Dampskibsselskabet Norden A/s · OMXCOP:DNORD
Dampskibsselskabet Norden A/s — Q2 2023 Earnings Presentation
26 slides from Dampskibsselskabet Norden A/s's earnings presentation, Aug 10, 2023
Slide 1: Presentation of Second Quarter Results 2023
PRESENTATION OF SECOND QUARTER RESULTS 2023 Copenhagen, Denmark, 10 August 2023
Slide 2: Agenda for Today
AGENDA FOR TODAY 01. Second quarter 2023 highlights 02. Business unit performance • Freight Services & Trading • Assets & Logistics 03. Market development & outlook 04. Guidance for 2023 and sum-up 2 PRESENTATION OF Q2 RESULTS 2023
Slide 3: Second Quarter Highlights
01. SECOND QUARTER HIGHLIGHTS 3 PRESENTATION OF Q2 RESULTS 2023
Slide 4: Q2 2023 Group Highlights
01. Q2 2023 GROUP HIGHLIGHTS • Group net profit: USD 108 million in Q2 (USD 258 million in H1 2023) • Acquisition of Thorco Projects, contributing to FST margins going forward • Freight Services & Trading: USD 34 million • Assets & Logistics: USD 74 million • Assets & Logistics business unit NAV at
Slide 5: Fully Covered in Dry Cargo for 2023 with Increased Deferred Exposure
01. Q2 2023 HIGHLIGHTS FULLY COVERED IN DRY CARGO FOR 2023 WITH INCREASED DEFERRED EXPOSURE Net group position – end Q2 Net change in position – NORDEN Group Relative segment exposure – NORDEN Group Change during Q2 No. of vessels No. of vessels % segment risk use, Group 450 20 90% 10 80% 350 0 70%
Slide 6: Shareholder Cash Distribution
01. Q2 2023 HIGHLIGHTS SHAREHOLDER CASH DISTRIBUTION • Interim dividend of DKK 10 per share and share buy-back programme of up to USD 30 million • Returned approx. USD 1 billion to shareholders since 2020 • Net share count reduced by 19% since start of 2020 Shareholder cash distributions since 2020
Slide 7: Business Unit Performance
02. BUSINESS UNIT PERFORMANCE 7 PRESENTATION OF Q2 RESULTS 2023
Slide 8: Freight Services & Trading: Maintaining Profitability Across Market Segments
02. FREIGHT SERVICES & TRADING MAINTAINING PROFITABILITY ACROSS MARKET SEGMENTS RESULT PER VESSEL DAY Q2 PROFIT 2023: USD 34 MILLION USD / day 3,500 3,297 • Strong tanker earnings driven by profitable TC-out contracts 3,000 - Moving vessel positions towards Pacific at premium rates 2,500 - Secured f
Slide 9: Assets & Logistics: Strong Asset Trading Activity and Sales Gains
02. ASSETS & LOGISTICS STRONG ASSET TRADING ACTIVITY AND SALES GAINS NAV PER SHARE (END Q2) Q2 PROFIT 2023: USD 74 MILLION DKK Pay-out of DKK 500 75 in dividends • Slight decrease in NAV, ending at USD 1.7 billion, equal to DKK 347 per share 446 during period 450 422 - Driven by lower values on leas
Slide 10: Assets & Logistics: Extensive Optionality Provides Upside Value
02. ASSET & LOGISTICS EXTENSIVE OPTIONALITY PROVIDES UPSIDE VALUE • ~67,200 extension option days in total • Extension options: 194 options in total (122 options on dry cargo vessels and 72 on tanker vessels) • Purchase options: 84 options in total (55 in dry cargo, 29 in tankers) EXTENSION OPTIONS
Slide 11: Business Units Valuation
02. BUSINESS UNITS VALUATION ASSETS & LOGISTICS FREIGHT SERVICES & TRADING NAV-based valuation Earnings-based valuation Per 30/6/2023 Average USDm since 2019 Market value of own vessels 914 TOTAL VALUE Result per vessel day (USD) 1,367 Market value of T/C & Cover portfolio 362 OF NORDEN Net cash pos
Slide 12: Market Development and Outlook
03. MARKET DEVELOPMENT AND OUTLOOK 12 PRESENTATION OF Q2 RESULTS 2023
Slide 13: Dry and Tanker Market in Q2
03. MARKETS DRY AND TANKER MARKET IN Q2 Dry cargo market balance weakening during Q2 Tanker spot rates softening, but remain very strong • Global volumes growth driven exclusively by Chinese imports • Still driven by longer distances and inefficiencies due to sanctions - Rest of world import declini
