FMC Technologies Overview Second Quarter 2014 Director, Investor Relations Bradley Alexander +1 281.260.3665 [email protected] This presentation contains “forward-looking statements” intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact contained in this report are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements usually relate to future events and anticipated revenues, earnings, cash flows or other aspects of our operations or operating results. Forward-looking statements are often identified by the words “believe,” “expect,” “anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could,” “may,” “estimate,” “outlook” and similar expressions, including the negative thereof. The absence of these words, however, does not mean that the statements are not forward-looking. These forward-looking statements are based on our current expectations, beliefs and assumptions concerning future developments and business conditions and their potential effect on us. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. All of our forward-looking statements involve risks and uncertainties (some of which are significant or beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Known material factors that could cause actual results to differ materially from those contemplated in forwardlooking statements include those described in Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K and in our Quarterly Reports on Form 10-Q. We wish to caution you not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any of our forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise, except to the extent required by law. 1 An oilfield services and equipment company • $7.1 billion revenue in 2013 • 19,500 employees worldwide* • 30 production facilities in 17 countries* • Recognized by Forbes® Magazine as one of the World’s Most Innovative Companies * As of March 31, 2014. 2 $7.1B Revenue in 2013 from three segments 66% Subsea Technologies • Subsea Systems • Multi Phase Meters • Schilling Robotics 25% Surface Technologies • Surface Wellhead • Fluid Control • Completion Services 9% Energy Infrastructure • • • • • Measurement Solutions Loading Systems Material Handling Solutions Separation Systems Automation and Control 3 Backlog growth Energy Infrastructure Surface Technologies Subsea Technologies $B $B Orders* $10 $9.1 $7.0 $8 $6 $6.7 $5.7 $6 Backlog $8 $4.9 $6.0 $4.2 $4 $4 $2.5 $2.9 $2 $2 $0 $0 2009 $B $5.4 2010 2011 2012 2009 2013 $M Revenue $8 $7.1 $4 2012 2013 Operating Profit $880 $785 $800 $5.1 $4.4 2011 $1,000 $6.2 $6 2010 $600 $4.1 $619 $633 $619 2009 2010 2011 $400 $2 $200 $0 $0 2009 2010 2011 2012 2013 * Orders have been revised to exclude the effects of foreign currency translation on backlog. Prior to 2010, the Company's practice was to include backlog translation effects as a component of orders. 4 2012 2013 Financial results Energy Infrastructure Surface Technologies Subsea Technologies $B $B Orders Backlog $7.8 $8 $3.0 $2.6 $2.5 $6 $2.0 $2.0 $1.5 $1.8 $1.2 $5.6 $5.4 1Q12 1Q13 $4.6 $1.4 $4 $2.7 $1.0 $2 $0.5 $0 $0.0 1Q10 $B 1Q11 1Q12 1Q13 1Q10 1Q14 $M Revenue $2.0 1Q11 Operating Profit $245 $250 $1.8 1Q14 $1.6 $200 $1.4 $1.5 $1.1 $181 $150 $1.1 $162 $167 1Q12 1Q13 $126 $1.0 $100 $0.5 $50 $0 $0.0 1Q10 1Q11 1Q12 1Q13 1Q10 1Q14 5 1Q11 1Q14 Subsea Technologies is 66% of revenue FMC Technologies 2013 revenue All other products Subsea Technologies 6 Our focus is on Subsea Systems Market share Orders (2009 – 2013) GE 12% FMCTI 43% Revenue Aker 21% Tree units (2009 – 2013) (2009 – 2013) Cameron 18% Dril-Quip 6% GE 16% GE 14% Total Market $49.3B FMCTI 43% FMCTI 40% Aker 17% Cameron 19% Aker 15% Dril-Quip 1% Dril-Quip 7% Cameron 28% Total Market 1,972 Total Market $41.6B Complexity and value per well increasing Sources: Douglas-Westwood, Quest Offshore Resources, Inc. 7 Customer subsea tree demand Future tree awards (2014* - 2018) 900 800 700 676 600 500 400 300 200 227 206 178 139 100 125 96 93 58 52 0 Source: Estimates from Quest Offshore Resources, Inc., May 2014 Over half of the next 5 years’ awards from customers with strong FMCTI relationships. *Does not include trees awarded during the first quarter of 2014. 