Presentation - WorleyParsons.com

WorleyParsons
North America Investor Day
Delivering
What we promise
Agenda
North America Investor Day
Item
Time
Housekeeping and OneWay Moment
8:00 to 8:15
Welcome and importance of the North American business
8:15 to 8:30
Major Projects
8:30 to 9:00
Improve
9:00 to 9:45
Panel Discussion
9:45 to 10:00
Tea break
10:00 to 10:15
Services in North America
10:15 to 10:45
Spotlights on North America growth opportunities
10:15 to 11:30
Q&A
11:30 to 11:50
Close
11:50 to 12:00
Lunch
2
WorleyParsons Total Recordable Case
OGP 2013 benchmarking
Frequency Rate by geography – FY14
North America
WP
FY14
0.28
<
Former Soviet
Union
Europe
WP
FY14
OGP
2013
0.39
0.52
<
OGP
2013
WP
FY14
0.52
OGP
2013
<
0.05
0.15
Africa
Asia
excl. South Africa
WP
FY14
0.00
<
WP
FY14
OGP
2013
0.04
0.21
<
OGP
2013
0.19
Middle East
WP
FY14
0.02
South Africa
<
OGP
2013
0.18
Australia & NZ
WP
FY14
WP
FY14
0.75
0.46
International Association of Oil & Gas producers (OGP) Benchmarking: The OGP 2013 safety performance indicators report
summarises the Total Recordable Frequency Rate (TRCFR) for contributing OGP member companies for 2013 by geography.
Welcome
Simon Holt
Delivering
What we promise
Overview
FY2014 Strong operating cash flow
►
Earnings in line with guidance
► Business reorganization completed
► Further reduction of 1,200 overhead roles
► Strong operating cash flow result
► Final dividend of 51.0 cents per share
► Total dividend of 85.0 cents per share
5
Financial snapshot
►
Aggregated revenue1 of $7,364m, down 3%2
►
Underlying NPAT 3 of $263m, down 18%2
►
Improvement in Group EBIT margin in second half
►
Operating cash flow up 24% to $550m
►
Costs associated with restructuring amounted to $35.4m
►
Gearing ratio remains strong at 19.5%
1 Aggregated
6
revenue is defined as statutory revenue and other income plus share of revenue from associates, less procurement
revenue at nil margin, interest income and net gain on revaluation of investments previously accounted for as equity accounted
associates. The Directors of WorleyParsons Limited believe the disclosure of the share of revenue from associates provides
additional information in relation to the financial performance of WorleyParsons Limited Group.
2 Versus previous corresponding period
3 The underlying result for FY2014 excludes the net fair value gain on acquisition of associates of $11.4m and one off
restructuring costs of $35.4m before tax
Diversification in earnings
►
Top 10 customers deliver 33% of the gross margin
►
Top 10 projects deliver 15% of the gross margin
►
Top 10 locations deliver 71% of the operating EBIT
7
Global operations
FY2014 total revenue $9,583m
46 Countries
157 Offices
35,600 Employees
North America snapshot
FY2014 revenue
SSA
3%
MENA
15%
ASCHI
5%
ANZ
12%
LAM
3%
EUR
12%
CAN
33%
USAC
17%
9
48 Offices
12,900+ Employees
How did we get here
Cegertec
INTEC
Unifield
Engineering
SEA
Engineering
Polestar Applied
Technology
HG Engineering
GCT
Westmar
The Colt
Companies
Komex
Worley becomes
Parsons E&C
MacDonald Engineering
First office
North
America
91
10
92 93
Worley
lists on
ASX
94
95
96
97
98
99
00 01
02
03
04 05
06
07
08
09
10
11
12 13
14
Aggregated revenue by region
29% 29%
23%
17%
15% 15%
15%
2,158 2,088
1,737
7%
1,248
7%
1,123
564
806
502
FY2013 ($m)
►
►
►
11
10%
7%
5%
4%
394
325
8%
4%
531
591
288
5%
1,149 1,096
391
FY2014 ($m) % of total aggregated revenue
EUR grows through increased contribution from Rosenberg and project
activity in the UK
Cord revenue declined from $799m in FY2013 to $630m in FY2014
ANZ revenue due to lower project activity
Underlying Operating EBIT
14.6%
8.9% 9.0%
12.6%
193
157
110
11.9%
15.7%
19.5% 22.1%
254
13.7%
13.0%
188
111
126
11.5%
146
15
FY2013 ($m)
►
►
►
12
3
137
7.3%
3.8% 0.9%
61
43
2.8%
8
150
6.0%
24
FY2014 ($m) % EBIT margin
Significant decline in EBIT from ANZ due to lower project activity
Cord EBIT declined from $56m to $40m in FY2014
EUR margin affected by revenue mix as
Rosenberg contribution grows
Our Group strategy
To enhance and leverage our broad and deep technical
capabilities and our diverse geographic presence
13
Horizon 1
Getting better at what we do
Current performance = Future work
14
Horizon 2
Growth from the core
15
Horizon 3
Our new ventures - Digital Enterprise and Advisian
16
Group outlook
“We have taken decisive action to improve margins and ensure the
business is responding to market conditions and our customers’ needs.
We are focused on realizing our objective of providing our shareholders
a satisfactory return on their investments. We are confident in our
prospects based on our competitive position, our diversified operations
and our strong financial capacity.”
17
Why WorleyParsons
Delivering what we promise for customers and shareholders
►
Differentiated from our peers
 Deep and broad technical expertise
 Diverse geographic presence
 Services across the asset life cycle from concept to
decommissioning
 Realigned the business and refocused the strategy for growth
►
Attractive financial profile




