EzionEzion Holdings Holdings...
Transcript of EzionEzion Holdings Holdings...
EzionEzion Holdings Holdings LimitedLimited
Disclaimer
Certain statements in this presentation may constitute forward looking statements. Forward looking statements include statements concerning plans,objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historicalfacts. The words “believe,” “anticipate,” “intend,” “estimate,” “forecast,” “project,” “plan,” “potential,” “may,” “should,” “expect,” “pending” and similarexpressions identify forward looking statements.
Forward looking statements also include statements about our future growth prospects. Forward looking statements, involve a number of risks, anduncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to thesestatements include, but are not limited to, risks and uncertainties regarding our earnings, our ability to lease out our vessels, our ability to implement ourstrategy, dependence on credit facilities and new equity from capital markets to execute our strategy, insufficient insurance to cover losses from inherentoperational risks in the industry, dependence on key personnel, our short operating and financial history, possibility of pirate or terrorist attacks, competitioni th i d t liti l i t bilit h l fl d t li lit f th i d t d fl t ti i l l F f thin the industry, political instability where our vessels are flagged or operate, cyclicality of the industry and fluctuations in vessel values. For furtherinformation, please see the documents and reports that we file with the Singapore Exchange Securities Trading Limited (the “SGX-ST”).
You are advised not to place undue reliance on these forward looking statements, which are based on the Company’s current views concerning futureevents. Unless legally required, the Company undertakes no obligation to update publicly any forward looking statements, whether as a result of newinformation, future events or otherwise.
This presentation may include market and industry data and forecasts. Such information were extracted from various market and industry sources and theGroup has not sought the consent of these market and industry sources for their consent nor have they provided their consent to the inclusion of suchinformation in this presentation. You are advised that there can be no assurance as to the accuracy or completeness of such included information. While theCompany has taken reasonable steps to ensure that the information is extracted accurately and in its proper context, the Company has not independentlyverified any of the data or ascertained the underlying assumptions relied upon therein
This presentation does not constitute or form any part of any offer or invitation or inducement to sell or issue, or any solicitation of any offer to purchase orsubscribe for, any shares or other securities of the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in
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, y p y, y p ,connection with, any contract therefor. This document may not be forwarded or distributed to any other person and may not be copied or reproduced in anymanner whatsoever.
Agenda
� Section 1 : Business Overview
� Section 2: Financial Overview
� Section 3 : Investment highlights
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Section 1:
Business overview
Our Directors
From left to right (standing):
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From left to right (standing):Mr Lim Thean Ee. Dr Wang Kai YuenMr Tan Woon Hum, Capt Larry Glenn Johnson
From left to right (sitting)Mr Lee Kian Soo, Mr Chew Thiam Keng
Business overview
EzionEzionEzionEzion
•Production Platforms Repairs & M i t
•Production Platforms Repairs & M i t LNG Fi ld D l t S t S iLNG Fi ld D l t S t S i
Offshore LogisticsOffshore LogisticsOffshore LogisticsOffshore Logistics Long distance cargoLong distance cargoLong distance cargoLong distance cargo
Maintenance•Oil Well Servicing
Maintenance•Oil Well Servicing
•LNG Field Development Support Services•LNG Field Development Support Services
LiftboatsLiftboats / Service Rigs/ Service RigsLiftboatsLiftboats / Service Rigs/ Service Rigs
• Fleet of 20 Vessels consisting of:
• 13 Liftboats / Service Rigs
• Development and operation of Marine
Other Marine Other Marine ServicesServicesOther Marine Other Marine ServicesServices
• Procurement Services
Marine Supply Marine Supply BasesBasesMarine Supply Marine Supply BasesBasesOffshore LogisticsOffshore LogisticsVesselsVessels
Offshore LogisticsOffshore LogisticsVesselsVessels
Long distance cargoLong distance cargohaulagehaulage
Long distance cargoLong distance cargohaulagehaulage
• 50 / 50 Joint Venture on a long distance
- Flat top ballastablebarges
- Flat top barges- Tugs
Landing craft transport
• Levingston design• Bareboat charters• Strong demand
for current fleet • Enhanced design
