Stordkonferansen, 7. juni 2017 Jan Arve Haugan, konsernsjef · ** Kvaerner total per year, incl....

© Kvaerner 2017

Edit date:

Via “Presentation Information” in the “Kvaerner” menu

or

via Slide Master “View”/”Master”/”Slide Master”

Konkurransedyktig

for fremtiden

Stordkonferansen, 7. juni 2017

Jan Arve Haugan, konsernsjef

© Kvaerner 2017

Edit date:


or


Agenda

Kvaerner at a glance 1

Key drivers for implemented improvements 2

Further steps to be competitive for the future 3

Our industry: A keystone for value creation and welfare 4

© Kvaerner 2017

Edit date:


or


Complete offshore platforms and onshore plants

Concrete

solutions

Steel jacket

substructures

Platform

topsides

Onshore

oil and gas plants

World leading position, projects in Arctic conditions

Approximately 2 / 3 of all platforms at NCS

7 of Norway’s 7 largest onshore oil and gas plants

49 offshore wind mill substructures

Approx. 2 700 employees, 2 specialised facilities

= Examples of delivered platforms and onshore plants

Market leader,

Norway

Leading position,

Norway + world

Market leader,

Europe

Market leader

globally

3

© Kvaerner 2017

Edit date:


or


Agenda





© Kvaerner 2017

Edit date:


or


Wake-up calls in 2012 and 2013:

Norwegian industry lost 0 - 7

Norwegian contractors were

not good enough

Also: Not all deliveries from

Asia met expectations

5

© Kvaerner 2017

Edit date:


or


Project cost base

Internal costs

Joint initiatives

with clients

Streamlined org.

Productivity

improvements

Cost reduction initiatives

0

20

40

60

80

100

120

Total costs for new topsides reduced 20-20%

~20-25%

Ind

ex

: %

ch

an

ge

2013 2017

Competitiveness improved significantly

© Kvaerner 2017

Edit date:


or


Focus on key performance drivers

Before we can make

step-change improvements to cost, technology, etc.,

we first have to control HSSE, quality and time

7 The Keystone Arch is the intellectual property of Kvaerner. All rights reserved.

© Kvaerner 2017

Edit date:


or


Predictable delivery is part of the culture:

The value of time and quality is enormous

8

Just 1 month extra time before production start = 1/4 billion NOK! lost for licence + society* EPC from Kvaerner = 36 months or less.

EPC from Asia = typically 43 months or more

Total cost from Norwegian EPC contractors ~NOK 3,75 bill. lower than far east contractors**

* Incl. lost Net Present Value for typical field development at NCS in recent years

** Based on typical NOK 8 billion platform topsides

© Kvaerner 2017

Edit date:


or


Internationally recognized for predictable deliveries:

All current projects on track

9

Johan Sverdrup riser platform jacket Johan Sverdrup utility and living quarters

topside Nyhamna expansion

Njord A Hebron GBS Aasta Hansteen completion assistance

© Kvaerner 2017

Edit date:


or


Agenda





© Kvaerner 2017

Edit date:


or


We have just barely started our way to continuous improvement:

Driving for industrialisation

Standards Repetition + Measuring + + Innovation = Industrialisation

Technical specs

Procedures

Work processes

Contract T&C

Etc.

Copy effect

Streamlining

Systematic learning

Find Best Practice

Update directions

New ideas, solutions

Continuous improvement

Even better standardisation

Focus on simplification and “good enough”

1 2 3 4

11

© Kvaerner 2017

Edit date:


or


12

ACHIEVED RESULTS:

Digitalisation has reduced NDT costs 70%

45 % automatic welding (up ~ 500%)

Quality: < 6 cm rework on 15 km weld!

No staff reductions due to digitalisation

Costs level reduced by + 20%

Competitiveness strengthened

NEXT STEP IMPROVEMENTS:

Increase digitalisation, robotisation,

training of employees

Harvest potential to further enhance quality

Expand portfolio of products and services

Digitalisation and robotisation:

New successful improvement cases every quarter

Punch adm

Digital NDT

Service tower

© Kvaerner 2017

Edit date:


or


Agenda





© Kvaerner 2017

Edit date:


or


The service and contracting industry realize Norway’s oil and gas resources:

Vital role for value creation and welfare

14

1 job with primary supplier = spin-off 3 additional jobs

Total O&G employment effect: ~250 000 pers.

Big employment impact* in all regions, such as:

1) 50 000 jobs in Rogaland

2) 30 000 jobs in Hordaland

3) 25 000 jobs in Oslo / Akershus region

4) 15 000 jobs in NW coast, Norway

5) 15 000 jobs in Trøndelag

6) 15 000 jobs in Northern Norway

Annual revenues, service / contracting industry

~ NOK 350 bill. domestic

~ NOK 150 bill. export

*= Jobs in oil and gas industry and employment effects for suppliers, etc.

Sources: Norsk Industri, Menon, SSB, Oslo Economics, Norsk Olje & Gass, etc.

© Kvaerner 2017

Edit date:


or


The service and contracting industry realize Norway’s oil and gas resources:

Vital role for value creation and welfare

15

It has taken 50 years to develop the Norwegian O&G industry cluster

For once, we have managed to combine:

International competitiveness

AND

Big volume: Real impact re jobs+value creation

To qualify for the term «the new oil», a new industry must provide:

Value creation > NOK 7 mill per employee (average for other jobs: ~NOK 800 000)

Produce 15% of GNP, 40% of total export

Deliver 20% of public income / budgets

Yield for new pension fund > NOK 7 000 bill.

© Kvaerner 2017

Edit date:


or


Contracting industry with expertise and competence

development of vital importance for Norway

16

4 top placements in NM

Bronze in EM

* Konkraft, signed by operators, contractors, suppliers, etc.

** Kvaerner total per year, incl. incoming + outgoing class

EPC-contractors are the hubs for much of the O&G cluster *

EPC = vital tasks for apprenticeships (Kvaerner has ~120** / year)

A group of Kvaerner’s apprentices Statoil awards Njord project to Kvaerner

© Kvaerner 2017

Edit date:


or


Concluding remarks

HSSE remains as licence to operate

Predictability wrt. quality and schedule is

critical for total cost

Norwegian suppliers are competitive if total

costs is evaluation criteria

Further improvements of industry is vital,

but must have strategic perspective: Industry structure must be long-term sustainable

Enable investments in competence, recruitment

Kvaerner has the strength, capability and

determination to invest if provisions are made

for new activity

17

Kvaerner’s ambition is to always

be able to offer the best total price

© Kvaerner 2017

Edit date:


or


Copyright

Copyright of all published material including photographs, drawings and images in this document remains vested in Kvaerner and third party contributors as appropriate.

Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor used in any manner without express prior permission and applicable

acknowledgements. No trademark, copyright or other notice shall be altered or removed from any reproduction.

Disclaimer

This Presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to

differ. These statements and this Presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the

regions and industries that are major markets for Kværner ASA and Kværner ASA’s (including subsidiaries and affiliates) lines of business. These expectations, estimates and

projections are generally identifiable by statements containing words such as “expects”, “believes”, “estimates” or similar expressions. Important factors that could cause actual

results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets

for Kvaerner’s businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange

rates and such other factors as may be discussed from time to time in the Presentation. Although Kværner ASA believes that its expectations and the Presentation are based

upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Presentation. Kværner ASA is

making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither Kværner ASA nor any of its directors,

officers or employees will have any liability to you or any other persons resulting from your use.

Copyright and disclaimer

Copyright

Copyright of all published material including photographs, drawings and images in this document remains vested in Kvaerner and third party contributors as appropriate.

Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor used in any manner without express prior permission and applicable

acknowledgements. No trademark, copyright or other notice shall be altered or removed from any reproduction.

Disclaimer

This Presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to

differ. These statements and this Presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the

regions and industries that are major markets for Kværner ASA and Kværner ASA’s (including subsidiaries and affiliates) lines of business. These expectations, estimates and

projections are generally identifiable by statements containing words such as “expects”, “believes”, “estimates” or similar expressions. Important factors that could cause actual

results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets

for Kvaerner’s businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange

rates and such other factors as may be discussed from time to time in the Presentation. Although Kværner ASA believes that its expectations and the Presentation are based

upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Presentation. Kværner ASA is

making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither Kværner ASA nor any of its directors,

officers or employees will have any liability to you or any other persons resulting from your use.

Copyright and disclaimer

19

© Kvaerner 2017

Edit date:


or


Kvaerner is an integrator for key parts of the value chain:

EPC-model can harvest potential for more effective interfaces

E P C HUC & I FEED DECOM

Engineering management

Assembly

HUC

Project management

Fabrication Tow-out / marine operations,

installation, production start

Concept development / FEED Procurement Project Management

Assembly

20

© Kvaerner 2017

Edit date:


or


Facing competitors with low cost labour:

Large potential in digitalisation and robotisation

21

Welding robot: Robot for 20 - 40 percent of some jacket scope 5 times faster than manual process

Progress & status reporting in the field

MC punch administration in the field

Tools & Equipment management app

Vending machines for consumables

Automation of yard logistics

Digitalisation of scaffolding and rigging

Digital Non-Destructive Testing

Construction Management dashboard

3D visualization of yard operations and tenders Mobile progress

reporting on

iPhone

Punch

administration

Tools & Equipment

app

Welding robot Wending machine

Stordkonferansen, 7. juni 2017 Jan Arve Haugan, konsernsjef · ** Kvaerner total per year, incl....

Documents

Transcript of Stordkonferansen, 7. juni 2017 Jan Arve Haugan, konsernsjef · ** Kvaerner total per year, incl....