Torm Plc Class A · OMXCOP:TRMD_A
Torm Plc Class A — Q2 2010 Earnings Presentation
25 slides from Torm Plc Class A's earnings presentation, 2010
Slide 1: Presentation of Q2 2010 results
Presentation of Q2 2010 results 1
Slide 2: Safe Harbour Statement
Safe Harbour Statement Matters discussed in this presentation may constitute forward-looking statements. Such statements reflect TORM's current expectations and are subject to certain risks and uncertainties that could negatively impact TORM's business. To understand these risks and uncertainties, p
Slide 3: Financial Highlights for Q2 2010
Highlights Financial Highlights for Q2 2010 Tanker market Dry bulk market Finance CSR Summary Financials (USDm) EBITDA in Tanker and Bulk Division 35 31 EBITDA of USD 24m in Q2 2010 compared to USD 30 31m in Q2 2009 23 24 25 19 •The Tanker Division is positively impacted by 20 higher spot rates and
Slide 4: Strong foundation – organisation in place and commercial relationships intact
Highlights Strong foundation – organisation in place and commercial Tanker market Dry bulk market relationships intact Finance CSR Summary Organisation in place Large fleet A strong team in place Manage a fleet of 128 product • New forces with international tankers and 11 Bulk carriers at outlook an
Slide 5: Improved but fragile conditions on the product tanker market
Highlights Improved but fragile conditions on the product tanker market Tanker market Dry bulk market Finance CSR Summary Freight rates (MR and LRs) USDt MR spot rates and 1 year T/C rates Rates generally low in Q2 2010 – but stronger than 30 Q2 2009 •Seasonal - coming out of the winter market 20 •I
Slide 6: For MR's emerging cargoes and trades were explored
Highlights For MR’s emerging cargoes and trades were explored Tanker market Dry bulk market Finance Alternative trading patterns CSR Summary The traditional transatlantic MR trade route (TC2) rate weakened into mid-June why owners sought alternative cargoes and destinations •Distilled products (Gaso
Slide 7: Floating storage – reduced to natural level during Q2 2010
Highlights Floating storage – reduced to natural level during Q2 2010 Tanker market Dry bulk market Finance CSR Summary Floating storage has been reduced significantly… mbbl Cleanproductsonfloatingstorage* 120 100 80 60 • Floating storage has decreased from significant 40 level in 2009 20 • Adding s
Slide 8: Product Tanker market - demand will outgrow supply from 2010 to 2012
Highlights Product Tanker market - Tanker market Dry bulk market demand will outgrow supply from 2010 to 2012 Finance CSR Summary Demand and supply development (2010 - 2012) Nu m ber o f vessels* Demand Supply Swing factors: 750 •Order book delays 64 107 •Delays in refineries 500 121 84 82 •Floating
Slide 9: Improved underlying economic fundamentals
Highlights Improved underlying economic fundamentals Tanker market Dry bulk market Finance CSR Summary Oil demand coming back to pre 2008 Asia main driver for oil demand Modest but steady pace in levels economic upturn • One of the deepest cycles in record • Asia, mainly China key driver for • GDP f
Slide 10: Supply continues to be affected by significant slippage
Highlights Supply continues to be affected by significant slippage Tanker market Dry bulk market Finance Slippage is continuing… CSR Summary 2009 order book (ex. SR) Newbuildings (LR2, LR1 & MR) No of vessels No of vessels 300 100 25% 90 Significant slippage continues 250 80 •2009, slippage of 25% 7
Slide 11: Product tanker vessel prices have stabilised and increased - continued limited S&P activity
Highlights Product tanker vessel prices have stabilised and increased - Tanker market Dry bulk market continued limited S&P activity Finance CSR Summary Vessel price development* USDm MR newbuilding and second-hand prices 55 50 Newbuilding and second-hand prices have 45 40 continued to increase duri
Slide 12: Dry bulk market remained at a relatively strong level in Q2
