Chicago Bridge & Iron Company (CBI) Credit Suisse Engineering & Construction Conference June 7, 2012, 9:50 a.m. ET Executives Philip Asherman - President and CEO Ronald Ballschmiede - EVP and CFO Christi Thoms - IR Analysts Jamie Cook - Credit Suisse Presentation Jamie Cook - Credit Suisse
We have 21,000 employees worldwide. We offer a full scope of services from conceptual design and technology licensing through engineering, procurement fabrication and construction to final commissioning and beyond.Chicago Bridge & Iron has been in existence for nearly 125 years. I know probably the previous presenter liked to talk about his 100 year anniversary, I am sure you heard that. But we’re nearly 125 years young, and as importantly, we have been a multi-national company for most of that time, and it’s been a real competitive advantage for us and our customers to be able to demonstrate actual experience in virtually every region in most countries throughout the world, and primarily through our legacy businesses or in the resumes we’ve acquired with Lummus Engineering and Lummus Technology. This is a picture of what we call our dream harbor. We think it exists somewhere in probably Texas and Louisiana but it certainly is just an illustration of the type of work in an energy infrastructure we do. Certainly that includes upstream where we serve the oil and gas industries and certainly in the 20 th century, when we began building storage tanks for then a somewhat young oil business. Today, we offer a comprehensive range of technology and EPC services for the upstream oil and gas sector with primarily focused on offshore oil and gas production systems, platform topsides and floating production, storage and offloading facility FPSOs, onshore oil and gas field production, onshore pipelines natural gas processing, LNG liquefaction plants and regasification terminals as well as bulk liquid storage structures. Also downstream, some of the best known names of the industry have worked with CB&I to design and build downstream oil and gas processing facilities, and for Lummus technologies to provide cost effective license technologies and catalysts. Of course, we focus on refinery process units, petrochemical facilities, gasification plants, hydrogen generation plants, sulfur processing plants and bulk storage facilities. And then certainly on LNG where we have a very strong position, we serve the liquefied natural gas industry for more than 50 years, and we’ve designed and built nearly every type of LNG project operating on a global basis. We offer a comprehensive range of technology and engineering, procurement fabrication and construction services for the LNG industry around the world.
And to a lesser degree but certainly quite important to us is our experience in the power industry where we have a history of – in the original construction wave of power plants. Many years ago, we participated in 78 of the 104 original reactors built in the United States and our actual today, in a number of areas, including plant Vogtle and plant Summer where we are constructing the containment vessels for those projects.This is a new graph we’ve added to our deck to give you an illustration of our backlog and where it’s concentrated in our primary end markets. This certainly changes as new awards are awarded during the year but it generally breaks down the distribution pretty well and given the relativity of project size in each segment, that overall distribution percentage shouldn’t change much as we’re growing organically. And the bubble chart to the right illustrates how we see our position relative to global competitors. Again as the market grows in activity, I think some of these charts will show a much more fragmented competitive landscape particularly in the petrochemical and gas processing industries. But today with the exception of offshore and power where there is clearly a lot of headroom for our company, we enjoy a pretty strong position in the markets that we serve. This is our analysis of what we’ve identified as addressable opportunities in our key end markets. The circles indicate the business sector which has a predominant business opportunity for us. For example, LNG while it’s presenting significant tank storage opportunities, the majority of our backlog and share of the anticipated CapEx will be captured in our engineering construction sector. But it also illustrates the absence of new awards for project, there are still legitimate opportunities for the other two business sectors. So we have a lot of ways to access individual markets. Read the rest of this transcript for free on seekingalpha.com