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17.06.2011© Kvaerner 20112
Copyright and disclaimer
© Kvaerner 20112
DisclaimerThis presentation has been prepared by Kværner ASA to provide an overview of certain aspects of the operations and strategy of the Company. This presentation speaks as of 17th June 2011, and there may have been changes in matters which affect Kværner ASA subsequent to the date of this presentation. Neither the issue nor delivery of this presentation shall under any circumstance create any implication that the information contained herein is correct as of any time subsequent to the date hereof or that the affairs of Kværner ASA have not since changed, and Kværner ASA does not intend, and does not assume any obligation, to update or correct any information included in this presentation
This presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for Kværner ASA and Kværner ASA’s (including subsidiaries and affiliates) lines of business. These expectations, estimates and projections are generally identifiable by statements containing words such as “expects”, “believes”, “estimates” or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for Kvaerner’s businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time in the presentation. Although Kværner ASA believes that its expectations and the presentation are based upon reasonable assumptions, no assurance can be given that those expectations will be achieved or that the actual results will be as set out in the presentation. Anyone considering taking actions based upon the content of this document is urged to base investment decisions upon such investigations as deemed necessary. No representation or warranty, expressed or implied, is made with respect to its accuracy, reliability or completeness, and Kværner ASA nor any of its directors, officers or employees accepts no liability whatsoever for any direct or consequential loss arising from use of this document or its contents.
This presentation does not constitute or form a part of, and should not be construed as, an offer or invitation to subscribe for or purchase any securities of the Company and neither this document nor anything contained herein shall form the basis of, or be relied on inconnection with, any offer or commitment whatsoever.
This communication is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) to investment professionals falling within Article 19(5) of the U.K. Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (iii) high net worth entities falling within Article 49(2)(a) – (d) of the Order (the persons described in (i) through (iii) above together being referred to as “relevant persons”). Any person who is not a relevant person should not act or rely on this document or any of its contents.
Not for distribution or release in the United States or to US persons, Canada, Australia and Japan or any other jurisdiction where to do so might constitute a violation of the relevant laws or regulations of such jurisdiction.
CopyrightCopyright of all published material including photographs, drawings and images in this document remains vested in Kvaerner and third party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor used in any manner without express prior permission and applicable acknowledgements. No trademark, copyright or other notice shall be altered or removed from any reproduction.
17.06.2011© Kvaerner 20113
Kvaerner - Investment Highlights
EXTENSIVE TRACK RECORD
Kvaerner is a “new” company with more than 40 years of experience from the world’s most demanding market
TAILORED TO MEET STRONG MARKET
With an unprecedented market growth ahead, Kvaerner is tailored to meet market trends as well as client demands
ALL SYSTEMS ARE IN PLACE
Delivery models, systems and experience in place to deliver sound profits and manage growth
FINANCIAL MUSCLE Access to opportunities and credibility towards customers
A SOLID POSITION FOR GROWTH
Five business areas with leading positions in their niches and technologies ready to capture growth
17.06.2011© Kvaerner 20114
Kvaerner - Investment Highlights
EXTENSIVE TRACK RECORD
Kvaerner is a “new” company with more than 40 years of experience from the world’s most demanding market
TAILORED TO MEET STRONG MARKET
With an unprecedented market growth ahead, Kvaerner is tailored to meet market trends as well as client demands
ALL SYSTEMS ARE IN PLACE
Delivery models, systems and experience in place to deliver sound profits and manage growth
FINANCIAL MUSCLE Access to opportunities and credibility towards customers
A SOLID POSITION FOR GROWTH
Five business areas with leading positions in their niches and technologies ready to capture growth
17.06.2011© Kvaerner 20115
A strong name with a solid track record
AkerSolutions
ED&S / Field Development
1850 20001900 1950
Peter SteenstrupFirst CEO
Oluf A Onsum, founder
2008
AkerKvaerner
Field Development
Aker AkerMaritime
Kvaerner (Oil & Gas)
Kvaerner
EngineeringStordVerdal
EngineeringEgersundRosenberg
KvaernerGlobal EPC provider
Est1841
Davy/John Brown/Trafalgar
Norw. Contractors
Maritime Group
17.06.2011© Kvaerner 20116
With full focus on EPC field developments
More focused
Field development market poses unique challenges and opportunitiesMarket requirements for dedicated EPC contractors
More flexible
Meeting low cost requirements through strategic partnershipsMeeting local content requirements through local partnerships
Creating a focused global EPC company
17.06.2011© Kvaerner 20117
Fast track process to listing
January:P&C sold to Jacobs
Dec 2010:Reorganisation decided
March 2011:Kvaerner becomes a separate business area, and starts operating as a company 100 percent owned by Aker Solutions
July 2011: Listing
May 2011:AGM
After AGM:Kvaerner is owned 100 percent by Aker Solutions until the listing in 3Q
17.06.2011© Kvaerner 20118
CONCRETE
Concrete substructures
Global leader in Gravity based concrete structures
JACKETS
Large steel jackets for oil & gas installationsWind jackets
Eurpoean leader in steel jackets
NORTH SEA
TopsidesFloatersOnshore upstream facilities
Leading EPC contractor to the North Sea market
Kvaerner – a dedicated EPC company
UPSTREAM DOWNSTREAM & INDUSTRIAL
E&C AMERICASINTERNATIONAL
TopsidesFloatersOnshore upstream facilities
Spearhead for international expansion
Onshore facilitiesPower plantsSteel mills
A leading EPC contractor for the American market
17.06.2011© Kvaerner 20119
HSE mindset: Just Care™
Through the implementation and use of the HSE operating system, Kvaerner has established:
A systematic approach to improvement towards a common set of HSE expectationsMore efficient HSE interfaces, internally and externallyMeasurements of HSE compliance and cultureA tool for increasing employee engagement and achieving a HSE culture where zero harm to personnel, material and the environment is sustainable
17.06.2011© Kvaerner 201110
Experienced management teamLars EideNorth Sea Lars Eide has broad experience from a wide range of positions in Aker Solutions, most recently as President of Aker Stord, Project Director Gjøa EPCH and President of Aker Kværner Egersund. Mr. Eide holds a Masters Degree from the Norwegian University of Science and Technology.
