Petra Energy Berhad

Group information and updates

RHB Oil & Gas Corporate Day Presentation | 5 March 2014
Presentation Overview
Business Overview Business Overview
Business Updates Business Updates
Corporate Updates Corporate Updates
Financial Highlights
Vision Statement
& Core Values
Integrity Commitment Teamwork Professionalism
To Be an Oil & Gas Development Company
4
Corporate Updates
Petra Energy Berhad
Group information and updates
Corporate Structure - as at January 2014
Major Shareholders - as at 06 January 2014
Wasco Energy Ltd.
(26.90%)
Mohamed Nizam
Abdul Razak
(9.09%)
Shorefield Resources
Sdn Bhd (27.47%)
Lembaga Tabung Haji
(8.62%)
Remaining Public
Spread
(27.92%)
PETRA ENERGY BHD
(718388-H)
Shareholding & Corporate Structure
PE INDUSTRIAL
RESOURCES SB
(fka Petra Boilers S/B)
(452660-P)
PE MARINE LTD
(LL09503
PE CHALLENGER LTD
(LL10047)
PE SHIP
MANAGEMENT SB (841812-U)
PE MARINE ONE LTD
(LL06749)
BUMI SUBSEA SB
(863752-P)
PETRA
RESOURCES SB
(172962-D)
PETRA
FABRICATORS SB
(425817-H)
PE MARINE
CAPITAL SB
(1066572-A)
PETRA MARINE
SB
(812250-D)
PETRA SERVICES
SB
(813597-T)
PETRA ENERGY
DEVELOPMENT
SB
(806515-A)
PE VENTURES SB
(1050358-H)
JURUTERA
PERUNDING
AKAL SB
(400046-X)
100% 100% 100% 100% 100% 100% 70% 100%
100%
30%
51%
PE DEVELOPMENT
LTD
(LL09925)
COASTAL ENERGY
KBMSB (1011855-
W)
100%
100%
PE RESOURCES LTD
(LL10146)
100%
100%
100%
100%
Board of Directors
Dato Anthony Bujang
Executive Director & CEO
Ahmadi bin Yusoff
Executive Director & Director of
Strategic Planning & Corporate
Services
Abdul Rahim bin Abdul Hamid
Senior Independent & Non Executive
Director
Ahmad Azra bin Salleh
Independent & Non Executive
Director
Gian Carlo Maccagno
Non Independent & Non Executive
Director
Corporate Milestones
Petra Resources Sdn Bhd formed to undertake trading and supply activities
for PSCs /oil majors
1988
Formation of Petra Perdana Berhad (now Perdana Petroleum Berhad) 1995
Petra Resources Sdn Bhd was acquired by Petra Perdana Berhad Group.
Petra Perdana was also listed on the Malaysian Stock Exchange
2000
Petra Energy was incorporated (as Portfolio Hitech Sdn Bhd) 2005
Petra Energy Berhad was listed on the Main Market of the Malaysian Stock
Exchange (Bursa Malaysia Securities Berhad).
2007
Shorefield Resources Sdn Bhd acquired a total of 30% stake in Petra
Energy Berhad.
2009
Private placement to Mohamed Nizam Bin Abdul Razak, 9.09% 2011
Entry of new shareholder - Wasco Energy Ltd.
Wasco acquired Perdana Petroleums 26.9% stake in Petra Energy.
2012
Raised capital through Rights Issue to fund SFRSC Project for the Kapal,
Banang and Meranti fields
2013
The Groups business activities are strongly driven by a HSSE culture, that is
benchmarked against industry best practices.
PEB is nurturing HSSE as second nature in the conduct of its business.
Health Safety Security & Environment - Our Priority
1 million manhours without LTI Certificate - Petronas Carigali
2.5 million manhours without LTI Certificate from CAT 3 Contract - Shell
1,095 Goal Zero Days - provision of E & I Maintenance Services | Oct. 2009 - Sept.
2012 - Nippon Oil
1,825 Goal Zero Days - provision of maintenance services of Caterpillar equipment -
Sabah Shell & Sarawak Shell | October 2007 - October 2012
1,825 Goal Zero Days - provision of Mechanical & Rotary MTCE workshop & services -
Shell (SSB/SSPC) | Feb 2007 - Jan 2012
1,500 LTI Free Manhours provision of Offshore Services Contract (OSC) for Gumusut
Kakap Development | Nov 2012 Aug 2013
The Group was presented with a
Certificate of Appreciation for
implementation of the P&E
Strategy No. 8 by PCSB, which
demonstrates strengthened HSE
performance
Over the years the Group received many HSSE accolades and achievements from its key
clients namely, SHELL, Petronas Carigali and ExxonMobil, amongst others.
