The Americas
Analyst Visit - June 2014
Contents
1. Americas Introduction Asterios Satrazemis, President Americas
Derek Foster, VP Finance
2. North America (NAM) Bruce Pool, MD North America
3. Spanish Americas (SAM) András Mesics, MD Spanish Americas
4. Brazil Pablo Varela, MD Brazil
5. Power Projects Ana Amicarella, MD Americas Power Projects
6. Innovative Power Management David Dickert, Area Sales Manager Oil & Gas
2
Financial Review Angus Cockburn, CFO
3
The Americas Asterios Satrazemis, President
Derek Foster, VP Finance
Americas Overview
4
Project Revenues ($m) FY13
Latin America 251
Military 63
Americas Revenue ($m) FY13
Local Business 708
Power Projects 314
Total 1,022
Spanish Americas FY13
Revenue ($m) 78
Average MW on rent 178
Service Centres and Offices 19
North America FY13
Revenue ($m) 514
Average MW on rent 492
Service Centres and Offices 58
Brazil FY13
Revenue ($m) 116
Average MW on rent 361
Service Centres and Offices 19
Americas Organization
Asterios Satrazemis President – Aggreko Americas
6 years with Aggreko Derek Foster VP Finance
14 years with Aggreko
Kate Sberna VP HR
7 years with Aggreko
Diego Andrade VP Commercial Risk
1 year with Aggreko
Gordy Broussard VP Sales & Marketing
23 years with Aggreko
Ana Amicarella MD – APP
3 years with Aggreko
Bruce Pool MD – NAM
16 years with Aggreko
Andras Mesics MD – SAM
11 years with Aggreko
Pablo Varela MD – Brazil
12 years with Aggreko
5
The Americas Timeline
6
• Opening of
project hub in
Panama
• Large scale
power outage in
Venezuela
• Launch of
Orange
Excellence
• Successful
Vancouver
Winter Olympics
• Acquisition of
Northland Power
Services
• Natural Gas
generators
introduced to NA
market
• Acquisition of
Poit Energia
• Successful
Ryder Cup
executed in
Chicago
• Emergency
response for
Hurricane Sandy
• Market entries
into Colombia &
Peru
• Opening of new
depots focused
on Shale
markets
• Pan American
Games in
Mexico
• First Americas
Natural Gas
Power Project
• Supported
Pope‟s visit to
Brazil
• Heat driven
Power outages
in Buenos Aires
Americas Revenue ($m)
0
200
400
600
800
1,000
1,200
2012 2011 2010 2009 2013
The Americas Local businesses
• A network of 96 service centres in 10 countries
– 44 new service centres opened or acquired in past
five years
• Wide range of customers and requirements
– Process solutions
– Major events (Superbowl, Rock „n Rio & US Open
Golf)
– Emergency response
• Wide range of contract durations and values
– 1 day to multi months
– 30kw to multi mw mini-projects
• Americas is the largest Local business in the Group
– 49% of Group Local business in 2013
• Growth in 2013 in both North and Latin America
– 7% and 23% respectively1
7
FY13 Local Business Revenue by sector
6%
8%
7%
1. Excluding currency translation and Poit acquisition
Oil and Gas 26%
Petrochemical and refining
20%
Manufacturing 10%
Utilities 8%
Events 7%
Services 7%
Other 6%
Construction 6%
Contracting 5%
Mining 5%
The Americas Power Projects
business
• Fleet and technical hub located in Panama
• Utilities remain cornerstone of Americas Power
Project business
– Largest customers are Argentina, Venezuela and
Brazil
• Declining Military revenues as US troop
withdrawal continues
• Focus on developing other sector opportunities
in Mining and Oil & Gas
8
FY13 Power Projects Revenue by sector
20%
77%
20%
77% Utilities
77%
Military 20%
Mining and Oil & Gas 2%
Other 1%
Key Strategy Initiatives
9
• Superior Customer Service
• Driving Efficiency
• Projects - Positioned for Growth
• Local - Growth of at least 2 x GDP
• Employee engagement
Superior Customer Service
• Addressing regular customer feedback
− 88% of customers score us 8 or better out of 10
• Product development and investment
• Focused service initiatives
0%
20%
40%
60%
80%
100%
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
Net Promoter Score
10
Operational Efficiency
11 11
1 Equipment Monitoring
2 Remote Diagnostics !
3 Personal Attention
4 Issue Resolution
Employee Engagement – Global Opinion
Survey
12 12
Strong culture demonstrated by
89% found Aggreko an exciting place to work
88% were proud to work for Aggreko
89% understood how the work they do
contributes to the achievement of Aggreko‟s
strategic goals and objectives
Orange Rules
13 13
• An initiative as part of Aggreko‟s
Safety for Life program.