Jan Arve Haugan*Chief Executive Officer (from 1 August 2011)Jan Arve Haugan has since 2009 been CEO of Qatar AluminiumLtd (Qatalum) - a 50/50 Joint Venture between Qatar Petroleum and Hydro Aluminium - one of the largest primary aluminum plants ever built in one phase. He holds a Master of Science in Construction Management from the University of Colorado at Boulder, USA.
Jim MillerE&C Americas Jim Miller joined Aker Philadelphia Shipyard as President and CEO in June 2008. Before that, he was President of Aker Solutions Process & Construction (P&C) Americas. Mr. Miller graduated from the University of Edinboro in Pennsylvania with a BA.
Jan ØyriBusiness Support (from 1 September 2011)Jan Øyri has more than 15 years of experience with organisationaland production processes and management development from companies like NCC, Elkem, Mesta and Norsk Hydro. Mr Øyri has significant tenure as an Officer with the Norwegian Army and hasattended Norwegian Military Academy and the Norwegian Army Staff College.
Bjørn GundersenConcrete Bjørn Gundersen has over 30 years experience from the oil and gas industry. He has extensive experience through project managementpositions for major world class offshore oil and gas projects, as well as corporate business executive management positions, in Norway as well as internationally. Mr. Gundersen holds a degree in civil engineering from the Regional College of Stavanger.
Jan-Tore ElverhaugProject Support Jan-Tore Elverhaug has more than 30 years experience from the offshore industry and has been part of the management in Kværner Engineering and Aker Solutions, including EVP for Field Development and President of Aker Stord. He is a Petroleum Engineer from the Regional College of Stavanger in and holds a business degree from the Norwegian School of Management.
Nina Udnes Tronstad JacketsNina Udnes Tronstad has since joining Aker Solutions in 2007 been president of Aker Verdal. Prior to joining Aker Solutions, Ms Udnes Tronstad held various technical and management positions in Statoil, both upstream, midstream and downstream. Ms. Udnes Tronstad holds a degree in chemical engineering from the Norwegian University of Science and Technology.
Eiliv GjesdalChief Financial Officer Eiliv Gjesdal joined Aker Solutions in 2002 and has extensive experience from finance and control functions. Mr. Gjesdal holds a MSc in Economics and Business Administration from NHH in Bergen, Norway, and is a state authorised public accountant in Norway.
* Per Harald Kongelf will act as Interim CEO until 1 August 2011
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Directors with long tenure from the industry
Bruno WeymullerDirectorBruno Weymuller served as Strategy Director of the Total Group from 2000 to 2008. He started his career with positions within the French Ministry of Industry, the Energy Directorate as well as the Prime Minister‘s office. Mr. Weymuller has held various executive positions in Elf Aquitaine (Total) from 1981 to 2008. Mr. Weymuller is an alumnus of the Ecole Polytechnique and the Ecole des Mines (Paris) and also holds an MSc from MI.T
Kjell Inge RøkkeChairman Kjell Inge Røkke is an entrepreneur and industrialist, and has been a driving force in the development of Aker since the 1990s. Mr. Røkke owns 67.8 % of Aker ASA through privately held companies organised under TRG. He holds the positions as chairman of Aker ASA, Aker BioMarine ASA and Detnorske Oljeselskap ASA, and board member of Aker Solutions ASA.
Vibeke Hammer MadsenDirectorVibeke Hammer Madsen is the CEO of HSH (The Federation of Norwegian Commercial and Service Enterprises) since 2002. Prior to this, she was a partner in the PA Consulting Group. From 1993 to 1999 she was a vice president holding various positions in Statoil. Ms. Hammer Madsen holds a number of board positions, was board member of Aker Solutions from 2008 until May 2011. Ms. Hammer Madsen is a graduate of the Norwegian School of Radiography.
Lone Fønss SchrøderDirectorLone Fønss Schrøder has broad international experience acquired during 21 years in senior management, including board positions at A.P. Møller-Maersk A/S. She is a chairperson for the audit committee at Volvo, a non-executive director of Volvo PV in Sweden and NKT A/S in Denmark, as well as non-executive director and member of the audit committees of Aker Solutions ASA, Vattenfall AB and Svenska Handelsbanken AB. Ms. FønssSchrøder has a law degree from the University of Copenhagen and a Master of Economics from CBS.
Employee elected Directors:Rune RafdalStåle Knoff JohansenBernt Harald Kilnes
Tore TorvundDirectorTore Torvund holds the position as EVP of REC Silicon since 2009. Mr. Torvund has senior executive experience of more than 20 years in the oil and gas industry, including as EVP of E&P Norway at StatoilHydro, and EVP of Oil and Energy at Norsk Hydro. He has held several management positions related to drilling operations, field development and technologyprojects. Mr. Torvund holds an M.Sc in Petroleum Engineering from the Norwegian University of Science and Technology.
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Tailored to meet market requirements
12
Local delivery models where Kvaerner provides project management, yard management and risk expertise
Local content requirementsA major part of new field developments are located in closed markets
New frontiersA significant part of new resources to be found in remote areas, deepwater and/or harsh environment
The “easy” oil is gone, and so is easy contracting. Focus on relevant technologies such as GBS and advanced floaters
Low-cost competitionMature areas facing increased competition from low-cost players
Proactively seeking low-cost manufacturing capability through strategic partnerships
Contract risk managementCustomers increasingly favoring EPC contracts with less reimbursable elements
Creating a focused EPC player with strong risk management capabilities
17.06.2011© Kvaerner 201113
Kvaerner - Investment Highlights
EXTENSIVE TRACK RECORD
Kvaerner is a “new” company with more than 40 years of experience from the world’s most demanding market
TAILORED TO MEET STRONG MARKET
With an unprecedented market growth ahead, Kvaerner is tailored to meet market trends as well as client demands
ALL SYSTEMS ARE IN PLACE
Delivery models, systems and experience in place to deliver sound profits and manage growth
FINANCIAL MUSCLE Access to opportunities and credibility towards customers
A SOLID POSITION FOR GROWTH
Five business areas with leading positions in their niches and technologies ready to capture growth
17.06.2011© Kvaerner 201114
10 000
20 000
30 000
40 000
50 000
60 000
2000 2005 2010 2015 2020
CAGR 2010-15: 18%
Global Offshore Oil and Gas EPCUSD million
Unprecedented market outlook
Oil price outlook fuelling EPC market
Increasing production in frontier areas requires strong field development capabilities
Attractive marginal economics driving investments in mature areas
Global Oil and Gas EPCUSD million
20 000
40 000
60 000
80 000
100 000
120 000
140 000
2000 2005 2010 2015 2020
CAGR 2010-15: 15%
Source: Rystad Dcube April 2011
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5 000
10 000
15 000
20 000
25 000
30 000
2000 2005 2010 2015 2020
5 000
10 000
15 000
20 000
25 000
30 000
2000 2005 2010 2015 2020
North Sea Oil and Gas offshore EPCUSD million
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Particularly strong outlook for home market and core areas of competence
Source: Rystad Dcube April 2011
CAGR 2010-13: 37%CAGR 2010-15: 14%
CAGR 2010-15: 22%
Global Oil & Gas offshore EPC: Harsh environmentUSD million
17.06.2011© Kvaerner 201116
A strategy for growth
Improve flexible engineering modelFurther develop Kvaerner’s flexible engineering delivery model: Adding enhanced in-house capabilities and subcontracted resources and entering into new joint ventures and partnerships arrangements in addition to existing agreements
Refine delivery modelIncreasing competitiveness through strengthening Kvaerner’s in-house capabilities, entering into partnerships, and further develop value added fabrication partnerships and regional delivery models.