18
Strong cash flow business
Low capex demand
Strong dividend history
Focus on delivering satisfactory returns for our shareholders
Major Projects
Brian Evans
Delivering
What we promise
Major Projects
►
Why
 Meet customer capital efficiency challenge
 Aligns with the way our customers are organized
 Enables optimization of project execution
►
How
 Through key execution centers
− Houston, Calgary and London
 These centers support major project execution
globally
20
Major Projects
contracts
Scope
 Large and complex projects
 Full project delivery
►
16+
~12%
FY2014
aggregated
revenue
North America Major Projects

13 out of our 16 Major projects are being
executed in North America
13+

For developments all over the world
Major Projects
contracts

Mainly EPCM but some early phase
~21%

Spanning our full project capability including:
 Onshore and offshore developments, pipelines,
chemicals, iron ore, heavy oil, oil sands, subsea
(INTECSEA)
21
North America
FY2014
aggregated
revenue
Major Projects 2014 Awards
► Hydrocarbons
 North West Redwater Partnership, Sturgeon Refinery Upgrader Piperacks/Flare EPCM Canada
 North West Redwater Partnership, Construction Management Canada
 Williams Companies Redwater Debottlenecking Modules Canada
 Sasol Lake Charles GTL and Cracker Project [IPMT for FEED] USA
 EP PetroEcuador Esmeraldas Refinery Rehabilitation Project Ecuador/Houston*
 TANAP Trans Anatolian Natural Gas Pipeline (TANAP) Turkey
► Minerals,
Metals & Chemicals
 Morobe Mining JV Wafi-Golpu Exploration Shaft, Pre-feasibility Study, Papua
New Guinea
 Andes Iron Dominga Project Chile
 Mineração Usiminas Compact Project Brazil
 Vale S11D Construction Management extension Brazil/ Canada*
22
* Support office
Horizon 1 – Major Projects
Getting better at what we do
The WorleyParsons Academy
 Creating the right environment for success
 Training, education and knowledge sharing
►
Three distinct schools:
Leading People | Winning Work | Project Delivery
►
Project Delivery
 Project Excellence Program has been launched
 11 quick wins – immediately delivering benefits
►
Outcomes
 Reliable and successful delivery of large and complex
projects
 Increased margins
 Increased repeat business
23
Horizon 2 – Major Projects
Growth from the core
► Growing
with our customers
 Focusing and strengthening
relationships with strategic
customers
► North America
~ $1B Major
Project opportunities
identified for award in FY15
► Largest opportunities
 Major Pipelines
 LNG sector
 Chemicals
24
Major Projects - Hydrocarbons
Horizon 2 - Growth from the core
>
Major upstream
developments feeding
LNG plants
 Onshore Alaska & Western
Canada
 Offshore East Africa
>
Field development
planning
 Deep, difficult, remote
 Including Arctic
>
Geographic expansion
 Mexico
 East Africa
25
North American LNG
~400 MTPA new LNG capacity proposed in the US
Lower-48 and Western Canada since 2010
26
Source IHS LNG Value Chain and Markets Service
Deepwater CAPEX
Strong competitive position
Subsea Tree Capex (US$M) by
Water Depth (meters)
Subsea Tree Capex (%)
by Water Depth (meters)
•
2014-2018 Deepwater installation Capex US$115 billion,
doubling from 2009-2013
•
Deepwater trees account for 84% of Capex of all subsea
trees in 2014-2018
27
Source: Infield Market Outlook on the Deepwater Subsea Sector, February 2014
Potential in Arctic reserves
174 discovered fields in Arctic, 83% of
discovered resources are Russian Image source: Infield Systems, “Global Offshore Oil and Gas
Outlook” February 2013
Estimated spend
•
•
•
27
Alaska US$30-50B in
next decade
Canadian Arctic
minimal in next few
years
Russia US$500B in
next 30 years
Major Projects
Offshore Newfoundland & Labrador
►
Current activity
 ExxonMobil Hebron topsides
 Small studies
►
Market potential ~US$5B over next 5 years
