February 13th, 2018 - BOURBONOFFSHORE.COM · 12M 2014 12M 2015 12M 2016 12M 2017 e. Hull average...
Transcript of February 13th, 2018 - BOURBONOFFSHORE.COM · 12M 2014 12M 2015 12M 2016 12M 2017 e. Hull average...
February 13th, 2018
Market context
What we have done, what we have learnt
Way forward strategy
#BOURBONINMOTION
THE EXPECTED MARKET
RECOVERY DID NOT
MATERIALIZE
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THE WORST CRISIS EVER
BOURBON Strategy Conference, 13 February 2018
-250
-200
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-50
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100
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Global upstream capex budget trend year-over-year
Source: Rystad Energy
1990 1995 2000 2005 2010 2015
-140
-120
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Global offshore capex trend
2013 2014 2015 2016 2017 2018 2019 2020 2021
Billion USD
2016
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BUT… SOME POSIT IVE SIGNALS
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40
50
60
70
Brent crude Oil in $
Steadily over 50$
50
In US$
Source: prixdubaril.com
At its highest since 2008
Barrel price Oil & gas Majors’ free cash flow
-40
-20
0
20
40
60
80
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120
USD bn
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OFFSHORE PRODUCTION REMAINS KEY TO MATCH DEMAND GROWTH
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> 23%
$US billion N° FIDs
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2010 2011 2012 2013 2014 2015 2016 2017
Estimated Capex (LHS) No. Project FIDs (RHS)
CAPEX data as specified by project operators. Where no definitive figure is given, estimates derived from assessment of comparable projects with known CAPEX Data Source: Clarksons Research Source: Morgan Stanley Research, Wood Mackenzie, Rystad Energy, and Company Data – June 2017
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GLOBAL ACTIVITY IS TURNING POSITIVE
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Worldw
ide fleet utilization %
Tota
l num
ber o
f ves
sels
79% 81% 81% 77%
60%
55%
58% 64%
70%
76%
83%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
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2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022Demand (nb of vessels) Supply (nb of vessels) Utilization (BOURBON)
Utilization (Clarksons Platou Securities) Utilization (Pareto Securities Equity Research) Utilization (IHS Petrodata, Pareto Securities)
(Clarksons + BOURBON projection)
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RECOVERY WILL BE SLOW
3,500 of which
1,200 vessels are stacked
TOTAL FLEET:
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30% of the worldwide OSV fleet is stacked
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janv
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Num
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sels
Source: Clarksons
9
,
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
,
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
12M 2014 12M 2015 12M 2016 12M 2017 e
Hull average cost OPEX per day ($) Average working day rate ($)
SUBSTANTIAL COST REDUCTION IS NOT ENOUGH
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In US $
SHALLOW DAYRATE VS CASH OUT: BOURBON LIBERTY 200 AHTS CASE
- 20% to - 30%
- 30% to - 40%
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SHIPOWNERS ARE F IGHTING TO SURVIVE
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NORTH SEA
AMERICA US/GOM
MIDDLE EAST
ASIA WEST AFRICA
Restructuring Consolidation Bankruptcy
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BOURBON’S CHALLENGES IN THIS CONTEXT
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Vessels in operation are not profitable enough anymore
The stacked fleet remains a cash drain
Some of our vessels’ values are challenged
WHAT WE HAVE DONE,
WHAT WE HAVE LEARNT
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DELIVERING OPERATIONAL EXCELLENCE
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SAFETY RESULTS TECHNICAL AVAILABILITY RATE OF BOURBON’S FLEET IN OPERATION
0.69
0.48
0.76
0.55
0.82
0.53
2012 2013 2014 2015 2016 2017**
TRIR* LTIR* TRIR* objectives per year
0.10
32.3 million hours** worked in 2017
0.70 0.67
0.60
0.07 0.10
0.02
0.34
0.20
93% 94.3%
94.5%
95.5% 96.4%
95.5%
90%
92%
94%
96%
98%
2012 2013 2014 2015 2016 2017
Technical objective availability rate
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CONSISTENTLY OVERPERFORMING MARKET
