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