Maersk Drilling Annual Result 2015

Maersk Drilling Annual Result 2015
11 February 2016
page 2
Legal notice
This presentation contains certain forward looking statements (all statements that are not entirely based
on historical facts, among others expectations to future financial performance, developments, resources
growth and production levels). Those forward looking statements reflect current views on future events
and are by their nature subject to significant risks and uncertainties because they relate to events and
depend on circumstances that will occur in the future. We consider such forward looking statements
reasonable based on the information available to us at this time, but the actual results etc. may differ
materially from our expectations because of external factors as well as changes to APMM’s goals and
strategy. Thus, no undue reliance should be placed on such statements. Neither APMM, nor any other
person, shall assume responsibility for the accuracy or completeness of the forward looking statements
and do not undertake any obligation to update such statements except as required by law.
This Legal Notice shall be governed by Danish Law. Any dispute arising out of or in relation to this Legal
Notice which can not be solved amicably shall be decided by the Danish Courts.
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Result positively impacted by fleet growth, cost savings and
high operational uptime but negatively affected by increased
idle time
Maersk Drilling result
Financial Highlights (USDm)
Highlights
2015
2014
Revenue
2,517
2,102
Profit/loss before depreciation, amortisation
and impairment losses etc. (EBITDA)
1,396
903
-546
-348
Gain on sale of non-current assets, etc., net
46
82
Share of profit/loss in joint ventures
18
-36
914
601
-113
-123
751
478
Depreciation, amortisation, and impairment
losses
Profit/loss before financial items (EBIT)
Tax
Net operating profit/loss after tax (NOPAT)
Cash flow from operating activities
1,283
701
-854
-2,160
Invested capital
7,978
7,623
ROIC
9.3%
7.1%
Operational uptime
97%
97%
Cash flow used for capital expenditure
•
Maersk Drilling’s profit increased by 57% to USD 751m (USD
478m)
•
Maersk Drilling’s underlying profit was USD 732m (USD 471m)
positively impacted by cost savings, fleet growth, and strong
operational performance
•
ROIC was 9.3% (7.1%)
•
The initiated cost reduction program delivered savings of 8%
excluding FX effects on the operating cost level in 2015
compared to 2014
•
The average operational uptime was 98% (97%) for the jack-up
rigs and 94% (96%) for the floating rigs
•
Maersk Drillings’ forward contract coverage is 77% for 2016,
53% for 2017 and 43% for 2018.
•
Although at significantly lower day rates, Maersk Drilling
secured in total twelve contracts and added USD 2.0bn to the
revenue backlog in 2015. The total revenue backlog amounted
to USD 5.4bn (USD 6.0bn)
•
Maersk Drilling had three rigs available end of 2015, of which
two will go on contracts during 2016.
•
Eight rigs will come off contracts during 2016.
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Continued strong operational performance
Operational uptime, 2015 vs. 2014
Operational uptime, 5 years
100%
100%
97% 97%
96% 94%
97% 98%
80%
80%
60%
60%
40%
40%
20%
20%
0%
96%
2010
2011
93%
97%
97%
97%
2013
2014
2015
0%
Maersk Drilling
2014
96%
2015
Floating rigs
Jack-up rigs
2012
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High forward coverage reduces near term exposure
Maersk Drilling forward contract coverage
100%
80%
77%
60%
54%
40%
43%
20%
0%
2016
Note: As per end Q3 2015
2017
2018
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Strong revenue backlog of USD 5.4bn with quality
customers
Revenue backlog by year, end 2015, USDbn
Revenue backlog by customer, end 2015
Others
2,5
Shell
Chevron
2,0
Maersk Oil
~1,9
BP
ConocoPhillips
1,5
~1,4
Exxon
1,0
Conoco/
Marathon
~1,0
0,5
~0,5
~0,6
USD
5.4bn
Total
Statoil
Eni
0,0
2016
2017
2018
2019
2020+
Det Norske
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Maersk Drilling has secured USD2.0bn in
new contracts & extensions during 2015
MAERSK RESILIENT
Customer: Maersk Oil
MÆRSK GIANT
