Odfjell Se Class A · OSL:ODF
Odfjell Se Class A — Q1 2014 Earnings Presentation
29 slides from Odfjell Se Class A's earnings presentation, May 8, 2014
Slide 1: First Quarter 2014 Results
First Quarter 2014 Results Bergen – 8 May 2014
Slide 2: Agenda
Agenda • Highlights • Financials • Operational review • Market update and prospects
Slide 3: Highlights
Highlights Highlights ODFIX 180 • Time-charter results in line with last 160 140 Index 1990=100 quarter 120 100 • Chemical Tankers EBITDA of USD 80 60 17 million 40 20 • A major reorganisation, efficiency 0 08 09 10 11 12 13 14 drive and cost - cutting process has Annualized EBITDA¹ been kicked off
Slide 4: Change of accounting principle
Financials Change of accounting principle Equity method versus proportional consolidation method • Effective from 1 January 2014, Odfjell has adopted IFRS 11. All joint ventures previously accounted for by applying the “proportionate consolidation method” are now accounted for by applying the “equit
Slide 5: Income statement - First quarter 2014
Financials Income statement¹ - First quarter 2014 USD mill 1Q14 4Q13 Gross revenue 266 256 Voyage expenses (130) (126) TC expenses (52) (44) Operating expenses (43) (46) Share of net result from associates and JV (7) (77) General and administrative expenses (25) (23) Operating result before depr. (E
Slide 6: Quarterly figures
Financials Quarterly figures¹ USD mill EBITDA Gross Revenue 45 350 40 300 35 250 30 USD mill USD mill 200 25 150 20 15 100 10 50 5 0 0 2012 2013 2014 2012 2013 2014 • EBITDA 1Q unchanged on flat market development from last quarter • Bunker remained high during the quarter on political conflicts ¹ P
Slide 7: Quarterly figures
Financials Quarterly figures USD mill Operating Result (EBIT)¹ • EBIT in line with previous quarter, which included 40 23 impairment of net USD 81 million 20 11 8 • Chemical tanker contracts mostly renewed at 0 -20 ‐5 ‐6 higher rates, volumes show positive development USD mill ‐15 -40 ‐25 ‐23 • Net
Slide 8: Balance sheet – 31.03.2014
Financials Balance sheet¹ – 31.03.2014 USD mill - Assets Equity and liabilities Ships and newbuilding contracts 1 305 Total equity 729 Other non-current assets/receivables 79 Non-current liabilities and derivatives 37 Investment in associates and JV’s 374 Non-current interest bearing debt 991 Total
Slide 9: Debt development
Financials Debt development1 • Exploring various financial arrangements for our gas newbuildings • Evaluating refinancing of maturing vessel mortgage loans Debt Portfolio Planned Debt Repayments 1,400 400 1,200 350 1,000 300 250 USD mill USD mill 800 200 600 150 400 100 200 50 0 0 2014 2015 2016 201
Slide 10: Capital expenditure programme – Odfjell's share
Financials Capital expenditure programme – Odfjell’s share In USD mill 2014 2015 2016 2017 2018 Hyundai Mipo, 4 x 46,000 DWT 55 Sinopacific, 4 x 17,000 cbm 18 81 63 Docking 18 24 24 24 24 Terminals1 93 51 16 6 4 Total 184 156 103 30 28 1 Planned not commited From the naming ceremony of Bow Trident i
Slide 11: Income statement – 1Q14 chemical tankers and LPG/Ethylene
Financials Income statement¹ – 1Q14 chemical tankers and LPG/Ethylene USD mill 1Q14 4Q13 Gross revenue 268 260 Voyage expenses (130) (127) TC expenses (52) (45) Operating expenses (44) (46) General and administrative expenses 2 (25) (24) Operating result before depr. (EBITDA) 17 18 Depreciation (23)
Slide 12: Income statement – 1Q14 tank terminals
Financials Income statement¹ – 1Q14 tank terminals USD mill 1Q14 4Q13 Gross revenue 23 25 Operating expenses (17) (17) General and administrative expenses (6) (9) Operating result before depr. (EBITDA) (0) (0) Depreciation (8) (10) Impairment - (81) Capital gain/(loss) - 0 Operating result (EBIT) (8
Slide 13: Results per segment
Financials Results per segment¹ 1Q14 Annualized EBITDA – actual ownership 100 % 350 90 % 300 80 % 70 % 250 60 % USD mill 200 50 % 40 % 150 30 % 100 20 % 10 % 50 0% 0 Gross revenue EBITDA Assets 04 05 06 07 08 09 10 11 12 13 14 Chemical tankers Tank terminals Chemical tankers Tank terminals 1Q14 4Q13
Slide 14: Tank terminals EBITDA – by geographical segment
Financials Tank terminals EBITDA – by geographical segment EBITDA YTD 2014 4 3 3 2 • Negative EBITDA 1Q of USD 8.8 million at OTR, 2 including USD 1.2 million in non-recurring items 0 • Divested the non-strategic terminal in Ningbo, USD mill -2 -4 China. A capital gain of USD 3.2 million will be -6
Slide 15: Vessel operating expenses - chemical tankers
Operational review Vessel operating expenses - chemical tankers 12,000 10,000 8,000 USD 6,000 4,000 2,000 0 05 06 07 08 09 10 11 12 13 14 USD / day, total USD/day, crew