► Accessible spend for WorleyParsons over next 5 years
 Offshore ~US$200M
 Onshore – negligible
29
Major Projects
Arctic, British Columbia Gas and LNG
►
Services to every aspect of LNG value
chain
►
Market potential
 Canadian Arctic – not a lot of activity
 Russia ~ US$500B over next 30 years
►
Accessible spend for WorleyParsons
 Alaska ~ US$3-5B over next 5-7 years
 Canadian Arctic ~US$10M over next 3
years
 Russian Arctic ~US$300M over next 3
years
►
Currently tracking >US$50B opportunities
 Majority in Alaska
30
Major Projects – MM&C
Horizon 2 - Growth from the core
>
>
>
Minerals and Metals improving
outlook for study activity
Chemicals investment in US driven
by low cost shale gas
Global fertilizer opportunities
 Potash and Phosphates
>
>
Iron ore Labrador Trough
Grow mining business through
South Africa cost and capability
advantage
 Mining front end studies in base metals
and precious metals
>
US greenfield copper projects
>
Leverage North America experience
and capability to capture global
opportunities
31
Major Projects – Infrastructure
Horizon 2 - Growth from the core
>
Growth opportunities in
unconventional gas, LNG
and pipeline infrastructure
 Water
 Environment and Geosciences
 Ports
>
32
Power is being disrupted
 Environmental requirements
driving closure or upgrades of
fossil plants
 Renewables and distributed
generation
 Decommissioning and
restoration opportunities
Global Major Projects Outlook
Major Projects
► Key projects with significant procurement spend winding
down in FY2015
► FY2015 margin improvement focus
 Creation of Major Projects business line
 WorleyParsons Academy
►
Expect key projects to move forward in the medium term
 Projects currently in early FEED moving forward
 Awards in FY2015 expected to ramp up
►
Tracking several proposals and prospects
 Amounts to contract value of about $1 billion
33
Improve
Randy Karren
Delivering
What we promise
Improve
►
Definition
 The provision of value-added services via a long-term contract to
support our customers business or operation. The services
include:
−
−
−
−
−
−
35
Brownfield project delivery
Customer-defined portfolio delivery
Asset management
Business improvement
Operations and maintenance support
Shutdowns, turnarounds and outage support
Improve Business Line
►
Why
 Support customers to attain capital effectiveness and capital
efficiency for their assets
 Aligned with our customers organizations
 Cost-effective delivery model
►
Scope
 Nominated strategic customer relationships
 Supports growth and performance of all Improve relationships
►
How
 Globally implementing best practices
 Common program operating platform across
company
 Benchmarking our performance and demonstrating
value
36
Horizon 1
Existing relationships
• Enhanced HSE
performance
• Operational
excellence
• Predictable
project outcomes
• Cost efficiency &
effectiveness
• Customer service
focus
• Global best practices
37
Horizon 1
Enduring long-term relationships
• Retain current base
• Simplify and secure
our workflow
• Longer-term
commitments
• Strategic
partner
• Return on
capital
employed
• Horizon 3
business
opportunities
38
Improve - Horizon 2
Growth from the core
• Full service project
delivery
• Asset management and
business improvement
• Operations
support
• Turnaround
management
• New customers / new
geographies
39
Improve - Horizon 2
North America Opportunities
►
Strong pipeline of opportunities
► Currently tracking opportunities amounting to over $1B in
revenue across 80+ long term relationships
► Opportunities span across Hydrocarbons and Power
40
Improve - Hydrocarbons
Improve business strategies – North America
>
Growth Services
 Full service EPC/EPCM delivery
 Asset Management
>
Growth Geographies
 USA South
 Offshore
>
Growth Subsectors