Health Safety Security & Environment - Our Priority
10
Petra Energy Berhad
Group information and updates
Business Overview
Business Overview
INTEGRATED BROWNFIELD MAINTENANCE & ENGINEERING
Top-side Major Mainenance/Hook-up Construction &
Commissioning
Project Management, Procurement & Logistics
Engineering, Operations & Maintenance
Oil Field Optimisation
Equipment, Packaging & Manufacturing
DEVELOPMENT & PRODUCTION (SMALL FIELD RSC)
Dev. & Prod. of petroleum from Kapal, Banang & Meranti small
fields offshore Terengganu
MARINE OFFSHORE SUPPORT
3 workboats, 4 workbarges & 1 AHTS
DESIGN, FABRICATION, SUPPLY & INSTALLATION
Design & Fabrication of process and heat transfer equipment
Engineering design & project management
ENGINEERING & PROJECT MANAGEMENT SERVICES
NEW BUSINESS
Brownfield development
Subsea services & Underwater IMR
Business Updates
Petra Energy Berhad
Group information and updates
5 year Contract - part of the Pan Malaysia
Cluster of jobs.
Major milestone - biggest contract to-date.
Scope of Work : HuC & Topside Maintenance
for PCSBs facilities offshore Sabah &
Sarawak Waters. Project has been mobilized
last quarter of Year 2013 and currently in
operations.
HuC Contract
Pan Malaysia HuC
(SKO & SBO Waters)
Integrated Brownfield Maintenance & Engineering
Tapis R - HUC Project (sub-contractor to
MMHE) ExxonMobil project.
Scope of Work - Hook-up &
Commissioning.
Scope of work - HUC - 16000 ton platform
(fabricated onshore) complete module
Offshore Implementation - ~March 2014
HuC Contract
for ExxonMobils
Tapis R
First Deepwater Project - Provision of
Offshore Services Contract for the Gumusut-
Kakap Development Project by Shell.
Awarded - 25 October 2012
Scope of Work : HuCC, E&I, Piping etc.
Contract duration : 30 months.
FPS installed - July 2013
Offshore HuC in progress
Manpower strength offshore - 250
Manhours to date 784k as at Feb 2014
LTI Free days - 365
Gumusut Kakap
Deepwater
Project
Integrated Brownfield Maintenance & Engineering
Exploration of Marginal Field RSC Contract
Development & Production of Small Field, Kapal Banang
and Meranti fields offshore Terengganu through RSC
contract developed together with Coastal Energy and
operating as Coastal Energy KBM Sdn Bhd (30% equity
stake owned by PEB Group).
Development & Production
The RSC development project is underway & on-
going as scheduled and within budget.
CAPEX for the RSC Project - USD300 million
An eight year development project with the Kapal
field being in its first phase of production
First oil achieved 16 December 2013 Kapal
field
Initial production rates at 10,000 bopd with peak
production at 13,000 bopd
Plan by Petronas to continue determining
potential production from the KBM cluster
PEB participate in major onshore engineering and maintenance services for the
O&G industry. Major contracts undertaken by Kemaman (Terengganu) and
Piasau (Miri) being the main operational hub for these services.
Engineering Operations & Maintenance provide a full range of repairs, overhaul
& maintenance services includes the following;
Gas & diesel engine overhaul
Mechanical equipment refurbishment
Electrical & instrument maintenance
& calibration
Plant engineering & shutdown, site
decommissioning, assembly & disassembly
& start-up
Packaging and hydrostatic testing
Crane operations and maintenance
Compressor servicing
Engineering Operations & Maintenance
Petra Fabricators, a subsidiary of PEB
specializes in the design and
manufacture of heat transfer equipment,
pressure vessels, process skid packages
and storage tanks, amongst others.
Today, Petra Energys process
equipment unit caters to international
markets in Angola, Australia, Brazil,
Brunei Darussalam, India, Myanmar,
New Zealand, Nigeria, Qatar, Saudi
Arabia, Syria, Thailand, UK, UAE etc. for
various clients
Design & Fabrication of Process Equipment
PEBs through its trading arm unit offers
packages, supplies and commissions
equipment used extensively in the oil and
gas, petrochemical, refining and other
related industries
Types of Engineered Equipment :
Equipment Packaging & Manufacturing
Centrifugal and Vertical Pump Packages
Air Compressor Skids
Reciprocating Pump Packages
Rotary Screw Air Compressors
Horizontal Centrifugal Pump Packages
Vertical Firewater Pumps
Gas & Diesel Power Generators
Vertical Service Water Pumps
Water Makers
Chemical Injection Pumps
Control Systems (Electrical & Pneumatic)
Other services for packaged equipment
Subsea & Underwater Services
A new business segment completed through
acquisition and active in pursuing opportunities
within subsea & underwater services.
Currently this business segment has been
participating in major ITBs includes;
Being the top 3 contender for a 5-years
campaign by Sarawak Shell Underwater
Inspection and Maintenance Services.
