Post on 08-Mar-2018
PETROVIETNAM GROUP
PETROVIETNAM DRILLING AND WELL SERVICES CORPORATION
ANNUAL GENERAL MEETING OF
SHAREHOLDERS 2013
BUSINESS PERFORMANCE IN 2012 &
BUSINESS PLAN IN 2013
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BUSINESS PERFORMANCE IN 2012
P V D R I L L I N G
Global Economy 2012
P V D R I L L I N G 3
No solutions for Eurozone debt crisis yet. Crisis has spread out from Greece to Portugal, Italia…
GDP growth rate of US reached 2.2%, unemployment rate fell below 8%
China experienced lowest growth rate for the last 13 years: weak domestic demand, falling inflation
“Disputes over sea
territories in the East Sea are getting
more severe as more countries participate
in”.
“Asia-Pacific region is still well-coping with ongoing difficulties” - WTO
P V D R I L L I N G
Vietnam Economy 2012 “Global downturn had spread negative impact on business activities leading to squeezing production, high inventories, high bad debt level. Large number of enterprises contracted their production, postponed their operation and even went bankrupt” – GSO
GDP growth rate was lower than expectation and year 2011 (5.9%)
Inflation fell to one-digit number due to the Government’s attempt in
inflation controlling; however there were signs of deflation in the last year.
Real estate frost
2012 was the hardest year for Vietnam real estate market with two serious
problems: high inventories and large bad debt
5.0%
GDP
6.8%
CPI
Difficulties for enterprises
“Difficulties for enterprises still remain as 55.000 enterprises shut down in 2012” – Ministry of Planning and Investment
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P V D R I L L I N G
Oil and gas market
90
91 103
110
102 96 97
86 85
86
97 99
100 103
106
103
94
83 88
94
97
86 89 91
50
70
90
110
130
2011 2012
Under impact of global economic
situation and political turmoil in
the Middle-East region
Due to high level of crude oil price, oil
contractors have intensified their E&P
activities
Crude oil price remained at high level
(above 90 USD/barrel)
Expenditures for E&P activities
amounted to USD 604 billion, increased
by 4% compared to 2011
Barclays and Bloomberg IHS Petrodata
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P V D R I L L I N G
Drilling market
Utilization rate of jack-up increased from 67% (2011) to approximately 85% (2012)
Drilling market has recovered from decline during 2008-2011 period
IHS Petrodata
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P V D R I L L I N G
Drilling market
Average day rate for premium jack-up rigs in South East Asia during 2012 was approximately 129K – 156K USD/day
130
123 125
160
137 137
125
134 135
151 151 151
60
80
100
120
140
160
180
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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P V D R I L L I N G
Key activities in 2012
SUCCESSFUL operation of
deep-water rig
PV DRILLING V (TAD)
For the first time ever, PV Drilling has operated safely and efficiently the TAD (one of the most modern semi-submersible tender assist drilling rig worldwide) in harsh weather
PV DRILLING I – Cuu Long JOC
PV DRILLING II – Lam Son JOC
PV DRILLING III - Vietsovpetro
Ensco 107 (hired rig) - Thang Long JOC and Mitra
Ocean Patriot (hired rig) - Idemitsu
Signing many CONTRACTS
to provide DRILLING RIGS
and other DRILLING-
RELATED SERVICES at
better price
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P V D R I L L I N G
Business activities of PV Drilling in 2012
Established
REPRESENTATIVE
OFFICE in Kuala
Lumpur - Malaysia
Established JOINT
VENTURE with foreign
partner
This is the first step in international expansion progress and will generate growth from 2014 onwards
Operation of the Oil spill control base in Vung Tau and the Nasos II ship increased oil spill control capacity of PVN.
Inaugurated OIL SPILL
CONTROL BASE
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P V D R I L L I N G
Business activities of subsidiaries
Owned drilling rigs Hired rigs
PV DRILLING I
PV DRILLING II
PV DRILLING III
KEY HAWAII
PV DRILLING 11
Professional
drilling
crews
ENSCO 107 OCEAN PATRIOT (the semi-submersible drilling rig)
PV DRILLING V (TAD)
NAGA2 WEST TUCANA
Operate from Q3/2013
Contracts expired at the end of Q2/2013
Safety operation of owned and chartered drilling rigs
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P V D R I L L I N G
Efficiency of owned drilling fleet
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99.09 98.92 99.76
98.65
99.36
92.05
100 100 100
92.91
97.43
100 100
89.92 95.97
98.32
99.79
91.88 98.52
77.08
97.29
98.68 99.26
0
20
40
60
80
100
120
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
PV DRILLING I PV DRILLING II PV DRILLING III PV DRILLING V
%
Average efficiency ratios (%)
98.99 99.69 98.18 95.16 99.73
PV
D I
PV
D II
PV
D II
I
PV
D V
PV
D 1
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P V D R I L L I N G
Business activities of subsidiaries
PVD Well Services
• Focused on developing key services: tool rental, tubular running
• Supplied new services such as: Solid Control, MPD, Filtration
• Invested 2 tubular running equipment sets, 36” hole-opening tools
PVD Offshore • Higher manpower supply contracts contributed significantly to above-10% growth of revenue and profit.
