Ocean Yield ASA — Q3 2018 Earnings Presentation
20 slides from Ocean Yield ASA's earnings presentation, Nov 2, 2018
Slide 1: Q3 2018 Presentation
Q3 2018 PRESENTATION 2nd November 2018
Slide 2: Q3 2018 Financial Highlights
Q3 2018 FINANCIAL HIGHLIGHTS • Declared Q3 2018 dividend of USD 0.1910 per share - USD 0.764 per share annualized - Dividend yield of 9.9% p.a. - Declared cash dividends for 21 consecutive quarters • EBITDA was USD 85.1m vs. USD 84.3m in Q2 - EBITDA adjusted for finance leases was USD 100.4m vs. USD
Slide 3: Recent Events
RECENT EVENTS • Investment and delivery of two IMO II chemical tankers with long- term charters to Ardmore Shipping • Delivery of three Suezmax tankers with 10 years charters to Nordic American Tankers • Delivery of four 3,800 TEU container vessels with 12-year contract to CMB • Dhirubhai-1 - Comple
Slide 4: Charter Backlog
CHARTER BACKLOG EBITDA1 BACKLOG OF USD 3.6 BILLION FLEET2 Tankers 24 8% Container vessels 10 18% 3% 4% 4% Oil-service 7 5% Avg. remaining charter 9% 2% Dry-bulk 7 5% tenor of 11.2 years 5% 2% Car carriers 6 3% 15% 2% 6% 10% Gas carriers 2 FPSO 1 Total 57 Average age 3.2 yr 1) EBITDA backlog based on
Slide 5: Investment in Two Chemical Tankers with Long-Term Charters
INVESTMENT IN TWO CHEMICAL TANKERS WITH LONG- TERM CHARTERS TRANSACTION DETAILS Net purchase price USD 25.5m per vessel / total of USD 51.0m Charter 12 years bareboat Purchase options During and at the end of the charter VESSEL DETAILS Vessel type 37,000 dwt IMO II chemical tankers Built 2015, Hyund
Slide 6: Dhirubhai-1: Current Situation
DHIRUBHAI-1: CURRENT SITUATION • Expiry of contract - Contract with Reliance Industries expired 19th September 2018 - FPSO has ceased production on the MA-field • De-mobilization - Hydrocarbon freeing of topside and subsea facilities completed - Vessel expected to leave India in Q4 2018 - Risers, um
Slide 7: Dhirubhai-1: Employment Opportunities
DHIRUBHAI-1: EMPLOYMENT OPPORTUNITIES • Increased interest for the FPSO - Improved market outlook - Expiry of purchase option • In discussions regarding long-term charter/sale - Pursuing several opportunities in parallel - Awarded a FEED study for one project - Targeting to secure new long-term cont
Slide 8: Dhirubhai-1: Financial Implications
DHIRUBHAI-1: FINANCIAL IMPLICATIONS • Impairment of book value - Current vessel book value of USD 255.5 million including goodwill - Risk of future impairment of the book value of the FPSO and related assets of USD 0-50m • Cash implications - Provision of USD 28.0m as per Q3 2018 related to de-mobil
Slide 9: Quarterly Financial Highlights
QUARTERLY FINANCIAL HIGHLIGHTS EBITDA PER QUARTER (USDM) 80.6 80.4 84.3 85.1 74.4 74.3 77.8 68.7 71.2 58.7 63.4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2016 2017 2018 NET PROFIT PER QUARTER (USDM) 36.8 39.9 32.7 33.3 35.1 30.6 31.3 30.9 25.5 18.6 0.7 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2016 2017 2018
Slide 10: Quarterly Financial Highlights
QUARTERLY FINANCIAL HIGHLIGHTS EBITDA ADJUSTED FOR FINANCE LEASES (USDM) 95.1 100.4 82.8 83.1 89.3 89.3 86.8 75.6 79.1 63.6 69.3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2016 2017 2018 ADJUSTED NET PROFIT (USDM) 36.9 36.3 37.9 37.3 31.6 33.4 33.4 33.5 34.4 33.9 29.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2016 201
Slide 11: Cash Dividends for 21 Consecutive Quarters
CASH DIVIDENDS FOR 21 CONSECUTIVE QUARTERS DIVIDEND PER SHARE (USD CENTS) DIVIDEND YIELD 18.25 18.50 18.75 18.85 18.95 19.05 19.10 19.10 16.75 17.25 17.75 9.9%1 p.a. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 1) Per 1.11.2018, Q3 2018 DPS annualized, share price of NOK 64.3, NOK/USD of 8.35 2016 2017 2018
Slide 12: Income Statement
INCOME STATEMENT INCOME STATEMENT Q2 Q3 Amounts in USD million 2018 2018 Operating revenues 69.8 66.2 Finance lease revenue 19.2 22.6 Income from investments in associates 6.1 6.1 Total revenues and other income 95.1 94.9 Vessel operating expenses (6.6) (6.0) Wages and other personnel expenses (2.3)
Slide 13: Adjusted Net Profit
ADJUSTED NET PROFIT ADJUSTMENTS Q2 Q3 Amounts in USD million 2018 2018 Net profit 35.1 39.9 Loss from sale of AMSC bonds 0.4 0.0 Repurchase of bond debt (OCY02) 0.2 0.8 Foreign exchange gains/losses -12.9 -1.2 • Bond and bank loans in NOK Change in fair value of financial instruments 13.6 -2.3 Chang
Slide 14: Balance Sheet
BALANCE SHEET BALANCE SHEET Q2 Q3 Q2 Q3 Amounts in USD million 2018 2018 2018 2018 ASSETS EQUITY AND LIABILITIES Goodwill 9.8 9.8 Equity to holders of the parent 935.0 942.4 Vessels and equipment 1,258.5 1,234.0 Non-controlling interests 11.2 11.6 Investments in associates 197.1 197.8 Total equity 9
Slide 15: Financing Overview per Q3 2018
FINANCING OVERVIEW PER Q3 2018 REMAINING CAPEX AND FINANCING OVERVIEW (USDM) 307 156 264 210 126 43 25 Remaining Remaining Remaining Undrawn Expected Remaining Available Suezmax VLCCs capex bank bank cash liquidity per financing financing payments Q3 2018 COMMENTS • Remaining obligations per Q3 2018
Slide 16: Outlook
OUTLOOK • Ambition to continue to expand the portfolio of vessels - Continued favorable market conditions for new transactions - Access to competitive funding from banks and capital markets • Dhirubhai-1 - Focus on securing a new long-term employment / sale of the unit - Expiry of charter contract w
Slide 17: Notes
NOTES November 18 17
Slide 18: Notes
NOTES November 18 18
Slide 19: Notes
NOTES November 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