Slide 16: Bunker development
Operational review Bunker development Net Bunker Cost 80 70 62.7 65.2 67.7 60.2 65.2 60 50 40 USD mill 68.6 70.1 71.1 72.3 30 69.4 20 10 - (4.8) (3.1) (4.8) (4.2) (7.1) (10) (2.0) (1.0) (1.8) (1.1) (0.4) (20) (30) 1Q13 2Q13 3Q13 4Q13 1Q14 Bunker purchase Bunker clauses Bunker hedging Net bunker cost
Slide 17: Fleet development - last 12 months
Operational review Fleet development - last 12 months Fleet additions DWT Built Tanks Transaction April 2014 Bow Trajectory 46 000 2014 Coated Bareboat April 2014 Bow Harmony 33 619 2008 Stainless Purchase March 2014 SG Friendship 19 773 2003 Stainless Medium-term TC Februay 2014 Berlian Ekuator 35
Slide 18: Fleet development – last 12 months
Operational review Fleet development – last 12 months Fleet disposals, owned DWT Built Tanks Transaction December 2013 Bow Mate 6 001 1999 Stainless Sale October 2013 Bow Eagle 24 700 1988 Stainless Sale May 2013 Bow Cheetah 40 257 1988 Coated Recycling
Slide 19: Odfjell Gas Carriers – current status
Operational review Odfjell Gas Carriers – current status Revenues and gross result improved compared to last quarter, positive outlook for the second quarter Current fleet consist of 2 x 9,000 cbm owned vessels and one on a 1 year time charter Fixed order of four 17,000 cbm gas carriers Opti
Slide 20: Terminal projects and expansions
Operational review Terminal projects and expansions • The expansion at the Antwerp terminal has been concluded, adding 50,000 cbm of tank capacity • Expansion project adding 30,000 cbm at the terminal in Houston is estimated to be completed by 3Q 2014 • The new terminal project in Tianjin is in good
Slide 21: Tank terminal capacity
Operational review Tank terminal capacity Total capacity in CBM (incl. related parties): Current capacity 5,448,602 Ongoing expansions 576,520 1,800 1,600 1,400 1,200 Cubic Metres`000 1,000 800 600 400 200 0 Mineral oil storage Chemical storage Ongoing expansions * Odfjell’s ownership share in the r
Slide 22: Odfjell Terminals (Rotterdam) – current status
Operational review Odfjell Terminals (Rotterdam) – current status • The process of re-organisation to improve the costbase to market level continues • Dialogue with the Unions has started • Level of activity at the terminal is reduced significantly • Commercial focus is on improving utilisation and
Slide 23: Reducing cost and improving efficiency
Market update and prospects Reducing cost and improving efficiency • A major reorganisation, efficiency drive and cost - cutting process have been kicked off • Review all aspects of our business model, including ownership models and organisational structures • Identify areas of improvements • Streng
Slide 24: Supervisory Authority of Norway (Finanstilsynet)
Operational review Supervisory Authority of Norway (Finanstilsynet) • Completed review of certain aspects of the Odfjell Group’s financial reporting for 2012 • The review did not have any impact on the approved consolidated financial statements for 2012 or 2013 • This letter can be reviewed in full
Slide 25: Market update – chemical tankers
Market update and prospects Market update – chemical tankers • Time charter results in line with previous quarter • Activity in the first quarter continued on a slow and disappointing pace • Volume and rates out of US remained strong, earnings weak on delays due to bad weather • Rates under pressure
Slide 26: Core Chemical Deep-sea Fleet - Orderbook and estimated demolition
Market update and prospects Core Chemical Deep-sea Fleet 2003-2017 - Orderbook and estimated demolition per May 5th, 2014 % o f y e a r - s t a r t 5 f e 0 l e t ' 00 0 0 D w t 2 , 0 0 1 . % Average annual net growth: 1 , 6 0 0 1 2 . 0 % 2003-2012: 8.2% 2013-2017: 3.3% 1 , 2 0 0 9 . 0 % 8 0 0 6 . 0
Slide 27: Prospects
Market update and prospects Prospects • Pace of the US economic growth is poised to snap back • The unrest in Ukraine is the biggest risk to an optimistic economic growth for the Euro zone • Disappointing economic indicators in China and debt default risk is rising • Second quarter expected to be be
Slide 28: Company representatives
Company representatives Jan A. Hammer – CEO, Odfjell SE Terje Iversen – CFO, Odfjell SE Email: Jan.Hammer@odfjell.com Email: Terje.Iversen@odfjell.com Phone: +47 908 39 719 Phone: +47 932 40 359 IR – contact: Tom A. Haugen – VP Finance, Odfjell SE Email: Tom.Haugen@odfjell.com Phone: +47 905 96 944
Slide 29: Thank you
Thank you For more information please visit our webpage at www.odfjell.com