quarterly ir updates

QUARTERLY IR UPDATES
1st Quarter 2012 Financial Results & Updates
9 May 2012
Engineered for Growth
2
Disclaimer
This Presentation is not intended to form the basis of any investment decision with respect
to Malaysia Marine and Heavy Engineering Holdings Berhad (MHB). Neither this
presentation nor anything contained herein shall form the basis of, or be relied upon in
connection with, any contract or commitment whatsoever. No representation or warranty,
express or implied, is or will be made by MHB in relation to, and no responsibility or liability
is or will be accepted by MHB as to the accuracy and completeness of, the Information
made available, and any liability therefore is expressly disclaimed.
This Presentation may contain “forward-looking statements”. Forward-looking statements
by their nature involve known and unknown risks, uncertainties and other factors that are in
many cases beyond MHB’s control. Although MHB believes that the expectations of its
management as reflected by such forward-looking statements are reasonable based on
information currently available to it, no assurances can be given that such expectations will
prove to have been correct. Accordingly, you are cautioned not to place undue reliance on
such forward-looking statements. In any event, these statements speak only as of their
dates, and MHB undertakes no obligation to update or revise any of them, whether as a
result of new information, future events or otherwise.
This Presentation and its contents are strictly confidential and must not be copied,
reproduced, distributed, summarized, disclosed referred or passed on to others at any time
without the prior written consent of MHB. Except for the yard facilities in the photographs,
none of the vessels/structures belong to MHB.
Quarterly IR Updates – 1st Quarter 2012
Highlights
3
 Financial
• Revenue -7% QoQ
• Pretax profit +60% QoQ
 Projects
• Gumusut-Kakap FPS – the Superlift was
successfully completed, mated with Hull
• Kinabalu NAG Topside and Floating Storage
Unit (FSU) Lekas near completion
• Tapis Enhanced Oil Recovery (EOR), Telok
Gas Development and OSX-3 FPSO
External Turret projects are on-track
 Operational
• Completed yard acquisition for RM393.4m
• Business unit-centric new organisation
structure introduced
As of 27 March, the Superlift of the 20,000 MT topside was completed. The topside is locked at the
height of 47.3 metre. ‘North’, ‘South’ poontoons and ‘East Row’ of the semi-submersible Hull were
skidded and positioned under the topside
Quarterly IR Updates – 1st Quarter 2012
Projects Update – Superlift Completed, All Hull & Pontoon Structures Skidded In Position, Topside Mated With The Hull
Gumusut-Kakap FPS
4
Projects Update – Near Completion, Loadout In May 2012
Kinabalu NAG Topside
5
Projects Update – Variation Orders
FPSO Cendor
6
Projects Update – 2nd Drydocking As Part Of The Repair, Life Extension And Conversion To FSU
Floating Storage Unit (FSU) Lekas
7
Projects Update – Ongoing Fabrication Of The Turret Structure
OSX-3 FPSO External Turret
8
Projects Update – Telok A Topside, Fabrication Of Production Deck
Telok Gas Development
9
Projects Update – Telok A & Telok B Jackets
Telok Gas Development
10
Projects Update – Tapis Q Topside, Erection Of Main & Production Deck
Tapis Enhanced Oil Recovery (EOR) Project
11
Projects Update – Tapis Q Jacket, Completing Blasting & Painting
Tapis Enhanced Oil Recovery (EOR) Project
12
Projects Completed – LNG Vessel In 1Q2012
Marine Repair
13
14
Financial Updates
Income Statement, 1st Quarter 2012
 Revenue -7% QoQ
• E&C, lower contribution from Kinabalu
project as it nears completion
• MRC, undertaken rig and conversion
projects
Revenue RM million
716
 Operating profit margin at 12.9%
• E&C, margins improved as new projects
attained profit recognition threshold
• MRC, compressed margins for shipping
vessels
517
149
122
MRC
 Operating profit +62% QoQ
• E&C, contribution from new projects after
the preliminary stages were completed
• MRC, overall results reflected challenging
shipping environment
665
594
E&C
3QD11
MRC
E&C
1Q12
Op Profit RM million
86
66
53
33
16
MRC
10
E&C
3QD11
MRC
E&C
1Q12
12.7%
12.9%
E&C
1Q12
Op Profit Margin %
13.2%
5.6%
MRC
3QD11 – 3rd Qtr of Financial Year Ended December 2011 (Oct-Dec 2011)
1Q12 – 1st Qtr of Financial Year Ending December 2012 (Jan-Mar 2012)
E&C
