D'amico International Shipping S.a. · MIL:DIS
D'amico International Shipping — Q1 2015 Earnings Presentation
32 slides from D'amico International Shipping's earnings presentation, May 6, 2015
Slide 1: Q1 2015 Results Presentation
Q1 2015 Results Presentation d’Amico International Shipping May 6th, 2015
Slide 2: Agenda
AGENDA. Executive Summary Highlights Financial Results Product Tanker Market & Outlook Appendix
Slide 3: Executive Summary
EXECUTIVE SUMMARY. • Following the good trend started at the end of last year, the product tanker spot market has improved significantly in the first quarter of 2015, reaching its highest levels since the financial crisis • Spot – DIS generated a Daily Avg Spot Rate of US$ 18,503, marking a 52% impr
Slide 4: Highlights
Highlights
Slide 5: Highlights: Main events
HIGHLIGHTS. Main events • New-building plan – In April 2015, DIS entered into an agreement for the construction and sale of two new Long Range (LR1 – 75,000 DWT) modern product tanker vessels with Hyundai MIPO Dockyard Co. Ltd – South Korea. These vessels will be built by Vinashin Shipyard Co. Ltd –
Slide 6: Highlights: Product tankers market
HIGHLIGHTS. Products tankers market • Spot returns – Product tanker markets remained strong throughout the quarter. In the Atlantic basin unseasonably cold weather, refinery planned and unplanned outages in North and South America increased trade flows in the Region. Asian markets remained stable an
Slide 7: DIS Fleet profile
DIS. Fleet profile DIS Fleet2 Mar. 31st, 2015 MR Handy Total % Owned 20.3 3.0 23.3 44% Time chartered-in 23.5 6.0 29.5 56% TOTAL 43.8 9.0 52.8 100% • DIS controls a modern fleet of 52.8 product tankers • Flexible and double-hull fleet – 65.5% IMO classed, with an average age of 7.3 years (industry a
Slide 8: Financial Results
Financial Results
Slide 9: Financial Results: Q1 2015 Results
FINANCIAL RESULTS. Q1 2015 Results (US$ million) Q1 2014 Q1 2015 TCE Earnings 46.5 77.0 EBITDA 3.8 21.6 EBITDA Margin 8% 28.1% EBIT (4.2) 12.0 Net Profit (Loss) (6.8) 11.4 • TCE Earnings – Following the good trend started at the end of last year, the product tanker spot market has improved significa
Slide 10: Financial Results: Key Operating Measures
FINANCIAL RESULTS. Key Operating Measures Key Operating Measures Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Avg. n. of vessel 39.6 39.1 40.7 48.0 52.1 Fleet contact coverage 56.1% 55.2% 48.0% 46.2% 44.8% Daily TCE Spot (US$/d) 12,191 13,144 13,867 15,076 18,503 Daily TCE Covered (US$/d) 14,770 14,645 1
Slide 11: Spot Quarterly Evolution
SPOT QUARTERLY EVOLUTION. DIS Daily TCE Spot – Quarterly Evolution US$/day 23,000 21,000 20,358 18,503 19,000 Q1’14 – Q1’15: + 52% 17,000 15,000 14,272 12,961 15,076 12,864 12,623 12,854 13,000 12,113 12,191 11,000 11,871 11,819 9,000 9,343 7,000 5,000 DIS benefiting from the strong product tanker m
Slide 12: Investment Plan
INVESTMENT PLAN. Current CAPEX1 & Financing US$/m 400 300 114.9 18.62 190.2 200 21.8 0.0 9.0 16.9 100 105.9 56.6 173.3 11.0 45.6 0 Q2-Q4 2015 2016 2017 2018 4Y Plan Debt Financing - Already Committed Equity Financing LR1 Project - Capex & Financing US$/m 100 55.0 0.0 88.0 80 29.9 60 58.1 40 11.0 22.
