D'amico International Shipping S.a. · MIL:DIS
D'amico International Shipping — Q3 2010 Earnings Presentation
33 slides from D'amico International Shipping's earnings presentation, Dec 13, 2010
Slide 1: Equita Roadshow - Milan 13th December, 2010
d’Amico International Shipping Equita Roadshow - Milan 13th December, 2010
Slide 2: Agenda
Agenda Highlights & Product Tanker Market Marco Fiori, CEO Q3 & 9M 2010 Results Alberto Mussini, CFO Outlook Marco Fiori, CEO Appendix 1 d‟Amico International Shipping
Slide 3: Highlights
Highlights Marco Fiori, CEO 2 d‟Amico International Shipping
Slide 4: Q3 2010 Highlights
Q3 2010 Highlights Events Fleet deployment optimization – Out from Handytankers pool (only 1 vessel at the end of September 2010) New time charter-out contracts - Two vessels chartered out to primary customers for 2 and 3 years. Contracts fixed at levels generating cash flow, increasing the DIS
Slide 5: Fleet Management – Profile & employment
Fleet Management – Profile & employment DIS FLEET – 30 SEPT. 2010 MR Handy Total % OWNED 14.0 3.0 17.0 43.0% BAREBOAT CHARTERED - 1.0 1.0 2.5% TIME CHARTERED-IN 17.5 3.0 20.5 52.0% TIME CHARTERED THROUGH POOLS - 1.0 1.0 2.5% Total 31.5 8.0 39.5 100% Fleet average age of 4.9 years vs. industry of 8
Slide 6: Fleet management - Coverage
Fleet management - Coverage High Coverage as part of DIS balanced business model, protecting results when spot market is weak. High percentage of Revenue from fixed contracts (Coverage) of 45%1 in 2010 and in the range of 40% for 2011 (in progress) Coverage pushed-on when 65% rates at the peak Cov
Slide 7: Product Tanker Market
Product Tanker Market Marco Fiori, CEO 6 d‟Amico International Shipping
Slide 8: Market Overview – Freight rates
Market Overview – Freight rates The first nine months of 2010 spot market results benefited from „moderate‟ improving Oil Product Demand Demand was underwritten by colder winter conditions, product dislocation and an improvement in gasoline demand in the United States The number of Time Charte
Slide 9: DIS Daily Rates Trend
DIS Daily Rates Trend DIS contract book supported the over DIS continues to over perform spot market thanks performance in the weak market experienced in to access to cargoes via its market positioning and the last two years strategic partnerships (US$) (US$) 27,000 27,500 24,000 DIS TC rate 25,
Slide 10: Q3 & 9M 2010 Results
Q3 & 9M 2010 Results Alberto Mussini, CFO 9 d‟Amico International Shipping
Slide 11: Q3 & 9M 2010 Financial Results - Highlights
Q3 & 9M 2010 Financial Results - Highlights Results TCE Earnings US$ 51.2m in Q3‟10 / US$ 150.4m in 9M‟10 EBITDA of US$ 9.7m in Q3‟10 / US$ 26.3m in 9M‟10 EBIT US$ 1.4m in Q3‟10 / US$ 1.9m in 9m‟10 Net Loss US$ 5.1m in Q3‟10 / US$ 14.0m in 9M‟10 Cash Flow Operating cash flow US$ 4.3m in Q3
Slide 12: Financial Results - Income Statement
Financial Results - Income Statement Q3 2010 Q3 2009 (US$ million) 9M 2010 9M 2009 51.2 42.6 TCE Earnings 150.4 141.1 (27.0) (22.3) Time charter hire costs (76.0) (66.5) (12.5) (11.5) Other direct operating costs (38.9) (33.7) (3.9) (5.3) General and administrative costs (13.2) (15.1) 1.9 0.7 Other
Slide 13: Financial results - Key Operating Measures
Financial results - Key Operating Measures Key Operating Measures Q1 2010 Q2 2010 Q3 2010 9M 2010 9M 2009 Number of vessel equivalents¹ 41.5 39.1 39.5 40.0 38.5 Fleet contract coverage² 47.5% 47.4% 42.1% 45.7% 56.9% Daily TCE earnings³ (US$/day) 15.901 15,260 15,336 15,455 16,526 Owned vessels/total
Slide 14: Financial results - Net Debt & Cash Evolution
Financial results - Net Debt & Cash Evolution (US$ million) 30 Sept. 2010 30 Jun. 2010 31 Mar. 2010 31 Dec. 2009 Bank and other lenders 284.3 273.0 273.5 319.9 Current fin. Assets 91.1 90.3 99.7 148.6 - Cash and cash equivalents 84.9 90.3 86,8 92,3 - Current fin. assets 6.2 - - - - Current fin. rece
Slide 15: Fleet's Market Value and Net Debt
Fleet’s Market Value and Net Debt (US$ million)1 Fleet Market Value (FMV) Net Debt (ND) FMV-ND 487 487 499 500 436 450 400 304 306 300 276 336 265 193 200 171 174 183 151 100 0 Sep 2009 Dec 2009 Mar 2010 Jun 2010 Sep 2010 Owned vessels on the water 16 16.5 17 17 17 Product tanker vessels prices ha
Slide 16: Capex Plan & Fleet evolution
Capex Plan & Fleet evolution DIS’ New-building Program DIS‟ Fleet by Year 39.5 38.5 DIS’ Total 37.0 39.0 Year of Delivery 1,0 1,0 Interest Vessels 18,0 18,0 17,0 20,0 2010 0.5 1.0 2011 1.5 3.0 19,0 21,0 21,5 17,5 2012 2.0 2.0 30 Sep „10 31 Dec „10 31 Dec „11 31 Dec „12 Total 4.0 6.0 Owned Time Chart
Slide 17: Outlook
Outlook Marco Fiori, CEO 16 d‟Amico International Shipping
Slide 18: Outlook – Supply: MR1 Product Tanker Deliveries
Outlook – Supply: MR1 Product Tanker Deliveries 2010 order book was significant. The 2010 original orders should be reduced by around by 30% due to removals, deferrals, conversions and cancellations In any year there is slippage in the last quarter as Owners prefer to have a later delivery date
Slide 19: Outlook–Supply: MR1 Product Tanker Deliveries/Scrapping
Outlook–Supply: MR1Product Tanker Deliveries/Scrapping Scrapping is a factor for the shipping industry. The phase out and relatively poor returns has accelerated the removal of ships this year. About three million (3,000,000) deadweight has been permanently removed from the 25-55,000 deadweight se
Slide 20: Outlook- Oil demand
Outlook- Oil demand Forward expectations of world GDP growth and Oil Product demand have been revised upwards this quarter for entire 2010 projections based on recent unexpected positive growth within OECD regions The IEA maintains its forecast for Chinese oil demand broadly unchanged at 9.1 mil
Slide 21: Outlook – Demand / Refinery Capacity
Outlook – Demand / Refinery Capacity Poor margins and high operating costs have closed refineries and cut refinery runs in OECD countries. Over 500,000 million barrels per day refining capacity has been permanently removed in the United States in recent months India will add 1.1 million barrels p
Slide 22: Outlook - Floating storage
Outlook - Floating storage Significant decline this year. However expected to return especially with a number of refineries off line (strike in France) With the forward delivered price of products continuing to fluctuate expect floating storage to remain a factor in the Product Tanker market 1 C
Slide 23: Outlook - DIS's response
Outlook - DIS’s response Outlook The product tanker market segment will be characterized by significant challenges, but there are prospects for a better operating environment in Q4 as demand tends to pick up historically in this quarter Oil Product Demand has and is increasing at a modest pace,
Slide 24: d'Amico International Shipping
d’Amico International Shipping This document does not constitute or form part of any offer to sell or issue, or invitation to purchase or subscribe for, or any solicitation of any offer to purchase or subscribe for, any securities of d‟Amico International Shipping S.A. (or the “Company”), nor shall
Slide 25: Appendix
Appendix 24 d‟Amico International Shipping
Slide 26: DIS' Shareholdings Structure
DIS’ Shareholdings Structure Key Information on DIS‟ Shares 2 3 1 d'Amico International SA 65.09% 2 d'Amico International Shipping S.A. 2.93% 3 Others 29.78% 1 4 Kairos Partners SGR SpA 2.23% 4 Listing Market Borsa Italiana, STAR No. of shares 149,949,907 Market Cap1 € 144,2 million Shares Repurchas
Slide 27: Financial Results – EBITDA and EBIT Trend
Financial Results – EBITDA and EBIT Trend EBITDA & EBIT per Quarter (US$/THOUSAND) 15,522 35.0% 14000 30.0% 11000 9,024 9,366 9,708 25.0% 8000 6,794 7,184 5000 4,151 20.0% 2,090 2000 1,330 1,443 126 15.0% -1000 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 10.0% -4000 -835 -5,342 5.0% -7000 -10000 -7,95
Slide 28: Financial results - Statement of financial position
Financial results - Statement of financial position (US$ Thousand) As at 30 Sept. 2010 As at 31 Dec. 2009 ASSETS Of which cash and cash inv. Non current assets 520,664 US$ 91.1 m 522,717 Current assets 160,316 202,424 Total assets 680,980 725,140 LIABILITIES & SHAREHOLDERS’ EQUITY Shareholders‟ equi
Slide 29: d'Amico's Group Structure
d’Amico’s Group Structure DIS benefits from the support of d’Amico Società di Navigazione S.p.A. 28 d‟Amico International Shipping
Slide 30: DIS' Current Fleet Overview
DIS’ Current Fleet Overview MR FLEET Name of vessel Tonnage (dwt) Year Built Builder, Country Flag Classification Society Interest1 IMO Classified Owned 3 GLENDA Melanie 47,000 2010 Hyundai MIPO, South Korea Liberia Lloyds 50% IMO III 3 GLENDA Meredith 47,000 2010 Hyundai MIPO, South Korea Liberia L
Slide 31: DIS' Current Fleet Overview (cont'd)
DIS’ Current Fleet Overview (cont’d) HANDY FLEET 1 Name of vessel Tonnage (dwt) Year Built Builder, Country Flag Classification Society Interest IMO Classified Owned Cielo di Salerno 36,032 2002 STX, South Korea Liberia RINA and ABS 100% IMO Cielo di Parigi 36,032 2001 STX, South Korea Liberia RINA
Slide 32: DIS' New Building Program
DIS’ New Building Program Name of vessel / Hull Number Estimated tonnage (dwt) MR/Handysize Estimated delivery date Builder, Country Flag2 Classification Society Interest1 IMO Classified Owned 2011 2187 - GLENDA Melody 47,000 MR Jan-11 Hyundai MIPO, South Korea Liberia Intention Lloyds 50% IMO III 2
Slide 33: Thank you
Thank you BS LLe
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