Supply Bases in strategic locations in Australia
• Further enhances
• Maintenance and repair of strategicoffshore vessels
transocean multi-purpose vessel
• Haulage capability from United States of
- Landing craft transport
• Gorgon Project- Additional 11 Vessels in
service
• Enhanced designfor offshore wind farm
range of offshore logistics support services
America to Australia / Papua New Guinea
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• QCLNG• GLNG
•Production Platforms Repairs & M i t
•Production Platforms Repairs & M i tMaintenance
•Oil Well ServicingMaintenance
•Oil Well Servicing
Liftboats / Service Rigs
Key Functions
Ezion develops, owns and charters one of the largest and more sophisticated class of Liftboats in the world and was one of the first to introduce Liftboats to Asia Pacific, Middle East and West Africa
• Oil well intervention activities e.g. wireline and coiled tubing• Repairs of Offshore Platforms• Upgrading of Offshore Platforms• Maintenance of Offshore Platforms• Operational Support of Offshore Platforms• Temporary housing for Construction & Service Crews
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Ezion Liftboats – Robust Demand
Robust Demand for Liftboats in SEA and Middle East
Region Number of Liftboats
Number of Platforms
Ratio of Platforms per
LiftboatNorth America 240 3,257 14
S.E AsiaMiddle EastWest Africa
54 3,266 60
Source: Kennedy Marr Ltd ,Infield Systems Ltd
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Ezion’s Liftboats – Stable, efficient
Provides a stable work platform for offshore service functionsProvides a stable work platform for offshore service functions
Self-propelled – No need for mobilisation cost for rigSelf-propelled – No need for mobilisation cost for rig
More efficient and safer compared to workboats and barges More efficient and safer compared to workboats and barges
Allows operational support for platforms even during harsh weather conditionsAllows operational support for platforms even during harsh weather conditions
Operating capability of up to 220ft of water depthOperating capability of up to 220ft of water depthOperating capability of up to 220ft of water depthOperating capability of up to 220ft of water depth
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Ezion Liftboats / Service Rigs – (1)
Liftboats /Service Rigs Status
Unit 1 * 3 years + 2 years option contract in Africa from Feb 2010
Unit 2 Sale completed in March 2011
Unit 3 5 years contract in Middle East from end 2010
Unit 4 *** 3 years contract with a National Oil Company in Southeast Asia from end 2Q 2011Unit 4 *** 3 years contract with a National Oil Company in Southeast Asia from end 2Q 2011
Unit 5 3 years contract in Southeast Asia from 2Q 2012
Unit 6 Expected delivery in 2Q 2012; Secured LOI for 5 years contract in Middle East from 2Q 2012
Unit 7 ** Expected deployment in mid 2012;5 years contract in Alaska from mid 20125 years contract in Alaska from mid 2012
Unit 8 ** 2 years + 2 years option contract in the North Sea from end 2011
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*Partial divestment & leaseback** 50/50 JV*** Sale and Leaseback
Ezion Liftboats / Service Rigs – (2)
Liftboats /Service Rigs Status
Unit 9 Secured LOI for up to 5 years to support operations of South East Asian based National Oil Company; Expected deployment in 3Q 2013
E t d d l t i 3Q 2012Unit 10 Expected deployment in 3Q 2012;4.5 years contract with a National Oil Company in Central America
Unit 11 Expected deployment in 4Q 2012;2 years + 2 years option contract in the North Sea from 4Q 2012
Unit 12 Expected deployment by end of 2012;2 years + 1 year option contract in offshore Myanmar before end 2012
Unit 13 Expected deployment in 3Q 2013;4 years contract in the Yellow Sea from 3Q 2013
Unit 14 Expected deployment in 4Q 2012; 4 years contract with a National Oil Company in Central America
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•LNG Field Development Support Services•LNG Field Development Support Services
LNG Field Development Support Services provided by Ezion
LNG Field Development Support Services LNG Field Development Support Services
( II )Development and operation of
Marine Supply Bases in strategic locations in Australia
( II )Development and operation of
Marine Supply Bases in strategic locations in Australia
( III )Provision of long-distance cargo haulage vessel charter services
( III )Provision of long-distance cargo haulage vessel charter services
( I )Offshore Logistics Vessels for
LNG projects in Australia
( I )Offshore Logistics Vessels for
LNG projects in Australiastrategic locations in Australiastrategic locations in Australia
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(I) Offshore Logistics Vessels ( ) g
Key Functions of the Offshore Logistics Vessels