Export knowledge and competenceLeveraging the knowledge and competence from home markets to grow internationally; with a particular focus on demanding projects
Capture expected market activityCapturing growth and defending market positions in home markets1
2
3
4
Kvaerner’s mission is to successfully plan and execute the world’s most demanding EPC projects and to become a top league global EPC company
17.06.2011© Kvaerner 201117
Kvaerner - Investment Highlights
EXTENSIVE TRACK RECORD
Kvaerner is a “new” company with more than 40 years of experience from the world’s most demanding market
TAILORED TO MEET STRONG MARKET
With an unprecedented market growth ahead, Kvaerner is tailored to meet market trends as well as client demands
ALL SYSTEMS ARE IN PLACE
Delivery models, systems and experience in place to deliver sound profits and manage growth
FINANCIAL MUSCLE Access to opportunities and credibility towards customers
A SOLID POSITION FOR GROWTH
Five business areas with leading positions in their niches and technologies ready to capture growth
17.06.2011© Kvaerner 201118
The EPC value chain
Analysis of development concepts
An appropriate development concept is selected
The chosen concept is further developed
Facility owner issues an invitation to tender
Definition and corresponding cost estimates
Project requirements are identified
Design elements are chosen and integrated
Encompasses the detailed engineering phase
Procurement of materials, labor and sub-contractors
Construction management and construction
On-site or at a yard
Module based construction
Services aimed at installing and commissioning the facility
Can be done by the facility owner or by the EPC contractor
CONCEPT FEED ENGINEERING (E) PROCUREMENT (P) CONSTRUCTION (C) COMMISSIONING
NOK ~10 - 20 million NOK ~30 - 60 million NOK ~4,000 - 8,000 million NOK ~200 - 300 million
~ 10 percent ~ 50 percent ~ 40 percentEstimate figures for illustrative purposes for a typical platform devlopment.
17.06.2011© Kvaerner 201119
A flexible delivery model
CONCEPT FEED ENGINEERING (E) PROCUREMENT (P) CONSTRUCTION (C) COMMISSIONING
ELDFISK (Topsides)
GUDRUN (Jacket)
SAKHALIN (GBS)
HEBRON (GBS)
BROWSE (TLP)
Aker Solutions as subcontractor
+ +
Aker Solutions as subcontractor COOEC as subcontractor
Potential agreement; for illustrative purposes
17.06.2011© Kvaerner 201120
Engineering capacity and capability
~700 Kvaerner engineersSelf sufficient on Jacket and ConcreteProject management resources as well as fabrication/late phase engineering resources
Cooperation with Aker SolutionsSubcontractor agreement for ongoing projectsResources dedicated for ongoing bids
Cooperation with other external engineering partners
Current projects and target prospects
Engineering strategy
Kvaerner to be involved in FEED phase for EPC phase positioningSelf sufficient on Jacket and ConcreteKvaerner in front, with engineering subcontractor/partner/JVPartner in front with Kvaerner involvement
Grow organically and through acquisitions
17.06.2011© Kvaerner 201121
Value added procurementAll procurement functions are performed in-houseWorld-wide procurement resourcesDeveloping a Global Sourcing Centre in China
100 000 m3 concrete
11 000 tonnesstructure steel
8 400 tonnesmechanical equipment
25 500 tonnespipes 10 200 valves
2 200 000 metres of cable installed
50+ nationalities
550 companies involved
~11 703 000working hours on site
~13 500 tonnesdeliveries from Polish sub-suppliers
Total of 11 000 people involved in the project
3 200 people living at site
Ormen Lange example
17.06.2011© Kvaerner 201122
High quality, cost-effective fabrication
Value fabrication partner
High quality local content Value fabrication
Specialised yards An expanding network of qualified partners
COOEC (China)
Prefabrication suppliers in Poland
Fabrication on siteHigh quality local contentHigh quality local content, in important
marketsConcrete, e.g. Sakhalin, Russia
Concrete, e.g. Hebron, Canada
E&C Americas, e.g. Gulf LNG, USA
Specialised in-house yards~ 1 000 experienced operatorsMore than 2 000 highly experienced
engineers and operatorsStord, Norway
Verdal, Norway
17.06.2011© Kvaerner 201123
EPC contract formats
Contractual structures and risk (Figures are illustrative)
Field development contract format(Project example)
Contractor risk
Owner risk0 %
100 %0 %
100 %
Costreimbursement
Lump sum
Measurement
Target
Cost/target(reimbursable)
Measurement(rate based)
Lump sum
Measurement(norms/rate based)
Target(reimbursable)
Procurement
EngineeringConstructionProject management
17.06.2011© Kvaerner 201124
World class references
KRISTIN HPHT GAS PLATFORMThe first HPHT (high pressure, high temperature) floating production gas platform. Delivered in 2005.
GRANE PLATFORM JACKET17 500 tonnes fixed steel substructure for drilling, production, processing and accommodation facilities. Delivered in 2003.
SAKHALIN II GBSTwo concrete gravity based platforms for the Sakhalin II project offshore the Sakhalin island, East Russia. Delivered in 2005.