• Developed new services:
o Rope access;
o Underwater inspection;
o Flange & Wellhead components fabrication
PVD Logging
• Maintained stable market shares of Mud logging, Slickline…
• Provided Well testing service to Thang Long JOC, Pearl Oil, Cuu Long JOC
• Invested equipment for Slickline and MPLT services
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P V D R I L L I N G
Business activities of subsidiaries
• Transformed PVD Tech to JSC
• Capital contribution in Vietubes and operation of PVD-OilState JV increased domestic proportion of threading service, in turn, enhance competitiveness and growth of profit in upcoming years
PVD Tech
• Maintained stable market share of Manpower service, increased mark-up rate for important customers: Premier Oil, Cuu Long JOC, Hoang Long – Hoan Vu JOC...
• Supplied Equipment Rental service (MudCooler, SteamBoiler rental), installed Hi-pressure Bulk Tanks for Bien Dong POC
• Developed Mud Cooling, H2S, Habitat Safety Control services…
PVD Invest
• Developed Manpower supply service
• Branding for training services (maritime-safety training, technical training)
• Facilitated investment to improve training quality
• Invested Simulator tools, Emergency Breathing System, Rigging sets for technical training
PVD Training
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P V D R I L L I N G
Business activities of subsidiaries
• Expanded customer base (Mitra Energy, Thang Long JOC)
• Diversified services: directional drilling, wireline logging, liner hanger, well completion, fishing, intelligent well services
• Well maintained cementing, stimulation, tubulars, casing, well testing, OCTG managing services…
PVD Baker Hughes JV
BJ – PVD, PVD Tubulars
Management, PVD – PTI
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P V D R I L L I N G
Total asset
PV DRILLING I
PV DRILLING 11
PV DRILLING II
PV DRILLING III
PV DRILLING V
CAGR 22%
(2007-2012)
4,330
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2007 2008 2009 2010 2011 2012
VND Billion
8,633
12,368
14,640
18,535
19,084
P V D R I L L I N G
Business performance in 2012
10,100
11,929
Budget 2012 Actual 2012
Revenue increased by 18% vs. Budget 2012
• Drilling fleet was operated smoothly
with average operating efficiency
over 95%
• Growth in manpower and experts
manpower services deriving from
continous and long-term drilling
campaigns of oil operators
• Significant growth in trading service
from providing conductors to Bien
Dong POC
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P V D R I L L I N G
Business Performance in 2012
Consolidated NPAT increased by 15% vs. Budget 2012
1,150
1,322
Budget 2012 Actual 2012
• Increased drilling rigs’ operating
efficiency and effective control of
operating and administrative
expenses.
• Increased insourcing proportion of
high-technical services and
successfully expanded new
services such as Solid Control,
MPD and Filtration.
• Inspection and threading services
are highly efficient.
• Effective control of administrative
expenses.
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P V D R I L L I N G
Revenue and Profit by subsidiaries
Drilling Division 42%
PVD Offshore 4%
PVD Well 7%
PVD Logging 7%
6PVD Tech 17%
PVD Invest 10%
PVD Training 1%
PVD Deepwater 12%
Revenue
Drilling Division 54%
PVD Offshore 10%
PVD Well 9%
PVD Logging 6%
PVD Tech 3%
PVD Invest 2%
PVD Training 1%
Joint Venture 3%
PVD Deepwater (62%) 13%
Consolidated Net Profit after Tax
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P V D R I L L I N G
Key Achievements in 2012
The Best Drilling Contractor
in Asia, 2012
Up to March 10th 2013, PV
DRILLING I achieved 6 years
without Lost Time Incidents
(Zero LTI).
PV DRILLING II & III achieved 3
years without Lost Time
Incidents (Zero LTI).
Certifications of the International Association of Drilling Contractors (IADC).
Enhanced credibility and effective operation & management of PV Drilling’s rigs.
Was honored to receive “The Best Drilling Contractor in Asia, 2012” awarded by World Finance Magazine.
Certificate for Information
Transparency Effort
Was one of 15 listed corporations that were awarded by the State Securities Commission of Vietnam certificate for their information transparency efforts through years.