8 Tree growth consistent with deepwater expansion Tree awards 800 700 600 500 400 300 200 100 553 488 452 434 319 373 602 634 667 416 311 Source: Estimates from Quest Offshore Resources, Inc., May 2014 9 670 IOC’s increasing focus on deepwater Deepwater production 14,000,000 • The fastest growing source to meet incremental production demands • Accessible opportunity for IOC’s to employ differentiated technology Water depth (M) 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 • Technology advancements are improving exploration success and recovery rates 500-999 • Sizable deepwater discoveries being made globally in multiple basins 1000-1499 >1499 80,000 Deepwater capex 70,000 Water depth (M) 60,000 50,000 40,000 30,000 20,000 10,000 500-999 Source: Infield 10 1000-1499 >1499 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 0 Expanding rig fleet adds capacity for subsea well completions • 73 new deepwater rigs increasing fleet by 26% from 2012 to 2016 Deepwater semi’s and drill-ships 400 329 325 277 288 350 304 250 • 5th and 6th generation rigs more productive 175 100 2012 • Rigless tree installations becoming more common 2013 2014E 2015E Source: IHS Petrodata, Morgan Stanley Research Estimates, May 2014 11 2016E Technology leadership Strong subsea track record 12 Capabilities in all major deepwater basins 2013 Subsea Technologies Revenue: $4.7B AsiaPacific Norway Europe Newfoundland Scotland Africa Houston Ivory Coast Ghana Nigeria South America North America Malaysia Singapore Congo Angola Brazil Australia • 6 Subsea Technologies Manufacturing Facilities • 14 Subsea Technologies Customer Support Bases Subsea manufacturing facility Subsea service base 13 Subsea technology center Major subsea project opportunities ahead Potential $150M+ subsea production system projects in the next 15 months* Operator Project Location Cobalt Husky ENI CNOOC Reliance BP Wintershall Chevron Murphy ENI ENI Anadarko Shell Total Inpex Woodside Shell Statoil GdF Suez Statoil ExxonMobil Woodside ENI Cameia Liwan Phase 2 Block 15/06 - East Hub Liuhua 16-2 R-Series Mad Dog Phase 2 Maria Agbami Phase 3 Rotan Blk H Etan Sankofa Prosperidade Bonga South West Zinia Phase 2 Abadi Browse Appomattox Johan Castberg Bonaparte Johan Sverdrup Greater Hadrian Greater Western Flank Phase 2 Mamba Angola China Angola China India GOM Norway Nigeria Malaysia Nigeria Ghana Mozambique Nigeria Angola Indonesia Australia GOM Norway Australia Norway GOM Australia Mozambique * As of March 31, 2014. 14 No. of Trees 6 5 12 12 9 12 6 6 7 11 14 18 48 9 5 18 20 38 8 9 6 8 21 308 Expanding our subsea solutions scope Core products New products • Trees • Control systems • Subsea processing − Separation − Boosting − Gas compression • Template systems • Well Intervention Services • Flowline connection systems • Remotely Operated Vehicles (“ROVs”) and ROV manipulator systems • Manifolds 15 Using subsea processing to enable new development and increase oil recovery Greenfield challenges: • Heavy oil • Low reservoir pressure • Hydrate formation Opportunity to Enable New Development Brownfield challenges: Opportunity to Increase Oil Recovery • Declining oil & gas production • Increasing water production • Constrained topside facilities 16 Subsea processing projects in every major deepwater basin Tordis • Brownfield • Gas/Oil/Water/Sand Separation • Boosting Cascade • Greenfield • Boosting Pazflor • Greenfield • Gas/Liquid Separation • Boosting Perdido • Greenfield • Gas/Liquid Separation • Boosting Marlim • Brownfield • Gas/Oil/Water/Sand Separation BC-10 Congro and Corvina • Greenfield • Gas/Liquid Separation • Boosting Greenfield • Brownfields • Gas/Liquid Separation • Boosting Brownfield Cost Reduction 17 Subsea Services Subsea wells producing for more than 5 years 7000 Number of Wells 6000 5000 4000 3000 2000 1000 0 2012 2013E 2014E 2015E 2016E Source: Infield Vessel based well access demand 14 Number of Vessels 12 10 8 6 4 2 0 2012 2013E 2014E 2015E 2016E Source: Douglas Westwood Well Intervention Report 18 Subsea Services platforms for growth Operation and management Maintain production, increase recovery Installation The Subsea System life cycle Plug and abandonment Drilling and completion Installation Asset management Product optimization 19 Equipment intervention Well access Shale Opportunities Growth Flowback Frac cycle Frac • Separators • Choke manifold Water processing • Articulating frac arm manifold • Flowline • Well service pumps • Frac trees Current offering Future offering 20 • Advanced separation Acquiring key enabling technologies Separation Systems Compact in-line primary separation Schilling Robotics ROVs, manipulator systems, controls Direct Drive Systems Technology High power, compact permanent magnet motors, magnetic bearings Multi Phase Meters Multiphase flow meters Automation and Control Control and automation system solutions Completion Services Frac flowback and wireline services 21 In Summary An oilfield service & equipment company with… Deepwater / subsea exposure *66% of Revenue **40% Subsea Tree Unit Market Share Leading market position Strong customer relationships Multi-year Customer Alliances Technology leader 7 Subsea Processing Awards * As of December 31, 2013. ** 40% of industry tree units awarded from 2009 to 2013. 22 www.fmctechnologies.com 23
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