41
LNG
Petrochemical
Heavy Oil
Gas Processing
Improve – MM&C
Improve business strategies – North America
>
Growth Services
 Asset optimization
 Petrochemical asset development
and support
>
Growth Geographies
 Northern Canada
 USA Gulf Coast
>
Growth Subsectors
 Alumina
 Chemicals
42
Improve – Infrastructure
Improve business strategies – North America
>
Growth Services
 Water management
 Advisory
 Regulatory support
>
Growth Geographies
 Ft. McMurray
 USA Gulf Coast
>
43
Growth Subsectors
 Water
 Environmental
 Power
Improve North America
Andy Mackintosh
Delivering
What we promise
Improve North America
►
►
Alliances and long-term relationships provide a
deep understanding of customer drivers
Improve services include





►
Delivery of expansion and infill projects
Upgrades
De-bottlenecking
Maintenance and small capital projects
Asset management services
Improve draws on the experience and capabilities of
our global resources
 Knowledge accumulated from 290 Improve alliances
over 20+ years
 More than 40,000 projects annually
45
150+
Improve
Contracts
~26%
North America
FY2014
Revenue
Services
Interface
Improve – Brownfield execution
Asset Management
(Brownfield Execution)
Asset
Integrity
Management
Operations &
Maintenance
Shutdowns,
Turnarounds
& Outages
Sustaining
Capital
Subcontractor
Management
Asset Management is defined as:
“the set of coordinated activities that an
organization uses to realize value from assets in
the delivery of its outcomes or objectives.
Realization of value requires the achievement of a
balance of costs, risks and benefits, often over
different timescales”
Source: Draft BS ISO 55000 Asset Management – Overview, principles and terminology.
46
General industry trends
Brownfield services
► Customers












