap

FabricationContracts

Marine OffshoreSupport Contract

MMHE Tapis

Others- Trading &Consultancy

Revenue Outlook:

• Pan Malaysia contract comprises of 75% to

80% works based on lump sum & unit rates

with balance being on cost plus/reimbursable

basis. The Group is utilising its marine assets

to deliver this project.

• The remaining marine assets will be leased on

long-term charters. Options open for disposal.

• Bumi Subsea, a newly acquired subsidiary, as

a vehicle to secure underwater IMR services

contracts.

• Shell Gumusut-Kakap contract is expected to

complete by Q2 2014.

Petra Endeavour

Earmarked for Pan Malaysia

Potential for Pan Malaysia/

3rd Party Charter

THANK YOU

www.petraenergy.com.my

Petra Energy... moving towards an era of oil & gas

development and production

Petra Energy... moving towards an era of oil & gas

development and production