ORMEN LANGE The third largest gas field in Europe and one of Norway’s largest onshore plants. Delivered in 2007.
ADRIATIC LNG TERMINALThe world’s first offshore GBS based LNG re-gasification terminal, a strategic component of the Italian gas system. Delivered in 2009.
15 POWER PLANTS SINCE 2002New plants, as well as retrofits, environmental modifications, maintenance and upgrades to existing facilities
17.06.2011© Kvaerner 201125
Tender risk review- Corporate Risk Committee (CRC)
Mandatory for projects with certain characteristics (size, complexity etc.)Shall review the risk / reward prior to tendering Advisory role towards the line managementOpen and honest discussions related to risks and rewards
TENDER TEAM CRCAdvisory body
CEOAuthorisation
BOARD OF DIRECTORS
Prepares required documentation before meeting
Formal 2-3 hours meeting involving a summary of the project, risks and opportunities as well as cost calculationsOutput from the meeting is a document reviewing memo incl. key risk considerations and recommendations
Presentation and review of projectCRC recommendation and tender team’s replyThe CEO and board of directors will decide whether to prepare and hand over tender to client
17.06.2011© Kvaerner 201126
Kvaerner - Investment Highlights
EXTENSIVE TRACK RECORD
Kvaerner is a “new” company with more than 40 years of experience from the world’s most demanding market
TAILORED TO MEET STRONG MARKET
With an unprecedented market growth ahead, Kvaerner is tailored to meet market trends as well as client demands
ALL SYSTEMS ARE IN PLACE
Delivery models, systems and experience in place to deliver sound profits and manage growth
FINANCIAL MUSCLE Access to opportunities and credibility towards customers
A SOLID POSITION FOR GROWTH
Five business areas with leading positions in their niches and technologies ready to capture growth
17.06.2011© Kvaerner 201127
Concrete substructures
Global leader in Gravity based concrete structures
Large steel jackets for oil & gas installationsWind jackets
Eurpoean leader in steel jackets
TopsidesFloatersOnshore upstream facilities
Leading EPC contractor to the North Sea market
Two segments - five business areasUPSTREAM DOWNSTREAM &
INDUSTRIAL
E&C AMERICAS
TopsidesFloatersOnshore upstream facilities
Spearhead for international expansion
Onshore facilitiesPower plantsSteel mills
A leading EPC contractor for the American market
CONCRETE JACKETS NORTH SEA INTERNATIONAL
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Income statement
(6.5)%2.4%3.7%8.8%12.5%EBITDA margin
NOK million Q1 2011 Q1 2010 2010 2009 2008Revenues 3 722 3 198 13 209 12 191 13 143
EBITDA 464 281 488 291 (852)Depreciation and amortisation (12) (13) (54) (85) (59)
EBIT 452 268 434 206 (911)Net financial items (1) (21) (30) (78) (23)
Profit before tax 451 247 404 128 (934)Tax (130) (77) (330) (76) 242
Net profit 321 170 74 52 (692)
17.06.2011© Kvaerner 201129
Historical financial highlights
2010: Increase in revenues and profitabilityIncreased revenues driven by Sakhalin and KashaganIncreased margins driven by project as well as pension plan adjustments
2009: Lower activity in all business areasThe H-6e drilling rigs completed early 2009 Lower activity in Jackets and Concrete
2008: Settlement on FriggFrigg decommissioning project and H-6e drilling rigs impacting profitability
Upstream Revenues and EBITDANOK million
Downstream & Industrials Revenues and EBITDANOK million
928
7 0509 1928 714
-1 018 -24
-2 0000
2 0004 0006 0008 000
10 000
2008 2009 201010.1%-0.3%-11.7%EBITDA-%
173
4 539 4 0495 274
-440315
-2 000
0
2 000
4 000
6 000
2008 2009 2010
-10.9%6.0%3.8%EBITDA-%
2010: Decrease in revenuesRevenue decrease due to completion of Cameron LNGLower margins as a result of the Longview and Hitachi
2009: Revenue increaseDriven by favourable phasing of projects
17.06.2011© Kvaerner 201130
Q1 2011: Upstream Review
Order backlog and order intakeNOK million
Revenues, EBITDA and EBITDA marginNOK million
MarketOperations
3 113 3 059
233 234 431 476
2 145 2 1951 739
290
1 000
2 000
3 000
4 000
Q1'10 Q2'10 Q3'10 Q4'10 Q1'11
13.8%1.7% 15.6%10.7%10.9%EBITDA-%
11 387 10 64812 735
10 376
14 273
1 342 9953 426
755
6 955
0
4 000
8 000
12 000
16 000
Q1'10 Q2'10 Q3'10 Q4'10 Q1'11
High activity on projects at the Norwegian yardsThe FEED and site preparation for the Hebron project progressing wellIncreased revenues and margins mainly driven by the Sakhalin and Kashagan projectsThe Kashagan HUC project has reached peak activity and the project is nearing completion
Award of Eldfisk 2/7 S, a NOK 5.5 billion EPC contract with ConocoPhillips to deliver the topside and bridges of the production platformKvaerner selected as one of two remaining players for key contracts for the Browse LNG development
Order backlog Order intakeRevenues EBITDA
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Q1 2011: Downstream & Industrial Review
Order backlog and order intakeNOK million
Revenues, EBITDA and EBITDA marginNOK million
MarketOperations
822 673
-64
1 068 1 0471 112
48
-137 -2863
-500
0
500
1 000
1 500
Q1'10 Q2'10 Q3'10 Q4'10 Q1'11
-34.8%-5.8% 0.4%-13.1%4.5%EBITDA-%
5 066 5 356 4 683
2 059 1 404298
1 053 819 531 1040
4 000
8 000
Q1'10 Q2'10 Q3'10 Q4'10 Q1'11
Low activity and weak margins, mainly due to Longview project
The Longview project towards completion in Q3’11 and Gulf LNG completion end 2011.
Arbitrational award on the Hitachi project
Awarded the V&M pipe mill installation project by V&M Star LP Fostering strategic partnerships to jointly pursue North American power projectsPositive markets within most segments and high bidding activity
Order backlog Order intakeRevenues EBITDA
(1) The CAD 400 million contract with TransCanada for a gas firedpower plant was removed from the backlog in Q4’10.