Highlights Dry bulk market remained at a relatively strong level in Q2 Tanker market Dry bulk market Finance CSR Freight rate development Summary Panamax rates were volatile in Q2 2010 with a USDt Panamax spot rates and 1 year T/C rates 100,0 peak in mid-May 90,0 80,0 Rates supported by 70,0 60,0 •C
Slide 13: Greater Efficiency Power has lead to significant savings
Highlights “Greater Efficiency Power” has lead to significant savings Tanker market Dry bulk market Finance CSR Status on Greater Efficiency Power Summary Efficiency programme “Greater Efficiency Development in operating cost per day (USD/day) Power” launched by the end of 2008 9.000 8.000 Key initi
Slide 14: Financing – no loan to value covenants and solid cash and credit facilities
Highlights Financing – no loan to value covenants and solid cash and Tanker market Dry bulk market credit facilities Finance CSR Summary TORM has a solid financial position USDm Remaining capex and liquidity 700 • TORM’s total cash and unused credit facilities 600 totalled USD 600m as per 30 June 20
Slide 15: TORM maintains its forecast for 2010
Highlights TORM maintains its forecast for 2010 Tanker market Dry bulk market Finance CSR Summary 2010 Guidance • TORM forecasts a loss before tax of USD 40m to 60m for 2010 USDm Change in freight rates (USD/ day) Sensitivity – change in profit Segment -2,000 -1,000 1,000 2,000 with change in freigh
Slide 16: Corporate Social Responsibility
Highlights Corporate Social Responsibility Tanker market Dry bulk market Finance CSR Summary Focus on environment has never been ..therefore TORM has decided on an bigger and shipping has a key role ambitious CSR strategy with green focus • Increasing political focus on environmental • TORM signed t
Slide 17: Key achievements in Q2
Highlights Key achievements in Q2 Tanker market Dry bulk market Finance CSR Summary • Result in line with expectations • Q2 spot earnings exceed benchmarks • Strong organisation in place • Large fleet of high quality – continuously adjusted when deemed favourable • Well positioned to exploit improvi
Slide 18: Appendix
Appendix
Slide 19: Introduction to TORM
Company facts Introduction to TORM Strategy and key facts Global footprint based on regional power and presence A world leading product tanker company •Among leading owners in size •120 years of history Strategy •Superior advantage through modern product tanker fleet, sizeable market share through p
Slide 20: Large and modern fleet (as per 30 June 2010)
Company facts Large and modern fleet (as per 30 June 2010) No of vessels Avg. age Avg. DWT Owned Product tankers LR2 12.5 5.6 106,372 LR1 7.5 5.3 74,087 MR 35.0 6.2 47,341 SR 11.0 7.0 36,620 Total Product tankers 66.0 6.1 59,773 Bulk 2.0 6.0 75,054 Total Fleet - Owned 68.0 6.1 60,223 TC in Product t
Slide 21: Detailed key figures overview
Finance Detailed key figures overview Key figures overview USD million H1 2010 2009 2008 2007 2006 2005 P&L Revenue 407 862 1.184 774 604 586 EBITDA 79 203 572 288 301 351 Net income -22 -17 361 792 235 299 Balance Total assets 3.210 3.227 3.317 2.959 2.089 1.810 Long term assets 2.958 2.944 2.913 2
Slide 22: Earning days, TC cost and coverage for 2010
Finance Earning days, TC cost and coverage for 2010 Earning days, TC cost and coverage 2010 2011 2012 2010 2011 2012 At 30 June 2010, TORM had Owned days LR2 2.196 4.380 4.392 covered 33% of the remaining LR1 1.282 2.555 2.562 earning days for 2010 in the MR 6.754 14.758 15.690 SR 1.966 4.015 4.026
Slide 23: Major trading routes in Q2 2010
Highlights Major trading routes in Q2 2010 Tanker market Dry bulk market Finance CSR % out of total fixtures ( % out of total previous 4 quarters) with major cargo group Summary North America Trading 9% (5%) (Diesel) North Africa Italy & France Saudi Arabia, India & UAE 13% (15%) Taiwan, South K
Slide 24: Refinery dis-location improve long-term prospects
Highlights Refinery dis-location improve long-term prospects Tanker market Dry bulk market Finance CSR Summary Low utilisation rates due to pressure Increasing output in new locations… on refinery margins… 100 Refineryutilisationrates(%) 15.000 Refinerythroughput Mill. metricton/ day 95 14.000 %ofto
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