32
A Sustainable Energy Company PETRA ENERGY BHD SYNERGISING PARTNERSHIPS
A Sustainable Energy Company
PETRA ENERGY BHD
SYNERGISING PARTNERSHIPS
Disclaimer
2
This presentation may change from time to time and may not contain all material information about the Company.
These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or result expressed or implied by such forward-looking statements.
Although forward-looking statements contained in this presentation are based upon what management of the Company believes are reasonable assumptions, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securities laws.
Under any circumstances, this presentation is strictly prohibited from being distributed without the consent of the Company.
Preface
3
2015The oil price crash
impacted all companies
across the value chain
and PETRA was not
spared from this storm.
2013We began a turnaround initiative with the
aim of getting the house in order and
growing the business, this saw the
Company register significant improvement
in fiscal performance and saw PETRA
move up the value chain to become the
third Malaysian Company to be awarded
the RSC Contract (Risk Service Contract) by
PETRONAS taking the Company into the
development & production segment,
which turned out to be one of the most
successful RSC projects in Malaysia.
2018Began a Group-wide
transformation programme
that cut across all segments
within the Group with the
aim of resetting our cost,
this augured well for PETRA
and helped the Company
emerge stronger from the
storm as reflected in the
Group’s balance sheet as at
1H2019
NowSignificantly improved our
operational
efficiency/margins, reduced
our borrowings, and remain
in a negative net gearing
position
GENERAL GUIDELINE ON DIVIDEND✓ Payout based on profitability and Company’s solvency for the next 1-year
OverviewAbout us
Industry outlook
Company outlook
Financial Highlights
Transformation & roadmap
Moving forward
4
About us
5
Core businesses
Marginal field RSC – KBM Cluster
▪ Development & Production of petroleum from Kapal, Banang & Merantismall fields offshore Terengganu
▪ The only sustainable and successful RSC in Malaysia
▪ More than RM16 million barrels of oil achieved as at 11 Nov 2018
DEVELOPMENT & PRODUCTION
Integrated Brownfield Maintenance & Engineering
▪ Topside Major Maintenance/Hook-up Construction & Commissioning
▪ Project Management, Procurement & Logistics
▪ Engineering, Operations & Maintenance
▪ Equipment, Packaging & Manufacturing
SERVICES SEGMENT
MARINE ASSETS SEGMENT
Marine Offshore Support▪ 4 workboats
▪ 3 workbarges
▪ 1 AHTS
6
Executive summary
Topside Major Maintenance / Hook up Construction & Commissioning
Development & Production for the Marginal field RSC
❑ Moved up the value chain, third Malaysian company to be awarded the RSC, started as a 30%
investor and today PETRA’s personnel manage 70% of the operations. Can be considered the
most successful RSC in Malaysia.
❑ Kapal and Banang field production in record time, ahead of schedule and below budget
❑ Strong safety performance
❑ All CAPEX has been fully reimbursed
❑ RM1 billion in royalty paid to PETRONAS7
❑ Strong track record and experience spanning 30 years in HUCC/TMM/MCM
❑ ~RM5 billion worth of projects undertaken since 2007 for major clients i.e PETRONAS, SHELL,
EXXON Mobil, Murphy, MMHE
Board of Directors
Dato’ Anthony BujangExecutive Director / Group CEO
Hj. Ahmadi
bin YusoffExecutive Director
Tan Sri Datuk Seri
Panglima Sulong
bin MatjeraieChairman
8
Ng Ing PengNon-Executive Director
Abdul Rahim Abdul
HamidNon-Executive Director
Simon Ong Executive Director
Gian Carlo
MaccagnoNon-Executive Director
Strong leadership team over 130 years of experience
Dato’ Anthony BujangExecutive Director / Group CEO
Tn, Hj. Ahmadi bin YusoffExecutive Director
Simon Ong Executive Director
▪ 25 years of oil & gas experience