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30
40
50
60
70
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100
2010 2011 2012 2013 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4
UTI
LIZA
TIO
N R
ATE
S %
BOURBON vs Market utilization rate
OSV BOURBON UR Market UR
Focus on BOURBON 2017 UR by quarter
2017 Q1 2017 Q2 2017 Q3 2017 Q4
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JAN 2017 FEB 2017 MAR 2017 APR 2017 MAY 2017 JUNE 2017 JULY 2017 AUG 2017 SEPT 2017 OCT 2017 NOV 2017 DEC 2017
Turnover base 100 Net Overdue base 100
IMPLEMENTING STRONG CASH MONITORING
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Specific action plan:
Focus on cash collection
Monitoring at Executive committee level - Dry dock expenditure
- Reactivation cost
- 35.6%
Adjusted data / Base 100
- 12.4%
Net overdue
Net turnover
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-
20.0
40.0
60.0
80.0
100.0
2014 2015 2016 2017e
Direct Costs G&A
*Adjusted data / Base 100
-
20.0
40.0
60.0
80.0
100.0
2014 2015 2016 2017e
Newbuidling Maintenance
DELIVERING COST REDUCTION STRATEGY
G&A: - 25% CAPEX: - 60% OPEX: - 34%
REDUCTION OVER THE PERIOD 2014 - 2017e
WAY FORWARD
STRATEGY:
#BOURBONINMOTION
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2 CRITERIA FOR STRATEGIC SEGMENTATION
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• Specialty vs Commodity segments
• Compliance to local content rules
• From chartering vessels only to providing integrated services too
• Focus on dominant regional market shares • Promote franchise: Asset light strategy • Game changing cost structure through technology and connected standardized fleet
MARKET ATTRACTIVENESS
OPERATIONAL COMPETITIVENESS
PREREQUISITE: BE THE FIRST MOVER
BARRIER TO ENTRY
ACCESS TO MARKET
BE INNOVATIVE
BUSINESS MODEL CHANGE
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#BOURBONINMOTION WITHIN RELEVANT SEGMENTATION
Non-smart fleet Smart fleet
Mar
ket a
ttrac
tiven
ess
Operational competitiveness
French Navy
Mooring & Towing
Tanker Lifting
Traditional OSVs
Modern OSVs
MARINE & LOGISTICS
MOBILITY
Com
mod
ity
SUBSEA
Spec
ialty
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#BOURBONINMOTION RESPECTIVE SEGMENTS WEIGHTS
Non-smart fleet Smart fleet
Mar
ket a
ttrac
tiven
ess
Operational competitiveness
French Navy 7 vessels
Mooring & Towing 4 vessels
Tanker Lifting 9 vessels
Traditional OSVs 65 vessels
99M€ revenues
Modern OSVs 132 vessels
247M€ revenues
MARINE & LOGISTICS
MOBILITY 269 vessels / 216 M€ revenues
Com
mod
ity
SUBSEA 22 vessels / 220 M€ revenues
Spec
ialty
2017 adjusted and non-audited data
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#BOURBONINMOTION: MOBILITY
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• Benefit from BOURBON footprint worldwide • Local Joint ventures/partnerships: Gabon, Congo, Nigeria
ACCESS TO MARKET
• From 96% technical rate to 100% services rate • “Door to rig” solutions: price per man
BUSINESS MODEL CHANGE
• Surfer Concept • Fleet Size
BARRIER TO ENTRY
SUBSEA
French Navy
Non-smart fleet Smart fleet
Mooring & Towing
Com
mod
ity MARINE & LOGISTICS
Mar
ket
attr
activ
enes
s
Operational competit iveness
MOBILITY
Tanker Lifting
• Digitization to develop new services around passengers • Terminal management, …
BE INNOVATIVE
Spec
ialty
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#BOURBONINMOTION: SUBSEA
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• Benefit from BOURBON footprint worldwide • Regional technical know how
• Increase share of turnkey projects • Diversify potential use of assets: windfarm, …
• Integrated services capability: engineering, project management…
• Access to the right fleet at the right place
• Light well stimulation: Operational Excellence Awards from TOTAL
Spec
ialty
ACCESS TO MARKET
BUSINESS MODEL CHANGE
BARRIER TO ENTRY
BE INNOVATIVE
MARINE & LOGISTICS
SUBSEA
French Navy
Non-smart fleet Smart fleet
Mooring & Towing
Com
mod
ity MARINE & LOGISTICS
Mar
ket
attr
activ
enes
s
Operational competit iveness
MOBILITY
Tanker Lifting
Spec
ialty
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#BOURBONINMOTION: MARINE & LOGISTICS
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• True partnership for the best motion • Worldwide footprint: clients frame agreements
• From chartering vessel only to integrated services too
• Operational excellence • Modern and standardized fleet
• Smart shipping concept: 25% further OPEX reduction • Creation of regional hub and regional operations centers • Divest from the non-smart fleet
