For personal use only - Australian Securities Exchange · Engineering Consulting | Project Delivery...

ASX code - LCM

FY15 interim results investor briefing 26 February 2015 * Project during construction

For

per

sona

l use

onl

y

2 Engineering Consulting | Project Delivery | Asset Performance FY15 Interim Results 2 Engineering Consulting | Project Delivery | Asset Performance FY15 Interim Results

Performance summary 1H15 against previous corresponding period (pcp)

• Financial results in line with guidance

• Transition program of strategic growth initiatives

and cost reductions has delivered sustainable

cost savings

• Increase in scale and diversity of Hydrocarbons

customers, contributing 65% of total revenue

(FY14: 57%)

• Solid work-in-hand providing visibility through to

the end of the financial year

• Strong conversion of earnings to cash reflected in

strong balance sheet and net cash position

• Workforce of 580 people (FY14: 610)

• Dividend payout ratio of 57%

$69.3m Revenue

1H14: $67.3m

$4.4m Statutory NPAT

1H14: $2.1m

3.5c Interim dividend

1H14: 2.0c

$6.3m EBITDA

1H14: $3.0m

6.2c Basic EPS

1H14: 3.0c

$22.9m Net cash position

1H14: $9.2m

^Refer to end note on page 20

For

per

sona

l use

onl

y

3 Engineering Consulting | Project Delivery | Asset Performance FY15 Interim Results

Financial summary 1H15

• Revenue of $69.3m, up from $67.3m pcp

• Labour revenue consistent with pcp

• Marginal increase in total revenue over pcp

due to increase in procurement activities

• EBITDA of $6.3m, up 110% from $3.0m in pcp

• EBITDA margin 9.1% (4.5% pcp)

• Sustained reduction in overhead expenses

($20.6 million in the current period compared

to $23.8 million in pcp)

Revenue ($m) EBITDA ($m)

1H 2H

55.3

42.5

FY11

56.1

67.0

FY12

65.3

64.3

FY13

67.3

60.6

FY14

69.3

FY15

4.5

0.3

FY11

4.3

7.0

FY12

7.5

6.6

FY13

3.0

3.6

FY14

6.3

FY15

1H 2H

For

per

sona

l use

onl

y


Financial summary 1H15 (continued)

• NPAT of $4.4m, up 110% from $2.1m in pcp

• Includes $0.5m of income tax credits

expected from research and development

incentives (FY14: $0.5m)

• Benefits from R&D incentives are expected

to continue throughout FY15

• Basic earnings per share of 6.2 cents (3.0 pcp)

• Interim dividend of 3.5 cents per share (2.0c pcp)

• Partially franked to 50% due to reduced

corporate tax paid resulting from R&D

incentives and instalment timing

• Reflects payout ratio of 57%

• Share buy-back program has acquired 1.7m

shares for total consideration of $1.2m as at

24 February 2015

NPAT ($m) DPS & EPS (cents per share)

1H 2H

4.2

0.4

FY11

4.7

6.0

FY12

5.6

5.5

FY13

5.6

-0.6

FY14

4.4

FY15

3.25

1.25

FY11

6.90

0.70

3.50

6.90

9.00

5.00

FY12

4.50

8.50

8.10

4.50

FY13

2.00 3.00

4.20

3.50

3.50

FY14 FY15

DPS 1H EPS 1H DPS 2H EPS 2H

6.20

For

per

sona

l use

onl

y


5

Our business

We remain focused

on enhancing the

value and performance

of assets.

Our skill set extends

across all phases of

the asset and project

lifecycle.

For

per

sona

l use

onl

y


• Our hydrocarbons business incorporates a range of sub-segments. While the market dynamics differ

within each of these sub-segments, LogiCamms’ services in all of these markets have a common focus

on enhancing existing assets and operational performance.

• Our focus on asset performance and brownfield work limits our exposure to the significant decrease in

new capital investment.

