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HIAP SENG ENGINEERING LTD HIAP SENG ENGINEERING LTD 1HFY2010 Results Presentation 1HFY2010 Results Presentation November 12, 2009 November 12, 2009
HIAP SENG ENGINEERING LTDHIAP SENG ENGINEERING LTD1HFY2010 Results Presentation1HFY2010 Results Presentation
November 12, 2009November 12, 2009
•
About Hiap
Seng
•
Our Core Business
•
Competitive Strengths
•
Financial Performance
•
Corporate Development
•
Outlook and Future Plans
Content
2
HIAP SENG ENGINEERING LTD
About Us About Us ‐‐
Corporate HistoryCorporate History
•
Established in 1951;
•
Corporatised
in 1971;
•
Listed in Singapore Stock Exchange in 1999.
HIAP SENG ENGINEERING LTD
3
HIAP SENG ENGINEERING LTD
About Us About Us ––
HiapHiap
Seng TodaySeng Today
• Today
Hiap
Seng
Engineering
is
a
Specialist
Integrated
Engineering
Group
for
the
Oil‐
and‐Gas, Petrochemical and Pharmaceutical Industries.
• We
are one
of
Singapore’s
leading
engineering
groups
providing
engineering
services
covering engineering, procurement & construction (EPC) projects and plant maintenance
services
for
the
oil‐and‐gas,
petrochemical,
and
pharmaceutical
industries
in
Singapore
and beyond.
4
HIAP SENG ENGINEERING LTD
Core BusinessCore Business
Plant Maintenance
EPC
Construction
Hiap Seng Engineering Ltd
5
HIAP SENG ENGINEERING LTD
Industries ServedIndustries Served
6
HIAP SENG ENGINEERING LTD
Our Regional OfficesOur Regional Offices
•
With Manufacturing Facilities:–
Malaysia–
Thailand
•
Representatives Offices:–
Indonesia–
China–
Hong Kong–
Taiwan–
Myanmar–
Vietnam–
Bangladesh–
Australia–
UAE
7
HIAP SENG ENGINEERING LTD
Valued ClienteleValued Clientele•
Shell Eastern Petroleum•
CNOOC•
CNPC•
Chiyoda Corp•
Exxon Mobil•
TECNIP•
Chevron Chemicals•
JGC Corp•
Foster Wheeler•
Halliburton•
Woodside Energy•
Frontline / Sea Production•
LINDE Gas•
MOGE•
Shengli•
Shell (China)•
EMAS
•
Sumitomo Corp•
Sinopec China•
Petronas
Malaysia•
KBR•
ABB Lumus•
Emerson Process Systems•
Glaxo
Smith Kline•
Neste
Oil•
Teijin Polycarbonate•
JVPC•
Petronas•
Prosafe•
Saipem•
UOP•
Shaw Stone & Webster•
BW Offshore
8
HIAP SENG ENGINEERING LTD
Our FacilitiesOur Facilities
BENOI PLACE
19 TUAS CRESCENT
• 6 yards in Singapore,
Malaysia and Thailand;
• Over 3,000,000 sq ft;
• 19
&
21
Tuas
Crescent
fabrication
shop
has
water front & slipway.
28 TUAS CRESCENT
9THAILAND
HIAP SENG ENGINEERING LTD
Strategic AlliancesStrategic AlliancesProcess Licensors•
Alliance partner with CNOOC Engineering for projects in Gas Compression, Gas re‐
injection and Gas Booster system and FPSO topsides
•
Alliance
with
CPE‐EW
(subsidary
of
CNPC)
in
relation
to
LNG
and
process
equipment such as Compression etc.
OEM Partnership & Associates•
Cooper Reciprocating Compressor OEM
•
Fuller Vane Compressor OEM
•
Vilter
Screw Compressor OEM
•
Waukesha Gas Engines OEM
•
Caterpillar Gas and Diesel Engines OEM
•
Air Cooled Exchangers Inc.
•
BETA Machinery
•
Allen Bradley Controls
10
HIAP SENG ENGINEERING LTD
11
AccreditationAccreditation
•
ISO‐9001 Quality Management System
•
SCC‐2000
Safety
Health
and
Environment
(SHE)
Management System
•
‘U’
stamp
and
‘S’
stamp
for
manufacture
of
Pressure
Vessels
and
Boilers
by
American
Society
of
Mechanical
Engineers
•
Manufacture license of Special Equipment by the People’s
Republic of China
Our Core Business
12
HIAP SENG ENGINEERING LTD
13
Construction Construction ‐‐
OverviewOverview
•
Construction
of
oil
&
gas
related
plants
in
Singapore,
Malaysia,
Hongkong,
China, Thailand, Bintulu
and the Middle East;
•
Completed six Pharmaceutical plants in Singapore;
•
Oil
and
Chemical
Terminal
Projects
for
Oil
tanking, Banyan
Terminal
and
Vopak;
•
EPC for FPSO Topsides –
Australia/Norway/Thailand.
HIAP SENG ENGINEERING LTD
Plant Maintenance Plant Maintenance ‐‐
OverviewOverview
•
Contributes about 25% of the total revenue in the past years;
•
Revenue
from
this
sector
is
expected
to
increase
due
to
the
increase
of
investment of many new O&G related plants;
•
Contributes a steady recurring income;
•
In‐house contractor for Shell, SRC and Exxon‐Mobil for the last 30 years.
14
HIAP SENG ENGINEERING LTD
SINGAPORE REFINING COMPANY (SRC) TC TPM OF 50% OF COMPLEX
SHELL EASTERN PETROLEUM TC MECH. MAINT. ( 50%)
SEMBCORP UTILITIES (SCU) TC TPM OF COMPLEX
LINDE SYNGAS TC TPM OF COMPLEX
DENKA SINGAPORE TC TPM OF COMPLEX
EXXONMOBIL REFINERY (PIONEER) TC TANK MAINTENANCE
MERCK SHARP DHOME TC MECH. MAINTENANCE
EXXONMOBIL REFINERY (JURONG ISLAND) TC MISC MECH. WORK
CRODA SINGAPORE MISC MECH. WORK
SERAYA POWER MISC MECH. WORK
TEIJIN POLYCARBONATE (CHIYODA) MISC MECH. WORK
Current Maintenance ActivitiesPlant Maintenance Plant Maintenance
15
HIAP SENG ENGINEERING LTD
Engineering Engineering ‐‐
OverviewOverview•
Comprises of Hiap
Seng Engineering that majors in Plant and Skids Engineering and
Hiap
Seng Compression that specialises
in Compression modules inclusive of Process
and FPSO Topsides;
•
Consists a team of 100 professionals and specialist in respective field;
•
Prepares FEED studies;
•
Produces P&ID and detail design;
•
Prepares MTO & specification for procurement;
•
Specialises
in Modular design;
•
Basic and detail design of storage tank and pressure vessel.
16
HIAP SENG ENGINEERING LTD
Engineering Engineering ‐‐
Core StrengthCore Strength
• Our
Engineering
Department
comprises
a
team
of
multi‐
disciplined
Engineers
and
Draftsman,
each
with
extensive
experience
on
Compression
modules and Plant Engineering.