ACCESS TO MARKET
BUSINESS MODEL CHANGE
BARRIER TO ENTRY
BE INNOVATIVE
SUBSEA
French Navy
Non-smart fleet Smart fleet
Mooring & Towing
Com
mod
ity MARINE & LOGISTICS
Mar
ket
attr
activ
enes
s
Operational competit iveness
MOBILITY
Tanker Lifting
Spe
cial
ty
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ON THE WAY TO DIGITAL REVOLUTION
OPPORTUNITY TO DELIVER INNOVATIVE SOLUTIONS REDUCING TOTAL COST FOR OUR CUSTOMERS
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“We would be interested to have one partner in exploration logistics to become more agile with a light footprint model”
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#BOURBONINMOTION: THE SMART FLEET
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MODERN VESSELS
132 vessels named “smart” qualifying for the smart shipping program
Connectivity: no design, technical or economical constraints
Age: 5.7 years old in average, built in series
Client needs: redundancy, maneuverability & energy savings
MODERN VESSELS
LEVERAGING TECHNOLOGY
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A program based on a 3 level operational model: • Vessel • Local shore support • Central remote support
• Connecting the Smart Fleet to operate at safe manning: CAPEX 75M€ • Improving operational excellence • Reducing operational costs by 25%
Three years deployment plan aiming to:
Dynamic Positioning automation
Action plan structured around 4 main projects:
Onboard Processes Simplification
Maintenance Operational Support Center
01 02 03 04
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SMART SHIPPING PROGRAM F R O M 1 4 TO 1 0 C R E W M E M B E R S
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DYNAMIC POSIT IONNING AUTOMATION PROJECT
Improve operator-machine interface & bridge ergonomics to increase the safety of operations
Implement a certified communication protocol to mitigate cybersecurity risks
Monitor system with digital twin
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BOURBON, Kongsberg & Bureau Veritas innovating on best and safest available technology for DP operations
Pilot on Bourbon Explorer 508 implemented since 1st December 2017 for BP. 12 vessels scheduled for conversion in 2018.
Savings on crew positions: 1 Officer per vessel
Alexandre Motte Master Bourbon Explorer 508
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ONBOARD PROCESS SIMPLIFICATION PROJECT
Simplification & standardization with a robust methodology: lean six sigma
20 processes highly time consuming out of 56
10 specialists onboard to measure reality
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ONE PRIORITY: CHANGE OF CULTURE
Analysis phase ongoing, deployment starts from 1st of April 2018
Savings on crew position: 1 junior Officer per vessel
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MAINTENANCE PROJECTS
Strengthen governance and streamline processes
Implement condition based maintenance to optimize maintenance plan
Develop predictive maintenance
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STRENGTHEN GOVERNANCE, STREAMLINE PROCESSES, OPTIMIZE MAINTENANCE PLAN
Maintenance hub pilot operational in Qatar in Q1-2018
All projects to be deployed fully or partially over 2018
Savings on crew positions: 1 Officer and 1 Able Seaman per vessel
01 02 03
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BOURBON OPERATIONAL SUPPORT CENTER
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Remote contract management
Real time monitoring & advisory
Analytics for business and operations decision making
Emergency and contingency situation management
1st step of the deployment in 2018
CONTRACT & OPERATIONS MANAGEMENT TO GUARANTEE CLIENT SATISFACTION
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#BOURBONINMOTION: DIVEST THE NON-SMART FLEET
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65 TRADITIONAL VESSELS
Non smart fleet : 41 owned vessels destined to be sold
Connectivity: design, technical or economical constraints
Age: 11.2 years old vessels
Vessels remaining stacked for a longer period
As a consequence of this sale plan, 2017 will bear an impairment loss of around 170 M€ on the non-smart vessels
Market for vessels to sale : 40% of our competitors having less than 10 vessels, 23 years old
N EW ORGANIZATION TO
SUPPORT STRATEGY
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#BOURBONINMOTION: 3 STAND-ALONE COMPANIES
BOURBON CORPORATION
BOURBON MARINE & LOGISTICS
BOURBON SUBSEA
BOURBON MOBILITY
Revenues
Fleet
People
Geographies
€411M
217 vessels
4,500
Multi areas
Revenues
Fleet
People
Geographies
€220M
22 vessels
1,000
68% Africa
21% Asia
Revenues
Fleet
People
Geographies
€216M
269 vessels
2,300
90% Africa
Adjusted and non-audited figures as of 2017, December 31st
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#BOURBONINMOTION: DUPLICATE ORGANIZATION: P ILOT PROJECT IN NIGERIA
SUBSEA MARINE & LOGISTICS MOBILITY
BOURBON Support: Standard, franchise, shared services
CLIENT CLIENT CLIENT
Owner / Shipmanager / Contracting
Owner / Shipmanager / Contracting
Owner / Shipmanager / Contracting
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Marketing & Brand Strategy & Partnership
Operational Standards & Innovation
Performance Monitoring & Global Services
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#BOURBONINMOTION: DEPLOY NEW ORGANIZATION
BOURBON Corporation
Q2 2 0 1 8
Q1 2 0 1 8
Q3 2 0 1 8
BOURBON MOBILITY
BOURBON SUBSEA SERVICES
BOURBON MARINE & LOGISTICS
Board of 7 members François LESLÉ, CEO
Board of 7 members Patrick BELENFANT, CEO
Board of 7 members Victor CHEVALLIER, CEO
Marketing & Sales
Operations & Development
Finance & Admin
Marketing & Sales
Operations & Development
Finance & Admin
Marketing & Sales
Operations & Development
Finance & Admin
BOURBON
MARINE
& LOGISTICS
Victor CHEVALLIER
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KEY FIGURES & CUSTOMERS
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4%
46%
15%
13%
22%
SUPERMAJORS
IOC
NOC
CONTRACTORS
COUNTRIES OF OPERATIONS
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217 VESSELS BUILT IN SERIES PLAYER IN NUMBER OF VESSELS
OSV 1 ST
411 MILLION EUROS
4,500 EMPLOYEES
SHIPMANAGERS 8
Figures as of December 31st, 2017
OTHER
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Our expertise:
• Supplying offshore installations and vessels
• Towing, anchoring, and positioning of offshore installations • Support to floating oil and gas production, storage, and unloading units
A FULL RANGE OF MARINE SUPPORT SERVICES
BOURBON Strategy Conference, 13 February 2018
Our key drivers:
• Safety & Operational excellence
• Cost optimization
• $/day contracting mode
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OSV COMPETITORS A FRAGMENTED MARKET
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400+ players - Average fleet of 8 vessels
0
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400 operators Fleet of less than 10 vessels on average,
40% aged of more than 20 years old
Top 10 players represent less than 20% of the market
Market reports & analysis, 2017
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A GLOBAL FOOTPRINT WITH A WINNING STRATEGY OF LOCAL CONTENT
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JV
JV JV
BML
BML
JV
JV
BML
JV JV
JV
JV
JV
8
40
42
32
Local partner / Joint venture Contracting company Shipmanager Nb vessels
JV
95
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FROM CHARTERING VESSELS ONLY TO PROVIDING INTEGRATED SERVICES TOO
BOURBON Strategy Conference, 13 February 2018
$/day services $/ton, m3, …
Fleet management Scheduling & optimization
Real-time decision support & analytics
Integrated logistics projects in exploration
Cargo management &
shore base services
TODAY… Vessel centered activity
TOMORROW Logistics Services Integrator
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BOURBON
SUBSEA
SERVICES
Patrick BELENFANT
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WELLHEADS IN DEEPWATER 350
SERVICE PROVIDER IN WEST AFRICA
IMR 1 ST
220 MILLION EUROS
1,000 EMPLOYEES
Figures as of December 31st, 2017
(Inspection Maintenance and Repair)
56% 36%
6% 2%
SUPERMAJORS
IOC NOC
CONTRACTORS
TRACK RECORD
22 VESSELS
25 ROVS
SUBSEA CONNECTIONS ON LIVE PRODUCTION FIELDS
500
KEY FIGURES & CUSTOMERS
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1 VESSEL X CRANE 250T / 10 VESSELS X CRANE 150T
5 VESSELS X CRANE 100T
6 VESSELS < CRANE 40T
Our expertise covers 3 main subsea areas:
• Engineering, supervision and management of subsea operations • Assets (vessels)
• ROV (Remote Operated Vehicle)
Base on $/Day rate for:
• Post 1st oil & gas intervention
• Inspection, Maintenance and Repair
• Assistance to construction contractors
SERVICING PRODUCTION CYCLE
BOURBON Strategy Conference, 13 February 2018
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GLOBAL & REGIONAL COMPETITORS
BOURBON Strategy Conference, 13 February 2018
Market reports & analysis, 2017
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Bourbon Evolution 802 in operation in Nigeria
TOTAL Operational Excellence Award - Oct 2017