MAERSK GUARDIAN
Customer: DONG Energy
Customer: Maersk Oil
Country: Denmark
Country: Denmark
Country: Denmark
Contract Value (USD): 110m
Contract Value (USD): 16m
Contract Value (USD): 142m
Duration: 3 years
Duration: 150 days
Duration: 5 years
MAERSK RESOLVE
Customer: DONG Energy
MAERSK DISCOVERER
HEYDAR ALIYEV
Customer: BP
Customer: BP
Country: Denmark
Country: Egypt
Country: Azerbaijan
Contract Value (USD): 35m
Contract Value (USD): undisclosed
Contract Value (USD): Undisclosed
Duration: 250 days
Duration: 3 years
Duration: 160 days
HEYDAR ALIYEV
MAERSK VOYAGER
MAERSK VENTURER
Customer: BP
Customer: Eni
Customer: Otto Energy
Country: Azerbaijan
Country: Ghana
Country: Philippines
Contract Value (USD): 523m
Contract Value (USD): 545m
Contract Value (USD): undisclosed
Duration: 5 years
Duration: 3.5 years
Duration: 23 days
MÆRSK INNOVATOR
MAERSK VENTURER
MAERSK VENTURER
Customer: ConocoPhillips
Customer: Total
Customer: Petronas
Country: Norway
Country: Uruguay
Country: Brunei
Contract Value (USD): 142m
Contract Value (USD): 44m
Contract Value (USD): undisclosed
Duration: 16 months
Duration: 120 days
Duration: 1 month
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Cost savings program
Our commitment to enhancing resiliency has enabled a 8% cost reduction
compared to 2014
OPERATIONAL
EXPENDITURES
YARD STAYS
ADMINISTRATIVE
& OVERHEAD,
LOCATION COSTS
STRATEGIC APPROACH
TO STACKING
Leaner maintenance &
project management,
procurement savings, travel
expense reductions, general
efficiency programmes
Optimisation of yardstays,
rolling maintenance
evaluation, predictive
maintenance & real-time
monitoring
Refitting the head office,
expat position localisation,
consultants, travel &
benefits efficiencies realised
Evaluate on a case-bycase basis, aggressively
pursue new contracts &
extensions, rigorously
re-evaluate stacking cost levels
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XLE-4
Newbuild programme
•
Maersk Drilling will take delivery of its last ultra
harsh environment jack-up, XLE-4, from
Daewoo Shipbuilding and Marine Engineering
(DSME) shipyard in South Korea in 2016
•
Customer: BP
•
Country: Norway
•
Contract value: USD 812m
•
Duration: Five years
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Maersk Drilling
Present in the most important oil and gas markets
North West Europe
8 ultra harsh jack-up rigs
3 premium jack-up rigs
US Gulf of Mexico
3 ultra deepwater floaters
Caspian Sea
1 midwater floater
Egypt
South East Asia
1ultra deepwater floater
Egyptian Drilling Company
50/50 Joint Venture
Ghana
1 ultra deepwater floater
1 premium jack-up rigs
Angola
1 ultra deepwater floater
Under construction
Available
1 ultra harsh jack-up rig
1 ultra deepwater floater*
1 ultra harsh jack-up**
1 premium jack-up rig
Note: As per end 2015
* Maersk Venturer will go on contract with Total in Uruguay in Mar 2016
** Maersk Guardian converted to accommodation rig. Rig will go on contract with Maersk Oil in Denmark in Sep 2016
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Market
•
The offshore drilling industry faces significant
challenges over the medium-term, due to the on-going
low oil price environment and the continued need for
resolving the structural imbalance in global rig supply
& demand. Oil companies continues to respond to the
new oil reality with further cutbacks in capital
expenditures, headcount reductions, and fewer
offshore field developments.
•
Offshore drillers are aggressively implementing
operational & financial efficiency programs, as well as
delaying scheduled newbuild rig deliveries and
stacking or scrapping an increasing number of rigs.
Tendering activity continues to be very limited, and day
rates are approaching cash operating costs, due to the
worsening oversupply of available rigs.
•
While there remains significant uncertainty in the
medium- to long-term outlook for offshore drilling
services, Maersk Drilling maintains a competitive
advantage due to our comparatively young rig fleet,
although short-term profitability will continue to be
pressured.
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Maersk Drilling – Moving boundaries within offshore drilling