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P V D R I L L I N G
Conclusions for 2012
2012 was a memorable year with full of outstanding achievements, marking significant progress in PV Drilling’s journey to become a reliable drilling contractor in international and regional markets.
NPAT increased by over 24% illustrating accomplishment of the Corporation in leading technology innovation, accompanying with developing key drilling technical services and co-operating with international partners to provide high-quality services, satisfy demanding requirements of oil contractors in the region and all over the world.
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Business Plan
in 2013
P V D R I L L I N G
Macroeconomic Forecast for 2013
World economy: Highlights appear but risks remain • Stimulus programs released by the United States and Japan go into effect in 2013,
making positive impact on global demand. • The Eurozone sovereign debt crisis remains a major threat to the world economy’s
recovery.
Vietnam’s economy: expects to recover in 2013, depending on efforts to solve bank bad debt and reconstruct economy to regain business confidence. • GDP growth is predicted to slightly increase in 2013 and inflation rate remains at single
digit.
• Macroeconomic reform efforts such as interest rate and tax reduction, along with bank bad debt solution will clear capital flows and help corporations overcome difficulties.
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P V D R I L L I N G
Prospect of Drilling Market in Vietnam
14 14 12.5
15.1 15 16 15.5 14.1 13 14 12 12
62.9 63 64.1
70.3 69.3 73.6 75.3 71.3 70 69.2
66.4 62.3
95 93 92
98 94
97 99
91 90 85
81 75
Jan
-13
Feb
-13
Mar
-13
Ap
r-13
May
-13
Jun
-13
Jul-
13
Au
g-1
3
Sep
-13
Oct
-13
No
v-1
3
Dec
-13
Demand in Vietnam Demand in SEA
Utilization (%) SEA
110
120
130
140
150
160
170
SEA Vietnam
140K – 156K
130K – 150K
Drilling day rate in Vietnam is lower than in the SEA
Xu hướng các nhà thầu rút các giàn đang cho thuê tại Việt nam mang ra các nước khác trong khu vực
Các chương trình khoan tại Việt Nam thường ngắn và không hấp dẫn
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110
120
130
140
150
160
170
Southeast Asia Vietnam
P V D R I L L I N G
PV Drilling will face more challenges in hiring rigs to ensure revenue growth
International contractors move rigs out of Vietnam due to higher attraction from other regions.
Drilling campaigns in Vietnam are short-term, seasonal and fluctuate to weather conditions.
Several major projects are not executed due to changes and delays in oil contractors’ schedules.
Shortage of local expert, dependence on foreign source of manpower with high expense; PVD is still in the process for succession.
PVD’s rig fleet is still small, making it difficult to penetrate the international market. Time-consuming process of investment application caused PVD to miss the opportunities of purchasing/building new rigs.
Clients’ rigid requirements in technical and safety term reduced the supply source.
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P V D R I L L I N G
Budget NPAT increase 2.9% vs. Act. 2012
Budget revenue decrease 5.5% vs. Act. 2012
Business plan in 2013
11,929 11,275
Actual 2012 Budget 2013
1,322 1,360
Actual 2012 Budget 2013
Uncertainties in hiring rigs lead to
dependence of revenue on external
factors, such as, drilling market and
whether hired rigs adapt to technical
requirements of oil contractors
NPAT is estimated to increase
due to rise in profit margin of high-
tech services, profit from joint
ventures and improved day rate
since the end of Q2/2012.
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P V D R I L L I N G
Budget NPAT increase 2.9% vs. Act. 2012
Budget revenue decrease 5.5% vs. Act. 2012
Business plan in 2013
11,929 11,275
Actual 2012 Budget 2013
1,322 1,360
Actual 2012 Budget 2013
Uncertainties in hiring rigs lead to
dependence of revenue on external
factors, such as, drilling market and
whether hired rigs adapt to technical
requirements of oil contractors
NPAT is estimated to increase
due to rise in profit margin of high-
tech services, profit from joint
ventures and improved day rate
since the end of Q2/2012.
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If PV Drilling continues to maintain the market share of hired rigs, promote new technical
services, optimize cost control and receive great support from PVN, the expected profit will
reach VND 1,500 billion.