7.4%
6.9%
3QD11
MRC
Quarterly IR Updates – 1st Quarter 2012
15
Financial Updates
Income Statement, 1st Quarter 2012
 Pretax profit +60% QoQ
• Share of profit in jointly controlled entities
(JCE) reflects project status in Turkmenistan
• Finance cost is due to currency hedging
PBT RM million
87
54
0
2
1
-1
 Net profit +69% QoQ
• Providing for taxation pending further
Investment Tax Allowance (ITA)
Fin.Cost
JCE
3QD11 Fin.Cost
JCE
1Q12
Net Profit RM million
78
 Per Share
• Net EPS of 4.9 sen per share in 1Q2012
46
0
-8
Tax
3QD11 – 3rd Qtr of Financial Year Ended December 2011 (Oct-Dec 2011)
1Q12 – 1st Qtr of Financial Year Ending December 2012 (Jan-Mar 2012)
MI
3QD11
-9
0
Tax
MI
1Q12
Quarterly IR Updates – 1st Quarter 2012
16
Financial Updates
Balance Sheet
 Strong balance sheet
• Fixed assets +3% QoQ to RM1.2bn
• Cash -14%0 QoQ to RM1.8bn
Total Assets
RM million
Total Liabilities
RM million
Cash
1,798.7
Inventories
26.4
Shareholders
Funds 2,502.1
Others
63.8
Mar 2012
RM4,676.1m
Fixed Assets
1,188.8
• Shareholders’ funds +3% QoQ to RM2.5bn
• Able to accommodate business expansion
and further YO investments
Trade
Receivables
1,598.4
Mar 2012
RM4,676.1m
Others
117.9
Trade Payables
2,056.1
Quarterly IR Updates – 1st Quarter 2012
17
Financial Updates
Backlog & Order Intake
 Notable backlog
• Tapis Enhanced Oil Recovery (EOR) Project
• FPSO Cendor
• Gumusut-Kakap FPS
• Telok Gas Development
Backlog RM million
 Notable order intake (subsequent event)
• Novation of the Kebabangan integrated
production platform project
Tapis EOR
993.6
Others
57.0
Telok Gas
149.5
OSX Turret
30.2
Mar 2012
RM2,362.8m
FSU Lekas
17.0
Gumusut Kakap
455.8
FPSO Cendor
623.0
Kinabalu
36.7
Backlog reflects MMHE’s equity interest in Jointly Controlled Entities
Quarterly IR Updates – 1st Quarter 2012
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Financial Updates
Shareholding Information
Market Capitalisation RM billion
Technip SA
8.50%
Technip SA
8.35%
15
14
PNB & PNB
Unit Trust
Funds 5.55%
PNB & PNB
Unit Trust
Funds 6.20%
EPF 4.33%
Other Malaysian
Shareholders
9.24%
As At
Dec 2011
EPF 4.45%
Other Malaysian
Shareholders
10.69%
13
12
As At
Mar 2012
11
10
9
8
7
Foreign
Investors 5.38%
Foreign
Investors 4.31%
6
2011
2012
Listing
Sector
Bursa Malaysia Main Market
Trading/Services
Index Component
• FTSE Bursa Malaysia KLCI
• MSCI Malaysia
Quarterly IR Updates – 1st Quarter 2012
19
Corporate Updates
Yard Optimisation Programme
 YO Programme at Pasir Gudang
• Ongoing projects
• 1 Infrastructure work at Idemitsu land
• 2 Upgrading loadout facilities to 55k MT
• 3 Installation of 40T Luffing Crane
• 4 Deepening of seabed to -10m
• 5 Replacement of Dry Dock Gate No.1
1
 Capital expenditure
• Invested RM15m in 1Q2012
• Total YO investment RM747m
2
4
3
5
Quarterly IR Updates – 1st Quarter 2012
20
Corporate Updates
Yard Acquisition
 Completed acquisition on March 31
• Final purchase price of RM393.4m
• Added more than 700 staff
• Now at 129.7k MT (60k MT added)
• Now at 197 hectares (47 hectares added)
 Kebabangan integrated production
platform project
• Novated to MHB
 Legal Day 1
• Existing yard at Jalan Pekeliling known as
‘MMHE West’
• Newly acquired yard at Jalan Suasa known
as ‘MMHE East’
Official ceremony to commemorate and celebrate Legal Day 1 at MMHE East
Quarterly IR Updates – 1st Quarter 2012
Corporate Updates
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Organisation Structure
 Revamped structure
• Business unit centric design
• Offshore Business Unit
• Marine Repair Business Unit
• Supported by administration service and
corporate functions
• Programme Management Office
• Business integration
• Transformation programme
 Objectives
• Greater focus
• Instill accountability
• Raise efficiency
“The newly revamped organization structure shall drive the transformation of the business based
on project delivery centric design principles”
Quarterly IR Updates – 1st Quarter 2012
Thank You
Merci
Engineered for Growth
MALAYSIA MARINE AND HEAVY ENGINEERING HOLDINGS BERHAD
Level 31, Menara Dayabumi, Jalan Sultan Hishamuddin
50050, Kuala Lumpur, Malaysia
Investor Relations Contacts
Telephone: +60 (3) 2275 3876
Wan Mashitah Bte Wan Abdullah Sani
Chief Financial Officer
Email: [email protected]
Chang Kong Meng
Investor Relations & Business Research
Email: [email protected]
Website:
http://www.mhb.com.my/
http://www.mmhe.com.my/