• The purpose is to focus everyone on
the Key Safety Hazards in our
business (hazards that can result in
serious injury or death).
• This initiative reinforces the controls
already defined and implemented in
our Best Operating Practices.
Orange Excellence
• Making it easier to do the business and easier to do business with us
• Global Service Center Standards
14
North America Bruce Pool, MD North America
Region at a glance
16 Source: www.economist.com
Canada Statistics
Population (million) 35.0
GDP (US$bn) 1,860
GDP per head (US$) 53,160
2014 GDP Growth Forecast 2.6%
US Statistics
Population (million) 317.0
GDP (US$bn) 16,333
GDP per head (US$) 51,525
2014 GDP Growth Forecast 2.3%
Service Centre Locations
Key Performance Measures
17
• Compound revenue growth of 13% since 2009
• Introduction of Natural Gas fleet to complement diesel offering
• Geographic infill through new service center openings in Oil & Gas markets
Revenue ($m)
0
100
200
300
400
500
600
2013 2009
Fleet (MW)
1,000
800
600
400
200
0
2013 2009
Employees
1,200
1,000
800
600
400
200
0
2013 2009
Service Centres
0
10
20
30
40
50
60
2013 2009
Key Sector Portfolio
18
Petrochem • Refineries
• Chemicals and plants
• Industrial gas plants
25% of
revenue
Oil & Gas
• Production and site facilities
• Testing and commissioning
• Procurement / construction
• Camps
• Pipeline
30% of
revenue
Manufacturing
• Metal production
• Metal products / equipment
• Plastic / rubber products
• Pulp / paper products
9% of
revenue
Services
• Retail and commercial
• Hospitals
• Industrial services FM
• Commercial and domestic FM
• Storage / warehouse
7% of
revenue
Key Strategy Initiatives
19
• Superior Customer Service
• Driving Efficiency
• Growth of at least 2 x GDP
• Employee engagement
Case study: Upstream Oil & Gas
20
• Shale plays, including dry gas, wet gas and tight oil, are spread across the US
• Aggreko is active in 8 of the 11 major shale basins
• Shale importance highlighted by US crude oil imports declining 17% since 2010
• Our services range from single pump jack power to micro grids
• Strategic differentiator for Aggreko is our “Power Management Model”
• Natural Gas units becoming the norm -range from 95kW to 1.3MW
Case Study: ROC Oil & Gas
Situation
• Uptime of Wells = On Going Production = Revenue
• C. 60 MW on hire in the state of Oklahoma
• Many well sites are in remote locations - limited access to utility
and long distances away from a Service Centre
Aggreko Solution
• Through the ROC, we monitor all generators in the oil field
• Send daily uptime reports with critical information
• In case of potential failures, alarms or other maintenance activities,
we quickly notify the customer and dispatch a technician to
troubleshoot prior to engine failure
Aggreko Value
• Aggreko maintains, on average, a 97% uptime
• Assure a higher level of reliability which our competitors don‟t offer
• Oil & Gas production, and revenue, is not interrupted
21
Case Study: Hydro Processing
Reactor Cooling
Problem
• Refinery needed to replace its hydro-treating catalyst
• Required 3m lbs. of reactor metal and catalyst to be
cooled from >600°F to c. 80°F
• The last cooling step (from >200°F to 80°F) takes
several days and is normally done with liquid nitrogen
discharged to the plant‟s flare system
Solution: Aggreko Process Services (APS)
• Developed a process design package (patent
pending)
− No interruption in normal cool-down operations
− Temporary heat exchangers, chillers, pumps,
and process vessel used to cool the reactor
22
Result
• Reactor temperature reduced from 200°F to 80°F within 11 hours, compared to several days
• A rate of cooling that exceeded client expectations
• Safer, more economical, and faster than the previous nitrogen cooling procedure
Case Study: Hydro processing
Reactor Cooling
Value to customer
• Safety – Reduced flare
loading, and the need for
expensive nitrogen trucks in
the plant
• Profit – Shaved over 2 days
from turnaround, allowing
production to resume sooner
• Cost – Eliminated need for
purchased liquid nitrogen
23
Spanish Americas András Mesics, MD Spanish Americas
SAM Region at a glance
25 Source: www.economist.com
Colombia Statistics
Population (million) 48.8
GDP (US$bn) 388
GDP per head (US$) 7,960
2014 GDP Growth Forecast 4.6%
Argentina Statistics
Population (million) 41.7
GDP (US$bn) 521
GDP per head (US$) 12,490
2014 GDP Growth Forecast 1.0%
Mexico Statistics
Population (million) 116.0
GDP (US$bn) 1,208
GDP per head (US$) 10,420
2014 GDP Growth Forecast 3.0%
Peru Statistics
Population (million) 31.2
GDP (US$bn) 216
GDP per head (US$) 6,950
2014 GDP Growth Forecast 3.0%
Chile Statistics
Population (million) 17.6
GDP (US$bn) 288
GDP per head (US$) 16,370
2014 GDP Growth Forecast 3.7%
Service Centre Locations
Key Performance Measures
26
• Compound revenue growth of 48% since 2009
• Positioned well for continued growth after investments in equipment, people
and infrastructure
• New market entries to Colombia, Peru, Panama and most recently Bolivia
Revenue ($m)
0
20
40
60
80
2009 2013
Fleet (MW)
0
100
200
300
400
2009 2013
Employees
0
50
100
150
200
250
300
2009 2013
Service Centres
0
5
10
15
20
2009 2013
Key Sector Portfolio
27
Quarrying & Mining
• Construction and commissioning
• Mine expansion
• Early production
• Maintenance shutdown
23% of
revenue
Oil & Gas • Power for early production
• Load testing for main generation
• Mobilisation following main generation failure
11% of
revenue
Utilities • Power for periods of exceptional demand
• Power during unplanned outages
• Power during the overhaul or repair of permanent generators
11% of
revenue
Key Strategy Initiatives
28
• Superior Customer Service
• Driving Efficiency
• Growth of at least 2 x GDP
• Employee engagement
Case study: Orange Rules Argentina performance improvement
29
• QHSE performance significantly improved in Argentina with the implementation of a focused incident reduction plan in Q1 2013
• The processed implemented included:
– Regular leadership visits to every location
– Launching Orange Rules
– Manage “Journey” process
– Upgrading QHSE support
• Target Zero
0.0
1.0
2.0
3.0
4.0
5.0
6.0
FAR VAR29
Case Study: Mining
30
5 MW Project (Chile)
• Mini Project at 440 volts
• Back up power for unplanned grid outages
• 24 / 7 Service
• 100% availability
Total 6 MW Gaby Mine (Chile)
• 4MW Mini Project at 23 kV / 50 Hz
• Island mode with 24/7 service
• 2MW in canopy sets in spread at mine
• Turn key solution for mine expansion
31
Brazil Pablo Varela, MD Brazil
Region at a glance
32 Source: www.economist.com
Brazil Statistics
Population (million) 197.3
GDP (US$bn) 2,499
GDP per head (US$) 12,670
2014 GDP Growth Forecast 1.8%
Service Centre Locations
Key Performance Measures
33
• Compound revenue growth of 39% since 2009
• Step change in business scale with Poit acquisition in 2012
Revenue ($m)
0
20
40
60
80
100
120
2009 2013
Fleet (MW)
0
100
200
300
400
500
600
2009 2013
Employees
0
100
200
300
400
500
600
2009 2013
Service Centres
0
5
10
15
20
2009 2013
Key Sector Portfolio
34
Oil & Gas • Offshore power support
• Load test for platform construction
• Main power on onshore rigs
17% of
revenue
Utilities • Isolated areas of power supply
• Load testing on wind farms
29% of
revenue
Mining
• Construction power
• Main power in isolated areas
• Backup contingency power
• Planned maintenance
10% of
revenue
Events • Temporary power solutions
• Temperature control for comfort cooling
5% of
revenue
Key Strategy Initiatives
35
• Superior Customer Service
• Driving Efficiency
• Growth of at least 2 x GDP
• Employee engagement
Case study: FPSO Load Testing
36
32 MW Loadbank testing
• 32 MW of Loadbanks + transformers & cables
• 1 to 3 months projects
• 3 to 4 tests per year up to 2020
• 4 different ports within Brazil
• FPSO* Construction begins in Asia and
Finishes in Brazil
* FPSO – Floating, Production, Storage & Offloading
Case study: FIFA World Cup
37
Equipment
• Project has 50MW of power plus accessories
and 2,000 tons of TC equipment distributed at
12 stadiums and IBC. Power is for TV and video
boards on pitch
• 83 containers shipped from various parts of
the world
Specialized Personnel
• A total Aggreko workforce of 100 people from
26 different locations from around the world
Power Projects Ana Amicarella, MD Americas Power Projects
Power Projects in the Region
Service Centre Locations
Power Project Locations
39
Electricity Shortfall
40
Population without
electricity in Latin
America has been
estimated at more
than 30 million
Source: Oxford Economics, Strategic Analytics, International Energy Agency
Projected growth in electricity supply-demand shortfall (GW)
0
5
10
15
20
25
30
35
40
2015 2020 2005 2010 2000
North America Central/South America
What drives our demand?
41
Argentina • Peaking to support growth and seasonal needs
Aruba • Supplementary power for a large oil refinery
Brazil • Base load power for isolated non-interconnected areas and to support
growth in electrical demand
Colombia • Base load power generation solution for the isolated off-grid oil fields
Curacao • Supplemental power generation during construction of a new power
generation facility
Panama • Congestion on transmission network, growing power demand and
construction of Panama canal
Peru • Base load power during maintenance of hydro power station and
peaking to support transmission line delays
Uruguay • Standby generation to provide grid support after record drought and low
hydro reserves
Venezuela • Base load power to support growth and for primary oil and gas refinery
Key Sector Portfolio
42
Oil & Gas • Stranded gas
• Remote drill sites
• Midstream power support
2% of
revenue
Utilities • Nodal / transmission congestion
• Insufficient installed capacity
• Outage / disaster recover
77% of
revenue
Military • Camp support
• Military facilities
20% of
revenue
Key Performance Measures
43
• Headline revenue growth of 10.6% per annum since 2009, or 28.8% when
adjusted for decline in Military work
Revenue ($m)
0
50
100
150
200
250
300
350
2013 2009
Military Revenue ($m)
0
20
40
60
80
100
120
2009 2013
Employees
0
200
400
600
800
1,000
2013 2009
MW on Rent
800
400
600
1,000
0
200
2013 2009
Key Strategy Initiatives
44
• Superior Customer Service
• Positioned for Growth
• Driving Efficiency
• Employee engagement
Case Study: Panama Hub
45
• Geographically, Panama is strategically
located with varied maritime routes, and is a
free zone
• Ease of import / export
• Labor and immigration incentives
• Politically stable and an open democracy
Case Study – Panama:
Participation in the Open Market
46
2010 - 100MW
Situation:
After the privatization of the power sector in
Panama, a need arose for a temporary
power supply until more permanent power
stations could be brought online
Solution:
• Approximately 15 month duration
• Direct RFP process via EGESA
(Government‟s generation company)
46
Case Study – Panama:
Participation in the Open Market
47
2014 - 80MW Situation: To avoid an energy shortage in 2014 the
Energy Secretariat of Panama made public
a resolution that instructed many public
companies and authorities to work together
on securing reliable and economical
additional power for the start of 2014. The
Panamanian government needed an
alternative that could help with a rapid, on-
time delivery of temporary power.
Main contributors:
• Hydro concerns
• Late generation & transmission projects
• Grid constraints from hydro‟s to load
center
• Transmission line construction:
scheduled completion 2016
Solution: • Will provide capacity directly to distribution
companies
• Energy production requested based on system/grid
needs
• First temporary power producer to participate openly
in the market
Innovative Power Management David Dickert, Area Sales Manager Oil & Gas
A “Power Management Company” to
Producers & Midstream companies operating
throughout the Americas and the rest of the
World.
We offer unique, scalable applications to
economically deliver reliable “temporary” power.
Who We Are in Oil & Gas
49
Aggreko‟s Power Management Model
Total Power Management
2. Scalability
1. Reliability Aggreko Micro Grid Concept
Aggreko Natural Gas Generator operating on LPG
• Engineered Solutions (Tier 1 and 2)
• Variety of Offerings
• Business Partner
• Comparable to or better than utility
• ARM – Aggreko Remote Monitoring
• Dedicated technical coverage / resources
• Daily / Weekly / Monthly Reporting
• Revenue creation
• Cost savings
• Capacity management 50
Defining Power Management
− Tier 1: Turn-Key Deployment
− We act as your internal power manager.
