Aveva 3D adopted by Statoil: Schneider and Aveva stop merger/acquisition talks.

The news that Statoil has signed a multi-year agreement with Aveva to use Aveva 3D as its strategic 3D design software platform, as an upgrade to its existing Aveva PDMS design system, reminds us that there has been an on-going discussion about a deal between Schneider Software, through many of its acquired Invensys businesses, and Aveva. This possible deal was announced last June, and featured in the INSIDER Newsletter in July last year. It involves the bringing together of these software businesses into an enlarged Aveva Group, which would be effectively majority owned by Schneider.

Seamless integration of Laser scan data in the AVEVA Everything3D BubbleView

Seamless integration of Laser scan data in the AVEVA Everything3D BubbleView

Statoil is currently quoted to be using Aveva software on 52 Brownfield and 7 Greenfield models, plus the new Johan Sverdrup field development project that today consists of 7 models. Older plants such as the Snøhvit LNG Plant in the Barents Sea, the refineries at Mongstad in Norway and Kalundborg in Denmark, and the gas treatment facility at Kårstø have been converted to Aveva PDMS. So the opportunity for deeper involvement by a partner of Aveva, like Schneider, in all these major refurbishments and new projects, gives a wide opening for an expanded role in the design and automation of these projects.

This was reflected in the statement that Statoil’s new strategy (to standardise on Aveva E3D) offers the potential for significant project efficiencies in the design, operation and revamp of all Statoil facilities in the future. Executive Vice President for Sales in AVEVA, Helmut Schuller, said that “Statoil has selected Aveva E3D as its 3D solution of choice for both its greenfield and brownfield complex plant design projects”, and that Aveva 3D offers “[A] multitude of benefits without the normal risks associated with new projects and long-term operations”.

Aveva 3D offers simple migration from Aveva PDMS, and Statoil has been a strategic user of Aveva PDMS and Aveva Global for more than 15 years. They acknowledge the value this software has brought when executing field development, maintenance and modification projects as well as during the operation and revamp of its portfolio of facilities.

Those acquisition discussions – November

In November 2015, Aveva provided an update on the Schneider Software acquisition discussions, that were undergoing due diligence studies.

The combined company was seen by Aveva in their November update as potentially one of the world’s leading industrial software companies, with an unmatched breadth of product offering covering all aspects of the digital asset including process simulation and optimization, detailed engineering design, operations and asset lifecycle management and supervisory control. One key benefit for Aveva would be a better, bigger presence in North America, and a significant presence amongst owner operator customers. They then went on to report on the Schneider Software H1 figures for 2015, which was decent of them, if not a little surprising! This perhaps reflected an Aveva belief that they were the acquiring party, picking up some Invensys businesses that Schneider did not want any more?

The quoted Schneider results showed a 7% drop in sales, driven by a -7% FX translation effect. Maintenance revenue increased by a high single digit figure, YOY. EBITA was in line with the previous year on a constant currency basis.

The conclusion – in December

Then a statement came on December 15 that the Schneider – Aveva talks had been unable to reach any agreement on the terms of the transaction. The Aveva statement suggested that “During the due diligence process significant integration challenges were identified that could not be overcome without considerable additional risk and cost. This was exacerbated by the highly complex structure of the proposed transaction.”

Meanwhile the Aveva interim/half year results showed a drop of 5% in revenue compared to 2014, and a drop of 50% in the profit and earnings after adjustments to the basic figures, to account for some amortisation and exceptional items. Without the adjustments, Aveva showed a small loss.

The Aveva Board confirms that Aveva trading has continued in line with the Board’s expectations and the Board’s view on the outlook for the full year remains unchanged. The future strategy and expansion plans might need a little change however….

Last July, the rumours had been that Emerson, GE and Siemens were all measuring Aveva up for a bid, so the business is back in the melting pot: although Schneider obviously has significantly more information than the rest.

@Processingtalk

(c) Nick Denbow  – Processingtalk.info

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: