Investment Case

We’re delivering a clear and focused strategy

Focus on our core:

  • Focus on differentiated EPC and asset support services
  • Drive operational excellence to maintain strong competitive position

Deliver organic growth:

  • Expand into adjacent markets
  • Grow downstream capability

Reduce capital intensity:

  • Focus on enhancing returns
  • Strong capital management

Operational excellence is maintaining our strong competitive position

We continue to drive down project support costs and overheads, protecting our differentiated margins. In 2017, we reduced project support costs by 16%.

We’re continuing to reduce capital intensity and enhance returns

In response to the challenging business environment, and our evolving business strategy, we’re focused on reducing capital intensity.

In 2017, we:

  • Reduced capital expenditure by 44% to US$170 million
  • Reduced net debt to US$612 million, reflecting strong working capital management
  • Made good progress on our strategy to divest non-core assets, concluding the sale of our interest in the Pánuco field in Mexico, and migrating Santuario into a Production Sharing Contract

In 2018, we signed agreements to sell:

  • The JSD6000 installation vessel
  • Our interests in the Chergui gas concession and Greater Stella Area development
  • A 49% interest in our Mexican operations

These transactions will increase our focus on our core and strengthen our balance sheet.

We are well positioned for growth

  • We have secured US$3.3 billion of new orders in the year to date [August 2018], with awards in both established and adjacent markets
  • We are well placed on several bids due for award before the end of 2018, have a healthy bidding pipeline and a strong competitive position

Download our 2018 Half Year Results presentation to find out more about our investment proposition.

Market outlook

Long-term market fundamentals remain robust

Key performance indicators (KPIs)

We monitor and assess our performance by using stretching targets that help us deliver value