Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Rickmers Maritime — Q1 2016 Earnings Presentation
22 slides from Singapore Exchange's earnings presentation, Apr 30, 2016
Slide 1: Financial Results Presentation First Quarter 2016
Financial Results Presentation First Quarter 2016 30 April 2016
Slide 2: Disclaimer
Disclaimer This presentation should be read in conjunction with Rickmers Maritime’s financial statements for the first quarter ended 31 March 2016, released via the SGXNET. This presentation is not and does not constitute or form part of, and is not made in connection with, any offer, invitation or
Slide 3: Table of Contents
TABLE OF CONTENTS Highlights Financial Performance Business Review Moving Forward
Slide 4: Highlights
Highlights 1Q2016 financial performance impacted by weak charter market: • Decline in charter revenue due to lower charter rates secured for vessels which commenced new charters, and lower vessel utilisation rate for 1Q2016 • Net loss of US$1.4 million in 1Q2016 vs net profit of US$7.0 million in
Slide 5: Table of Contents
TABLE OF CONTENTS Highlights Financial Performance Business Review Moving Forward
Slide 6: Income Statement
Income Statement In US$'000 1Q2016 1Q2015 %∆ Charter revenue 21,326 28,636 (26) Other income 335 1,665 (80) Other (losses)/gains - net (1,599) 1,812 NM Total income 20,062 32,113 (38) Add/(less): Depreciation (7,217) (8,863) (19) Vessel operating expenses (9,741) (9,568) 2 Trustee-Manager fee (690)
Slide 7: Balance Sheet
Balance Sheet In US$'000 As at 31 Mar 2016 As at 31 Dec 2015 %∆ Assets Cash and cash equivalents 40,848 45,064 (9) Net book value of vessels 699,076 706,011 (1) Other current and non-current assets 3,437 4,005 (14) Total assets 743,361 755,080 (2) Liabilities Secured bank loans 300,656^ 313,383 (4)
Slide 8: Statement of Cash Flows
Statement of Cash Flows In US$'000 1Q2016 1Q2015 Cash flow from: Operating activities 10,512 17,959 Investing activities (117) (379) Financing activities (14,747) (22,012) Net change in cash & cash equivalents (4,352) (4,432) Cash & cash equivalents at beginning of period 45,064 60,008 Effects of ex
Slide 9: Bank Loans Repayment Profile
Bank Loans Repayment Profile Continue to deleverage: Pared down secured bank loans of US$12.9m in 1Q2016 Total bank debt remaining: US$301.2m (as at 31 Mar 2016) Actual Estimated 1Q 2Q-4Q FY FY FY FY Repayment (in US$ million) 2016 2016 2017 2018 2019 2020-2021 Scheduled bank loan repayments 11.
Slide 10: Outstanding Bank Loans
Outstanding Bank Loans as at 31 March 2016 Refinance bank debt to minimise amortisation, and position the Trust to assess capital for growth and repayment of MTN Discussions on comprehensive refinancing of all facilities underway Loan Facility Margin above 3- Year of Face Value Carrying Amount V
Slide 11: Gearing
Gearing Gearing ratio remained healthy at 51% as at 31 Mar 2016 EBITDA-to-interest coverage ratio for 1Q2016: 3.0x US$'000 Gearing 1,200,000 1,000,000 800,000 600,000 400,000 59% 49% 47% 51% 51% 200,000 0 FY2012 FY2013 FY2014 FY2015 1Q2016 Gearing ratio^ Unitholders' Funds + Debt Debt External B
Slide 12: Table of Contents
TABLE OF CONTENTS Highlights Financial Performance Business Review Moving Forward
Slide 13: Fleet Utilisation
Fleet Utilisation Acceptable vessel utilisation rate of 92.3% for 1Q2016 amid weaker charter market Average age of vessels: 8.5 years as at 31 Mar 2016 1Q2016 1Q2015 Number of Vessels 16 16 Vessel Ownership Days 1,456 1,440 Off-hire Days* 112.7^ 17.1+ Fleet Utilisation 92.3% 98.8% * Exclude sche
Slide 14: Fleet Employment Profile
Fleet Employment Profile Average remaining charter period: 0.9 years as at 31 Mar 2016 Secured revenue to the last contract expiry in 2019: US$125.7m Minimum Time Charter Period Fleet is 60.3% employed for 2016 Expiration Period Name TEU Charterparty Charter Rate 2016 2017 2018 2019 20 1 Moni
Slide 15: Diversified Portfolio of Charterers
Diversified Portfolio of Charterers Vessels chartered to leading container liner companies to minimise counterparty risk 1Q2016 Revenue: US$21.3m 1Q2015 Revenue: US$28.6m Italia Marittima Simatech Maersk Hanjin 5% 2% 5% Hanjin MSC 11% 8% 1% Maersk 5% CMA CGM 17% NYK Line 8% CMA CGM 38% MOL MOL 42%
Slide 16: Container Time Charter Market
Container Time Charter Market Charter rates remained depressed in 1Q2016: • Daily charter rates for 3,500 TEU vessels ↓ from US$6,000 in Dec 2015 to US$5,750 in Mar 2016 • Daily charter rates for 4,400 TEU vessels ↓ from US$6,000 in Dec 2015 to US$5,800 in Mar 2016 US$/day 45,000 40,000 35,000 30,
Slide 17: Market Outlook
Market Outlook Supply-demand balance could improve in 2016 with stronger trade growth, slower deliveries of new vessels and higher scrapping activities • Increased scrapping activities: 136,202 TEU scrapped in 1Q2016, 71% of 192,428 TEU scrapped in 2015 • Supply of new vessels to ease in the next
Slide 18: Business Outlook
Business Outlook Depressed container shipping market persisted into 2016: Demand remains weak and tonnage overhang continues to weigh on charter rates Charter rates are expected to remain low in the coming months until a better balance between trade growth and vessel supply is reached Stronger
Slide 19: Table of Contents
TABLE OF CONTENTS Highlights Financial Performance Business Review Moving Forward
Slide 20: Moving Forward
Moving Forward Secured revenue of US$125.7m from 1 Apr 2016 and the expiry of the last charter party contract in 2019 Average remaining charter period: 0.9 years as at 31 Mar 2016 Remain focused on keeping the Trust’s vessels employed Secure shorter and more flexible charters in order to fix
Slide 21: Strategic Direction
Strategic Direction Focus in 2016: Create clear runway for growth Keep vessels employed with minimal idle time: Secure flexible and shorter-term charters until market Pursue growth improves opportunities as Strengthen financial position and extend loan market recovers maturity profile to pursue
Slide 22: Thank You
THANK YOU For more information, please visit: www.rickmers-maritime.com