17.06.2011© Kvaerner 201132
Robust capital structure
Final steps towards standalone unit (adj.)Equity – reduced by NOK 700 million
Transfer of personnel in KværnerEngineering AS and personnel in Aker Solutions AS in intra-group transactions
Other non interest bearing items – reducedby NOK 1 307 million
Internal receivables and liabilities towards the Aker Solutions settled before consummation
Net cash – reduced by NOK 2 007 millionSettlement of the transactions above
Loan facilities of NOK 3 000 million Loan facilities fully underwritten by DnBNOR, Nordea and SEBA 500 MNOK term loan - 3 year - margin of 1.5% above NIBOR A 2 500 MNOK credit facility - 5 year -margin of 2.1-2.5%The credit facility successfully syndicated to 5 additional banks
(129)
(2 158)
1 896
(1 337)
1 728
31.03.2011 AdjustedNOK million 31.03.2011 AdjustmentsTotal non-current assets 1 728NCOA (1 337)Net cash 3 903 (2 007)Equity (2 858) 700Other non interest bearing items (1 436) 1 307
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Cash positive, fluctuating working capital
The EPC business is cash positive through negative working capital
Up-front payments and milestone paymentsNCOA is fluctuating with project portfolioFluctuations can be as much as NOK 500 million to NOK 1 000 million during a monthWorking capital range expected to be within NOK -500 million and NOK -1 500 million
Net current operating assets (NCOA)NOK million
-2 000
-1 500
-1 000
-500
0Q2'09 Q4'09 Q2'10 Q4'10
200820092010Q1 2010Q1 2011NOK million
1 414(342)(269)(860)850Net +/- in cash and bank deposits
408(405)53(41)57Translation adjustment
3 278(1 065)349(310)4Net CF from financial activities
(2 162)1,230(645)(492)831Net CF from operating activities(110)(102)(26)(17)(42)Net CF from investing activities
17.06.2011© Kvaerner 201134
CAPEX and Investments
CAPEXNOK million
31
4
56
52 6
5
-20
0
20
40
60
80
100
2008 2009 2010
Other investmentsNOK million
Buildings and sitesMachinery, equipment and software Under construction (including transfers)
22
54
19-4 -3-4-20
0
20
40
60
80
100
2008 2009 2010Other investmentsAcquisition of subsidiary, net of cash acquiredProceeds from sale of PP&E
Investment plansHistorical capex review 2010: General maintenance
Capex related to maintenance2009: Mainly related to North Sea
A new barge for load-out and construction at StordIn addition to maintenance at Stord and E&C Americas
2008: Investments at StordNew building and barge
Maintenance capexExpected at NOK 30 - 50 million per year
Verdal 2011-2012: NOK 100-150 millionImproved capacity, paint shop and misc.
Investment plansInvestments to be considered case-by-case
17.06.2011© Kvaerner 201135
Dividend capacity and growth possibilitiesCash conversionSimplified illustration
Dividend
Grow
th capital
Tax
Maintenance
CA
PE
X
Financial item
s
EBIT
DA
Dividend policyBetween 30 and 50 per cent of net profit
Maintenance capexBetween NOK 30 to 50 million per year
Tax rateTax rate in Norway(28 percent) and the tax rate in the US (approx. 40 percent)
High cash conversion provides both dividend capacity and growth possibilities30%-50% of net profits to be distributed as dividends Revenue recognition as well as project phasing may cause certain fluctuationsStrong cash flow from operations of NOK 831 million in Q1-2011
17.06.2011© Kvaerner 201136
Quarterly key figures
Q1 2011Q4 2010Q3 2010Q2 2010Q1 2010NOK million
15 6767 049
12.5%
464
3 722Q1 2011
3.7%3.0%(1.2)%8.8%EBITDA margin
NOK million Q1 2010 Q2 2010 Q3 2010 Q4 2010Revenues 3 198 2 848 3 237 3 932EBITDA 281 (35) 97 145
Order intake 1 634 2 034 4 237 1 282
Order backlog 16 462 16 007 17 419 12 435
17.06.2011© Kvaerner 201137
Kvaerner - Investment Highlights
EXTENSIVE TRACK RECORD
Kvaerner is a “new” company with more than 40 years of experience from the world’s most demanding market
TAILORED TO MEET STRONG MARKET
With an unprecedented market growth ahead, Kvaerner is tailored to meet market trends as well as client demands
ALL SYSTEMS ARE IN PLACE
Delivery models, systems and experience in place to deliver sound profits and manage growth
FINANCIAL MUSCLE Access to opportunities and credibility towards customers
A SOLID POSITION FOR GROWTH
Five business areas with leading positions in their niches and technologies ready to capture growth
17.06.2011© Kvaerner 201139
E&C Americas
Overview – two different legal entitiesUnion Construction Houston EPC Centre
77%*
23%*
~250 employeesRevenues (2010): NOK 3 317 million
~160 employeesRevenues (2010): NOK 1 007 million
General contracting and maintenance services for Power, Steel and Petrochemical Industries
Key current projects include the newly awarded Vallourec & Mannesman mechanical, equipment and piping project as well as current pipe mill building; and First Energy Fremont Generating Station
EPC & project management for the oil & gas industry including offshore topsides, LNG & gas processing, chemical, petrochemical, refining, power, utilities and infrastructure
Key current projects include Gulf LNG Energy, Medicine Bow Fuels Coal-to-Liquids Project (FEED)
17.06.2011© Kvaerner 201140
E&C Americas
Reference projects – Union Construction
Product/Service: Construction of Pipe MillGeography: Youngstown, OH, USASize: Approx. 1 000 000 sq.ftAwarded: 2011Delivered: OngoingClient: Vallourec & Mannesmann
Product/service: JV EPC Gas Fired Combined Cycle Power Plant Geography: Halton Hills, ON, Canada Size: 683 MWAwarded: 2007Delivered: 2010Client: TransCanada Energy, Ltd.
Product/service: Construction Gas Fired Combined Cycle Power Plant Geography: Fremont, OH, USA Size: 585 MWAwarded: 2008Delivered: 2011 Client: First Energy
V&M Pipe Mill TransCanada – Generating Station First Energy – Generating Station
17.06.2011© Kvaerner 201141
E&C Americas
Reference projects – Houston EPC Center
Product/service: ConstructionGeography: Florida, USASize: ~ NOK 600 millionAwarded: 2009Delivered: 2010Client: Progress Energy.