47
are seeking
Improved HSE performance
Better alignment to their business drivers
Long term commitment and relationships (Tier 1s)
Improved cost, quality and schedule certainty
Asset integrity and assurance
Global consistency in approach and delivery
Resources bench-strength, availability and mobility
Low cost, fit-for-purpose solutions
Better response times
Capital efficiency
Flawless execution and plant start-up
High value engineering, procurement, fabrication, modularization
and construction
Improve – Brownfield execution
Procurement
& Contracts
Brownfield
Execution
Extended
Services
Rapid Response,
Restoration &
Repair
Specification
Rapid Response
Inspection,
Verification,
Repairs,
Compliance
Failure
Investigation,
Cost Mgt,
Workflow,
Reliability, Tech
Guidelines,
Modification Mgt
Warranty Mgt,
Equipment
Specification,
Critical Spares
Routines,
Breakdowns,
Campaigns,
Project Controls
RCA, Work
Instructions,
Effectiveness
Analysis
Shutdowns,
Turnarounds
& Outages
Readiness
Review, Scope
Challenge
/Validation
Condition
Assessment,
Modification/
Repair Mgt
Rapid Response
Preparations,
Project Controls
Reviews/Audits
Recommission,
Mobilization,
Lessons Learned
Sustaining
Capital
Operational
Readiness
Review
Specialist
Technical
Assistance
Critical Spares
Workpacks,
Constructability
Project Controls
Logistics
Technology
Selection
Subcontractor
& Specialist
Coordination
Repair /
Condition
Monitoring
Strategies
Repair Mgt
Repair
Specification
Tenders,
Evaluations,
Project Controls
OEM Co-ord.
Optimisation,
Materials
Asset Management
Asset Management
Services support
48
Consulting
Engineering
Asset
Integrity
RBI,
Corrosion Mgt,
Scope, Material
Selection
Operations &
Maintenance
Panel Discussion
North America Investor Day
Delivering
What we promise
Services
Greg Conlon
Delivering
What we promise
Services
►
►
Overview of 6 locations
Restructure discussion
 Merging of CAN and USAC
 Benefits of restructure
 Business Unit overview
►
►
51
Interface with Improve and
Major Projects
INTECSEA
North America Services
The merged North America is the
bedrock from which we maintain,
enhance and leverage our broad
and deep technical capabilities and
our diverse geographic presence
52
40+ Offices
39% Total Revenue
New Organisation
Major Projects
Business Lines
Regions (6)
Locations (6)
Business
Units (7)
53
Europe
Middle East
North Africa
North America
West
Infrastructure &
Environment
Arctic / Logistics
Sulphur
Sub Saharan
Africa
North America
Gulf Coast
Services
North America
North America
Central
Improve
Australia Pacific
Asia China
Latin America
North America
East
WorleyParsonsCord
Offshore
Onshore Upstream,
Midstream & LNG
Minerals & Metals
Downstream
& Chemicals
Pipelines
Power
INTECSEA
Unconventional
Oil & Gas (UCOG)
Benefits of the restructure
►
The Services business line provides the foundation for
the way we deliver projects for the resources and energy
sectors in North America (and internationally) (and with
the other business lines) – it is based on deep
collaboration between locations within the continent as
well as globally
►
The restructure has achieved:





54
Customer matching interface by industry sector
Continental market focus
Competitiveness tied to industry sector
Scalable operation
Simpler structure with clear accountability
Organisational Concept
55
Location & BU Concept
Central
Pipelines
CORD
Upstream
M&M
Sulphur, Arctic
West
Power & Nuclear
Downstream
& Chemicals
I&E
Offshore
INTECSEA
56
East
Gulf
Coast
UCOG
Unconventional Oil & Gas
Contrado provides full integration of field
development, synchronizing surface
infrastructure with hydrocarbons production.
Through collaboration with our customers,
we specifically aim to integrate water, power
and hydrocarbons infrastructure through
well-field development, by synchronizing
exploration and production needs with their
corresponding infrastructure requirements.
57
JV Partner Office (MWH)
Upstream
Strong heritage market
Active in Gas field & midstream developments,
front end LNG work and facilities associated with
pipeline network expansions
Repositioning for Oil Sands recovery under capital
cost efficiency pressure
Globalizing heavy oil capability
58
Pipelines
Full range of engineering, procurement and
construction management (EPCM) services
covering all facets of on-shore pipelines, from
large-diameter, long-distance transmission
pipelines to small-inch gathering and distribution
systems, with the associated pipeline-related
facilities and terminals
800+ staff executing complex projects in
challenging terrain
59
LNG – a snapshot
Upstream sub-sector
Enabling works, program Mgmt &
OSBL

