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Pareto Securities’ 17th Annual Oil and Offshore Conference September 2010

Fabrication

Refurb

Tech Services

Add

EPC

Sunbelt Safety

New Build


MIS Group | Developments since Pareto 2009

KS ENDEAVOR

• Delivery of a 3rd completed rig (Hull 107)

MEJU SETTLEMENT AGREEMENT

• Becomes effective next month, bringing two more rigs into production

NDC AL BZOOM

• Winning and commencement of NDC’s $55 million refurb project

FINANCIAL POSITION

• Significant strengthening of MIS’ financial position


Net Borrowings and Net Assets US$ millions

180 160 140 120

122

133

143

143

151

159

168 Net borrowings

100

Net assets

80 60

Net borrowings Trendline

40 20 0

Dec 2008

Mar 2009

Jun 2009

Sep 2009

Dec 2009

Mar 2010

Jun 2010


1st Half 2010 Performance Revenue of $190.5 million – 32% down on 2009 (as predicted) 3 rigs in production v 7 last year, but traditional value streams up 6%

Gross profit of $39.1 million – 20.5% margin (up from 14.2%) Net Income of $16.3 million – 21% down on 2009 Non recurring costs of MEJU arbitration and absence of last year’s exchange gains

Operating cashflow $11 million ahead of same period last year $36 million of debt repaid - downward trend will continue in Q3


Balance of 2010

Profitable trend established in the 1st Half expected to continue, with no major dependencies Cash receipts from Hulls 107 & 106 expected in Q3 Strengthened balance sheet should permit resumption of dividend


MIS | In Brief

A diversified engineering & contracting group providing a broad range of services to the energy sector

Founded 1979

Listed on Oslo Stock Exchange since 2007


Fabrication

Pressure vessels Process modules Land rig components

Services provided from: UAE, Saudi Arabia, Kuwait


Fabrication

54

46

60

54

50 40 30 20 10

7.7

0

2007

26 12.1 2008

11.4

4.5

2009 1st Half 2010

US$ million

EBITDA

Revenue


Refurb

Rig repair and conversion Major upgrades

Services provided from: UAE and offshore


Refurb

29

25

30 25

11

20 15 10 5 0

2.0 2007

US$ million

4.9 2008

EBITDA

9 6.6 2009

0.6 1st Half 2010

Revenue


Tech Services

Offshore and onshore operations & maintenance long-term contracts Currently providing over 700 qualified staff to major clients including: Dubai Petroleum DUGAS ENOC

Services provided from: UAE


Tech Services

11

14

8

12

14

10 8 6

8

4 2 0

1.9 2007

US$ million

3.2 2008

EBITDA

5.1 2.7 2009

1st Half 2010

Revenue


EPC Engineering, Procurement and Construction - onshore and offshore FEED services

Current focus: Northern Emirates, Abu Dhabi, Yemen and Oman


EPC

39 30

40.0

32

35.0 30.0 25.0

29

20.0 15.0 10.0 5.0

7.0

15.5

0.0

2007

US $ Million (excluding HFO Qatar)

2008

EBITDA

10.0 2009

6.4 1st Half 2010

Revenue


Sunbelt Safety

Specialising in H2S detection Safety Training, consultancy, equipment sales and rental

Operating Locations: UAE, Kazakhstan, Iraq, Egypt


Sunbelt Safety

23 25

23

14

20 15 10 5

5.0

7.6

0

2007

US$ million

2008

EBITDA

12 8.4 2009

3.2 1st Half 2010

Revenue


New Build

Jack-up drilling rigs Floating Storage units Wind farm installation vessels International customer base

Manufacturing Base: Sharjah, UAE


New Build

326

350 300

230

173

250 200 150 100

0 -50

106

10.9

50

2007

US$ million

-16.0 2008

EBITDA

8.9 2009

3.7 1st Half 2010

Revenue


1st Half 2010 | Revenue & Profit by Value Stream

EBITDA

REVENUE


Way Forward | Strategy for Growth

Development of EPC Capability

Launch of MIS Production Services (gas compression)

Further penetration of Abu Dhabi market

Establishment of New Build in renewable energy field

Hull 108

Renewed growth building on MIS’ existing base of profitable businesses


Contact Us

Maritime Industrial Services Co. Ltd. Inc

For additional information, please contact: Andrew R. J. Calvert – Group CFO | Andrew.Calvert@mis.ae Stephen Smith – Group Business Development Director | Stephen.smith@mis.ae Rana Said - Corporate Communications Director | rana.said@mis.ae


MIS at PARETO 2010