Pareto Oil & Offshore conference
Jan Arve Haugan, President & CEO
Holmenkollen Park Hotel, 4 September 2013
Photo: Trønder-Avisa, Marius Langfjord
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© Kvaerner 2013 04.09.2013
Kvaerner executes amazing projects
Specialised EPC company
Revenues of NOK 10.7 billion (2012)
Order backlog of almost NOK 30 billion
3 000 employees in 9 countries
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© Kvaerner 2013 04.09.2013
HSSE – our licence to operate
Open and transparent reporting
Continuous and proactive focus
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Norwegian yards as a differentiator
Stord yard
Assembly of modules and
platforms
Completion and hook-up
Onshore projects
Decommissioning
Verdal yard
Steel jackets for offshore
installations
Specialised within cold
bending of pipes
Pre-fabrication, installation
and pressure testing of
pipe systems for offshore
and onshore industries
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© Kvaerner 2013 04.09.2013
On-going projects for the North Sea
ELDFISK TOPSIDE
EDVARD GRIEG TOPSIDE
NYHAMNA ONSHORE
EDVARD GRIEG JACKET
MARTIN LINGE JACKET
Client
ConocoPhillips
Client
Lundin Norway AS
Norway
Client
A/S Norske Shell
Client
Lundin Norway AS
Norway
Client
Total E&P
Norway
Project
EPC contract to deliver
topside and bridges the
Eldfisk 2/7 S platform
Project
EPC of the topside for the
Edvard Grieg platform
Project
Nyhamna onshore
framework agreement
Project
Edvard Grieg
Project
Martin Linge
Awarded
18 March 2011
Awarded
3 May 2012
Awarded
19 April 2012
Awarded
19 January 2012
Awarded
13 February 2012
Contract value
NOK 5.5 billion
Contract value
NOK 8 billion
Contract value
NOK 11 billion
Delivery
April 2014
Delivery
Spring 2014
Delivery
Early 2014
Delivery
April 2015
Duration
6 years plus 2+2 years
options
Height
134 m
Height
140.5 m
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Construction of the Hebron GBS at the
Bull Arm site, Newfoundland and Labrador
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Strong revenue visibility
Historical revenues and backlog
NOK million
16 000
14 000
12 000
10 000
8 000
6 000
4 000
2 000
2011
Historical revenues
incl. incorporated JVs
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2012
2013
2014
Backlog per 30 June 2013
incl. incorporated JVs
2015 and later
On-going improvement initiatives to strengthen
competitiveness
New operating model
implemented
Corporate staff reduced
by 35 percent
Assessing options for the
future of the Verdal yard
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Delivery models
low cost fabrication and strategic partnerships
Norway
 Verdal
 Stord
Canada
NW Russia
Poland
Caspian
Low cost fabrication
Kvaerner current construction sites
Kvaerner potential future construction sites
Current target markets
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FE Russia
Spending growth somewhat delayed compared to
last year
Global offshore E&P spend for EPC by year
USD million
90 000
September 2013
80 000
Spring 2011
August 2012
70 000
60 000
50 000
40 000
30 000
20 000
10 000
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Source: Rystad Energy, Kvaerner analysis
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Opportunities in all target markets
Alaska & Canada
•
•
Activities on-going to
position concrete
sub-structures
High potential in
Newfoundland and
Labrador
Arctic Russia
•
•
North Sea
•
•
Johan Sverdrup key
target
Opportunities for
completion and hookup projects
•
North America
Caspian
•
•
•
Certain awards for gas
fired power plants
seems to be sliding
Steel maintenance
market see some
reduction in spending
•
•
Strong future market
Studies on-going in in
several areas
Kara Sea field seismic
surveys started
Strong future market,
uncertain timing
Development of delivery
model on-going
Kashagan expected
on-stream in 2013
Asia Pacific
•
•
High activity on studies for Arctic areas
Positive medium- and long-term market prospects
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© Kvaerner 2013 04.09.2013
Multiple opportunities
within next 24 months
Robust delivery model
established
Summary
Strong order backlog
High activity – project
execution focus
Improving competitiveness
and delivery models
Predictable dividend policy
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© Kvaerner 2013 04.09.2013
HSSE – core value and
licence to operate
Maintain and develop home
markets
International expansion
Hands-on management
THANK YOU!
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© Kvaerner 2013 04.09.2013
Copyright and disclaimer
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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.
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© Kvaerner 2013 04.09.2013