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SBM OFFSHORE N.V. SINGAPORE 28 NOVEMBER 2011 MARKET OVERVIEW BRUNO CHABAS, COO
SBM OFFSHORE N.V.
SINGAPORE 28 NOVEMBER 2011
MARKET OVERVIEW BRUNO CHABAS, COO
Some of the statements contained in this presentation that are not historical facts are statements of future expectations and other forward-looking statements based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from those in such statements. Such forward-looking statements are subject to various risks and uncertainties, which may cause actual results and performance of the Company’s business to differ materially and adversely from the forward-looking statements.
Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this presentation as anticipated, believed, or expected. SBM Offshore NV does not intend, and does not assume any obligation, to update any industry information or forward-looking statements set forth in this presentation to reflect subsequent events or circumstances.
Disclaimer
page 2
Content
Introduction
Market
The Company
page 3
Content
Introduction
Market
The Company
page 4
Content
Introduction
Market
The Company
page 5
page 6
Current focus on potential short term decreasing demand in oil, but real issue is long term stability of supply:
Depletion rates Geopolitical tensions
Source: IEA- June 2011
Oil: demand/supply equilibrium
Development of new fields is high priority
Importance of offshore development
page 7
Source: IFPEN, IHS
Offshore oil production is today around 25 million barrels/day, above a quarter of worldwide oil production (30% for gas production). Deepwater is 20% of this offshore production.
Offshore is fast growing area
05
1015202530354045
1950
1954
1958
1962
1966
1970
1974
1978
1982
1986
1990
1994
1998
2002
2006
Mbo
e/d
Offshore production
Liquids< 1000mLiquids> 1000mGas< 1000mGas>1000m
0
100
200
300
400
500
600
700
1950
1956
1962
1968
1974
1980
1986
1992
1998
2004
Res
erve
s (b
nbo
e)Offshore reserves
Liquids Gas
Part of recent discoveries in Deepwater
page 8
Source: Petrobras
Deepwater needs high technology solutions
49%51%
New discoveries 2005-2010
Other discoveries Deepwater
Economics of offshore development
page 9
41%
38%
21%
CAPEX for offshore field development
Subsea Drilling Production facility
Production facility is the minor part of field development costs
Source: IFPEN
CAPEX plans
page 10
CAPEX plans of our clients are oriented to offshore
Alternative solutions
page 11
Source: Petrobras, PFC Energy
FPSO is the favourite solution for offshore field development
0 10 20 30 40 50 60 70 80 90 100 110
Petrobras
Shell
StatoilHydro
ExxonMobil
BP
Chevron
Anadarko
Total
CNOOC
CoconoPhilips
ENI/Agip
Others
Offshore production facilities- Existing fleet
FPSO Semi Spar TLP Other
Alternative solutions
page 12
Conversion is the cheapest solution
0
10
20
30
40
50
60
70
80
90
100
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
No
of F
PS
Os
Conversion Newbuild
Field developments over 3 coming years
Sale
Lease or Sale
Lease
67
9
514
2
9
1
page 13
3
63
FPSOs only
12
Market outlook is buoyant
Outlook on FPSO market over next 5 years
page 14
SBM targets the upper side of the market
0
20
40
60
80
100
120
140
160
US$/bl: 70-90 US$/bl: 90-110 US$/bl: 110-150
Number
of
units
Large FPSO
Medium FPSO
Small FPSO
Source: IMA March 2011New units+ redeployments
Lease production units
page 15
6
2
2
2
2
2
1
4
3
4
7
9
12
11
1
1
1
2
5
2
1
3
2
3
6
1
2
1
1
1
1
2
0 2 4 6 8 10 12 14 16 18 20
Single Unit OwnersSevan Marine
Sea ProductionEmas
RubiconFred Olsen
MISCSaipem
PetrofacMaersk
OSXBumi Armada
BluewaterTeekayModec
BW OffshoreSBM
Working Under Construction Idle Construction on Speculation/hold
Competitors
page 16
SBM engineering and financing capacity makes the difference
0
1
2
3
4
5
0 20000 40000 60000 80000 100000 120000 140000
Awards
won
Average production capacity (bpd)(Engineering complexity)
FPSO market 2010-2011 YTD Awards
(Eng
inee
ring/
Fina
ncia
l ca
paci
ty)
Cumulative FPSO Operational Experience
page 17
0
20
40
60
80
100
120
140
137120 116
93 88 77 6947 45 38 33
FPS
O Y
ears
Unrivalled experience in operation of FPSOs
What is different from 2008-2009 period?
page 18
Oil price has not decreased
Recent trend in costs
Overheating in supply chain
Trend in costs
page 19
100
120
140
160
180
200
220
240
Q32000
Q32001
Q32002
Q32003
Q12004
Q32004
Q12005
Q32005
Q12006
Q32006
Q12007
Q32007
Q12008
Q32008
Q42008
Q12009
Q32009
Q12010
Q32010
Q12011
IHS/CERA Upstream Capital Costs Index (UCCI)
All the industry now works with new breakeven level for deepwater offshore development around US$ 50/bl
Overheating
page 20
Global picture is different for yards
Content
Introduction
Market
The Company
page 21
page 22
Business Model
Integrated model creates cash flow and knowledge synergies
Historical figures
page 23
2006 2007 2008 2009 2010
Turnover
1,990
2,871 3,060 2,956 3,056
CAGR: +11.3%
2006 2007 2008 2009 2010
Backlog
6,9927,955
9,24710,032
11,502
CAGR: +13.3%
Historical figures
page 24
2006 2007 2008 2009 2010
Ebitda
477549 530 613
688
CAGR: +9.6%
2006 2007 2008 2009 2010
Net income
216
267228 230
276
CAGR: +6.4%
Historical figures
page 25
2006 2007 2008 2009 2010
ROCE
14.6 15.1
119.7 10.1
2006 2007 2008 2009 2010
ROE
21.5 21.7
17.714.6
12.4
FPSO, FPSO, FPSO
page 26
SBM focuses growth on core products with historically solid margins
SBM maintains preferred supplier status to deliver superior financial returns whilst maintaining a good risk/reward balance
Difficult Projects
Completed with good performance
In progress, on schedule
Improved execution and control
page 27
2010 20122006 2007 2008 2009 2011 2013 2014
4 FPSOs + 1 Turret
2 MOPUs
2 Turrets
5FPSOs
China
page 28
First criteria of choice: Quality and Safety Basic work Contingencies and calendar redundancies
Local content: SBM’s way to do business
page 29
Partnership or investment in local yards: PAENAL (Angola) and MAUA (Brazil) P 57: 65 % of local content, first FPSO achieving this level in Brazil Local workforce
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
Brazil Angola Malaysia Overall
Percentage of national crew in SBM Offshore fleet at year- end 2010
Long term business partners are key to our performance , ability to invest and deliver
Financing the growth
page 30
Project Financing Joint ventures with Local partners Mitsubishi agreement Direct access to debt markets
SBM has strong financial basis thanks its long term business partners
Q&A session
page 31
page 32
Notes