• A summary of the hydrocarbon sub-segments currently supported by LogiCamms is as follows:

- Unconventional oil & gas - services to the coal seam gas and shale gas fields

- Conventional oil & gas - onshore processing facilities, pipelines, and compressor stations but also

includes offshore topside, downstream (LNG, refining & petrochemical) facilities and natural gas

infrastructure

• Asset Performance Services - optimise the efficiency and value of plant, process and those people

working in the sector, particularly through our Competency Training and Assurance services

Our business (continued)

For

per

sona

l use

onl

y


• Pipelines, particularly gas transmission, represent a growing part of the hydrocarbons portfolio for

LogiCamms and are a specific strategic focus.

- The Company’s major contract with Epic Energy to provide Engineering, Procurement and

Construction (EPC) services for the Moomba to Adelaide gas pipeline (MAP) is progressing to

plan with completion scheduled for June 2015.

• Demand for the Company’s Asset Performance Services has increased in New Zealand as the

hydrocarbons market transitions to focus on managing operating costs and efficiencies.

- Our New Zealand team has cemented its role as the oil & gas centre of excellence for the

LogiCamms group with over 40% of the workload of the New Zealand business now associated

with projects in Australia.

• LogiCamms’ long established presence in the Pilbara region helped to secure a recent contract

extension with Samsung C&T as well expand engineering and construction management projects for

the iron ore operators.

- The contract with Samsung C&T to provide control system engineering and procurement services

for the Roy Hill iron ore mine in Western Australia has been extended.

Our business (continued)

For

per

sona

l use

onl

y


Representative Clients

For

per

sona

l use

onl

y


• LogiCamms has entered an agreement to acquire Monarc Environmental, effective 1 March 2015. The

acquisition is not expected to make a material contribution to LogiCamms’ FY15 earnings.

• Monarc Environmental is a 23-person specialist environmental consultancy, which compliments

LogiCamms’ strategy through long term relationships with pipeline operators, public sector authorities

and the infrastructure market (particularly power utilities). Key clients include APA, Jemena and

CitiPower/Powercor.

• Monarc provides LogiCamms with:

- Increased specialisation in front-end technical consulting capability, specifically in environmental

management

- Improved access to infrastructure markets with a strong focus on linear infrastructure: pipelines,

energy and utilities sectors in particular

- An established Victorian presence with active projects around Australia

Strategic acquisition

For

per

sona

l use

onl

y


Strategy & Outlook

• Based on an encouraging first half, and visibility through to the end of FY15, the Company has

reaffirmed its full year guidance of achieving revenue in the order of $140 million and EBITDA margin of

8% to 10%.

• LogiCamms continued to increase the scale and diversity of its services into hydrocarbons markets with

approximately 65% of revenue in 1H FY15 derived from this sector (1H FY14 55%). With an increasing

portfolio of hydrocarbon clients, LogiCamms operates in support of existing (brownfield) oil & gas

assets across Australia and New Zealand. Pipelines, particularly gas transmission, represent a growing

part of the hydrocarbons portfolio for LogiCamms and are a specific strategic focus.

• The Minerals & Metals and Infrastructure sectors remain important markets for the business.

LogiCamms remains focused on improving the performance of our customers’ assets in a challenging

market.

• As well documented in the public domain global energy and resource markets are under significant

pressure and this is likely to continue for the foreseeable future. This environment provides an

opportunity for LogiCamms to work with our customers to reduce costs and improve asset productivity

through innovation.

• The outlook into FY16 is difficult to predict in light of prevailing market conditions. However, with a

strong financial position and a long term strategy orientated towards enhancing the value and

performance of assets, growth remains available to LogiCamms.

For

per

sona

l use

onl

y


Appendices

For

per

sona

l use

onl

y


LogiCamms at a glance

LogiCamms is a professional

engineering and consulting

services company across

Australia and New Zealand.

Key industries:

• Hydrocarbons

• Minerals and metals

• Infrastructure

Our purpose is to enhance the

value and performance of

assets.

