Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Rickmers Maritime — H1 2009 Earnings Presentation
24 slides from Singapore Exchange's earnings presentation, Aug 14, 2009
Slide 1: Rickmers Maritime 2Q2009/1H2009 Financial Results
Rickmers Maritime 2Q2009/1H2009 Financial Results 14 August 2009 1
Slide 2: Disclaimer
Disclaimer • This presentation should be read in conjunction with Rickmers Maritime’s Results for the period ended 30 June 2009 in the SGXNet announcement. • This presentation may contain forward-looking statements that involve risks and uncertainties. Such forward-looking statements and financial i
Slide 3: Agenda
1 Financial Highlights 2 Financial Performance 3 Business Review 4 Outlook 5 Q&A 3
Slide 4: Financial Highlights
Financial Highlights Financial Highlights 2ND QUARTER 1ST HALF in US$ million 1 April - 30 June 1 January - 30 June (except as otherwise stated) 2009 2008 % Change 2009 2008 % Change Charter Revenue 37.55 23.68 59% 70.09 46.01 52% Cash Flow from Operating Activities 28.67 18.33 56% 55.85 35.26 58% N
Slide 5: Distribution
Distribution • Based on DPU of 0.6 US cents, total distribution for 2Q2009 will amount to US$2.54 million. • The Sponsor, Rickmers Group will defer receiving its share of 2Q2009 distribution to further support the Trust in its cash conservation efforts • Cash retention has been an integral part of o
Slide 6: Financial Performance
1 Financial Highlights 2 Financial Performance 3 Business Review 4 Outlook 5 Q&A 6
Slide 7: Financial Performance
Financial Performance Cash Flow Highlights Major Balance Sheet Items As at 30 June 2009 Group 2Q2009 1H2009 US$'000 1 April - 30 June 1 January - 30 June US$'000 US$'000 Total assets 1,253,461 Total non-current assets 1,168,575 Cash flow from: Total current assets 84,886 Operating activities 28,672
Slide 8: Financial Performance
Financial Performance Revenue US$'00 0 40,000 • Strong revenue growth: 35,000 Revenue growth Quarterly revenue has 30,000 of 412% since IPO 25,000 grown 412% since 20,000 IPO from US$7.33 15,000 million in 2Q2007 to 10,000 US$37.55 million in 5,000 2Q2009 0 2Q2007 3Q2007 4Q2007 1Q2008 2Q2008 3Q2008
Slide 9: Distribution
Distribution Distribution Payout US$"000 Income Available for Distribtuion Distribution 20,000 15,000 10,000 91% 81% 86% 74% 69% 68% 60% 46% 13% 5,000 0 2Q2007 3Q2007 4Q2007 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 • Distribution of 0.6 US cents to be paid to Unitholders on 16 September 2009 • Spon
Slide 10: Gearing
Gearing US$’000 Total Unitholders' Funds+Debt Debt Gearing [Debt/(Total Unitholders' Funds+Debt)] 1,200,000 1,000,000 800,000 600,000 400,000 12% 37% 44% 48% 52% 60% 69% 68% 200,000 0 2Q2007 3Q2007 4Q2007 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 • Gearing declined marginally to 68% in 2Q2009 due to
Slide 11: Update on Credit Facilities
Update on Credit Facilities US$360m term • Loan maturing in 2017 loan secured at • Starts amortising in 2012 at US$6 million per quarter IPO • Interest rate of 70-90 basis points above US$ LIBOR Credit facilities • US$421.5 million* has been drawn down to finance 6 x up to 4,250 TEU vessels (5 chart
Slide 12: VTL Covenant
VTL Covenant • Due to continuing lack of sale and purchase transactions, values of large modern containerships remain principally unassessable • Should market emerge at a significantly lower level, the reduction in ship values could: Affect VTL ratios that are required to be maintained under existin
Slide 13: Business Review
1 Financial Highlights 2 Financial Performance 3 Business Review 4 Outlook 5 Q&A 13
Slide 14: Business Update
Business Update Vessel Deliveries Year-to-Date Vessel Capacity (TEU) Charter Details Charterer Delivery Date MOL Destiny 4,250 10-year fixed-rate charter Mitsui OSK Lines 6 January 2009 MOL Devotion 4,250 10-year fixed-rate charter Mitsui OSK Lines 25 March 2009 Hanjin Newport 4,250 7-year fixed-rat
Slide 15: Stable and Growing Charter Revenue
Stable and Growing Charter Revenue Breakdown of Revenue by Charterers 1H2008 – US$46.01 million 1H2009 – US$70.09 million Maersk – 9% Maersk – 6% Hanjin – 3% MOL – 1% Italia Marittima – 29% Italia Marittima – 20% MOL – 31% 52% CMA CGM (incl ANL) CMA CGM (incl ANL) – 40% – 61% • Charter revenue furth
Slide 16: Vessels on Long-term Charters till 2020
Vessels on Long-term Charters till 2020 Name / Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Maersk Djibouti Ital Fastosa Ital Festosa ANL Warringa ANL Windarra Ital Fiducia CMA CGM Azure ANL Warrain CMA CGM Jade CMA CGM Onyx Hanjin Newport Hanjin Mil
Slide 17: Fleet Performance
Fleet Performance Fleet Performance 2Q2009 1H2009 Revenue Days 1456.0 2718.0 Operating Days 1452.8 2712.5 Off Hire Days 3.2 5.5 Fleet Utilisation (%) 99.8 99.8 • High operating efficiency maintained • Fleet utilisation rate in 2Q2009 remained high at 99.8%, thereby maximising charter revenue 17
Slide 18: Challenges
Challenges Liquidity US$130 million Top-Up Facility maturing April 2010 Financing of 4 x 13,100 TEU vessels Asset Deflation VTL ratios on the current loans Financing of the remaining 3 x 4,250 TEU vessels Counterparty Risk While our charterers are all leading liner companies, the container shipping
Slide 19: Latest Developments
Latest Developments 1. US$130 million Top-Up Facility maturing April 2010 Currently in discussion with lending banks for re-financing 2. Waiver of VTL covenants Started discussions with the banks in 1Q2009 Time consuming process 3. 4 x 13,100 TEU Vessels Quality vessels with 10-year charters to Maer
Slide 20: Latest Developments
Latest Developments 4. Maersk Djibouti No termination notice received to-date Should vessel be re-delivered in February 2010, intention is to find short-term employment until market recovers Have made further provisions for impairment of US$7.5 million in 2Q2009 taking into consideration potential e
Slide 21: Outlook
1 Financial Highlights 2 Financial Performance 3 Business Review 4 Outlook 5 Q&A 21
Slide 22: Outlook
Outlook • Downturn in container shipping will be prolonged and liner companies are facing significant revenue pressure • Delays in deliveries and increased demolition activities will, to a limited extent, mitigate tonnage oversupply • Priority is to take delivery of outstanding orderbook and finalis
Slide 23: Q&A
1 Financial Highlights 2 Financial Performance 3 Business Review 4 Outlook 5 Q&A 23
Slide 24: Thank you
Thank you. For more information, please contact: ir@rickmers-maritime.com 24