▪ 9 years with SHELL, Head of Strategy & Contracts and the Planning & Procurement Head at SHELL Gabon
▪ 25 years experience in Management and Strategy positions spanning across various industries including construction, plantation, trading and electrical
▪ 38 years of oil & gas and broad upstream experience in engineering, Project Management, Maintenance and Upstream Mergers & Acquisitions and asset management for SHELL
▪ Chartered engineer by profession and served as Managing Director Shell Global Vetures Solutions (Malaysia) Sdn Bhd
Subky Bustari CEO, Petra Resources
Khairul Anwar MohamadGroup Chief Financial Officer
▪ 15 years of experience in Strategic Plannng, Finance and Business Development in Construction and oil and gas industries. ▪ 15 years of experience in
corporate strategy, finance andmanagement within variousindustries
▪ Member, Chartered GlobalManagement Accountant
9
▪ 15 years of experience in marine industry
▪ Master Mariner Cert of Competency Class 1, Jabatan Laut Malaysia
Captain Sasitharan CEO, PETRA Marine
Khairul RidzwanHead, Internal Audit & Risk Mgmt
▪ 15 years of exposure in finance and audit with experience in corporate assurance and risk management
▪ Association of Chartered Certified Accountants
Industry outlook
10
Brent price movement
Source: Market Insider 11
▪ Oil prices remained relatively stable in 2019
▪ Saudi Arabia drone attack causing 5.7million boe / day reduction in global supply of oil
▪ War with Iran - oil price could spike to "unimaginably high numbers”, threat of world economic collapse looming
▪ Expect greater market volatility to persist
Malaysian outlook – Offshore FabricationConstruction of offshore structure activity
Source: PETRONAS Outlook 2019
52
8
24
2
1
5
0
2
4
6
8
10
12
14
WHP CPP WHP CPP WHP CPP
2019 2020 2021
41 1 1
15
0
2
4
6
8
10
12
14
WHP CPP WHP CPP WHP CPP
2019 2020 2021
Number of structures: Three-year outlook
Wellhead Platform-WHP & Central Processing Platform-CPP (Topside & Jacket) - Tonnage
Hig
h c
ase
Low
cas
e
Light (<1k MT)
Medium (1k MT - <7.5k MT)
Heavy (7.5k MT - <15k MT)
Super Heavy (>15k MT)
Total metric tonne (MT)
Total metric tonne (MT)
Wellhead Platform-WHP & Central Processing Platform-CPP (Topside & Jacket) – Projected Timeline
Hig
h c
ase
Low
cas
e
2
4
2
13
2
6
1
13
1
6
1
6
1
11
~ 8.7k ~ 47k ~ 18.1k ~ 63k ~ 6.1k ~ 40k ~ 6.2k ~ 26k ~ 7.5k ~ 38k
2018 2019 2020 2021 2018 2019 2020 2021
WHP
CPP
12
Malaysian outlook – HuCC & MCM
Maintenance, Construction & Modification Hook-up, Construction and Commissioning
Source: PETRONAS Outlook 2019
4.93.6
5.4
0
1
2
3
4
5
6
7
8
9
10
2019 2020 2021
No. of Man-hours (Millions): Three-year outlook
17.7 17.6 18.7
0
5
10
15
20
25
2019 2020 2021
No. of Man-hours (Millions): Three-year outlook
Most activities accounted are for Brownfield HUC. HUC activities are expected to remain stable over the next three years, thus no High Case is provided
Activity is expected to remain stable over the next three years, thus no High Case is provided
13
Company outlook
14
Current business activities
Core Business Activity for the
Group
Hook up construction and commissioning (2013 – 2020)
▪ 5 year contract-Pan Mal cluster of jobs▪ Biggest contract to date ▪ Scope of work – HuC and Topside Maintenance for PCSB’s facilities offshore Sabah and Sarawak
waters
iHUC - tender
▪ Participating in iHUC as a continuation from Pan Mal cluster of jobs
Maintenance construction and modification (2017 – 2022 + 1)
▪ 5+1 year contract ▪ Scope of work – Topside major maintenance continuations for PCSB’S facilities offshore Sabah
Services Segment
15
Current business activities
One of the most successful RSC
projects in Malaysia
Kapal, Banang and Meranti
Small field cluster under Risk Service Contract (RSC) with PETRONAS(PETRA owns 30% equity stake)
70% operations managed by PETRA personnel
Contract period 2012 – 2020
PETRA plans to seek to continue its presence in the project.