580 people

8 offices

65% revenue from hydrocarbons

customers in H1FY15

2007 year listed on ASX F

or p

erso

nal u

se o

nly


Description of Services Control Systems Pipelines EPC & EPCM

Engineering Consulting & Sustaining Capital Projects

Value Creation

Leading integrator of major control systems

Multiple technology vendors

Functional safety experts

Pipeline design & install

Gas Gathering field development

Auto-generation software tools

Flowline & electrical design integration

Scalable EPC and EPCM delivery from a consultant

Accelerated models

Established partnerships with constructors & vendors

Focus on innovation

Transferable and scalable design

In-house specialists

High value engineering

Key Contracts

• Samsung C&T, Roy Hill mine control system, WA

• Wiggins Island Coal Export Terminal, QLD

• Jemena

• APA, Mondara Gas Facility

• Tasmanian Gas Pipeline

• Epic Energy, EPC projects for Moomba to Adelaide Pipeline, SA

• BW Offshore, EPC boiler module, NZ

• Ballance Agri-Nutrients, NZ

• Oil field development study, WA

• Methanex New Zealand, engineering consulting and sustaining capital projects

• Origin Energy & Santos upstream, QLD

Work snapshot – engineering & projects

For

per

sona

l use

onl

y


Description of Services Maintenance system development Shutdowns / turnarounds Asset integrity and asset support

Value Creation

Seamless start-up support for

greenfield projects

Long term asset performance

strategies

Effective change management skill

set

Specialist project management

expertise

Cost, schedule and safety focus

Maintain and optimise integrity of

operating facilities

24-hour on- and off-site support

Key Contracts

• Chevron Australia, Gorgon LNG

maintenance system, WA

• Origin Energy maintenance

system, QLD

• Various mine sites, QLD

• ConocoPhillips, Darwin LNG

shutdowns

• Ballance Agri-Nutrients, plant

turnaround, NZ

• BW Offshore FPSO shutdown

project, NZ

• ConocoPhillips, Bayu-Undan

• Oil Search, asset integrity

campaign, Papua New Guinea

Work snapshot – asset performance

For

per

sona

l use

onl

y


Description of Services

Training and development solutions

Competency assurance management systems

Professional and technical training courses

Value Creation

Workforce readiness and development

Specialised and custom training packages

E-learning packages

Internal management of

workforce competency

Learning and development framework

Training manuals and procedures

Verification of Competencies (VOCs)

High voltage operations

Hazardous areas

Project management

On- and off-site delivery

Key Contracts

• Origin Energy

• BHP Billiton

• Chevron Australia

• ConocoPhillips Australia

• Arrow Energy

• QGC

• Oil Search

• SIMTARS

• Newcrest

• Oil Search

• Woodside

• Fluor

• Origin

• BHP

Work snapshot – training & assurance

For

per

sona

l use

onl

y


Financial summary FY15

1H15 1H14 1H14 Comparison 2H14 Comparison

A$m

Statutory Results

6 Months to 31 Dec 2014

Statutory Results

6 Months to 31 Dec 2013

Change Statutory Results

6 Months to 30 June 2014

Revenue $69.3m $67.3m 3.0% $60.6m

Gross Profit Gross Profit %

$25.2m 36.3%

$25.7m 38.2%

-1.9% $23.8m 39.3%

EBITDA EBITDA %

$6.3m 9.1%

$3.0m 4.5%

110% $3.7m 6.1%

EBIT

EBIT %

$5.3m 7.6%

$2.0m 3.0%

115% $2.5m 4.1%

NPAT Attrib to Members NPAT Margin (%)

$4.4m 6.3%

$2.1m 3.2%

110% $2.9m 4.8%

Operating Cash Flow

$14.0m $0.5m 2700% $5.1m

EPS (cents per share)

6.2 3.0 107% 4.2

DPS (cents per share)