Participate in selected ITBs for Well Integrity
and Subsea services of Brunei waters.
Participate in selected ITBs for various
Subsea services within Petronas fields.
The Groups TMM/HuCC operations are
supported by our offshore marine spread,
comprising four (4) accommodation &
work barges and three (3) workboats and
one (1) AHTS vessel.
One (1) additional workboat, slated for
long term charter, is currently being built
Support vessels are chartered on
contractual basis to provide additional
requirements.
Future investment in modernising the fleet
Offshore Marine Support
Offshore Marine Support
KasMarine 1
AHTS DP1/FIFI-1
5150BHP / 60MT Bollard Pull
Year 2008
Petra Challenger
300 men accommodation and
work barge
Crane capacity 124 MT
Year 2004
Petra Lyra
(formerly known as Otto 3)
300 men accommodation and
work barge
Crane capacity 68 MT
Year 2009
Petra Endeavour
300 men accommodation
and work barge
Crane capacity 68 MT
Year 2007
Anis
199 men workboat
Crane capacity 45 MT
Year 2013
Petra Discovery
300 men accommodation
and work barge
Crane capacity 50 MT
Year 2005
Petra Orbit
189 men workboat
Crane capacity 23 MT
Year 2008
Petra Galaxy
189 men workboat
Crane capacity 23 MT
Year 2008
Petra Workshop, Miri (Piasau)
~554 sqm of covered work area. established in 1988. Undertakes
crane operations & maintenance, E&I and mechanical/rotating
equipment for clients such as Shell, Carigali, Nippon, Murphy and
Talisman
Petra Fabrication Yard, Labuan
~3,218 sqm of covered work area
capacity : steel work average production 40-50 metric tonnes.
Piping - 2000 dia / month. Undertakes fabrication work to
support the Groups Shell TMMHuCC and PCSBs HuCC contract
Fabrication Facility, Shah Alam
~5,669 sqm of covered work area
capacity : on average 400 metric tonne per workshop / month in
operations since 1997
Petra Workshop - Kemaman
~1021 sqm of covered work area,
set-up in 1997, undertakes service and repair of rotating equipment
(valve, engine), for ExxonMobil, PCSB and Petronas Gas
Minor Fabrication Yards & Workshops
Our long term goal is to create a high performing, ethical and commercially-
driven culture within Petra Energy Berhad
Human Capital Our People
More than 50% of the Technical &
Non-Technical personnel have
been directly assigned to ongoing
projects.
Offshore personnel are all actively
participating in the current ongoing
projects.
Offshore Personnel (sub-con, daily crew)
2136
Onshore Technical & Non-Technical
700
Our Focus : To strategically develop & deploy talents group wide Our Focus : To strategically develop & deploy talents group wide
Talent
Pool
Talent
Assessment
Leadership
Talent Training &
Development
Program
Talent Mobility,
Career &
Succession
Planning
Phase 1:
Know it
Phase 2: Develop &
Utilize it
Phase 3: Sustain &
Stretch it
Identification of
potential
candidates
Talent Management Activities
Leadership
Competencies Model
Leadership
Assessment &
Evaluation
360 Assessment
Executive Role Profiling
Group Interaction
Management Profiling
Leadership Learning
Development
Executive Coaching
Mentoring for 360
External Executive
Learning Experience
Internal Executive Forum
Action Learning
Programme
Executive
Reviews
Stretch
Assignments
Placements
Top Management
Senior Management /
Middle Management
First Line Management
THREE TRACKS
Debrief of Talent Management Framework / Process
Human Capital Talent Development
25
Financial Highlights
Petra Energy Berhad
Group information and updates
92.4
126.0
115.0
159.4
492.8
131.3
172.6
159.8
190.4
654.1
Q1 Q2 Q3 Q4 FYE
2013
2012
74%
78%
75%
81%
45%
53%
97% 91% 97% 97% 100% 92% 98%
0%
0%
20%
40%
60%
80%
100%
Petra
Challenger
Petra Discovery Petra
Endeavour
OTTO 3 Petra Orbit Petra Galaxy Anis
Financial Highlights: FYE 31 December 2013 unaudited
RM 'million
Revenue By Segment
430.2,
87%
550.4,
84%
34.8, 7%
37.0, 6%
27.7, 6%
6.7,10%
FY2013 (Unaudited) FY2012 (Audited)
Marine Offshore Support Services Segment
Design, Fabrication, Supply and Installation Services
Integrated Brownfield Maintenance Services (IBF)
2013 2012
Revenue
Revenue trends:
The 24% reduction in revenue is in tandem with vessel
utilisation rate due to closure of Shell TMMHuCC contract
Q413 increase was largely contributed by PCSB Pan
Malaysia & Shell Gumusut-Kakap projects.
