BJC Heavy Industries PCL Opportunity Day 13 March 2017 NEW FORCE IN HEAVY INDUSTRIES

Transcription

1 BJC Heavy Industries PCL Opportunity Day 13 March 2017 NEW FORCE IN HEAVY INDUSTRIES

2 Disclaimer: This presentation herein should be used for investor information only. It should not be used as an offer or invitation to purchase or sell BJCHI shares. Additionally, this presentation contains forward-looking statements and assumptions that are subject to risks and uncertainties. Investors or readers using this material need to be prudent when they make investment decisions. 2

3 Agenda BJCHI's Business Operation 2017 Strategies & Business Vision 2016 Year of Lessons Learned 2016 Performance High Potential Projects & 2017 Outlook Q&A 3

4 Products & Services Steel Fabrication Modularization Site Erection Pre-cast concrete Steel Structures, Piping Spools, Heaters & Reformers, Tanks and Pressure Vessels Modules for FPSOs, Mining, LNG and Other Industrial Plant Projects Site Erection Projects in Mining and Power industries Core Loc Breakwater, Port Construction Mat l, Railway Sleepers, Pre-stressed Concrete 4

5 2017 Strategies Cost-saving program Collaborative alliance 2017 Strategies Focus more on marketing activities People development 5

6 Business Vision & Mission To be a world-class integrated engineering, procurement, fabrication and modularization service provider Exceed Expectations To meet the fast-changing needs of our customers by delivering products and services of exceptional quality on-time Sharpen Competitiveness To continuously improve to ensure operational excellence and our competitive edge Develop People To invest in developing our people Maximize Value To maximize value for our shareholders 6

7 2016 Overview Year of Lessons Learned Building Up Track Record The 1st Thai construction company working closely with Petrobras. Being EPC for FPSO modules for oil & gas off-shore project. Industry View Intensified Competition (particularly from China) among the industry. Recent recovery of oil prices triggering more project opportunities. 7

8 Billion AUD A$million Australian Market Market Outlook AustralianExplorationExpenditure Australian exploration expenditure slightly increased in the last quarter (as of Sep 16) due to the recent recovery in Commodity prices. AnnualCapitalExpenditureof Private'sMiningSector % + 33% % % 90-16% 76-31% 53-21% Capex for Australian s mining sector also decrease but in a slower pace. 0 Source: Department of Industry, Innovation and Science, Australian Government 8

9 Times US$/Boe Brazilian Market - Petrobras Outlook Oil & Gas will remain one of the key energy sources in Brazil Petrobras s capex has been set for USD 19.2 billion Q15 Source: Petrobras s BMP Net Debt/EBITDA 4.1 3Q Lifting Cost Petrobras s turning around: Lower debt should relieve its financial burden. Net Debt/EBITDA (times) decreased from 5.3 in 4Q15 to 4.1 in 3Q16 while lifting cost reduces from 14.6 US$/Boe to 12 US$/Boe. 9

10 Project Update No. Project Industry Location Status 1 TUPI FPSO Modules (01B, 02B) Oil & Gas Completed 2 QGI FPSO Modules (P75/P77) Oil & Gas Completed P75 Expected to deliver P77 in 1Q17 3 TUPI FPSO Modules (03B) Oil & Gas Expected to deliver in 4Q17 10

11 TUPI BV Project 02B Load out / Sail away 11

12 TUPI BV Project 02B Loaded in Brazil 12

13 TUPI BV Project 03B Preparation 13

14 QGI FPSO Modules - P77 P77_M01 P77_M09A P77_M09B P77_M15 14

15 2016 YE Operating Results Description (mil.bt) FY15 FY16 % Change Total Revenue ContractedRevenue OtherIncome Other- FXGain/Loss COGS SG&A EarningsBefore Taxes TaxExpense NetIncome 5, , , , , , , , % -7.3% 135.3% -57.7% 20.8% -14.9% -91.5% -96.7% -91.5% Increased costs due to unexpected situations 1st Replicant work. Critical Long Lead Items (CLLI). Higher repaired work (01B) due to a long distant sea transportation. Expedited cost than expectation causing the increased project cost. GPM NPM 27.8% 22.9% 5.9% 2.1% 15

16 Revenue Breakdown -by Project mil.bt % 2016 Contracted Revenue Breakdown 16

17 Revenue Breakdown -by Channel/Location By Channel By Location 17

18 2016 YE Remaining Backlog Remaining Backlog Total Remaining Backlog = 1,647 mil.bt 18

19 Total Bidding Projects Unit: mil.usd Total Bidding Value = 682 mil.usd 19

20 High Potential Projects No. Project Industry Location Scope of work 1 ProjectA Oil&Gas Brazil TopsideModules 2 ProjectB Gas Brazil Vessel,SkidModule 3 ProjectC PowerPlant Thailand HRSG,Structure&PipingandInstallatio n 4 ProjectD Petrochemi cal Thailand Modularization 5 ProjectE Mining Australia Design,Fabrication,Installation 6 ProjectF Others Australia Fabrication;Shed&Column 7 ProjectG Others Laos Fabrication;Electricalpole&DamGate Exp.Va (mil.u 20

21 2017 Outlook Year of Challenge The global economic situation/geopolitical challenge. Recovery in US but possibly slowdown in Europe & China. Conflict in Middle East/ Political Sanction. Trend of project opportunities. Oil production output (supply side) stabilized by OPEC. Improvement of business environment in oil and gas sector. Deepening in oil & gas but still focusing on several markets. Revenue Contributed mainly from Oil & Gas project but local projects still in the radar. Improvement of cost reduction then margins. 21

22 To be a world- class integrated engineering, procurement, fabrication and modularization service provider BJC HEAVY INDUSTRIES PUBLIC COMPANY LIMITED Address : 594 Moo 4, Makhamkoo Sub-district, Nikompattana District, Rayong, Thailand Telephone : +66-(0) Fax Website : : +66-(0) ir@bjc1994.com 22