The ShawCor Difference - SNL · Tangguh LNG Yemen LNG ... UNDER CONSTRUCTION PLANNED Global LNG...
Transcript of The ShawCor Difference - SNL · Tangguh LNG Yemen LNG ... UNDER CONSTRUCTION PLANNED Global LNG...
The ShawCor Difference
STRONGFUNDAMENTALS
FUNDAMENTALSTRENGTHS
Investor PresentationJune 2013
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Global Leadership
The global leader in pipe coating and related products/services
Over 8,000 employees operating in 25 countries
Strategic Global Locations
Strategically positioned to serve all global basins
Proprietary Technology
248 Issued Patents and 169 Patents Pending
Subsea Test Facility and Mobile Plant Technology
Excellent Execution
Solid track record of reliable execution
Commercial and technical relationship with all global players
Superior Financial Performance
2012 revenue of C$1,482 million and EBITDA of C$266 millionTotal Return to Shareholders significantly above market return
ShawCor at a GlanceA global leader in energy services
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The company
The market opportunity
The strengths
The future
Agenda
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>80 >80 Locations
2525
Business Units 88
Employees1 >8000>8000
ShawCor Quick Stats
Countries
Market capitalization 2 >$2.5B>$2.5B
1 Estimated2 As May 16, 2013 5
Bredero ShawCoatings- corrosion protection- insulation- weight / protective- internal flow efficiency
GuardianDrill pipe/tubularinspectionInventory management services
FlexpipeFlexible composite pipe for:- oil and natural gas
gathering lines- oilfield water and
fluids
PIPELINE & PIPE SERVICES
DSG-Canusa
Heat shrinktubing for sealing and protection
ShawFlex
Control, instrumentationcable
PETROCHEMICAL& INDUSTRIAL
Canusa-CPS
Weld inspection- radiographic- ultrasonic
Shaw Pipeline Services
Joint protectionPipe coating materials
Eight Business Units– All Ranked #1 or #2
Socotherm*Coatings- corrosion protection- weight / protective- thermal insulation
* As of Oct 20126
Active in All High Growth Segments
7Rehabilitation
Deepwater Offshore LNG
Shale
Conventional Potable Water
Enhanced Recovery (EOR)Oil Sands
Technology Sets Us Apart
248 Issued Patents – 57 technologies
169 Patents Pending – 51 technologies
86 Proprietary Formulations
20 Scientists at Corporate Laboratories
Subsea Test Facility
Mobile Plant Technology
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New Energy Sources Drive Need for New Technologies
Insul-8® HT
Oil Sands /Heavy Oil
Thermal insulation for high temperature bitumen, heavy oil and hot liquids lines
ChallengingEnvironments
Proprietary flexible mechanical protection for rocky terrain eliminating need for trench padding Rock Jacket®
OffshoreConcrete Weight Coating provides seabed stability and pipeline protection
Thermotite® ULTRA™
DeepwaterProprietary passive insulation coating provides flow assurance for unprocessed oil and gas
HeviCote®
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Capability Sets Us Apart
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Uniquely Capable to Serve the Largest Projects
Major Expansions/Upgrades Completed in 2012
Complete ‘Pipe Mill to Pipeline’ Logistics
Full Product Array and Back-up Facilities
Reduce Client’s Construction Schedule Risk and Pipeline Performance Risk
New MLPP plant in Kabil
Expanded Deepwater wharf in KabilExpanded Kuantan pipecoating facility Two major facilities in Asia/Pacific
The company
The future
The market opportunity
The strengths
Agenda
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Growth in energy demand (1.3% per annum)1
Rising depletion (6.7%-7.5% per annum)2
New sources in more“challenging” locations
Increasedinvestment in pipeline
infrastructure
DEMAND
DEPLETION
TECHNOLOGY
1 Source: EIA 2011-2035 2 Avg. production-weighted worldwide decline rate for past-peak oil, gas fields – IEA WEO 2008, 2009
Key Pipeline Drivers
The Market Opportunity
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$0
$50
$100
$150
$200
$250
$300
$350Pipeline Investment
(US$ billions)
Source: Oil and Gas Journal,Douglas Westwood
Structural Change in Pipeline Infrastructure
Increased ActivityBigger Projects
Structural change is taking place13
The company
The market opportunity
The future
The strengths
Agenda
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1. CLOSE W ITH CL I ENTSClient Relationships and Track Record
Strong relationships with all major global players
Americas EMAR Asia Pacific
* Partial list only15
1. CLOSE W ITH CL I ENTSWorldwide footprint strategically located to service global basins
Coating Facility
Portable Plant
Other Operating Facility
Sales Location
Socotherm Location
75+ Global locations16
Effective Acquisition Program
New Growth Platforms ‘Flexpipe’
Geographic Expansion ‘Brazil’
Expanded Services ‘ShawCor CSI’
Socotherm Acquisition
Brazil, October 2010 CSI, March 2011
Flexpipe, July 2008
Socotherm, Oct 2012
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The ShawCor Manufacturing System
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Systems for Reliable Project Execution
A Process for Continuous Cost
Reduction
Standard Program Across ShawCor
“SMS” Currently Generates >$20
million in Annual Savings
SMS 2012 Launch
ShawCor Delegates at Dallas ConferenceSMS Achievement Award Daily Management Process (DMP)
Cash flow > $1 Billion from operations (5 yr)
Term Debt $350 Million 10.4 years @ 3.65%
Cash Position + Credit Facilities to fund growth > $400 Million
Net Resources Competitive Advantage
Able to Simultaneously Execute:
The Largest ProjectsGeographic ExpansionNew TechnologiesNew Product ProgramsAcquisitions
4. F I NANC IAL STRE NGTH
Financial Strength
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The company
The market opportunity
The strengths
The future
Agenda
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Unprecedented Bidding Activity
Umm Al Lulu & Al Nasr
Pacific TrailsNorthern Gateway
Trans Mountain Expansion
Guara Lula Sapinhoa
Chevron IDD
South Stream
Baydaratskaya Bay
SarbPTT Provincial Transmission,PCSB & PTTEP
Vega Pleyade
Shah Deniz II
Shell Malikai
Hess EquusMozambique LNG
Gas Balancing Evacuation
ENI Jangkrik
Both large projects and frame agreement business active21
Pacific Gas Pipeline
Spectra Energy
Maersk Chissonga
Enbridge Sandpiper
Husky MaduraShell Prelude
Chevron Rosebank
Pertamina Lawe Lawe
Galich Manturovo Sharya (GMS)
* Partial list only
Lianzi
Exxon Julia
Mad Dog
Hadrian North
New Millennium Iron OreTCPL Coastal Gas Link
Moho Nord Kizomba SatelliteT.E.N
Edvard Grieg
Erha
Mafumeira do Sul
Growth Opportunity - Deepwater
Santos Pre-Salt
Gulfaks Sor Ortje
Visund
15/06 Western HubKizomba Satellites
Lianzi
WDDM Ph 9
Erha Ph 2
Mad Dog
Moho Nord
Hadrian North Ph 2
Hebron Ph 3
Egina
Block 31, 32
Linnorm
Mallikai (Block G)
Block 18/Plutonio
Kodiak
Lucapa
Gendalo/Gehem
Rosebank
Luva Oseberg Delta
Liuhua 16-2Pony
Equus
Kraken
Jangrik
T.E.N.Satellites
Deepwater CAPEX of $223 billion expected over the next five years1
1 Douglas-Westwood
Global leader in deepwater insulation coating22
Growth Opportunity - LNG
SABINE PASS LNG
ARROW LNG
BRASS LNG
KITIMAT LNG
OLOKOLA LNG
YAMAL LNG
FISHERMANS LANDING LNG
GULF LNGDARWIN LNG
PILBARA LNG
Brunei LUMUT II LNGMalaysia T9 LNG
EG T2 LNG
CAMEROON LNG
Damietta 2 LNG
TANZANIA LNG
LNG CANADA
MOZAMBIQUE LNG
PACIFIC NORTHWEST LNGBG GROUP LNG
KITSAULT LNG
VLADIVOSTOK LNG
SHTOKMAN LNG
ADGAS LNG
Algeria LNG
Arun LNG Bontang LNG
ATLANTIC LNGBrunei LNG
Damietta LNG
Egyptian LNGQATARGAS LNG
KENAI LNG
Marsa El Brega
Malaysia LNG
Nigeria LNG
Nordic LNG
Northwest Shelf LNG
Qalhat LNG
Pluto LNGPERU LNG
RASGAS LNG
SAKHALIN LNG
Snohvit LNG
Tangguh LNG
Yemen LNG
ANGOLA LNG
AUSTRALIA PACIFIC LNG
DONGGI SENORO LNG
GLADSTONE LNGGORGON LNG
ICHTHYS LNGPNG LNG
QUEENSLAND CURTIS LNGWHEATSTONE LNG
CAMERON LNGFREEPORT LNG
LAKE CHARLES LNG
DCEP LNG
DOMINION COVE POINT LNG
GULF COAST LNG
OREGON LNG
OPERATINGUNDER CONSTRUCTIONPLANNED
Global LNG demand to increase by 200 mtpa by 2025 = 23 “Wheatstone’s”1
Global gas demand to increase 43% to 20302
1 World LNG Report 2011, LNG 17 2012, Chevron Wheatstone Project Overview2 BP Energy Outlook 2013
LNG growth = New pipeline infrastructure23
Growth Opportunity – Global Shale
SOURCE: PACWEST CONSULTING PARTNERS
Will account for about 46% of US Natural Gas production by 203570% of global shale deposits are outside North America
$2.6 Billion market opportunity to drive Flexpipe growth24
Growth Opportunity - Aging Pipeline Infrastructure
10% of ShawCor’s land pipeline coating revenue is for pipeline replacement and is a rapidly growing segment
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Derived from http://chartsbin.com/view/1322
Source: Douglas-Westwood
Entering Global Expansion Up-Trend
$C millions
Revenue and margins expected to grow in 2013 and beyond
$591 $664 $699
$747
$1,013 $1,060 $1,048
$1,380
$1,184
$1,034 $1,138
$1,482
11% 12%
15% 15% 14%
18%19% 19%
21%
16%
12%
18%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Revenue
EBITDA (%)
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Highlights Q1 2013
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All values in C$ millions, except EPS
Revenue $ 454.7 +46%
EBITDA $104.3 +139%
EPS $ 1.01 +197%
Backlog $ 875 +30%
• Excellent Execution and Backlog Increase• Acquired Remaining 49% of Socotherm GOM• Increased Dividend 25%
Strong Returns = Sustainable Growth
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Energy Equipment & Services Industry SCL
Return on Net Operating Assets
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Why Invest in ShawCor
ShawCor is the Global LeaderEstablished Record of Superior Shareholder ReturnsAttractive Industry Fundamentals
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The ShawCor Difference
STRONGFUNDAMENTALS
FUNDAMENTALSTRENGTHS
Investor Presentation
June 2013