RM 'million,
Revenue % composition
Annual Vessel Utilisation Rate
Average Utilisation: 72% (FY2012: 96%)
Financial Highlights: FYE 31 December 2013 unaudited
IBF- FY2013 Revenue By project
53%,
2012: 62%
20%
11%,
2012: 30%
7%
1%
8%,
2012: 8%
Shell TMMHuCC
PCSB Pan Malaysia
PCSB Umbrella
Contract
Shell Gumusut-
Kakap
Major factors affecting EBITDA:
Lower revenue by 24% in FYE 2013 compensated by 10% reduction in overall OPEX in 2013 vs. 2012.
Recovery from Kumang project upon contract closure of RM13.2 mil in Q113.
Despite higher revenue for Q413, EBITDA was lower due to:
Shell TMMHuCC: Reduction in final approved claims previously recognized & settlement of disputes with
vendor.
PCSB Umbrella: Deficit margin due to further costs subsequent to full revenue recognised in prior period.
Gumusut-Kakap: Higher manpower supply during the quarter, which provides lower margin compared to
offshore services, that were claimed in the previous period.
Key project margin commentaries:
Shell TMMHuCC margins were low due to unfavourable unit rates and amplified in 2013 by inflationary effect
upon closure of the long-term contract.
PCSB Umbrella contract comprised of 75% cost plus works which generate low margins especially marine spread
which was provided by 3
rd
parties.
EBITDA by
Segment RMmil
IBF
Onshore Civil
Eng. Serv.
Marine
Offshore
Supp. Serv.
Design, Fab.,
Supp. & Inst.
Serv.
Inv.
Holding
Group Adj. Total
2013 33.8 13.2 8.4 (2.3) 4.5 (17.2) 40.5
2012 68.4 7.9 1.4 (4.9) 7.5 (24.5) 55.9
EBITDA
13.6 13.8
8.0
5.1
40.5
19.6
23.5
13.2
-0.4
55.9
Q1 Q2 Q3 Q4 FYE
2013
2012
RM 'million
2.2
14.7
-4.1 -1.1
11.7
7.2
9.1
5.1
-13.9
7.5
Q1 Q2 Q3 Q4 FYE
2013
2012
RM 'million
Financial Highlights: FYE 31 December 2013 unaudited
0.42
RM1.49
3.65 sen
RM1.62
0.56
3.48 sen
EPS
NA/SHARE
DEBT/EQUITY
31 Dec 2013 31 Dec 2012
PATAMI movements are largely impacted
from:
Negative goodwill of RM12.8 mil. arising from
acquisition of KAS Ship Group in Q213.
Impairment loss on a vessel of RM8.9 mil to
write down to its recoverable amount in Q413.
Reversal of Deferred Tax Liability of RM10.5
mil in Q413.
Major factors affecting the ratios:
Enlargement of share capital arising from
rights issue in Q213.
Refinancing of two vessels to retire debts of
less favourable terms.
Working capital has improved due to:
Completion of the acquisition of Otto 3 in
Q413 leading to the conversion of finance
lease to normal term loan.
Substantial settlement of trade & other
payables.
RM000 2013 2012
Current Assets 441,406 370,944
Current Liabilities 277,870 404,388
Net current assets / (liabilities) 163,536 (33,444)
PATAMI
0.18 0.26
NET DEBT/EQUITY
Working Capital
Key Financial Position Ratios
Determining Factors for 2014
Improve utilisation of vessels with revised & more favourable daily charter rates.
Revenue Mix
Anis
Alia
Petra Challenger
Petra Galaxy
Petra Orbit
Petra Lyra (fka Otto 3)
Petra Discovery
KAS Marine-1
Mobilised in Nov
2013
Ready by Q3 2014
Target Average Future Utilisation:
More than 80% (Actual FY2013: 72%)
62%
16%
5%
5%
4%
2%
6%
PCSB Pan
Malaysia
Subsea
Shell Gumusut-
Kakap
Fabrication
Contracts
Marine Offshore
Support Contract
MMHE Tapis
Others- Trading &
Consultancy
Revenue Outlook:
Pan Malaysia contract comprises of 75% to
80% works based on lump sum & unit rates
with balance being on cost plus/reimbursable
basis. The Group is utilising its marine assets
to deliver this project.
The remaining marine assets will be leased on
long-term charters. Options open for disposal.
Bumi Subsea, a newly acquired subsidiary, as
a vehicle to secure underwater IMR services
contracts.
Shell Gumusut-Kakap contract is expected to
complete by Q2 2014.
Petra Endeavour
Earmarked for Pan Malaysia
Potential for Pan Malaysia/
3
rd
Party Charter
THANK YOU
www.petraenergy.com.my
Petra Energy... moving towards an era of oil & gas
development and production
Petra Energy... moving towards an era of oil & gas
development and production