Dampskibsselskabet Norden A/s · OMXCOP:DNORD
Dampskibsselskabet Norden A/s — Norden — Q3 2014 Earnings Presentation
28 slides from Dampskibsselskabet Norden A/s's earnings presentation, Nov 12, 2014
Slide 1: NORDEN Results Third quarter of 2014
NORDEN RESULTS Third quarter of 2014 Hellerup, Denmark 12 November 2014 NORDEN – Third quarter of 2014 results | 1 Our business is global tramp shipping
Slide 2: Agenda
AGENDA Group highlights Financials Dry Cargo Tankers 2014 expectations Q & A NORDEN – Third quarter of 2014 results | 2 Our business is global tramp shipping
Slide 3: Q3 Highlights
Q3 HIGHLIGTS EBITDA Key messages 20 19 EBITDA USD -11 million in continued 15 weak markets 10 USD million 5 Results are not satisfactory, but in line 0 with the most recently announced -5 expectations -10 -8 -8 -7 -11 -15 Continued weakness in dry cargo market, Q3 2013 Q4 2013 Q1 2014 Q2 2014
Slide 4: Poor market but strong performance in both dry cargo and product tankers
FINANCIALS POOR MARKET BUT STRONG PERFORMANCE IN BOTH DRY CARGO AND PRODUCT TANKERS Group EBITDA of USD -11 EBITDA million 15 Dry Cargo 14 Tankers 10 10 12 11 Dry Cargo EBITDA of USD -16 10 5 10 million 9 8 USD million Million USD 0 8 Tanker EBITDA of USD 8 million -5 6 -6 -10 4 -15 Dry Carg
Slide 5: Improvement in cash flow from operations
FINANCIALS IMPROVEMENT IN CASH FLOW FROM OPERATIONS Cash flow from operations USD 9 million – partly driven by improving working capital Undrawn credit facilities End of quarter: USD 295 million After end of quarter: new 5-year credit facility of USD 100 million Gearing 1.60 1.40 1.20 1.00
Slide 6: Market value of fleet still above book values
FINANCIALS MARKET VALUE OF FLEET STILL ABOVE BOOK VALUES Market value of NORDEN’s fleet continues to be above book values Asset values have decreased through Q3 Currently limited activity in asset market and values are sliding due to disappointing charter rates 5-year secondhand prices Added v
Slide 7: Dry Cargo: Current rates still below 2013 levels
DRY CARGO CURRENT RATES STILL BELOW 2013 LEVELS Due to the poor market Capesize Panamax conditions in Q2 and Q3, 45,000 18,000 average BDI is on par with 40,000 16,000 35,000 14,000 same period in 2013 30,000 12,000 USD/day USD/day 25,000 10,000 20,000 8,000 Growth in Chinese iron ore 15,000 6,0
Slide 8: Market improvement in Q4 highly dependent on increase in transport of coal
DRY CARGO MARKET IMPROVEMENT IN Q4 HIGHLY DEPENDENT ON INCREASE IN TRANSPORT OF COAL In spite of recent uptick, market improvement in Q4 is constrained by weak coal volumes to China caused by a political effort to protect own coal mining industry For the rest of 2014, China has intentions to low
Slide 9: Product Tankers: Improved market in Q3 and current strong spike
PRODUCT TANKERS IMPROVED MARKET IN Q3 AND CURRENT STRONG SPIKE Rates for MRs improved as US refineries returned from maintenance Increased exports of refined products out of Middle East Significant spike in current rates across all product tanker segments West CPP East CPP DPP 25,000 25,000 45
Slide 10: Increasing exports for Middle East will continue to support market
PRODUCT TANKERS INCREASING EXPORTS FOR MIDDLE EAST WILL CONTINUE TO SUPPORT MARKET Positive near-term outlook as we enter winter season New export refineries in Middle East continue to ramp up Improved crude markets could provide upside for product tankers Supply growth will increase in 2015
Slide 11: 2014 Full Year Guidance
2014 FULL YEAR GUIDANCE Outlook Comments USDm Dry Cargo Tankers Total Guidance based on current capacity and coverage EBITDA -60 to -30 15 to 45 -60 to 0 Profit from 0 vessel sales Only known and confirmed vessel sales are included in CAPEX 100-120 guidance Guidance on CAPEX is lowered to USD
Slide 12: 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 the remainder of 2014 and subsequent years are subject to uncertainty, and NORDEN’s actual results may therefore differ from the p
Slide 13: Thank you for your attention