Growth in Western Canada

Local Approvals

Marine consulting
PMC/OE

LNG, Regas & FLNG core
Western Canada emerging
60
Offshore
Engineering services to all major offshore
developments in the Gulf of Mexico, Middle
East, North Sea, Australia, Sub-Saharan
Africa, Southeast Asia, Russia and South
America. These services include SURF,
floating production, pipelines and topsides for
all project phases.
61
Downstream & Chemicals
Expertise in the design of petrochemical units
covering 600+ projects in more than 30 countries
to date.
HVPD centres in China and India further expand
both our capability and capacity to work with
diverse technologies.
62
Power
Potential
office location
Expertise in all types of power generation and
delivery projects including coal, gas, nuclear,
renewable and power network projects.
Providing operations and maintenance services
for operating power plants
63
Minerals & Metals
Processing expertise covering base metals,
precious metals, uranium, aluminum, alumina,
rare earths, graphite and fertilizers, with a
particularly strong capability in potash.
Specialized services in pyrometallurgy,
hydrometallurgy, acid plants and advanced
analysis
Asset Focus - Constrained capital
64
Potential
office location
Infrastructure & Environment
Enabling capability for Resource customers

Expertise in ports, marine, terminals, rail,
water, environment and restoration.

Technical support from pre-feasibility
approvals and permitting through to execution,
working in close collaboration with our other
business units (e.g. M&M and Upstream).

Provide customers with end-of-life solutions
from decommissioning and decontamination
to appropriate end use of their assets.
65
North America Services
6 Locations 7 Business Units delivering
performance 40+ offices
66
A cornerstone of our broad and deep
technical capabilities and our diverse
geographic presence
Strategic Outlook
8.9%
9.0%
13.7%
11.9%
Good market fundamentals
UCOG / Contrado – continental demand
Oil Sands – capital efficiency
Gas monetization – driving downstream and chemicals
Offshore – balanced portfolio
M&M – consolidate / asset focus
Emerging Nuclear
Power, I&E – technical breadth and depth is a key enabler for
Resource & Energy customers
67
193
188
137
FY2013 ($m)
FY2014 ($m)
151
% EBIT
margin
Interface with Major Projects
►
Customer coordination – one WorleyParsons
 Global consistency – Major Projects
 Local engagement – Services
 Dedicated Asset / Alliance engagement – Improve
►
Key delivery partnership
 Resource & facilities
 Simplified transfer process
►
Major Projects – cyclical
 Active forward forecasting
68
Interface with Improve
►
Customer coordination – Local consistency
 Where practical 100% Improve locations
►
Key operational partnership
 Improve workload typically predictable
 Specific Project Resources
 Overhead resource optimisation
69
WorleyParsonsCord
Brad Van de Veen
Delivering
What we promise
Capacity and Capability
Core business – fabrication &
construction
 Selective EPC / EPCM delivery




120 acres
High-load corridor access
Up to 35,000 diameter-inches of
piping fabricated / week
 2700 direct-hire and
subcontracted workforce

600 modules/year
71
3 module yards
Emerging trend – global sourcing
WorleyParsonsCord Module Yard,
36 years in western Canada
Blackfalds, Alberta, Canada
Current Market Outlook

Focus on growing our business in 4
areas:





Slow recovery of oil sands market

72
Pipeline terminals
Pump stations
Compressor stations
Gas liquids projects
Significant capital cost efficiency
pressures driving
the Alberta
WorleyParsonsCord
Module supply
Yard,
Blackfalds, Alberta, Canada
chain to globalise
Business Model
►
Balanced portfolio between module
yards and field construction
►
MSA multi year contracts
►
Collaboration with EPCM locations
to deliver EPC solutions
►
Manage commercial risk with mix
of commercial models
Reimbursable
10%
Unit Rate
40%
30%
Reimbursable / Fixed Fee
Late Conversion Lump
Sum
20%
WorleyParsonsCord Module Yard
Blackfalds, Alberta, Canada
73
Evolving Global Supply Chain
Ft. McMurray
Fort McMurray - Module
installation at site
Edmonton
Calgary
Beijing - Design/drafting
Vancouver
Beijing
Qingdao
350 containers shipped
Edmonton - Unpacking and
module fabrication
Qingdao - Prefabrication
WorleyParsonsCord Module Yard,
Edmonton Alberta,
- Logistics
Blackfalds,
Canada
74
Calgary - Engineering and
procurement
UCOG
Phil Searl
Delivering
What we promise
Unconventional Oil & Gas


76
Contrado provides full integration of field
development, synchronizing surface
infrastructure with hydrocarbons
production.
Through collaboration with our
customers, we specifically aim to
integrate water, power and hydrocarbons
infrastructure through well-field
development, by synchronizing
exploration and production needs with
their corresponding infrastructure
requirements.
JV Partner Office (MWH)
North America Resources
77
Pipeline Infrastructure
Phil Searl
Delivering
What we promise
Active Pipeline Projects
Global Execution Team
WorleyParsons is currently delivering:
 Over 5,000km of LNG-related pipelines
projects
 3,500km of liquid pipelines projects
 Over 5M barrels of liquid storage projects
 Over 3M horsepower of pumping and
compression facilities projects
 And has over 800 staff involved in executing
these complex projects in challenging terrain.
79
North America Gulf Coast
Brian Evans
Delivering
What we promise
Offshore
Engineering services to all
major offshore
developments in the Gulf of
Mexico, Middle East, North
Sea, Australia, SubSaharan Africa, Southeast
Asia, Russia and South
America. These services
include SURF, floating
production, pipelines and
topsides for all project
phases.
81
Global Markets

West Africa
 Mexico
 Latin America
Downstream and Chemicals
Expertise in the
design of
petrochemical units
covering 600+
projects in more than
30 countries to date.
HVPD centres in
China and India
further expand both
our capability and
capacity to work with
diverse technologies.
82
Global Markets

Central and South
America
Announced US Refining Capacity
83
Source: IHS Energy April 2014
LAM support Opportunities
► Opportunities
identified
to support LAM from
Gulf Coast to start in
FY2015
 Revenue ~ US$600M
 Columbia largest
opportunity
 Most Downstream
Colombia
Peru
Mexico
Ecuador
Downstream
Offshore
Pipelines
Heavy Oil
UCOG
16
LAM Opportunities
Horizon 2 - Growth from the core
►
Colombia





►
Favorable oil policies and encouraging private investment
Production expected to increase
New E&P blocks Pacific
Ecopetrol modernizing refineries Cartagena
Challenges – infrastructure and political
Mexico
 Opening up to foreign investment
 Offshore: shallow water, subsea pipelines, deep-water
 Onshore: Refining, pipelines, UCOG, EOR
►
85
Additional opportunities in Ecuador, Peru, Venezuela,
and Brazil
FY15 Outlook for Gulf Coast
►
►
Flat to weaker than FY14
Improved delivery and resultant profitability
 Increased use of HVE
 More Work share across North America
►
Secured work is solid
 Customers are cautious
►
Medium term





86
A new three year contract in negotiation
US refining opportunities driven by new regulations and UCOG
Pemex targeted opportunities
Chemicals - long term offshore contracts and pull through
Downstream very competitive
Q&A
Delivering
What we promise
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Delivering
What we promise