Development & Production Segment
▪ 1st oil achieved within 5 months after commencement of drilling
▪ In record time, ahead of schedule and development cost below budget
▪ Achieved ~16 million barrels of oil as at Dec 2018
▪ All CAPEX fully reimbursed
▪ Discussion to resolve the ongoing dispute pertaining to a disapproved petroleum costs that affected the share result of an associate has reached final stage – settlement has been agreed subject to conditions to be made
16
Marine assets
Petra Challenger300 men accommodation and work barge
Crane capacity – 124 MT | Year 2004
Petra Endeavour300 men accommodation and work barge
Crane capacity – 68 MT | Year 2007
Petra Orbit189 men workboat
Crane capacity – 23 MT | Year 2008
Petra Galaxy189 men workboat
Crane capacity – 23 MT | Year 2008
KasMarine 1AHTS DP1/FIFI-1
5150BHP / 60MT Bollard Pull | Year 2008
Petra Lyra(formerly known as Otto 3)
300 men accommodation and work barge
Crane capacity – 68 MT | Year 2009
Anis199 men workboat
Crane capacity – 45 MT | Year 2013
Alya199 men workboat
Crane capacity – 45 MT | Year 2014
> 60%Vessel utilization as at June 2019
All vessels have
been fully paid
17
Financial highlights
18
Key financial highlights 1H 2019
RevenueRM249.5m
PATRM15.8m
6% margin
EBITDARM32.9m
13% margin
GP Margin13%
Vessel Utilization
> 60%
19
Improving performance efficiency - Quarterly
624.4 654.8
332.1
460.2
67.5 88.4119.7
191.8
111.9 137.6
56.00%
46.40%
26.90%
43.20%
33.70% 35.20%40.60%
48.80%
> 60% > 60%
2014 2015 2016 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019
Revenue vs Vessel Utilisation (2014 – Current)
Revenue Vessel utilisation
94
63.6
-48.6-49.8
-6.9 -7.9 -13.1
34.0
922.8
34.747.2
-114.2
-46.0
1.0
-15.9-27.0
21.01.7
14.1
15%
10%
-15%-11% -10% -9%
-11%
18%
8%
17%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
-150
-100
-50
0
50
100
150
2014 2015 2016 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019
Gross & Net Profit After Tax (2014 – Current)
Gross Profit Net profit after tax GP Margin
RM
'mil
20
Maintaining low debt / Equity ratio
0.43 0.23 0.00 0.15 0.09 0.07
(0.06)
349.49 341.91
237.71
198.21
123.52 102.04
65.59
2014 2015 2016 2017 2018 Q1 2019 Q2 2019
RM
'mil
Ratio
Borrowings
As at 31 August 2019, total borrowings at
RM31.3m
21
Negative Net Gearing as at 1H2019
Net assets per share vs Share price
1.60 1.70
1.30
1.10 1.04 1.05 1.09
1.73
1.26
0.950.82
0.41
1.07
0.775
-
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
2014 2015 2016 2017 2018 Q1 2019 Q2 2019
Net assets per share Share price
PETRA Energy Bhd – stock code 5133Total Issued Shares : 321,750,000Treasury Shares : 807,800Adjusted Capital : 320,942,200Market cap 3.10.19 : 404.4million
Share Priceas at 3/10/2019
RM1.26
Market Capitalizationas at 3/10/2019
RM
404.4m
PE Ratioas at 3/10/2019
10.68times
22
Net asset per share decreased from RM1.10 (2017) to RM1.04 (2018) mainly due to decrease in Retained Earning as a result of Loss in 2017 and 2018
Net asset per share increased from RM1.05 (Q1 2019) to RM1.09 (Q2 2019) mainly due to increase in Retained Earning reflected from Profit recorded in Q2 2019
Dividend
20182015 2016 2017 20192014
2.0
10.0
5.0
2.0
Dividend/share (2014 – 2019)
Year
Sen
23
* No dividend paid in 2017 and 2018 due to Petra incurred losses during these 2 years.
GENERAL GUIDELINE ON DIVIDEND✓ Payout based on
profitability and Company’s solvency for the next 1-year
Dividend
20182015 2016 2017 20192014
1.2%
7.9%
5.3%
2.5%
Dividend yield (2014 – 2019)
Year
Perc
enta
ge
24
* No dividend paid in 2017 and 2018 due to Petra incurred losses during these 2 years.