• Our
Design
Engineers
can
build
to
customer’s
specifications
or
tap
from
standard
package
designs
to
meet
each
unique
project
application
17
Competitive StrengthsCompetitive Strengths
18
HIAP SENG ENGINEERING LTD
Competitive StrengthsCompetitive Strengths
•
Over 2,500 well trained & skilled employees
Established Track Record
Strong Customer Base
Strategically Located Facilities
Experienced Workforce
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HIAP SENG ENGINEERING LTD
Competitive StrengthsCompetitive Strengths
•
One Stop Shop for Engineering, Procurement & Construction
(EPC)
&
Plant Maintenance Services
•
Design team of over 100 professionals
•
Operations covered under ISO 9001•
ASME ‘U’
& ‘S’
Stamp & ‘R’
Stamp certified
•
Experienced
Management
Team,
led
by
CEO
and
ED
with
more
than
40
years
experience
&
key
managers
with
more
than
25
years
of
experience
Integrated Services
Quality Focused Operations
Strong Team
Solutions Provider • Through
HSCP,
we
can
offer
Gas
Compressor,
Gas
Plant
&
Process
Modules including Topsides/FPSO
• Access & experience working with OEM/ proprietary vendors
20
Financial HighlightsFinancial Highlights
21
HIAP SENG ENGINEERING LTD
Financial HighlightsFinancial HighlightsS$’mil 2QFY10 2QFY09 % Change 1HFY10 1HFY09 %Change
Revenue 69.9 52.0 34.5 126.6 101.7 24.4
Gross Profit 15.6 2.6 509.2 28.1 8.7 222.3
Gross Profit Margin (%) 22.3 4.9 17.4 ppt 22.2 8.6 13.6 ppt
Net Profit 8.0 1.2 553.0 15.5 4.1 279.3
Earnings Per Share (cents) 2.65 0.41 553.0 5.11 1.35 279.3
Interim Dividend 1.0 0.5 100.0 1.0 0.5 100.0
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• Declares interim cash dividend of 1.0 cent per ordinary share (one tier tax exempt) expected to be paid on January
18, 2010
• Strong balance sheet with net cash position of S$18.7 million
HIAP SENG ENGINEERING LTD
RevenueRevenue
24.4%
increase
in
revenue
to
S$126.6
million
mainly
due
to
a
higher
percentage
of
completion
in
a
number
of
projects
in
1HFY2010
and
savings
from
continued
efforts
in
cost
controls
and improved productivity
Financial year ending March 31
Strong order book of approximately S$199 million as at November 11, 200923
HIAP SENG ENGINEERING LTD
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Revenue By Business SegmentRevenue By Business Segment
Plant Construction & Maintenance
Compression & Process Equipment Fabrication
HIAP SENG ENGINEERING LTD
25
Revenue By Geographical SegmentRevenue By Geographical Segment
Singapore
Malaysia
HIAP SENG ENGINEERING LTD
Net ProfitNet Profit
Financial year ending March 31 26
• 1HFY2010
Net
Profit
surpasses
FY2007 bottomline
Corporate DevelopmentsCorporate Developments
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HIAP SENG ENGINEERING LTD
Corporate DevelopmentCorporate Development
28
• We
were
awarded
two
three‐year
maintenance
contracts
by
Shell
Eastern
Petroleum
(Pte)
Ltd
• Contracts are for the provision of the following services on Pulau
Bukom, Singapore on a
unit rate basis:
(1) Bukom
intergrated
tanks maintenance services; and
(2) Bukom mechanical maintenance services.
• The
three‐year
contracts,
with
an
option
to
extend
for
another
two
years,
take
effect
from 1 October 2009.
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Outlook & Future PlansOutlook & Future Plans
HIAP SENG ENGINEERING LTD
Outlook/Major OnOutlook/Major On‐‐going Projectsgoing Projects
Description Owner Client Start End Value
Mechanical & piping Works Neste
Oil Neste
Oil Mar 09 May 10 S$63.4m
Piping Fabrication & Erection Shell EP ABB Toyo Oct 07 Jan 10 S$ 80.0m
Piping Fabrication & Erection Shell EP Foster Wheeler Dec 06 Dec 09 S$ 25.0m
Mechanical & Piping Works Shell EP Worley Panson Feb 09 Jan 10 S$9.1m
Piping, Structure & Equipment Works Shell EP Shell EP Dec 09 Jun 10 S$8.0m
EPC of Compressor Package CPEC CPEC Jul 09 Jun 10 US$8.1m
EPC of Compressor Package CNPC CNPC Jul 09 Mar 10 US$5m
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HIAP SENG ENGINEERING LTD
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Future PlansFuture Plans
Future Plans
•
Concentrate on Oil & Gas, contract FPSO, Process Equipment, Biofuel
and in the
area of LNG for future growth;
•
Expand our presence overseas;
•
Continue
efforts
to
control
costs
and
improve
productivity
and
explore
new
business opportunities to enhance shareholder value.
Outlook
• In
view
of
the
recovery
of
oil
prices,
there
is
an
improved
outlook
for
the
oil‐
and‐gas,
petrochemical
and
pharmaceutical
industries
in
which
Hiap
Seng
operates.