Product/service: Project Management Services Geography: MexicoSize: ~ NOK 54 000 million (total development costs)Awarded: 2009Delivered: OngoingClient: PEMEX
Product/service: Topsides, FEED/EPCM Geography: Offshore ItalySize: ~ NOK 6 000 millionAwarded: 2002Delivered: 1st gas exported in 2009Client: Adriatic LNG
Adriatic LNG Terminal Crystal River Electrostatic Prec. PEMEX Ultra-low Sulphur Diesel Pr.
17.06.2011© Kvaerner 201142
E&C Americas
Business Area StrategyHouston EPC CentreUnion Construction
Selected expansion by following clients into new markets such as Brazil, Middle East, China and Mexico
Develop regional Kvaerner delivery model and increase focus on and leveraging of strategic partnerships such as the LNG partnership with IHI
Develop position within natural gas liquefaction as well as coal/gas-to-liquids and leverage Kvaerner Group competencies as an entry strategy for the offshore market
Maintain and further develop key relationships with the major oil & gas, petrochemical companies and midstream operators
Selected expansion of core competencies in Western United States and Canada
Develop strategic alliances in core businesses to secure quality projects with strong partners. Increased training to improve execution and commercial outcome
As markets recover, capitalize on position in power, steel and petrochemical markets. Cultivate emerging alternative energy markets
Maintain position as a leading general construction and maintenance services provider to power and steel industries
Penetrate new geographical markets
Refine delivery model
Develop new products and market niches
Capture expected market activity
1
2
3
4
17.06.2011© Kvaerner 201143
E&C Americas
Operational structure and delivery model
Houston EPC Centre
Union Construction
Japan (Tokyo)
Partner (US LNG market (IHI))
India (Mumbai)
Partner (AKSO Engineering)
Mexico (Mexico City) Kvaerner
USA (Houston) Kvaerner (EPC Center)
USA (PA, IN)Canada (ON)
Kvaerner
China (Beijing)
Kvaerner (Sourcing) Partner (Aker Solutions)
17.06.2011© Kvaerner 201144
E&C Americas
Market outlook – Union Construction
Strong outlook for gas-fired power plants
Attractive outlook for USD 1bn steelworks maintenance market. Major US steel producers planning several upgrades
Aging infrastructure and postponed maintenance creates strong momentum for the general maintenance market going forward
Gas fired power plants to contribute significantly to electricity generationElectricity generation capacity additions by fuel type, 2010-2035 (gigawatts)
Source: IEA, Annual Energy Outlook 2011
17.06.2011© Kvaerner 201145
E&C Americas
Market outlook – Houston EPC Centre
Strong domestic energy demand outlook and energy price expectations encouraging investments in oil and gas sector
US shale gas play expected to increase demand for natural gas based projects such as liquefaction, NGL refining, downstream petrochemical and power
Expected strong demand for Kvaerner’s offering within coal-to-liquids and gas-to-liquids
Shale gas to potentially create demand for liquefaction capacityUS Dry Gas - trillion cubic feet per year
Source: IEA, Annual Energy Outlook 2011
17.06.2011© Kvaerner 201146
E&C Americas
ProspectsHouston EPC CentreProject Operator Location
Coal to Ammonia/Power Paradeep Phosphate India
Gas to Liquids Cenovus Energy Canada (Alb)
Waste Oil Recovery/Recycle Puralube Mexico
Project Management Services for Refinery Expansion PEMEX Chile
Gas to Chemicals Methanex/Petrobras USA (Tx)
Alaska Gas Treatment Plant ExxonMobil/Transcanada Taiwan / USA (La)
Industrial Gasification and Liquefaction Medicine Bow Fuels Project USA (Wy)
Union ConstructionProject Operator Location
Master Agreement Ontario Power Gen Ontario, Canada
Coker Piping Pkg 516 BP Indiana, USA
Coke Battery Arcelor Mittal Indiana, USA
Continuous Annealing Line U.S.Steel Kobe/Protec Ohio, USA
Combined Cycle Power Plant MacQuarie Cook Energy California, USA
Combined Cycle Power Plant NRG Energy California, USA
Flue Gas Desulfurization Units NIPSCO Indiana, USA
The list is not exhaustive or indicative of Kvaerner’s priorities.
17.06.2011© Kvaerner 201148
Concrete
Overview
World leader for floating and gravity-based concrete substructures for offshore oil and gas installations globally
Impressive track record with ~80* percent market share over 40 years
Approximately 150 employees based in Oslo
Proven execution model with experienced Oslo project management and local delivery model
* Estimate by Kvaerner
17.06.2011© Kvaerner 201149
Concrete
Reference projects
Product/service: Arctic GBS Geography: Sakhalin/RussiaSize: 63 000m3Awarded: 2003Delivered: 2005Client: SEIC (Shell)
Product/service: LNG Terminal Geography: Venice/ItalySize: 95 000 m3Awarded: 2004Delivered: 1st gas exported in 2009 Client: Adriatic LNG (ExxonMobil)
Product/service: Arctic GBS Geography: Sakhalin/Russia Size: 50 000m3Awarded: 2009Delivered: Ongoing, 2012 est.Client: ENL (ExxonMobil)
Sakhalin 2 LUN A & PAB Adriatic LNG Sakhalin 1 A-D
Key customers are ExxonMobil and Shell/SEICKey current projects are Sakhalin and the Hebron FEED for ExxonMobil
17.06.2011© Kvaerner 201150
Concrete
An impressive track record
First EPCI delivery was Beryl A Condeep in 197540 years of international Concrete experienceLead contractor in more than 20 major Concrete projects worldwidePioneered the development of high strength concrete for offshore applicationsIntroduced skirt piling for soft soil conditionsConcrete GBS for offshore platforms
Concrete GBS for LNG facilitiesConcrete hulls for floating platforms
17.06.2011© Kvaerner 201151
Concrete
The GBS offers many advantages
Integrated oil storageSignificant local contentRobustness to meet arctic environmentSupports large topside weightMinimum maintenanceLow lifecycle costInstallation independent of heavy lift vessel availability
17.06.2011© Kvaerner 201152
Concrete
Business Area Strategy
