Ocean Yield ASA — Pareto Securities' Oil and Offshore Conference 2015
12 slides from Ocean Yield ASA's conference presentation, September 2015
Slide 1: Pareto Securities' Oil and Offshore Conference 2015
Pareto Securities’ Oil and Offshore Conference 2015
Slide 2: Ocean Yield in brief: The dividend yield company
The dividend yield company Dividend yield company listed on the Oslo Stock Exchange Diversified fleet of modern fuel efficient vessels All vessels on long term charter contracts Ocean Yield Stability in earnings from substantial contract backlog in brief Earnings to increase by about 40% from delive
Slide 3: Diversified fleet of modern fuel efficient vessels
Diversified fleet of modern fuel efficient vessels NEW- CONTRACT SEGMENT VESSELS COUNTERPARTIES 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 BUILDINGS TENOR Chemical 2 6 15.0 Navig8 Chemical Tankers Product 4 13.0 Navig8 Product Tankers Gas 3 10.0 Hartmann / SABIC
Slide 4: Expects strong growth in earnings from delivery of newbuildings
Expects strong growth in earnings from delivery of 15 newbuildings Total fleet will grow to 27 vessels during 2016, No of vessels 30 adding further dividend capacity 25 20 15 10 5 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 201
Slide 5: Investment strategy
Investment strategy Investments in modern fuel efficient vessels Multi segment strategy Long term charter contracts Reasonably strong counterparties Growth – minimum of USD 350m per year September 15 Investor Presentation 5
Slide 6: Recent transaction: Acquisition of 4 product tankers with 13 years charters
Recent transaction: Acquisition of 4 product tankers with 13 years charters Vessels: 4x LR2 115,000 dwt product tankers Yard: Sungdong Shipbuilding, Korea Charterer: Navig8 Product Tankers Inc. (ticker: “EIGHT”) Contract type: 13 years floating interest rate “hell & high” bareboat Delivery: Q1 – Q2
Slide 7: Steady EBITDA with expected growth from delivery of newbuildings
Steady EBITDA with expected growth from delivery of newbuildings EBITDA1 per quarter (USDm) 56.0 48.8 50.6 55.6 52.7 53.2 55.4 54.2 53.9 55.2 38.1 39.4 Committed projects will add about 40% to Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2012 2013 2014 2015 EBITDA once delivered. Net profit per quarter (U
Slide 8: Dividends have been increased for 7 consecutive quarters
Dividends have been increased for 7 consecutive quarters Dividend yield Adjusted earnings per share (USD)** 0.19 0.20 0.20 0.20 0.20 0.20 8.0%* p.a. 0.19 0.16 Pay-out ratio on adjusted Q2 EPS Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Dividend per share (USD) 76% 0.1525 0.1475 0
Slide 9: Risk management
Risk management Counterparty risk Residual value risk Interest rate risk Risk related to newbuildings Funding risk Operating risk on Dhirubhai-1 Currency risk September 15 Investor Presentation 9
Slide 10: Bonds in American Shipping Company
Bonds in American Shipping Company Ocean Yield owns bonds in American Shipping Company – Nominal value of USD 198m – Book value of USD 187m – Maturity in February 2018 – Interest of LIBOR + 6.00% p.a., currently 50% PIK AMSC has secured commitments for a USD 500m bank refinancing Ocean Yield will re
Slide 11: Summary
Summary Firm EBITDA contract backlog of USD 2.8 billion and weighted average tenor of 10.5 years gives stability in earnings and dividend capacity EBITDA is expected to increase by 40% during 2016 due to delivery of newbuildings Expect to continue to increase and further diversify the investment por
Slide 12: September 15
> OCEAN YIELD a September 15 12
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