Yinson Holdings Berhad Corporate Presentation
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YinsonYinson HoldingsHoldings BerhadBerhad Corporate Presentation March 2018 Overview of Yinson Key Information Core Businesses - O&G Operations Yinson Holdings Berhad (“Yinson”) is the 6th largest independent Production FPSO leasing company globally ¡ 5 FPSOs Floating Fleet of: ¡ 1 FSO Production, Vessel and ¡ 5 FPSO vessels (Floating Production Storage and Offloading) Marine Services Storage & Crew ¡ 1 FSO vessel (Floating Storage and Offloading) Management ¡ 1 Platform Supply Vessel (PSV) Offloading Headquartered in Malaysia with key offices in Singapore, Oslo, Nigeria, Solutions Gabon, Vietnam and Ghana ¡ 3 Anchor Handling Tug Supply Vessels (AHTS) Listed on Bursa Malaysia with market cap of MYR 4.66 billion (c. USD 1.16 billion) as of January 08, 2018 Vessel & Crew Management Yinson is now a full-fledged FPSO company. Completed the divestment of all its non-oil & gas business segments in July 2016 Latest Developments December 2017 On 21 December 2017, Yinson signed a settlement and amendment agreement with PTSC in relation to the termination of the Bareboat Charter of FPSO PTSC Lam Son. Subsequently on 29 December 2017, PTSC AP 1. Receipt of FPSO PTSC Lam had received the Termination Fee of USD209 million. Son’s Termination Fees and On 2 January 2018, PTSC AP had utilised part of the Termination Fee to fully repay the outstanding amount full repayment of project loan under the financing facility of project Lam Son. On 3 July 2017, Yinson announced a potential offering of a 26% stake in FPSO John Agyekum Kufuor to form a November 2017 strategic alliance with a Japanese consortium comprising of Sumitomo Corporation, Kawasaki Kisen Kaisha, 2. Potential strategic alliance with Ltd. (“K Line”), JGC Corporation and Development Bank of Japan Inc. Japanese Investors On 21 November 2017, the conditional share purchase agreement for the sale of 26% stake was executed for a consideration of up to USD117 million. In June 2017, FPSO John Agyekum Kufuor achieved provisional acceptance and started receiving charter rates 3. June 2017 and achieved final acceptance on 8 December 2017. FPSO John Agyekum Kufuor The USD 3.2 billion FPSO contract (USD 2.54 billion firm period + c.USD 717 million option period) was started receiving charter rates awarded by ENI Ghana Exploration and Production Ltd in 2015. In April 2017, Yinson was awarded a USD 1 billion FPSO contract from Talisman Vietnam 07/03 (a wholly- April 2017 owned subsidiary of Repsol). 4. Won USD 1 Billion FPSO Yinson will be partnering PTSC in the USD 1 billion FPSO contract from Talisman Vietnam. Yinson has a 49% Contract from Repsol’s stake in the proposed JV. Subsidiary, Talisman Vietnam This is for the supply of a FPSO for the Ca Rong Do field development in Vietnam. 1 1 1 Company Strategies Company Strategies 1. High Quality Counterparties & Strategic Partners 4. Strong Local Content 2. Application in Operating Robust Contractual Countries Terms & Termination Protection. No Oil Price or Reservoir Risk 5. Winning Contracts With 3. Innovative Solutions Optimize Capital & Funding Structure 2 2 2 Key Credit Strengths 1 5 Well-Positioned Within O&G Life Cycle Long Term Contracts 1 5 2 6 6 Strong Counterparties Experienced Management Team 2 Key Credit Strengths 3 7 7 Robust Contract Terms 3 Supportive Shareholder Base 8 4 4 8 Prudent Track Record of Operations Ample Financial Flexibility 3 3 3 Well-Positioned Within O&G Life Cycle 4 4 Offshore Oil & Gas Field Lifecycle Offshore Oil & Gas Field Lifecycle Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Seismic & Survey Exploration & Appraisal Development Production Decommissioning • Geological & Geophysical • Wildcat wells drilled to • Pre-FEED and FEED • Extract, process and • Decommissioning of end Mapping via seismic assess studies export of field infrastructure survey Hydrocarbon • Appraisal wells assess the • Fabrication and • Reuse, recycle, dispose • Obtain a right to explore a potential of any discovery procurement • Brownfield development Block or area made during exploration and Injection wells Asset Class Well Intervention Pipe Laying Vessels Drillship Crane Vessels Crane Vessels Accommodation Units Semi-subs Pipe Laying Vessels Accommodation Units Seismic FPSO Jack Up Accommodation Units Decommissioning Vessels FSO AHTs AHTs AHTs MOPU 5 5 5 Share Price – Resilient Despite Oil Price Fallout Global Oilfield Service Sector Stock Price Performance 160 140 +24.1% 120 100 80 (32.3%) 60 (39.5%) 40 (60.3%) Share Price* (Rebasedto100) 20 (80.7%) (93.3%) 0 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 EPC OSV Rigs / Drilling FPSO Brent Yinson (Source: Factset – Data from 01 June 2014 to 31 Dec 2017) *Share price for each sector is weighted by Market Cap