Thank you for your attention Get mobile version of NORDEN’s website. Scan and add to home screen. Or go to m.ds-norden.com Dampskibsselskabet NORDEN A/S 52, Strandvejen DK-2900 Hellerup Denmark Phone: +45 3315 0451 www.ds-norden.com NORDEN – Third quarter of 2014 results | 13 Our business is global
Slide 14: Back Up
BACK UP NORDEN – Third quarter of 2014 results | 14 Our business is global tramp shipping
Slide 15: A leading global tramp operator
A LEADING GLOBAL TRAMP OPERATOR Dry Cargo Capesize Post-Panamax Panamax Supramax Handysize 250 200 150 100 50 0 Dry cargo Tankers NORDEN vessels Pool vessels Tankers MR Handysize Modern fleet Global network of offices and port captains Pools in Dry cargo (Handysize & Post-Panamax) and Tankers
Slide 16: Asset light business model
ASSET LIGHT BUSINESS MODEL… Active fleet can quickly be adjusted to demand and market conditions Fleet employment based on portfolio view Significant asset upside through purchase options Flexible fleet Coverage and customer focus Capacity Employment Sale and purchase Customer relations Co
Slide 17: Enabling value creation based on the cycle and throughout the cycle
…ENABLING VALUE CREATION BASED ON THE CYCLE AND THROUGHOUT THE CYCLE Exploiting the cycle Creating value throughout the cycle Taking a view on the fundamental market and Creating value above industry level irrespective of adjusting our exposure market conditions Levers: Levers: Commercial operations
Slide 18: Overall results
OVERALL RESULTS USDm Q3 2013 Q2 2014 Q3 2014 EBITDA - Dry Cargo 10 -6 -16 EBITDA - Tankers 11 1 8 Unallocated -2 -3 -3 EBITDA - Group 19 -7 -11 Depreciation -21 -16 -19 EBIT Group -1 -27 -28 Net profit 1 -42 -46 Cash from operations 4 -29 9 Net Cash flow 29 -110 -31 Cash and securities 529 323 279 N
Slide 19: Last 5 years performance
LAST 5 YEARS PERFORMANCE Earnings per share (USD) Return on equity 12.4% 12.9% 5.8 5.2 4.4% 2.1 -2.9% -1.2 -15.1% -6.8 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Cash flows, operations and investments (USDm) Dividend yield 4.0% 298 7 3.3% 160 3.0% 120 122 -9 -80 -103 1.8% 1.8% -380 -355 2009
Slide 20: Dry Cargo: 12 month rolling average rates
USD/day USD/day - - 10,000 15,000 20,000 25,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 5,000 5,000 Jan-10 Jan-10 Apr-10 Apr-10 Capesize Supramax Jul-10 Jul-10 DRY CARGO Oct-10 Oct-10 Jan-11 Jan-11 Apr-11 Apr-11 Jul-11 Jul-11 Oct-11 Oct-11 Jan-12 Jan-12 NORDEN – Third quarter
Slide 21: Dry Cargo: Regional rates
DRY CARGO REGIONAL RATES Handysize Supramax Panamax 7 16 15 USD 1,000/day USD 1,000/day USD 1,000/day 6 14 5 12 10 10 4 8 3 5 6 2 4 1 0 2 0 0 -1 -2 -5 -2 -4 -3 -6 -10 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan FebMar Apr May Jun Jul Aug Sep Oc
Slide 22: Financial strength
FINANCIAL STRENGTH Strong capital structure Net committed cash Strong focus on cash flow USDm Q3 2014 Q2 2014 generation Adjusted net interest bearing 3 48 assets* Cash in low-risk deposit T/C obligations** -1,579 -1,670 accounts and securities Newbuilding instalments less -397 -424 proceeds fro
Slide 23: Fleet values
FLEET VALUES NORDEN – Third quarter of 2014 results | 23 Our business is global tramp shipping
Slide 24: Dry cargo fleet overview
DRY CARGO FLEET OVERVIEW NORDEN – Third quarter of 2014 results | 24 Our business is global tramp shipping
Slide 25: Product tanker fleet overview
PRODUCT TANKER FLEET OVERVIEW NORDEN – Third quarter of 2014 results | 25 Our business is global tramp shipping
Slide 26: Dry Cargo
DRY CARGO NORDEN – Third quarter of 2014 results | 26 Our business is global tramp shipping
Slide 27: Product Tankers
PRODUCT TANKERS NORDEN – Third quarter of 2014 results | 27 Our business is global tramp shipping
Slide 28: The share (DNORD)
THE SHARE (DNORD) Master data Composition of shareholders 16,172 registered shareholders Shareholder capital DKK 42,200,000 owning 90.9% Number of shares and 42,200,000 shares of Approx. 40% international denomination DKK 1 ownership Classes of shares 1 Voting and ownership restrictions None A/S