Slide 13: Financial Results: Net Financial Position
FINANCIAL RESULTS. Net Financial Position (US$ million) Dec. 31st, 2014 Mar. 31st, 2015 Gross debt (412.0) (409.2) Cash/Current fin.assets 71.1 55.5 Net financial position (340.9) (353.7) • NFP of US$ (353.7)m at the end of Q1’15 with US$ 28m investments made in the quarter with Cash resources of US
Slide 14: Product Tanker Market & Outlook
Product Tanker Market & Outlook
Slide 15: Market Overview: Earnings & vessels price
MARKET OVERVIEW. Earnings & vessels price Average Rates for MR1 Product Tankers New-building/secondhand values 2001 - 2015 (US$) 35000 30000 25000 dollar/day 20000 15000 10000 5000 0 spot 1 year 3 year 5 year • The United States has now come out of its refinery maintenance season. US refineries proc
Slide 16: Demand / Supply: Balance
DEMAND / SUPPLY. “Balance” Ton-mile demand %1 Global Oil Demand1 2015 – 2020 Million barrels p/d 14 12 60 10 58 8 56 6 54 52 4 50 2 48 0 46 44 -2 42 -4 40 Total OECD Total non-OECD 2014 2015 2016 2017 2018 2019 2020 Products Seabourne Trade MR Growth • Indian refiners are facing competition from the
Slide 17: Growth in Refinery Capacity and Oil Demand
GROWTH IN REFINERY CAPACITY AND OIL DEMAND. Refinery growth Capacity additions 2015-2020 by region Thousand barrels p/d 14% 24% 800 8% 600 400 200 10% 0 -200 2015 2016 2017 2018 2019 2020 -400 26% OECD North America OECD Europe OECD Pacific FSU Non-OECD Europe China 18% Other Asia Latin America Midd
Slide 18: Bunkers: Marine Fuel Oil Market
Bunkers. Marine Fuel Oil Market Gasoil and Fuel demand by 2020 Change in Bunkers consumed 2019-2020 Million barrels p/d 32 9 Gasoil Fuel Oil 2019 2020 31 8 30 29 LNG 7 Fuel oil 28 MGO 27 6 26 25 5 2010 2012 2014 2016 2018 2020 2010 2012 2014 2016 2018 2020 • The IEA expects shipping demand for fuel
Slide 19: DIS Market Opportunities
DIS MARKET OPPORTUNITIES. In order to summarize: • Strong trend of refineries shifting towards oil production areas, especially in Asia and the Middle East, should lead to an increase in product tankers demand • Long term time Charter rates have remained stable and asset values have followed the sam
Slide 20: d'Amico International Shipping disclaimer
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 21: Appendix
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Slide 22: DIS' Shareholdings Structure
DIS’SHAREHOLDINGS STRUCTURE. Key Information on DIS’ Shares 5 1 d'Amico International SA 58.61% 2 Oceanic Opportunities Master Fund L.P. 3.59% 3 Oceanic Hedge Fund 2.02% 3 4 Others 34.58 % 5 d'Amico International Shipping S.A. 1.20 % 1 4 2 Listing Market Borsa Italiana, STAR No. of shares 422,842,39
Slide 23: d'Amico's Group Structure
d’AMICO’S GROUP STRUCTURE. 77.9% 58.6% DIS benefits from the support of d’Amico Società di Navigazione S.p.A. 23
Slide 24: DIS' Current Fleet Overview: MR Owned Fleet
DIS’CURRENT FLEET OVERVIEW. MR Owned Fleet Owned Tonnage (dwt) Year Built Builder, Country Interest1 IMO Classified High Loyalty 49,990 2015 Hyundai MIPO, South Korea 100% IMO II/IMO III High Voyager 45,999 2014 Hyundai MIPO, South Korea 100% IMO II/IMO III High Fidelity 49,990 2014 Hyundai MIPO, So
Slide 25: DIS' Current Fleet Overview: MR TC-In Fleet
DIS’CURRENT FLEET OVERVIEW. MR TC-IN Fleet 1 Time charter with purchase option Tonnage (dwt) Year Built Builder, Country Interest IMO Classified High Enterprise 45,800 2009 Shin Kurushima, Japan 100% - High Pearl 48,023 2009 Imabari, Japan 100% - 1 Time charter without purchase option Tonnage (dwt)
Slide 26: DIS' Current Fleet Overview: Handy Fleet
DIS’CURRENT FLEET OVERVIEW. Handy Fleet Owned Tonnage (dwt) Year Built Builder, Country Interest1 IMO Classified Cielo di New York 39,990 2014 Hyundai MIPO, South Korea 100% IMO II/IMO III Cielo di Gaeta 39,990 2014 Hyundai MIPO, South Korea 100% IMO II/IMO III Cielo di Salerno 36,032 2002 STX, Sout
Slide 27: DIS' New Building Program
DIS’NEW BUILDING PROGRAM. Name of vessel / Hull Number Estimated tonnage (dwt) MR/Handysize Estimated delivery date Builder, Country Interest1 Owned 2015 410 – Tbn 50,000 MR Q4-2015 Hyundai MIPO, South Korea 100% 420 – Tbn 39,000 Handysize Q4-2015 Hyundai MIPO, South Korea 100% 2016 411 – Tbn 50,000
Slide 28: TC Coverage Evolution
TC COVERAGE EVOLUTION. DIS coverage1 100% 19,000 54% 58% 67% 75% 86% 90% 18,000 80% 17,052 16,783 70% 17,000 16,296 60% 15,697 16,000 50% 15,145 15,000 40% 30% 14,000 20% 42% 46% 33% 13,000 10% 25% 14% 0% 12,000 2015 2016 2017 2018 2019 % Cover % Free Cover Dly Rate DIS has a top quality TC book wit
Slide 29: Supply: Slippage & net fleet growth
SUPPLY. Slippage & net fleet growth • The order book for MR tankers this year is at its highest since the large delivery years of 2008-2010. According to various reports there are between 140 and 200 are to be delivered in 2015 • Slippage, cancelations and order changes have reduced deliveries by at
Slide 30: Demand: Growth
DEMAND. Growth • Product markets continue to expand and globalise. Trading in refined products is on track to increase rapidly to 2020, as exports out of the Americas continue apace and new Middle Eastern refineries increase capacity • Growth in refined product demand continues to exceed expectation
Slide 31: Global Product Supply Balances 2015-2020
Global Product Supply Balances 2015-2020 • European middle distillate deficit rises to 1.9m bpd by 2020 although the region remains in gasoline and naphtha surplus (570,000 bpd) US gasoline and naphtha surplus expected to rise to 0.52m bpd. Gasoil and Jet surplus will stay at over 1 mbpd • Australia
Slide 32: Thank you!
Thank you!
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