Transcription
Johnson Rice & CompanyEnergy Infrastructure ConferenceBill Utt – Chairman, President, and CEOKevin DeNicola – Senior Vice President and CFOOctober 7, 2008
Forward-Looking StatementsThis presentation contains “forward-looking statements.” All statements other than statements of historicalfact are, or may be deemed to be, forward-looking statements. Forward-looking statements includestatements about the benefits of the split-off, the discussions of KBR’s business strategies and KBR’sexpectations concerning future operations, profitability, liquidity and capital resources. You can generallyidentify forward-looking statements by terminology such as “anticipate,” “believe,” “continue,” “could,”“estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “objective,” “plan,” “potential,” “predict,” “projection,”“should” or other similar words. These statements relate to future events or future financial performance andinvolve known and unknown risks, uncertainties and other factors that may cause actual results, levels ofactivity, performance or achievements to differ materially from those in the future that are implied by theseforward-looking statements. Many of these factors cannot be controlled or predicted. These risks and otherfactors include those described under “Risk Factors” in KBR’s Annual Report on Form 10-K dated February26, 2008, final prospectus for its exchange offer dated March 27, 2007, Forms 10-Q, recent Current Reportson Forms 8-K, and other Securities and Exchange Commission filings . Those factors, among others, couldcause KBR’s actual results and performance to differ materially from the results and performance projectedin, or implied by, the forward-looking statements. As you read and consider this presentation, you shouldcarefully understand that the forward-looking statements are not guarantees of performance or results. KBRcautions you that assumptions, beliefs, expectations, intentions and projections about future events may andoften do vary materially from actual results. Therefore, KBR cannot assure you that actual results will notdiffer materially from those expressed or implied by forward-looking statements.The forward-looking statements included in this presentation are made only as of the date of this document.New risks and uncertainties arise from time to time, and KBR cannot predict those events or their impact.KBR assumes no obligation to update any forward-looking statements after the date of this presentation as aresult of new information, future events or developments, except as required by the federal securities laws.
Upstream Business Unit¾LNG Market Outlook¾ 150 vs. 90 per barrel – What’s the difference?¾Customer long-term focus¾Still above price decks¾Underlying economics remain strong¾Need reduced uncertainty in material commodity markets¾Strong LNG Prospects¾NLNG Train 7¾Gorgon LNG¾FEED Work1
Upstream Business Unit¾KBR’s Current LNG Portfolio¾Skikda LNG¾Tangguh LNG¾Yemen LNG¾Well Positioned for Growth in Offshore¾Growth opportunities¾Recent announcements¾BP Offshore Developments¾Pazflor FPSO Topsides¾Pluto Offshore Platform¾North Rankin B Platform2
Government & Infrastructure Business Unit¾LogCAP III & IV¾Current LogCAP III status¾LogCAP IV transition¾Timing / Impact¾Revenue and margin expectations¾Skopje Embassy Project¾Historical perspective¾Developments during Q208¾Completion expectations¾Other Growth Opportunities3
Services Business Unit¾BE&K Acquisition¾Strategic Overview¾Integration progression¾BE&K Financials (Fiscal Year Ended March 2008)¾Revenue 1.9 billion; Gross Profit 180 million;¾Net Income after tax from continuing operations 35 million;¾Backlog at June 30, 2008 2.01 billion¾BE&K Awards Since Acquisition Closing¾ADA-ES, Inc - Activated Carbon Plant¾Weyerhaeuser Company - Recovery Boiler Rebuild¾EFACEC Power Transformers - Power Transformer Manufacturing Facility4
Wabi Development Corporation Acquisitionf Fabrication, construction and maintenanceservices ContractorMINING PROJECTSDiavik , NWTf Oil sands, mining and forestry market sectorsf Revenue: C 124 millionALBERTA OILSANDS PROJECTSFort McMurray, Albertaf Headcount 350f Secures alternative (CLAC) labor supply chainf Access to oil sands mining and extractionprojectsf Platform for growth and diversification acrossCanadian marketsFABRICATION FACILITIESHarley , OntarioWESTERN CANADA OFFICESEdmonton , AlbertaEASTERN CANADA OFFICESSudbury, OntarioMINING SUPPORT &FABRICATION FACILITIESHaileybury , Ontario5
Downstream, Technology, and Ventures Business Units¾Downstream¾Ras Tanura integrated project¾Yanbu export refinery project¾Technology¾Leverage intellectual property¾Increase pull through opportunities¾Ventures¾Expect positive earnings contribution in 2009¾No further Alice Springs/Darwin railroad project losses¾EBIC ammonia project construction near completion6
Balance Sheet Overview¾Cash Position¾¾“Excess” cash as of June 30, 2008Returning Cash to Shareholders¾Share repurchase program¾Quarterly dividend¾Balance Sheet Strength for Growth¾Strong cash position¾Debt free¾Bonding capacity capabilities7
2008 Outlook¾LogCAP III work to essentially continue at present levels for remainderof 2008¾BE&K impact to be reported in KBR’s third quarter of 2008 results¾ASCO litigation update¾Continued confidence that businesses will continue to perform asstrongly as first half of 20088
Energy Infrastructure Conference October 7, 2008 Bill Utt - Chairman, President, and CEO Kevin DeNicola - Senior Vice President and CFO. Forward-Looking Statements This presentation contains "forward-looking statements." All statements other than statements of historical . Johnson Rice Presentation_Draft #2.ppt Author:
