Ocean Yield ASA — Q1 2018 Earnings Presentation
20 slides from Ocean Yield ASA's earnings presentation, May 4, 2018
Slide 1: Q1 2018 Presentation
Q1 2018 PRESENTATION 4th May 2018
Slide 2: Q1 2018 Financial Highlights
Q1 2018 FINANCIAL HIGHLIGHTS • Q1 2018 dividend of USD 0.1905 per share - USD 0.762 per share annualized - Dividend yield of 8.8% p.a. - Declared cash dividends for 19 consecutive quarters • EBITDA was USD 77.8m vs. USD 80.4m in Q4 - EBITDA adjusted for finance leases was USD 86.8m vs. USD 89.3m in
Slide 3: Recent Investments
RECENT INVESTMENTS • Okeanis Marine Holdings - 4 VLCC newbuildings - 15 year charter with purchase options / 5 year sub-charter - Net investment of USD 297m after seller’s credit • Louis Dreyfus Armateurs - 2 resale handysize bulk carriers - 12 year charter with purchase obligations - Net investment
Slide 4: Charter Backlog by Client End of Q1 2018
CHARTER BACKLOG BY CLIENT END OF Q1 2018 EBITDA1 BACKLOG OF USD 3.5 BILLION FLEET2 Tankers 22 9% Oil-service 7 19 % 3% 4% 4% Dry Bulk 7 1% 5% Avg. remaining charter tenor of 11.4 years 9% Container vessels 6 15 % 5% Car Carriers 6 2% 3% 2% 6% 10 % Gas Carriers 2 FPSO 1 1) EBITDA backlog based on est
Slide 5: Update on Connector
UPDATE ON CONNECTOR • Employment for the vessel Connector - Time charter contract with firm period until 26th August, plus 72 days extensions in charterer’s option remaining - Completed the first export cable lay section at the Ørsted’s Hornsea Project One offshore wind farm project - Engaged Solsta
Slide 6: Update on the FPSO Dhirubhai-1
UPDATE ON THE FPSO DHIRUBHAI-1 • Production uptime of close to 100% in Q1 2018 • Q1 2018 vessel debt outstanding of only USD 20m - Will be fully repaid by September 2018 • Production on the MA field may continue beyond the end of the firm contract in September 2018 - Uncertainty on how long Reliance
Slide 7: Completed Private Placement
COMPLETED PRIVATE PLACEMENT • Equity issue - New shares 11.0 million - Price per share NOK 69.0 - Gross proceeds NOK 759.0 million - Purpose New investments - Shares outstanding 159.4 million • Aker Capital allocated zero new shares - Pre-subscribed for 50% of the issue - Scaled down in order to imp
Slide 8: Quarterly EBITDA and Net Profit
QUARTERLY EBITDA AND NET PROFIT EBITDA PER QUARTER (USDM) 80.6 80.4 77.8 68.7 74.4 71.2 74.3 58.7 63.4 Q1 2016 Q2 Q3 Q4 Q1 2017 Q2 Q3 Q4 Q1 2018 NET PROFIT PER QUARTER (USDM) 36.8 32.7 30.6 31.3 30.9 33.3 25.5 18.6 0.7 Q1 2016 Q2 Q3 Q4 Q1 2017 Q2 Q3 Q4 Q1 2018
Slide 9: Adjusted EBITDA and Net Profit
ADJUSTED EBITDA AND NET PROFIT EBITDA ADJUSTED FOR FINANCE LEASES (USDM) 82.8 83.1 89.3 89.3 86.8 75.6 79.1 63.6 69.3 Q1 2016 Q2 Q3 Q4 Q1 2017 Q2 Q3 Q4 Q1 2018 ADJUSTED NET PROFIT (USDM) 36.9 36.3 34.4 31.6 33.4 33.4 33.5 33.9 29.0 Q1 2016 Q2 Q3 Q4 Q1 2017 Q2 Q3 Q4 Q1 2018
Slide 10: Declared Cash Dividends for 19 Consecutive Quarters
DECLARED CASH DIVIDENDS FOR 19 CONSECUTIVE QUARTERS ADJUSTED EARNINGS PER SHARE (USD CENTS)¹ ADJUSTED EARNINGS YIELD 23.21 23.94 24.66 24.36 22.99 21.28 22.34 22.41 22.20 10.3%² p.a. Q1 2016 Q2 Q3 Q4 Q1 2017 Q2 Q3 Q4 Q1 2018 DIVIDEND PER SHARE (USD CENTS) DIVIDEND YIELD 17.75 18.25 18.50 18.75 18.85
Slide 11: Income Statement
INCOME STATEMENT INCOME STATEMENT Q4 Q1 Amounts in USD million 2017 2018 Operating revenues 66.0 66.3 Finance lease revenue 17.1 16.8 Income from investments in associates 6.4 6.1 Total revenues and other income 89.5 89.2 Vessel operating expenses (4.8) (6.4) Wages and other personnel expenses (1.5)
Slide 12: Adjusted EBITDA and Net Profit
ADJUSTED EBITDA AND NET PROFIT ADJUSTMENTS Q4 Q1 Amounts in USD million 2017 2018 Net profit 30.9 33.3 Foreign exchange gains/losses -10.0 16.2 • Bond and bank loans in NOK Change in fair value of financial instruments 10.9 -18.1 Changes in deferred tax, net 2.6 2.4 • Non-cash and offset against def
Slide 13: Balance Sheet
BALANCE SHEET BALANCE SHEET Q4 Q1 Q4 Q1 Amounts in USD million 2017 2018 2017 2018 ASSETS EQUITY AND LIABILITIES Goodwill 9.8 9.8 Equity to holders of the parent 821.1 928.7 Vessels and equipment 1 310.8 1,290.4 Non-controlling interests 10.4 10.9 Investments in associates 188.7 194.2 Total equity 8
Slide 14: Strong Liquidity Position
STRONG LIQUIDITY POSITION CASH AND SECURITIES AVAILABLE FOR SALE PER Q1 2018 (USDM) 219 49 170 45 124 Cash Available Total available Bonds in Total available drawing facilities cash American liquidity per Q1’18 Shipping Company
Slide 15: Contractual Obligations and Financing
CONTRACTUAL OBLIGATIONS AND FINANCING CAPEX AND EXPECTED BANK FINANCING (USDM) 463 182 445 248 18 33 Already paid Q2-Q4 2018 2019 Total capex, Expected Remaining net of seller’s bank financing equity credits payments COMMENTS • Remaining obligations relates to three suezmaxes, four VLCCs and two dry
Slide 16: Outlook
OUTLOOK • Ambition to continue to expand the portfolio of vessels - Market conditions for new transactions viewed as positive - Substantial investment capacity following recent equity issue - Access to competitive funding from banks • Intends to continue policy of paying attractive quarterly dividen
Slide 17: Notes
NOTES May 18 7
Slide 18: Notes
NOTES May 18 18
Slide 19: Notes
NOTES May 18 19
Slide 20: Investor Relations
INVESTOR RELATIONS Marius Magelie, SVP Finance & IR +47 24 13 01 82 mm@oceanyield.no www.oceanyield.no/IR