T t ti f ff h l tf j k tT t ti f ff h l tf j k t
Transportation of pre fabricated LNG processing plant modulesTransportation of pre fabricated LNG processing plant modules
Transportation of offshore platforms, jackets,piles and bridgesTransportation of offshore platforms, jackets,piles and bridges
Logistics support for commissioning and decommissioning of offshore oil & gas platformsLogistics support for commissioning and decommissioning of offshore oil & gas platformsg g pg g p
Logistics support for pipe-laying operationsLogistics support for pipe-laying operations
Maintenance of offshore oil and gas Maintenance of offshore oil and gas platforms, subsea pipelinesplatforms, subsea pipelines
Transportation of top-sides for FPSOs and FSOsTransportation of top-sides for FPSOs and FSOs
Engineering and management support for vessel conversionEngineering and management support for vessel conversion
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Gorgon LNG Project
� A$420 million contract with Chevron for the Gorgon LNG Project
� Contract is for the development of Greater Gorgon Area fi ldgas fields
� Greater Gorgon Area gas fields contains resources of approximately 40 trillion cubic feet of gas, located on the northwestern coast of Australia
� JV Company (33.3% owned) secured an initial contract of A$420 million to time charter a fleet of marine logistics vessels to Chevron for 3.5 years in May 2009
� Ezion’s profit is derived from:
� Chartering of the vessels to JV Company
� Equity income earned by JV Company from the contract with Chevron
Project is e pected to r n till earl 2015� Project is expected to run till early 2015
17Source: Chevron
Gorgon LNG Project
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QCLNG project
� Awarded a contract to provide full logistics and support services activities for the haulageof equipment and modules for the development of LNG facilities on Curtis Island,Queensland, AustraliaQueensland, Australia
� Initial project value of approximately US$55 million
�Expected to commence in 2nd half 2012
� LNG facility project secured by the Group is among the first of the 8 proposed inQueensland, Australia which is expected to have an initial capacity of 7.6 million tonnesper annum (Mtpa)per annum (Mtpa)
�Up to 50 Mtpa of LNG could be produced from Queensland, Australia
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3rd major LNG related project in Australia
� Awarded a 2nd project to provide full logistics and support services activities for thehaulage of equipment and modules for the development of LNG facilities on Curtis Island,Queensland, AustraliaQueensland, Australia
�Currently in discussion with clients to finalize on the final scope and contract value whichi t d t b bl t QCLNG j tis expected to be comparable to QCLNG project
�Expected to commence in 1st quarter 2013p q
� LNG facility project secured by the Group is the second of the eight proposed inQueensland Australia which is expected to have an initial capacity of 3 to 4 million tonnesQueensland, Australia which is expected to have an initial capacity of 3 to 4 million tonnesper annum (Mtpa)
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�Up to 10 Mtpa of LNG could be produced from this facility
Location of Curtis Island, Gladstone, Queensland, Australia
Curtis Island
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(II) Australia Marine Supply Bases( ) pp y
(III) Long distance cargo haulage Transocean Multi - Purpose Vessel( ) g g g p
Structure of long distance cargo haulage transocean multi -purpose vessel 50/50 Joint Venture
� 50/50 JV with BBC Chartering &50/50 JV with BBC Chartering &Logistic GMBH & Co. KG (“BBC”) to own Multi – Purpose Vessel (MPV)
� BBC will bareboat charter MPV from JV Co. for 6 years for approximately US$ 28 million from January 2011
� Vessel will be providing logisticsp g gsupport of equipment from America to Australia / Papua New Guinea
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Section 2: Financial Overview
1st Quarter FY2012 Results Highlights
Revenue increased 42% YOYRevenue increased 42% YOY
Net Profit before gain on disposal of Liftboatgrowth of 23% YOYgrowth of 23% YOY
Gross Profit Margin of 44%
Interest of Shareholders at US$359 million
Net Gearing at 0.20X
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Key Financials – Revenue (US$’000)
31,074
120,000117,091 106,951
80 000
100,000 124�%(9%)
13,50560,000
80,00052,379
141%
20,000
40,000
9,37821,727 21,483 30,570
141%
132�%42%
0
,
FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 1Q FY 1Q FY
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FY�2007 FY�2008 FY�2009 FY�2010 FY�2011 1Q�FY�2011
1Q�FY�2012
Key Financials – Net Profit (US$’000)
8,03860,000
58,117113%
50,00040,202
45%
4,01830,000
40,000
230%
20,000
2 855 5 620
