Ocean Yield ASA — Pareto Securities' Oil and Offshore Conference 2016
32 slides from Ocean Yield ASA's conference presentation, September 2016
Slide 1: Pareto Securities' Oil and Offshore Conference
Pareto Securities’ Oil and Offshore Conference September 2016
Slide 2: The dividend yield company
The dividend yield company Fleet Diversified fleet of 33 vessels, inc. 14 newbuildings1 Employment Long term charters, avg. tenor of 11.2 years Growth Delivery of 14 newbuildings during H2’16 and H1’17 Investments Target of USD 350 million p.a. Dividend yield2 9.2% p.a., Q2’16 pay-out ratio of 74% R
Slide 3: Leasing has become a relatively more competitive source of shipping financing
Leasing has become a relatively more competitive source of shipping financing Equity Shipping Bank Bonds financing Leasing September 16 Investor Presentation 3
Slide 4: Strong value proposition for our clients
Strong value proposition for our clients Up to 100% leverage Up to 15 years tenor Flexible Floating or leasing fixed interest product at a rate competitive cost of capital Purchase options On- or off- balance sheet September 16 Investor Presentation 4
Slide 5: Access to capital markets
Access to capital markets Equity issue on 31st August 2016 – Amount: NOK 862 million – Issue price: NOK 64 /share – Purpose: New investments Bond issue on 12th September 2016 – Amount: NOK 750 million – Maturity: September 2021 – Interest rate: NIBOR + 450 bps – Purpose: Reduce Aker ASA loan facilit
Slide 6: Delivery of newbuildings will give increased earnings already from Q3
Delivery of newbuildings will give increased earnings already from Q3 Delivery schedule (# vessels) 7 7 6 2 Chemical 5 1 Product 4 4 Car carriers 3 3 1 3 Container 3 1 3 1 Aker Wayfarer1 2 2 2 Gas 1 1 2 1 1 1 1 0 Q1’16 Q2’16 Q3’16 Q4’16 H1’17 1) Including redelivery of Aker Wayfarer after major modi
Slide 7: Newbuilding program fully funded
Newbuilding program fully funded Contractual obligations and financing as per Q2 2016 (USD million) 449 441 Oil Services Gas carriers USD 8m to be paid in cash vs. Container vessels Q2 cash of USD 111m plus USD 104m equity issue Other shipping Remaining Secured payments financing September 16 Invest
Slide 8: Adjusted EBITDA and net profit
Adjusted EBITDA and net profit EBITDA adjusted1 for finance lease effects (USD million) 69.3 63.6 58.4 59.6 59.8 55.6 57.3 55.4 54.2 55.1 52.7 53.2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2013 2014 2015 2016 Adjusted2 net profit (USD million) 31.6 29.0 27.1 26.9 27.1 27.9 27.6 25.6 26.3 26.2 24.9 21.5 Q
Slide 9: Growth in cash dividends for 11 consecutive quarters
Growth in cash dividends for 11 consecutive quarters Adjusted earnings per share (USD cents)2 Dividend yield 23.21 19.60 19.54 20.16 19.72 19.86 20.50 20.25 21.28 9.2%1 p.a. 18.62 19.10 16.07 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Pay-out ratio on 2013 2014 2015 2016 adjusted Q2 EPS Dividend per share
Slide 10: 49.5% interest in six mega container vessels with 15 years charter
49.5% interest in six mega container vessels with 15 years charter Type Mega container vessels Vessel capacity 19,500 TEU Delivery Jul’16 until Feb’17 JV Partner Quantum Pacific Shipping Charterer Major European container line Equity investment USD 162 million Illustration photo September 16 Investo
Slide 11: EBITDA backlog of USD 3.3bn with avg. tenor of 11.2 years
EBITDA backlog of USD 3.3bn with avg. tenor of 11.2 years Q2 EBITDA1 backlog by client Major European container line 23 % 11 % 7% 4% 8% 5% 8% 12 % 12 % 10 % 1) EBITDA backlog based on management’s estimates on DB-1, certain options not being exercised, LIBOR forward curve, USDNOK and adj. for financ
Slide 12: Summary
Summary Increased earnings from delivery of newbuildings already from Q3 2016 Ambition to build a substantially larger company Well positioned to continue to pay attractive and increasing dividends September 16 Investor Presentation 12
Slide 13: Q&A
Q&A September 16 Investor Presentation 13
Slide 14: Fleet overview
Fleet overview Chemical tankers 6 2 Major European Container vessels1 2 4 container line Car carriers 6 Product tankers 4 Gas carriers 3 Subsea construction2 3 Offshore supply 2 # Delivered FPSO 1 # Newbuildings 1) 49.5% ownership in six container vessels, and 2) 75.0% ownership in SBM Installer Sep
Slide 15: Remaining charter tenor by client
Remaining charter tenor by client Average 11.2 Major European Container vessels 15.0 container line Chemical tankers 14.5 Product tankers 12.8 Car carriers 10.2 Gas carriers 10.0 Subsea construction 9.6 Offshore supply 8.8 FPSO 2.2 # Years remaining September 16 Investor Presentation 15
Slide 16: P&L
P&L Income statement Comments Q1 Q2 Q2 FY Amounts in USD million 2016 2016 2015 2015 Revenues Operating revenues 58.8 60.8 58.1 233.1 Increased revenue from delivery Finance lease revenue 7.3 9.3 5.1 23.6 of six vessel during H1 2016 Total revenues 66.1 70.1 63.2 256.7 Vessel operating expenses (4.8
Slide 17: Adjusted net profit after tax
Adjusted net profit after tax1 Adjustments Comments Q1 Q2 Amounts in USD million 2016 2016 Profit after tax 18.6 25.5 - Impairment charges and other items - - - Foreign exchange gains/losses 13.2 (2.8) Mainly related to bond and bank loans in NOK - Mark to market of derivatives (6.0) 4.8 USD/NOK
Slide 18: Balance sheet Q2 2016
Balance sheet Q2 2016 (Pre USD 104m equity issue) Balance sheet Q1 Q2 Q1 Q2 USD million 2016 2016 2016 2016 ASSETS EQUITY AND LIABILITIES Vessels and equipment 1 293.1 1 338.5 Total equity to equity holders of the parent 696.7 699.6 Intangible assets 9.8 9.8 Non-controlling interests 11.5 9.51 Defer
Slide 19: Risk management
Risk management % Counter- Residual Operations Interest Financing party value Only DB-1 cost September 16 Investor Presentation 19
Slide 20: 4 x LR2 product tankers with 13 years charter
Navig8 Product Tankers Inc. 4 x LR2 product tankers with 13 years charter LR2 product tankers Navig8 Product Tankers Inc. Vessel(s) 4 x 110,000 dwt • Established in 2013 by Navig8 Group • Book equity of USD 447 million Yard Sungdong Shipbuilding, Korea • Listed on Norwegian OTC (“EIGHT”) Built 2016
Slide 21: 8 x chemical tankers with 15 years charter
Navig8 Chemical Tankers Inc. 8 x chemical tankers with 15 years charter Chemical tankers, IMOII Navig8 Chemical Tankers Inc. Vessel(s) 4 x 37,000 dwt 4 x 49,000 dwt • Established in 2013 by Oaktree and Navig8 Group Yard Hyundai MIPO, Korea STX, Korea • Book equity of USD 439 million Built 2015 2016
Slide 22: 3 x liquefied ethylene carrier newbuildings
Hartmann 3 x liquefied ethylene carrier newbuildings Liquefied ethylene carriers Hartmann Group Vessel(s) 3 x newbuildings • Charterer is SPVs owned by the Hartmann Group Yard Sinopacific Offshore & Engineering, China • Activities include ship-owning, technical and Delivery Q4’16 to H1’17 commercial
Slide 23: 6 x car carriers on long term charter
Höegh Autoliners 6 x car carriers on long term charter Car carriers Höegh Autoliners Vessel(s) Beijing & Xiamen, 4900 CEU PCTCs, 2010 built • One of 5 leading global providers of car and Jacksonville & Jeddah, 6500 CEU PCTCs, 2014 built rolling cargo shipping and logistics Trapper & Tracer, 8500 CEU
Slide 24: SBM Installer
SBM Offshore SBM Installer Diving support & construction vessel SBM Offshore Vessel(s) SBM Installer • Charter guarantor is SBM Holding Inc. S.A. • Listed in Amsterdam with ticker “SBMO” Built / Yard 2013 / Keppel, Singapore • EBITDA H1’16 annualized of USD 650 million Ownership Ocean Yield: 75% SBM
Slide 25: Aker Wayfarer
Akastor Aker Wayfarer Deepwater subsea equipment support vessel Akastor ASA Vessel(s) Aker Wayfarer • Counterparty is AKOFS Offshore, with guarantee from Akastor ASA Built / Yard 2010 (Modification completed in 2016) • Implicit guarantee from Aker Solutions ASA Shipyard STX Europe (Søviknes), Norway
Slide 26: Far Senator & Far Statesman
Farstad Supply Far Senator & Far Statesman Anker handling tug supply vessel Farstad Vessel(s) Far Senator & Far Statesman • Farstad Shipping ASA operates a fleet of about 58 various offshore vessels and is the Contract 12 years “Hell & high” bareboat until 2025 bond issuing entity Counterparty Farst
Slide 27: Lewek Connector
Ezra Holdings Lewek Connector Ultra deepwater multipurpose flex-lay construction vessel Ezra Holdings Vessel(s) Lewek Connector • Global offshore contractor and provider of offshore solutions Shipyard / Built STX Europe (Søviknes), Norway / 2011 1. Subsea services (EMAS Chiyoda Key features 2x subse
Slide 28: Dhirubhai-1
Reliance Industries Dhirubhai-1 Floating Production, Storage and Offloading (FPSO) unit Reliance Industries Vessel(s) Dhirubhai-1 • Reliance Ind. is a conglomerate within oil & gas, refining, textiles, retail & telecom with Charterer Reliance Industries Ltd. listing in London and Mumbai Shipyard / B
Slide 29: Bonds owned in AMSC
American Shipping Company Bonds owned in AMSC Bonds owned in AMSC American Shipping Company Nominal value USD 201 million • Listed on Oslo Stock Exchange with ticker AMSC NO Book value USD 193 million • US Jones Act product tanker company that Maturity February 2018 owns 10 modern US-built MR produc
Slide 30: Management and key employees
Management and key employees Lars Solbakken – Chief Executive Officer (1957) Eirik Eide – Chief Financial Officer (1970) • CEO Norwegian Car Carriers • CFO Ship Finance International • CEO Ship Finance International • Head of Corporate Finance, Orkla Finans • General Manager of Fortis Bank (Nederlan
Slide 31: September 16 Investor Presentation
September 16 Investor Presentation 31
Slide 32: September 16
=% OCEAN YIELD September 16 32
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