Penetrate new geographical marketsOngoing evaluation of Australia and Southeast Asia as potential future markets on an opportunistic basis. Develop execution model for GBS deliveries to North West Russia as well as for arctic Canada – both countries with demands for maximizing local content
Refine delivery modelEstablish local presence in key markets such as Canada and potentially Russia. Planned limited investments to secure relevant construction sites and enhance local execution capabilities
Develop new products and market nichesFurther develop GBS concept for LNG liquefaction plants for arctic gas rich areas, such as North West Russia, and promote minimum arctic wellhead platform concepts
Capture expected market activityMaintain position as #1 provider of concrete substructures for offshore oil and gas installations by strengthening ability to handle parallel projects
1
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3
4
17.06.2011© Kvaerner 201153
Concrete
Operational structure and delivery model
Kvaerner project office(Newfoundland)
JV Partner (Peter Kiewit & Sons (PKS))
Current markets
Potential markets
Norway (Oslo)
Kvaerner Partner (Aker Solutions)
(Local external)
Russia (Sakhalin)
Kvaerner project office
Canada (St. Johns)
17.06.2011© Kvaerner 201154
Concrete
Market outlook
Concrete GBS experiencing a renaissance due to the structure’s suitability for Arctic and LNG based GBS developmentsKey markets include arctic environment areas such as Canada and RussiaKvaerner is market leader for Concrete with a 80%* historical market share for Condeep and floating concrete substructuresThe developments of Sakhalin 1 and Hebron GBS (ExxonMobil client for both) provides the foundation for developing increased capacity and growth towards 2020
* Estimate by Kvaerner
Concrete GlobalUSD million
0
100
200
300
400
500
600
700
800
900
1 000
2000 2005 2010 2015 2020
Canada Russia RoW
Source: Dcube April 2011
17.06.2011© Kvaerner 201155
Concrete
Prospects
North West CanadaConocoPhillips
Project Operator Location
Petchora LNG Alltech North West Russia
Hebron ExxonMobil Eastern Canada/Newfoundland
Piltun South Gazprom/Shell Sakhalin
Scarborough ExxonMobil Australia
White Rose Husky Eastern Canada/Newfoundland
Kammennomyskoye GazpromdobychaYamburg North West Russia
Yamal Novatek North West Russia
Dolginskoye Gazpeomneft North West Russia
Amuligak
Natuna ExxonMobil South East Asia
The list is not exhaustive or indicative of Kvaerner’s priorities.
17.06.2011© Kvaerner 201157
Jackets
Overview
North Sea market leader for larger steel jackets for offshore oil and gas installations
Yard at Verdal with significant acreage and approximately 650 permanent employees
Strong track record with 34 oil & gas jackets delivered since 1975. New initiative within wind turbine jackets
Strong capabilities on design, soil and foundation, materials and supply chain management
In-house and integrated specialized engineering capacity, providing a truly seamless solution to the client
17.06.2011© Kvaerner 201158
Jackets
Reference projects – some examples
Product/service: Grane PDQ / EPC JacketGeography: Norway Size: 17,650 t; 150m Awarded: 2000Delivered: 2003Client: Hydro
Product/service: Valhall Re-Dev/EPC Jacket Geography: NorwaySize: 6,700 t; 106m Awarded: 2007Delivered: 2009Client: BP
Product/service: Buzzard WHP QU & P / 3 EPC jacketsGeography: UK Size: 4,600 t / 4,000 t / 5,600 t; 121mAwarded: 2003Delivered: 2005Client: Nexen UK
Grane PDQ Valhall redevelopment Buzzard Jackets
Current jacket projects include Gudrun, two jackets for Ekofisk, two steel jackets for the Clair Ridgedevelopment and a series of 49 wind jackets (Nordsee Ost) Key customers are Statoil, ConocoPhillips, the Clair Ridge Partnership and RWE Innogy
17.06.2011© Kvaerner 201159
Jackets
Business area strategy
Penetrate new geographical marketsEvaluate expansion into new markets through local fabrication partners. Australia and South East Asia high on agenda
Refine delivery modelPursue potential European fabrication partnerships to expand fabrication capacity and where partner locations are closer to the market
Develop new products and market nichesFurther strengthen the European wind jacket market position through standardization of design, competence on foundation and efficient installation concepts
Capture expected market activityRetain position as leading provider of large and complex steel substructures for oil and gas platforms through parallel construction of large steel jackets
1
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4
17.06.2011© Kvaerner 201160
Jackets
Operational structure and delivery model
Fabrication partner (TBD) Engineering partner (TBD)
Current markets
Potential markets
Norway (Verdal & Oslo)
Kvaerner (~650 FTEs)
UK (London)
China (Qingdao)
Partner (COOEC yard)
Malaysia (KL)
Partner (Aker Solutions)
Australia (Perth)
Kvaerner (BD)
17.06.2011© Kvaerner 201161
Jackets
Market outlook
A local / regional market as transportation is costly as well as undesirableTarget markets include North Sea, Australia and South East Asia, representing approximately 30 % of the global market 2011-2020 Solid growth expected in home market, for which there is a limited number of suppliersKvaerner enjoys a historical market share of ~70-80%* Wind substructures provides further growth opportunity
0
200
400600
800
1000
1200
2000 2005 2010 2015 2020
Jackets for Oil and Gas – North SeaUSD million
Jackets for Oil and Gas – Key marketsUSD million
Source: Dcube April 2011
0200400600800
1000120014001600
2000 2005 2010 2015 2020North Sea Australia South East Asia
17.06.2011© Kvaerner 201162
Jackets
Prospects
NCSDet NorskeDraupne
NCSStatoilDagny
UKCSTalisman UKMontrose
NCSTotalHild
Oil & Gas ProspectsProject Operator Location
Golden Eagle Nexen UK UKCS
Luno Lundin NCS
Hejre Dong DK DKCS
Mariner Statoil UKCS
Bressay Statoil UKCS
Australia TBD
South East Asia TBD
Wind ProspectsProject Operator Location
Nordsee Ost Ext RWE Innogy Germany
Nordsee Innogy One RWE Innogy Germany
Dogger Bank Forewind consortium UK
The list is not exhaustive or indicative of Kvaerner’s priorities.
17.06.2011© Kvaerner 201164
North Sea
Overview
Leading market position for North Sea topsides and assembly of floating and fixed offshore platforms
Solid track record of more than 25 major project deliveries over the last 25 years
Leading market position for complete onshore upstream facilities in Norway
Approximately 1 500 employees at Stord yard, specialised in project management, assembly and testing
Close engineering cooperation with Aker Solutions and other partners
17.06.2011© Kvaerner 201165
North Sea
Reference projects – some examples
2010: Gjøa2005: Kristin2001: Snorre B2000: Åsgard B1997: Heidrun1997: Njord1992: Snorre A TLP
Floating facilities
Current projects include the recently awarded EPC contract for the topside and bridges for Eldfisk 2/7Sas well as Skarv – final preparation for offshore hook-up
Topsides* Drlling rigs Onshore FPSO
* For fixed platforms
2003: Valhall drilling2000: Grane2000: Eldfisk1999: Siri1999: Oseberg Sør1996: Sleipner West1995: Troll gas1989: Gullfaks C1988: Oseberg A1986: Gullfaks A
2009: Aker Barents2009: Aker Spitsbergen
2011: Kollsnes upgrade2011: Test Centre Mongstad2007: Ormen Lange onshore terminal2007: Snøhvit LNG2005: Kårstø
2011: Skarv1999: Åsgard FPSO1999: Jotun FPSO1998: Laminaria1997: Norne FPSO
17.06.2011© Kvaerner 201166
North Sea
Business area strategy
Penetrate new geographical marketsCapture major share of expected Barents Sea development projects
Refine delivery modelEnter into additional engineering partnerships and further develop fabrication partnerships to meet low-cost competition
Develop new products and market nichesDevelop products for potentially large new markets, such as wind converter platforms, as well as prepare for the large decommissioning market to materialize
Capture expected market activityRetain leading position in the North Sea and capture major share of the expected upswing in the field development market as well as Norwegian onshore market
1
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4
17.06.2011© Kvaerner 201167
North Sea
Operational structure and delivery model
Norway (Stord & Oslo)
Kvaerner (~1 500 FTEs) Partner (Aker Solutions)
Europe Engineering Partners
China (Beijing & Qingdao)
Kvaerner (Sourcing) Partner (COOEC yard)
Poland Partner (Single- and
multidisciplineconstruction partners)
Current markets, on- and offshore
Potential market entry
17.06.2011© Kvaerner 201168
01000200030004000500060007000
2000 2005 2010 2015 2020North Sea Norwegian Sea Barents Sea
North Sea
Offshore market outlook
Primary market is defined as offshore facilities larger than 4 000 tons in the North Sea, the Norwegian Sea and Barents regionKvaerner is the dominant player, but experiencing increased competition from far-east yards Steady flow of offshore new-build prospects in a five to ten year perspective is expectedKey projects for topsides in the North Sea the next years include Ekofisk, Eldfisk, Hejre, Luno, Mariner and HildKey projects for floaters in the North Sea and Barents Sea going forward include Luva, Snorre, Ormen Lange and Skrugard
TopsidesUSD million
FloatersUSD million
Source: Dcube April 2011
0
1000
2000
3000
4000
5000
2000 2005 2010 2015 2020North Sea Norwegian Sea Barents Sea
17.06.2011© Kvaerner 201169
North Sea
Onshore upstream facilities market outlook
The market is defined by traditional onshore upstream projects and other projects in conjunction with existing plantsThe market is a mature market with a mix of brown- and greenfield projects, both modifications and some new buildsKvaerner is the dominant player in NorwaySteady flow of medium-sized modification projects and some large-scale projects coming upStatoil is looking for suppliers that know their plants, to obtain synergies across the phases FEED, plant construction, modification and maintenance
17.06.2011© Kvaerner 201170
North Sea
Prospects
NorwayStatoilSnøhvit Phase II
North SeaStatoilDagny
Norwegian SeaStatoilLuva
UKStatoilBressay
UKStatoilMariner
Prospects offshore North SeaProject Operator Location
Hejre Dong Denmark
Hild Total North Sea
Luno Lundin North Sea
Ormen Lange Shell Norwegian Sea
Victoria Total Norwegian Sea
Snorre Statoil North Sea
Skrugard Statoil Barents Sea
Prospects Onshore NorwayProject Operator Location
Kollsnes Statoil Norway
Mongstad CO2 Statoil Norway
The list is not exhaustive or indicative of Kvaerner’s priorities.
17.06.2011© Kvaerner 201172
International
Overview
Provides key technologies and experience to international upstream EPC projects
Focus on demanding and complex solutions
Delivery model enables local content for closed and semi-closed markets
Current focus areas are Australia and Caspian region
Kashagan HUC is nearing completion, current key project is the Browse FEED study for two tension leg platforms in Australia
17.06.2011© Kvaerner 201174
International
Business area strategy
Penetrate new geographical marketsCurrent focus areas are the markets in Australia and Caspian region and opportunistically in GoM, whereas entry strategies for closed markets such as Russia, West-Africa and Brazil are under consideration
Refine delivery modelIncrease project delivery capabilities through engineering and yard partnerships
Develop new products and market nichesTarget key markets for which Kvaerner offers unique competencies and capabilities, e.g. harsh environment and deepwater
Capture expected market activityCurrent focus is on the expected demand for floaters in open markets such as Australia, in addition to the Caspian yard initiative triggered by the strong outlook for the Caspian field development market and the local presence required to participate
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17.06.2011© Kvaerner 201175
International
Business area strategy
Norway (Oslo)
Head Office
UK (London)
JV Partner (K-WAC) BD activities Middle East
China (Beijing, Shanghai, Qingdao)
Kvaerner (Sourcing) Partner (COOEC yard)
Australia (Perth)
Kvaerner (BD, proj. mgmt)
Kazakhstan (Aktau) Kvaerner (Caspian BV)
(Contracting) Partner (NCE)
USA (Houston) Kvaerner (EPC Center)
Current markets
Potential markets
Saudia Arabia Kvaerner (repr. office)
17.06.2011© Kvaerner 201176
0
10 000
20 000
30 000
40 000
50 000
60 000
2000 2005 2010 2015 2020Floaters Topsides
International
Offshore market outlook
Focus areas include the Caspian as well as floaters for deepwater regions such as Australia and GoMThe market outlook in the Caspian is expected to be strong with a booming market in the years 2015 – 2019Spending related to Floaters and Topsides is expected to increase sharply in the coming years
Floaters and Topsides GlobalUSD million
Caspian Offshore EPCUSD million
Source: Dcube
0
1 000
2 000
3 000
4 000
5 000
6 000
2000 2005 2010 2015 2020