1Q 2015 Results Briefing - ChartNexusir.chartnexus.com/barakah/docs/qr/q1_2015_result.pdf ·...
Transcript of 1Q 2015 Results Briefing - ChartNexusir.chartnexus.com/barakah/docs/qr/q1_2015_result.pdf ·...
May 2015 | 3
1Q15 Results ended 31 March 2015
* Adjusted for one-off share-based payments of RM3.8m arising from fair valuation of ESOS
FY December (RM m) 1Q15 1Q14 yoy chg (%)
Revenue 191.0 84.4 +126.2
Core EBITDA* 30.2 20.3 +48.9
Pretax Profit 18.6 11.5 +62.4
Net Profit 15.1 9.4 +60.4
Core Net Profit* 18.9 10.5 +80.3
Basic net EPS (sen) 1.94 1.52 +27.7
F.d. net EPS (sen) 1.80 1.18 +52.9
May 2015 | 4
1Q15 vs 1Q14
• Revenue rose 2.3 times from projects progress• Lower margins due to a change in revenue mix- higher
contribution from long-term projects (1Q14: more from pipeline services)
84.4
191.0
20.3 30.2 10.5 18.9
-
50.0
100.0
150.0
200.0
250.0
Mar 14 Mar 15
Revenue Core EBITDA Core Net profit
RM'm
[24.1%][12.4%]
[9.9%][15.8%]
May 2015 | 5
Key Financial – 1Q15 vs 1Q14
Revenue (RM’mil)
Core EBITDA(RM’mil)
• Main contributors- Billing from Pan Malaysia
Transportation & Installation (T&I)
Pengerang Pipeline Pre-commissioning for EVA-
North Malay Basin project• Pan Msia Hook-Up & Commissioning
(HUC) generated RM20m/quarter on average
84.4
191.0
1Q14 1Q15
• Core EBITDA adjusted for one-off share-based payments of RM3.8m (relating to accounting valuation of 7.6 million ESOS granted )
• 1Q15 core margin of 15.8% (1Q14: 24.1%); revenue mix geared towards long-term projects- Pan Msia T&I, EPCC Prai & Pengerang
20.3
30.2
1Q14 1Q15
+48.9%
+126.2%
May 2015 | 6
Key Financial – 1Q15 vs 1Q14
Pretax Profit (RM’mil)
Core Net Profit (RM’mil)
• Net interest expense reduced by 23.3% yoy to RM2.8m
• The decrease of interest expense due mostly to repayment of short-term debts for working capital and lowered interest charges from refinanced term loan of KL101
• Effective tax rate at 18.9% (1Q14: 17.8%)
• Reported net profit at RM15.1m (+60.4% yoy)
• Core net profit adjusted for one-off share-based payments
11.5
18.6
1Q14 1Q15
10.5
18.9
1Q14 1Q15
+80.3%
+62.4%
May 2015 | 7
Revenue Breakdown
• “Installation & Construction” revenue +754.8% yoy to RM98.6m with contributions from Pengerang & Prai pipeline and Pan Malaysia T&I projects
• “Pipeline & Commissioning” revenue +26.8% to RM92.4m from Pan Malaysia HUC & pipeline services projects
Pipeline & Commissioning Installation & Construction
48 52
1Q15
86
14 1Q14
May 2015 | 8
Balance Sheet
Share base at 806.3 million; balance RCULS expiring on 24 Oct 18 at 29.4 million @ 15/5/15
173
278 288 301 331
352 356
57
150 162 155
117
249 226
244 216 210 216 226
297 262
-
50
100
150
200
250
300
350
400
Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15
Shareholders' Funds Cash Borrowings (inclg RCULS)
RM million
May 2015 | 9
Net Gearing 10.0% @ 31 March 15
Reduced short-term debts for working capital requirement trimmed gearing ratios
108.6%
23.5% 16.7% 20.4% 33.2%13.7% 10.0%
141.3%
77.6%72.8% 71.8%
68.5%84.4%
73.5%
0.0%
50.0%
100.0%
150.0%
200.0%
250.0%
Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15
Net Gearing Gross Gearing
May 2015 | 10
• Billings from Pan Malaysia T&I was the single largest revenue generator
• Lower margins due to a change in revenue mix
• Reduced net interest expense due to repayment of working capital debts and refinanced term loan for KL101
• Lower effective tax rate due mainly to the streamlined group structure (KL101 ownership with KL101 Ltd)
1Q15 Summary
May 2015 | 12
Unbilled Orderbook of RM1.79bn @ 31/3/15
Projects Client(s) Value(RM’m)
Unbilled @ 31/3
Balance(Year)
Hook-up and Commissioning (HUC) for platforms in West and East Malaysia
Petrofac, Talisman & SKEnergy Inc
511 318 3.25
Pipeline services,West & East Malaysia
Various PSC’s Recurring 44 < 1
HUC and topside major maintenance services
Lundin & KPOC 32(est)
11(est)
<1
PIG Trap System, W. & E Malaysia Petronas Carigali 110 (est) 109 (est) 2.25+1
Pan Malaysia Transportation & Installation Facilities Package A
11 PSCs 1,500(est)
1,111(est)
1.75+ 1
Pengerang Pipeline Petronas Gas 260 198 1.25
EPCC of Prai 2 Lateral Gas Pipeline Petronas Gas 95 3 <1
Pipeline & Commissioning Installation & Construction
May 2015 | 13
Projects Completion Timeline
Projects Remarks 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Pan Malaysia Hook-up
and Commissioning
(HUC)
Progressing with ongoing
P.Os from clients
Pipeline services,W. & E
Malaysia
Progressing and bidding as
usual
HUC and topside major
maintenance
New project over 3 years,
with 1-year extension
PIG Trap System, W. & E
Malaysia
Started in late-Jan 15, early
stage. Contract until 2018
Pan Malaysia
Transportation &
Installation Package A
Engaging with clients for
2015 PO
Pengerang Pipeline
65% of pipes delivered. %
completion 3.4% ahead of
plan. 560,818 manhours with
zero LTI
Extension option
2015 2016 2017
May 2015 | 15
Business Strategy
Short-Term
Medium-Term
Long-Term
Prolong earnings visibility- Tender for existing business
Review supply chain
Operational & financial discipline- Cost saving exercises and financial structure optimisation
Synergistic
O&M of oilfield structures/ facilities- Strengthen our current business model
Fit-for-purpose solutions to clients- Planning, procurement, execution and risk management
Integrated solutions- Take action on our vision
- Move up value chain
- Technology-driven business
Increase recurring income
May 2015 | 16
• Visibility of sizeable projects for upstream and
downstream pending clients decision to implement the
projects
• Projects pre-qualification and bidding very active
• 2015 target orderbook replenishment of RM300m, future
replenishment pending clients’ capex programme rollout
• Planning and executing for long-term growth, expanding
into technology-driven business
Key Takeaways
May 2015 | 17
Thank You
Firdauz Edmin Mokhtar
Chief Financial Officer
Email : [email protected]
Abdul Rahim Awang
Chief Corporate Officer
Email : [email protected]
Barakah Offshore Petroleum Berhad
No. 28, Jln PJU 5/4, Dataran Sunway,
Kota Damansara, 47810 Petaling Jaya,
Selangor Darul Ehsan.
http://www.barakahpetroleum.com
Tel : +603-6141 8820Fax : +603-6141 8857