12,18311,428
14,080117%
230%
97% 23%
0
10,000 2,855 5,62097% 23%
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FY�2007 FY�2008 FY�2009 FY�2010 FY2011 1Q�FY�2011*
1Q�FY�2012*
* Profit before gain on disposal of Liftboat
1st Quarter FY 2012 Performance
(US$’000) 1Q FY2011 1Q FY2012 Change (%)
Revenue 21,483 30,570 42
Gross profit 12,132 13,577 12
Gross profit margin 56% 44%
Other income, net 11,055 878 -92
Share of results of joint ventures
2,669 3,682 38
Profit before tax 22 694 15 018 34Profit before tax 22,694 15,018 -34
Profit after tax 22,479 14,080 -37
Profit before gain on
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Profit before gain ondisposal of Liftboat
11,428 14,080 23
Financial Performance
(US$’000) FY2008 FY2009 FY2010 FY2011 Revenue 21,727 52,379 117,091 106,951Revenue 21,727 52,379 117,091 106,951
Gross profit 9,966 20,869 44,703 55,302
Gross profit46% 40% 38% 52%
pmargin
46% 40% 38% 52%
Other income, t
2 1,145 11,139 12,183net
, , ,
Profit before tax 5,744 12,869 43,178 61,010
Profit after tax 5 620 12 183 40 202 58 117Profit after tax 5,620 12,183 40,202 58,117
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Revenue by Key Business Segments
FY2010 FY2011Offshore logistic support vessels’ services US$ 88 million US$ 65 million
Liftboats and jack-up rigs’ services US$ 29 million US$ 42 million
Offshore�logistic�support�vessels'�services
Liftboat�and�jack�up�rigs'�services
25% 39%
75%FY�2010
61%
FY�2011
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Fixed Assets by Key Business Segments
FY2010 FY2011Offshore logistic support
vessels’ servicesUS$ 71.8 million US$ 106.4 million
Liftboats and jack-up rigs’ services
US$ 78.7 million US$ 163.7 million
Other assets US$ 0.3 million US$ 0.7 million
Offshore logistic support vessels' services0.3%
0.2%
Offshore�logistic�support�vessels �services
Liftboats�and�jack�up�rigs�services
Unallocated�assets
39 3%
47.6%52 2%FY�2010
39.3%60.5%
FY�2011
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52.2%
Key Financials – Balance Sheet
(US$ mil) 31 Dec 09 31 Dec 10 31 Dec 11 31 Mar 12Fixed Asset 185.0 150.8 270.8 321.4
C & 63 2 133 6Cash & cash equivalents 28.7 75.5 63.2 133.6
Current assets 67.1 198.4 127.4 233.3
Total assets 259.4 397.3 470.4 640.0ota assets 59 39 3 0 6 0 0
Borrowings 110.8 130.5 157.7 205.3
Current liabilities 43.7 125.9 81.8 120.1
Non-current liabilities 89.3 61.4 120.2 160.5
Shareholders’ equity 126.3 209.9 268.3 359.4
Net Gearing (times) 0 65 x 0 26 x 0 35 x 0 20 xNet Gearing (times) 0.65 x 0.26 x 0.35 x 0.20 x
Current Ratio (times) 1.54 x 1.58 x 1.56 x 1.94 x
Interest Service Coverage R i ( i ) 13 6 x 22 4 x 28 4 x 22 1 x
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Ratio (times) 13.6 x 22.4 x 28.4 x 22.1 x
Interest Service Coverage Ratio = EBITDA/ Finance expenses
Long term cash flow visibility
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Section 3:
Investment highlights
Key Takeaways
Barriers to Entry-First mover advantage in development of Liftboats for Asia Pacific, Middle
East and West Africa-OligopolyOligopoly
-The market leader in Southeast Asia and Australia to have the experience and track record to handle offshore logistics projects in environmentally
challenging conditions
EzionClients
-Oil & Gas Majors-EPIC contractors for Oil &
Usage- Offshore production platform maintenance, repairs and upgrade Ezion Gas Majors- LNG fields/ facilities
development
Competition-No direct competition in LiftboatSegment owned by the Group
-Viewed as independent by EPIC contractor
Demand-Strong market demand from Oil
& LNG players
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contractor-Proven track record in offshore
logistics solutions
-Aging offshore platforms
Investment Highlights
� First mover advantage in Liftboats and a leading player in Offshore Logistics Support Services fordevelopment of LNG fields and facilities in Asia Pacific, Middle East and West Africa
� Proven management team with extensive experience in the oil & gas industry
� Strong recurring income
- Secured contracts with a total value of about US$1.6 billion.
- Average contract duration of 3 to 5 years- Average contract duration of 3 to 5 years
� Strong & consistent financial performance
- Net profit increased at a CAGR of 112% from US$2.9 million in 2007 to US$ 58.1 million in 2011
� Prudent capital structure
- High liquidity ratio of 1.94x at 31st March 2012
- Low net gearing of 0.20x as at 31st March 2012 g g
- High debt servicing coverage ratio of 22.1x as at 31st March 2012
� Robust demand for Group’s services and assets in the coming years as a result of aging offshoreproduction platforms and major gas field development in Australia
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production platforms and major gas field development in Australia