− Reliability - Fleet management, fleet maintenance, fleet deployment, site safety, economical scaling, future planning, remote monitoring, quarterly reporting, ...
− Let your field management focus on
Oil & Gas Production.
− Tier 2: Project Focused
− We act as your internal consultant group.
− Revenue Generation & Cost Savings by reviewing your temporary power deployment models. We have alternative fuel, micro grid and stranded gas clean up applications that are easily scaled into your existing operation.
51
Reliability through Power Manager
Aggreko offers Reliability through:
• Reliability %’s
• Fleet management
• Fleet maintenance
• Fleet deployment
• Remote monitoring
• Site safety
• Economical scaling
• Future planning
• Daily, Weekly, Monthly, & Quarterly usage reporting
Scalability through Power Management
Aggreko Micro Grid Concept
Aggreko Natural Gas Generator running on LPG
Aggreko offers Revenue Generation & Cost Savings through Scalability:
• Match Customer‟s Power Requirements to Power Management Solution
• Small (Single Unit) to Large Power (Micro Grid) Management Solutions
• Alternative fuels including LPG, LNG and CNG
• Stranded gas clean up
53
54
Oil Field Challenges with Power
Operators are looking for ways to reliably and efficiently overcome the
following challenges when deploying temporary power in the oilfield:
• Natural Gas vs. Diesel
• Utilizing Stranded Gas
• Scalability
• Remote Monitoring
55
Challenge: NG vs. Diesel
Overcoming the “key” challenges
Deliverables = Emissions, Efficiency, Economics
56
The Power of remote monitoring
The next step in the evolution of Aggreko‟s equipment diagnostic services,
Aggreko Remote Monitoring (ARM) improves uptime and helps our customers keep operations
running at peak efficiency.
ARM Benefits
• Avoid Preventable Failures
• Right-Size Equipment
• Maximize Uptime
• Accelerate Troubleshooting
1 Equipment Monitoring
3 Personal Attention 4 Issue Resolution
2 Remote Diagnostics !
57
Challenge: Utilising Stranded Gas
Power from Stranded Gas
Producer in West Texas was utility limited. As a result, 16+ wells were under producing or shut in.
− Diesel, LPG, LNG or CNG was not an economical option.
− The only field gas available was nasty wet-sour gas. >300 PPM of H2S.
− Permanent solution to clean the gas was not economical - utility upgrade was expected in the next 6 months.
Challenge: Utilising Stranded Gas
A “temporary solution” was engineered to
clean up the wet-sour gas to power a NG
generation station that would parallel with the
utility grid.
• Reduced H2S levels to 0 PPM via SulfaBate
tower.
• Reduced liquids content of the gas via
multiple gas liquid separators.
• Utilized a temporary flare to purge/test gas
prior to being placed into application.
• 2 x 1 MW NG generators paralleled and
base loading with the utility grid @ 12.4 kV.
• Deployed and operational in less than one
week.
58
59
Challenge: Scalability
Scaling with Microgrids
Producer in North Oklahoma was utility limited. As a result, they were deploying diesel generators at each well site.
− Large HP water transfer and ESP systems are used for artificial lift.
− Each site was oversized to accommodate for starting of transfer and ESP systems.
− Individual lease and fuel cost were heavily cutting into the profitability of well production. 25 wells and growing.
Challenge: Scalability
• A “Micro Grid” solution was engineered to utilize
field gas.
• This eliminated the need for generators at individual
well sites.
• Allowed producer to begin installation of their over-
head distribution system in anticipation of utility‟s
arrival.
• System utilized a wet gas clean up system.
• 4 x 1 MW NG generators paralleled and load
sharing on a 24.9 kV over-head distribution system.
• Deployed and operational in 5 days.
• System is currently operating at a 99.8% reliability
• System has growth options with no interruption to
the grid
60
61
Innovative power management
• Reliable
• Flexible
• Scalable
• Utilizing Stranded Gas
• Utilizing Varying BTU of field Gas
• Utilizing back up fuel source like LPG
• Remotely monitored for efficiency
Unconventional ways to bring reliability and efficiency to
deploying temporary power in the oilfield.
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