3.5 2.0 75% 3.5 For

per

sona

l use

onl

y


Balance sheet (June 2014) – key items

Balance Sheet Item

Balance A$m Comparison to 30 June 2014

Comments

Cash $22.9m $12.2m

• Continued focus on active working capital management • 1H15 includes approximately $5.0m in project committed funds received in advance

from customers • 1H14 includes large outflows for ongoing investment in systems, dividends, and taxes

Current Receivables & Work In Progress

$29.3m $29.1m • Key focus area of collecting debtors and billing work in progress • Days sales in debtors/WIP has improved on prior periods and is within target range of

less than 70 days

Current Trade and other Payables

$13.0m $7.9m • Composition of payables in 1H15 includes some large project commitments and

reclassification of ITL earn-out accrual to current liabilities • Otherwise, composition consistent with prior periods

Cash on hand –

30 June 2014

Net operating

receipts &

payments

12.9

14.5

Taxes

(Aus & NZ)

0.5

Ongoing

systems

development

0.4

Dividends paid

to shareholders

2.5

Share buy back

program

0.7 0.4

Other net cash

flows

Cash on hand –

31 December

2014

22.9

0

5

10

15

20

25

30

$’0

00

For

per

sona

l use

onl

y


• The purpose of this presentation is to provide general information about LogiCamms Limited (Company). It is not recommended that any person makes any investment decision in relation to the Company based solely on this presentation. This presentation does not contain all information which would be material to the making of a decision in relation to the Company. Any investor should make its own independent assessment and determination as to the Company’s prospects prior to making any investment decision, and should not rely on the information in this presentation for that purpose.

• This presentation does not involve or imply a recommendation or a statement of opinion in respect of whether to buy, sell or hold securities in the Company.

• This presentation contains certain statements which may constitute “forward-looking statements”. Such statements are only predictions and are subject to inherent risks and uncertainties which could cause actual values, results, performance or achievements to differ materially from those expressed, implied or projected in any forward-looking statements. No representation or warranty, express or implied, is made by the Company that the matters stated in this presentation will be achieved or prove to be correct.

• Except for statutory liability which cannot be excluded, the Company, its officers, employees and advisers expressly disclaim any responsibility for the accuracy or completeness of the material contained in this presentation and exclude all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this presentation or any error or omission therefrom. The Company accepts no responsibility to update any person regarding any inaccuracy, omission or change in information in this presentation or any other information made available to a person nor any obligation to furnish the person with any further information.

End Notes ^ Earnings Before Interest Tax Depreciation and Amortisation. The reference to EBITDA is unaudited and unreviewed however is based on amounts extracted from the reviewed financial statements and reconciles to the profile before and after income tax as reported in the Condensed Consolidated Income Statement contained within the Company’s Financial Report and Appendix 4D for FY15 as follows:

The presentation of EBITDA is intended to provide a measure of the Group’s performance before the impact of non-cash expense items such as depreciation and net finance income.

TRIFR = the Total Recordable Injury Frequency Rate is a rolling 12 month average measure of safety performance.

Disclaimer & notes

31 December 2014 31 December 2013

Net Profit Before Tax

$5.4m $2.2m

Net finance income ($0.1m) ($0.1m)

Depreciation $1.0m $0.9m

EBITDA $6.3m $3.0m

For

per

sona

l use

onl

y

19 Engineering Consulting | Project Delivery | Asset Performance FY15 Interim Results 19 Engineering Consulting | Project Delivery | Asset Performance

Further information

Registered Office

433 Boundary Street

Spring Hill, Brisbane

Queensland, Australia 4000

Tel. +61 7 3058 7000

Investor Relations

Matthew Adamo

Managing Director

Tel. +61 7 3058 7205

Our Values

Web www.logicamms.com.au

Media Enquiries

Alasdair Jeffrey

Rowland

Tel. +61 7 3229 4499

Paul Bowker

Chief Financial Officer

Tel. +61 7 3058 7205

For

per

sona

l use

onl

y

Date post:	07-Jun-2020
Category:	Documents
Upload:	others
View:	0 times
Download:	0 times

For personal use only - Australian Securities Exchange · Engineering Consulting | Project Delivery...

Documents