STRATEGICALLY POSITIONED PARTNERS & FLEET
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2
12
4 4
JV Partnership Nb of vessels
JV JV
JV
JV JV
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FROM CHARTERING VESSEL & ROV SERVICE TO LIGHT TURNKEY SUPPLIER
BOURBON Strategy Conference, 13 February 2018
TODAY… Services rate
TOMORROW: Services rate & turnkey projects
ROVs Engineering Vessels Turnkey projects
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BOURBON
MOBILITY
François LESLÉ
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60% 18%
12%
10%
SUPERMAJORS
IOC
NOC
CONTRACTORS
LEADER WITH 30 YEARS EXPERIENCE WORLD 1 ST 216
MILLION EUROS
2,300 EMPLOYEES
Figures as of December 31st, 2017
269 HIGH SPEED CREW BOATS
ARO
UN
D
TRANSPORTED EACH YEAR 3 MILLION PASSENGERS
KEY FIGURES & CUSTOMERS
COUNTRIES OF OPERATIONS
>10
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A UNIQUE CONCEPT FOR PASSENGERS’ TRANSPORTATION
Speed Reliability & availability
Safe transfer
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FRAGMENTED GLOBAL & REGIONAL COMPETITORS
BOURBON Strategy Conference, 13 February 2018
Market reports & analysis, 2017
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A STRONG LOCAL FOOTPRINT
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Brazil
Congo Gabon
Nigeria
Cameroun
Qatar
Indonesia
Shore maintenance base
Training base
Joint venture
Angola
90% of turnover in West Africa
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TOWARDS DIVERSIFICATION & PASSENGER SERVICES ENHANCEMENT
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TODAY… Chartering vessels for transportation
96% technical availability rate
Enhanced onboard services with partnerships
Strong historical asset base
Diversification through value chain enlargement
Digitalization
TOMORROW Customers’ mobility management
100% service rate
Integrated cost per seat $/day services
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#BOURBONINMOTION: MAIN TAKE AWAY
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- Ring fencing Subsea Services and Mobility as stand alone companies
- Transforming Marine & Logistics into a stand-alone entity:
• Investing in Smart shipping
• Reactivating the smart stacked fleet
• Divesting the non smart fleet
• Developing integrated logistic services
- Adapting group organization and governance
#BOURBONINMOTION:
CONCLUSION
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STRATEGIC MOVES & DEDICATED ORGANIZATION,
D IGITAL POWERED
MARINE & LOGISTICS
SUBSEA SERVICES
MOBILITY
INTEGRATED
SOLUTIONS
Project Management
Partnerships
Risk management
Customer mobility experience Logistics
Engineering
Safety
60
A
BOURBON Strategy Conference, 13 February 2018
ROAD TO VESSEL AUTONOMY
CONNECTED
Onboard Process Simplification DP Automation
REMOTE SERVICES
Maintenance Operations Support Center
AUTONOMOUS OPERATIONS
Autonomous Vessel
Source: Kongsberg courtesy
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MONITOR HUMAN REVOLUTION
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System
Human
Machine/AI
Q&A
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DISCLAIMER
BOURBON Strategy Conference, 13 February 2018
This document may contain information other than historical information, which constitutes expectations, estimated, provisional data concerning the financial position, results, plans, other trend information and strategy of BOURBON. These projections are based on assumptions that could differ materially from those anticipated, may prove to be incorrect and/or depend on risk factors including, but not limited to: foreign exchange fluctuations, fluctuations in oil and natural gas prices, changes in oil companies investment policies in the exploration and production sector, the growth in competing fleets, which saturates the market, the impossibility of predicting specific client demands, political instability in certain activity zones, ecological considerations and general economic conditions. All written or oral statements attributable to BOURBON and its employees or representatives acting on the BOURBON’s behalf are expressly qualified in their entirety by the factors referred to above. BOURBON assumes no liability for updating, revising or correcting the provisional information or forward-looking statements based on new information in light of future events or any other reason, and these statements speak only to the date of today’s presentation. All data in the presentation are adjusted and non-audited