Slide 14: Market Outlook in Dry Cargo
03. MARKETS MARKET OUTLOOK IN DRY CARGO Rates have normalized – fundamentals look good Vessel supply growth remains low • Congestion and other inefficiencies have dropped significantly • Historically low orderbooks - No more downside • Newbuilding ordering has picked up, but not significantly • Grow
Slide 15: Market Outlook in Tanker
03. MARKETS MARKET OUTLOOK IN TANKER Strong tanker market to continue Low fleet growth supporting asset prices and period rates • Product tanker market expected to remain strong throughout 2023 • Historically low orderbook at 4.7%, but picking up in product tankers • Supported by high refining margi
Slide 16: Guidance and Sum-up
04. 2022 GUIDANCE AND SUM-UP 16 PRESENTATION OF Q2 RESULTS 2023
Slide 17: 2023 Guidance
04. GUIDANCE 2023 GUIDANCE Full-year guidance for 2023 profit narrowed: USD 360-420 million FREIGHT SERVICES & TRADING ASSETS & LOGISTICS • Expecting much lower margins for the second half of the year • On-track to deliver a record result - Based on strong tanker market and high dry cargo cover in w
Slide 18: Solid Q2 Result
04. FINAL WORDS SOLID Q2 RESULT • Profit of USD 108 million and ROE of 30% for Q2 • Slightly lower margins in FST of USD 840 per day • Acquisition of Thorco Projects – expected to contribute to future margins • BU NAV at USD 1.7 billion, equal to DKK 347 per share • Solid sales gains and cover earni
Slide 19: Disclaimer: Forward Looking Statements
04. FINAL WORDS – DISCLAIMER FORWARD LOOKING STATEMENTS This presentation contains certain forward-looking statements reflecting the management’s present judgment of future events and financial results. Statements relating to 2023 and subsequent years are subject to uncertainty, and NORDEN’s actual
Slide 20: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION Dampskibsselskabet NORDEN A/S 52, Strandvejen DK-2900 Hellerup Denmark Phone: +45 3315 0451 www.ds-norden.com Connect with us 20 PRESENTATION OF Q2 RESULTS 2023
Slide 21: Appendix - About NORDEN
APPENDIX - ABOUT NORDEN 21 PRESENTATION OF Q2 RESULTS 2023
Slide 22: We Enable Smarter Global Trade
WE ENABLE SMARTER GLOBAL TRADE We are more than Tonnes of cargo carried Data points processed daily More than 425 140 m 9.4 bn 450 employees In 2022 to support decisions vessels operated 22 PRESENTATION OF Q2 RESULTS 2023
Slide 23: Business Units
BUSINESS UNITS ASSETS & LOGISTICS FREIGHT SERVICES AND TRADING Asset Management Logistics & Climate solutions Asset-Light Freight Services Dry cargo Product tanker Port logistics & Construction Foods & oils Energy Industrial vessels vessels decarbonisation • Asset trading of owned vessels • Integrat
Slide 24: NORDEN Strategy 2023-2025
NORDEN STRATEGY 2023-2025 HIGH-PERFORMING THE CUSTOMER ORGANISATION • Structured approach to large customers • Next-level leadership and development of our people • Securing the next projects in Logistics & Climate Solutions • Improve feedback culture • Expanding the NORDEN Tanker Pool • Data and an
Slide 25: NORDEN at a Glance
NORDEN AT A GLANCE 2005: NORDEN establishes Norient 2021: Product Pool with pool-partner Interorient Navigation NORDEN celebrates 150 years of sailing the seven seas 1923: Company Ltd., Cyprus NORDEN’s first motor vessel, NORDBO is delivered 2013: 2023: 1871: 1973: NORDEN conducts first NORDEN final
Slide 26: Macrotrends Affecting Shipping, NORDEN Strategy
Macrotrends affecting shipping NORDEN strategy Delivering smarter global trade Geopolitical for our customers and partners complexity High-performing organisation in a value-based culture Market volatility Tradable positions and focus on optionality Digitalisation Data, analytics and risk management
Dampskibsselskabet NORDEN — Q2 2023 Earnings Presentation on 6ix