ANALYST AND INVESTOR TRIP OMAN, 23-25 OCTOBER 2019
Important Notice Certain statements in this presentation are forward looking The information in this document has not been statements. Words such as "expect", "believe", "plan", "will", independently verified and no representation or warranty, "could", "may" and similar expressions are intended to express or implied, is made as to, and no reliance should identify such forward-looking statements, but are not the be placed on, the fairness, accuracy, completeness or exclusive means of identifying such statements. By their correctness of the information or opinions contained herein. nature, forward looking statements involve a number of risks, None of the Company, directors, employees or any of its uncertainties or assumptions that could cause actual results affiliates, advisors or representatives shall have any liability or events to differ materially from those expressed or implied whatsoever (in negligence or otherwise) for any loss by the forward looking statements. These risks, uncertainties whatsoever arising from any use of this document, or assumptions could adversely affect the outcome and or its contents, or otherwise arising in connection with this document. financial effects of the plans and events described herein. Statements contained in this presentation regarding past This document does not constitute or form part of any trends or activities should not be taken as representation offer or invitation to sell, or any solicitation of any offer that such trends or activities will continue in the future. to purchase any shares in the Company, nor shall it or You should not place undue reliance on forward looking any part of it or the fact of its distribution form the basis of, statements, which only speak as of the date of or be relied on in connection with, any contract or this presentation. commitment or investment decisions relating thereto, The Company is under no obligation to update or keep nor does it constitute a recommendation regarding the current the information contained in this presentation, shares of the Company. including any forward looking statements, or to correct any inaccuracies which may become apparent and any opinions expressed in it are subject to change without notice. 2 /
SAFETY BRIEFING
Ray Richardson Country Manager – Oman 4 /
WELCOME
Oman highlights 5m 32bn kWh Population Electricity production (2016) 1.0m bbl/day 5.4bn bbls Crude oil production Crude oil proved (2018) reserves (2018) 31bn m 3 651bn m 3 Natural gas Natural gas proved production (2017) reserves (2018) 6 /
Trusted partner to our clients NOC IOC 7 /
Attractive local market dynamics • Economic diversification and foreign investment • Omanisation of workforce • Combination of mature basins and new discoveries • Complex geology 8 /
Itinerary Timetable Wednesday 23 rd October TPO technical training centre, 10:45 - 13:00 Management/client Muscat presentations and Q&A 14:30 - 16:30 TPO Training Centre presentations and tour 19:00 Formal dinner Khazzan Phase II - Thursday 24 th October Ghazeer 10:30 - 13:45 Ghazeer site visit 19:30 Informal dinner Friday 25 th October 07:45 - 09:30 Salalah LPG site visit Salalah LPG 9 /
Ayman Asfari Group Chief Executive
INTRODUCTION
Petrofac Limited board René Médori Matthias Andrea Abt David Davies Sara Akbar George Chairman Bichsel Non-executive Non-executive Non-executive Pierson Director Director and Chairman Director Senior Independent Non-executive of Audit Committee Director Director and Chairman of the Compliance and Ethics Committee Francesca Di Ayman Asfari Alastair Carlo Executive Director Cochran Group Chief Executive Non-executive Executive Director Director Chief Financial Officer 12 /
Senior leadership team George Salibi* John Pearson* Elie Lahoud* Roberto Matthew Chief Operating Chief Operating Group Managing Bertocco* Barton* Officer – Engineering Officer – Engineering Director, Engineering Chief Commercial General Counsel & Construction (E&C) & Production Services & Construction Officer (EPS) Des Thurlby* Patty Eid Ray Alison Manivannan Group Director of Global Head of Richardson Broughton Rajapathy Human Resources Petrofac Training Country Manager Secretary to the Board Managing Director Services – Oman EPS, East 13 / * ExCom Member
Oman trip key themes Comprehensive service offering, tailored to clients Leading presence and execution track record Highly differentiated on ICV and ESG Digitalisation driving best-in-class delivery 14 /
Petrofac in Oman 31 US$2.5bn Years of operations in In-country value the Sultanate generated 17 US$10bn Major projects completed Combined value of / ongoing since 1988 projects 1,000 / 10,000 30% Direct / indirect employees Omanisation 15 /
Oman key market in MENA region Algeria Iraq 4% 4% 5% 17% UAE 7% 10% Saudi Arabia Oman Kuwait 2% 13% 8% 18% 21% 27% / 16 % Group backlog at 30 June 2019 % Group revenue 2016 to 1H 2019
OMAN: PETROFAC’S DIFFERENTIATED APPROACH IN ACTION
George Salibi Chief Operating Officer – Engineering & Construction
Our strategy • Improve cost competitiveness • Drive digitalisation Best-in-class delivery • Increase local content • Invest in talent • Improve cash conversion Enhance • Divest non-core assets returns • Maintain strong balance sheet • Expand geographically Position for growth • Grow share of target markets 19 /
Oman illustrates our differentiated approach Leading presence and Comprehensive service offering, tailored to clients execution track record Highly differentiated Digitalisation driving on ICV and ESG best-in-class delivery 20 /
Comprehensive, tailored service offering Training & Design Build Support competence Operations & Training & Engineering services Lump-sum turn key Maintenance competence EPCm Asset management Well engineering Decommissioning 21 /
Good execution drives margin Committed to local delivery Bidding Engineering Procurement Construction Disciplined bidding In house control In house control Project management Access to Access to Value engineering local supply chain local labour market Subcontractor selection 22 /
Significant mutual benefits from ICV Benefits to Petrofac ICV Benefits client / country programme components to Petrofac Nationalisation of labour Local population Competitive position employed and upskilled enhanced Skills / technology transfer and exchange Industry supply chain Deeper relationships with developed clients and suppliers Investment in fixed assets Economic Quicker, more cost Development of local diversification effective project delivery supply chain 23 /
Digitalisation driving best-in-class delivery Delivery Optimised Smarter Connected E&C Engineering Procurement Construction Assured Ultra Predictable Enhanced Maximising World Class EPS Efficient Project Productivity Uptime Training Outcomes Delivery Delivery Corporate Infrastructure ERP Automation Support 24 /
MENA market outlook UAE Libya Iraq • ADNOC in ‘spending mode’ • Engineering Algeria • IOCs to boost E&P and PMC • Sustained focus on ICV • Increased gas export to increase reserves opportunities • Cost pressures remain • MOO developing gas targets • Focus on downstream and offshore • Targeting foreign investors & reducing flaring • Some opportunities • Focus on new downstream requiring financing investments Bahrain • Ongoing upstream work • Upcoming petchems investment Qatar • Potential opportunities related to LNG Saudi Arabia expansion • Saudi Aramco IPO planned Oman • Focus remains on ICV • Major petchem investments Kuwait adherence planned • 2020 production plans • Focus on gas production • PDO Framework Agreement • Plans for integrated petrochemical complexes • Extending gas monetisation • Investing in upstream program • Mature fields / new discoveries 25 /
Oman market outlook c.US$10bn E&C bidding opportunities over next 5 years 2019 2020 2021 2022 2023 26 /
Elie Lahoud Group Managing Director, Engineering & Construction
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