Balance Sheet (2014 – Current)
FINANCIAL YEAR 2014RM’000
2015RM’000
2016RM’000
2017RM’000
2018RM’000
YTD June 2019RM’000
BALANCE SHEET
Total Liabilities 601,881 559,114 412,650 481,579 315,419 279,404
Total Borrowings 349,490 341,913 237,705 198,206 123,522 65,593
Total assets 1,117,305 1,106,025 830,241 834,635 648,777 629,139
Total Shareholders’ Equity 515,424 546,911 417,591 353,056 333,358 349,735
Dividend/share (sen) 2.0 10.0 5.0 - - 2.0Share price at end of each financial year (RM per share) 1.73 1.26 0.95 0.82 0.41 0.785
Earnings Per Share (sen) 10.80 14.68 (35.58) (14.34) (6.52) 4.93
Net assets/share (RM) 1.60 1.70 1.30 1.10 1.04 1.09
Total cash balances (RM'million) 127.80 213.50 238.70 145.30 94.40 86.04
Net gearing ratio (net D/E) 0.43 0.23 0.00 0.15 0.09 (0.06)25
Profit & Loss (2014 – Current)
FINANCIAL YEAR 2014RM’000
2015RM’000
2016RM’000
2017RM’000
2018RM’000
YTD June 2019RM’000
INCOME STATEMENT
Revenue 624,423 654,789 332,084 460,230 467,424 249,510
EBITDA 74,471 109,477 5,764 9,730 15,634 32,954
PBT/(LBT) 21,780 62,015 (124,483) (46,212) (18,508) 15,829
PAT/(LAT) 34,736 47,214 (114,199) (46,033) (20,919) 15,829
PATAMI / (LATAMI)(attributable to enquiry holders) 34,750 47,214 (114,199) (46,033) (20,919) 15,829
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Moving forward
27
Opportunities in the pipeline and status
Plan to continue our presence & secure offering in RSC
upon expiry of contract.
Pursuing other small field and late life asset
Bidding for iHUC contract subsequent to expiry of Pan
Malaysia contract
Bidding submission for Solar tender
Bidding for operation & maintenance service
Explore opportunities of underwater IMR
Bidding for a regional onshore decommissioning project
28
Continuous improvement
29
The Group is continuously reviewing & improving operations and
committed to deliver the best quality services to the clients
Current key activities
HSE commitment- Key to business operations within oil and gas industry- PETRA has shown strong HSE track record and achievements
over the years and is now on a journey to move to PROACTIVE state
Investment in a new improved ERP system- To improve monitoring & controls
Robust risk management process
Invested to enhance process planning
Ongoing Transformation journey until 2024
The roadmap 2019 - 2024
Return
to
black
Start of new era
Re-building
the PETRA brand
2019
- Positive cashflow from Ops
- Cost Reset - Double digit GP
2020
- Positive cash flow from ops for investment
- Potential to increase dividend
- 1 New revenue source
2021
- Cashflow from ops for further investment
- 25% increase in revenue from 2019
- Regional Player
Promote the culture of accountability & ownership, diversity & inclusiveness, care and innovation
Operational Efficiency | motivated and engaged workforce
Building momentum
2022
- Doubling revenue (2019 base)
- Doubling dividend (2019 base)
- Revenue from Renewables
Sustainable
energy
company
2023
- Double digit ROI- Revenue mix 40/40/20- Services, upstream,
renewal- Generative HSSE
culture
Partner of choice
2024
- Double digit ROI- Top Quartile Delivery- Industry benchmark
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Summary
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2015The oil price crash
impacted all companies
across the value chain
and PETRA was not
spared from this storm.
2013We began a turnaround initiative with the
aim of getting the house in order and
growing the business, this saw the
Company register significant improvement
in fiscal performance and saw PETRA
move up the value chain to become the
third Malaysian Company to be awarded
the RSC Contract by PETRONAS taking the
Company into the development &
production segment, which turned out to
be one of the most successful RSC projects
in Malaysia.
2018Began a Group-wide
transformation programme
that cut across all segments
within the Group with the
aim of resetting our cost,
this augured well for PETRA
and helped the Company
emerge stronger from the
storm as reflected in the
Group’s balance sheet as at
1H2019
NowSignificantly improved our
operational
efficiency/margins, reduced
our borrowings, and remain
in a negative net gearing
position
✓ Strong balance sheet✓ Good order book✓ Good cash flow✓ No major CAPEX
GENERAL GUIDELINE ON DIVIDEND✓ Payout based on
profitability and Company’s solvency for the next 1-year
T H A N K Y O U32