Methodology: The share prices (weighted by Market Cap) from the top 10 companies ranked by fleet size in each sector (OSV, Rigs/Drilling, FPSO) were used to create this chart. Companies were excluded if they were privately held, or if the listed company was heavily diversified (e.g. CNOOC and Swire were omitted from the OSV data). As the EPC sector does not have a “Top 10 companies by fleet size”, data from 23 publicly listed EPC companies were used. 6 6 6 Overview & Outlook of Global FPSO Industry FPSO Typical Deployment Global FPSO Fleet Status Tanker-Offloading Brazil, West Africa, South East Asia and the North Sea, accounting Buoy Production Platform FPSO for 67% of the total number of installed FPSO globally Out of the 21 FPSO vessels on order, 11 are to be deployed in Brazil, 5 in West Africa, 3 in South East Asia, 1 in the North Sea and 1 in the Australia/New Zealand. Injection Lines As of July 18, 2017, there are 169 FPSO vessels in active Existing Well Centers employment, with another 23 FPSO vessels available for hire and FPSO unit is a floating vessel used by the offshore oil and gas industry for the 1 FPSO vessel in long term repair. production, the storage and for processing of hydrocarbons Source: Energy Maritime Associates (EMA) Floating Production Report Data – Q3 2017, 18 July 2017 FPSOs can be a conversion of an oil tanker or a new vessel built specially for the application Popular for its mobility, once an existing field has been depleted an FPSO can then be refurbished, relocated and reused for production in another field. 2017 - 2021 FPSO Charter Contract & Awards Forecast In 2016: ü 11 total Floating Production System contracts awarded: 3 FPSOs, 7 FSRUs, and 1 Production Semi. ü 3 FPSOs were ordered, the lowest level going back more than 20 years. In April 2017, Yinson entered into a time charter contract with Talisman Vietnam 07/03 (a wholly-owned subsidiary of Repsol) for the provision of a FPSO to the Ca Rong Do field development in Vietnam. Looking ahead, EMA forecasts new FPSO vessels orders of 35 – 70 from 2017 to 2021. 30 25 17 20 15 15 13 15 10 11 26 10 11 10 20 21 10 14 14 14 8 5 11 12 12 11 9 7 8 4 3 6 7 7 7 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017F 2018F 2019F 2020F 2021F FPSO Awards Low Case Mid Case High Case Source: Energy Maritime Associates (EMA) – January 2017 7 7 7 Strong Counterparties 8 8 High Quality Counterparties Eni SpA / Eni Ghana PetroVietnam Technical Services Corporation (“PTSC”) Eni SpA, is engaged in the exploration and production of oil and natural Established in 1993, PTSC’s main operations involves providing technical gas, processing, transportation, and refining of crude oil, transport of services to the oil & gas industries. These technical services include: EPCI for natural gas, storage and distribution of petroleum products, and the offshore facilities, EPC for industrial facilities, FSO/FPSO services, offshore production of base chemicals, plastics and elastomers. support vessels, seismic survey services, geophysical and geotechnical survey Listed on Milan Stock Exchange Market cap. EUR 52bn (USD 63bn) as of services, geochemical metocean and oceanographic survey services, ROV Jan 8th, 2018 services and subsea works. ENI is rated Baa1 by Moody’s, BBB+ by S&P and A- Fitch (long-term). Listed at Hanoi Stock Exchange. Market cap. VND 12.1tn (USD 530m) as of Jan 08th, 2018 In 2016, revenues were c.EUR 55.8bn (USD 61.7bn) and operating cash flow was c.EUR 7.7bn (USD 8.5bn). As of FY2016, PTSC has a revenue of c.VND 18.7tn (USD 835.3m) and NPAT of c.VND 0.99tn (USD 43m). Eni Ghana, a wholly-owned subsidiary of Eni SpA, is the charterer of FPSO John Agyekum Kufuor PTSC is the charterer of FSO PTSC Bien Dong 01 of which they have 51% ownership in while Yinson holds the remaining 49%. Addax Petroleum Canadian Natural Resources (“CNR”) Established in 1994 and based in Geneva, Switzerland, Addax Petroleum Canadian Natural Resources (“CNR”) is one of the largest independent crude engages in the exploration and production of oil and gas in Africa, the oil and natural gas producers in the world. Middle East, and the North Sea. Over the years, CNR has established its market presence in North America, the Currently, Addax Petroleum has operations in Nigeria, Gabon, Cameroon, North Sea and offshore America. and the Kurdistan Region of Iraq. Listed on Toronto Stock Exchange. Market cap. CAD 55.2bn (USD 44.5bn) as Addax Petroleum is owned by Sinopec International Petroleum Exploration of Jan 8th, 2018 and Production Corporation (“SIPC”). CNR is rated Baa3 / BBB+ by Moody’s and S&P respectively. Sinopec Group is rated A1 and A+ by Moody’s and S&P respectively In 2016, revenues were c.CAD 10.5bn (USD 7.9bn) with operating cash flow of Currently, Addax Petroleum is a charterer for FPSO Adoon which is wholly c.