P V D R I L L I N G
6%
13%
64%
9%
8%
Investment plan 2013
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Investment of parent company in subsidiaries and other JVs
Investment of subsidiaries
Investment in equipment, warehouses
Investment in new JU rig
Investment items transferred from 2012
Số kế hoạch
(tỷ đồng)
I Các khoản đầu tư chuyển từ 2012 sang 160
II Đầu tư năm 2013 1,533
A Đầu tư của Công ty mẹ 1,327
1 Đầu tư trang thiết bị, nhà xưởng 362
1.1 Bộ cần khoan 43
1.2Mua thiết bị chống phun trào dự phòng
(BOP) và thiết bị khác phục vụ giàn khoan179
1.3 Trang thiết bị phục vụ CNTT, khác 60
1.4 Mua đất xây văn phòng và nhà thay ca 80
2 Đầu tư liên doanh 965
2.1 Đầu tư giàn khoan Jack-up (liên doanh) * 735
2.2Đầu tư liên doanh và tăng vốn đơn vị thành
viên230
B Đầu tư của các đơn vị thành viên 206
1 Mua săm trang thiết bị SXKD 97
2 Thiết bị xưởng Đông Xuyên 51
3 Đầu tư liên doanh 53
4 Đầu tư khác 6
TỔNG CỘNG 1,693
STT Hạng mục đầu tư 2013
(* ) Liên doanh sẽ vay 3.000 tỷ đồng, trong đó tương ứng 50% (*) Liên doanh sẽ vay 3.000 tỷ đồng, trong đó tương ứng 50% của PV Drilling là 1.500 tỷ đồng
Tổng số tiền đầu tư 2.693
Đầu tư thêm giàn khoan (**) 1.000
Investment plan
Investment items transferred 2012 160
Investment in 2013 1,533
Investment in a jack-up rig (*) 1,000
Total 2,693
(*) Expected to invest in one jack-up rig during beginning of 2014 costing USD 230 million, PV Drilling will contribute 70% in which 30% from shareholders’ equity, equivalent to VND 1,000 billion
P V D R I L L I N G
Strategies to achieve 2013’s objectives
Ensure stable business and operation performance
Operating owned rigs safely and efficiently
Safe operation Zero LTI
Efficiency TAD: 95%
Efficiency JU: 98%
Efficiency Landrig:
98%
Cooperating with prestigious drilling contractors around the world
Well managing joint venture projects to increase economic efficiency
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P V D R I L L I N G
Ensure stable business and operation performance
Intensify the key services and develop new ones.
Investment in technical innovation
Proceed to deploy the Science and Technology Development Fund
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Strategies to achieve 2013’s objectives (Cont.)
P V D R I L L I N G
Health– Safety – Environment – Quality (HSEQ)
Zero LTI
In operation of both offshore
and onshore rigs
Complying with international
standards including
ISO 9001:2008
ISO 14001:2004
OHSAS 18001:2007
Is maintained and upgraded
regularly
Managing the Online
Medical Data
PV DRILLING
Health: - Talk - Online
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Strategies to achieve 2013’s objectives (Cont.)
P V D R I L L I N G 31
Developing
The Brand Identity System & Corporate Culture of PV Drilling
Human Resource Management
Leadership Competency Development
Roadmap (the first phase was implemented
since 2012)
Drilling Crew Succession Planning program
(implemented since 2012)
Upgrade and develop skillful, technical-
expertise crew who can replace foreign
experts.
Strategies to achieve 2013’s objectives (Cont.)
P V D R I L L I N G
Human Resources Policies
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Employee Stock Ownership Plan (ESOP) is launched in order to retain
skillful and talented employees, motivate employees to work and dedicate to
achieve the business target
- Đạt KHSXKD 2012: phát hành ưu đãi 1.000.000 cổ phần
- LNST 6 tháng đầu năm 2013 đạt 60% Kế hoạch: phát hành ưu đãi 500.000 cổ phần
- LNST năm 2013 đạt 120% Kế hoạch: phát hành ưu đãi 500.000 cổ phần
Thị trường lao động cho giàn khoan và các dịch vụ kỹ thuật ngày càng cạnh tranh gay gắt, đội ngũ lao động có tay nghề, trình độ chuyên môn cao bị thu hút bởi những chính sách tìm kiếm nhân tài của các công ty nước ngoài; dẫn đến chảy máu chất xám, nguồn nhân lực thiếu ổn định, ảnh hưởng đến sự phát triển bền vững của Tổng Công ty
Establish and upgrade the Compensation & Benefits (C & B)
• Based on job evaluation of each title in order to improve the business efficiency.
• Timely and fair reward for those who have contributed to PV Drilling.
Labor market for drilling and technical services is under aggressive competition, skillful staff and
experts are attracted by headhunting policies of foreign companies leading to brain drain, unstable
employees’ mentality, in turn, affect the sustainable development of the Corporation
P V D R I L L I N G
Conclusion 2013
In 2013, global and Vietnam economies may not have overcome all difficulties, thus, there will be more factors affecting business activities.
PV Drilling will penetrate new markets, drill deeper with high technology, expand its scope of advanced technical service provision, then, ensure stable growth rate, add sustainable value for shareholders.
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P V D R I L L I N G
PETITION:
1. Approval on Business Performance Report in 2012
2. Business Plan in 2013
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