Dampskibsselskabet Norden A/s · OMXCOP:DNORD
Dampskibsselskabet Norden A/s — Q3 2020 Earnings Presentation
28 slides from Dampskibsselskabet Norden A/s's earnings presentation, Nov 4, 2020
Slide 1: Presentation of Q3 2020 Results
PRESENTATION OF Q3 2020 RESULTS Copenhagen, Denmark, 4 November 2020
Slide 2: Agenda for Today
AGENDA FOR TODAY 01. Highlights Q3 02 Market outlook • Dry cargo • Tanker 03. Final words 04. Q&A 2 PRESENTATION OF Q3 2020 RESULTS
Slide 3: Highlights Q3 2020
01. HIGHLIGHTS Q3 2020 3 PRESENTATION OF Q3 2020 RESULTS
Slide 4: Business Update
01. HIGHLIGHTS Q3 AND YEAR-TO-DATE 2020 BUSINESS UPDATE Strong Q3 result compared to last year • Adjusted Result Q3 2020: USD 27 million (Q3 2019: USD -4 million) Quarterly Adjusted Results • Adjusted Result for the first nine months of 2020: USD 85 million 35 (first nine months of 2019: USD -8 mill
Slide 5: Business Unit Performance and Market Outlook
02. BUSINESS UNIT PERFORMANCE AND MARKET OUTLOOK 5 PRESENTATION OF Q3 2020 RESULTS
Slide 6: Asset Management: Results and Key Development
02. ASSET MANAGEMENT RESULTS AND KEY DEVELOPMENT Adjusted result in Q3 USD 5.7 million • Adjusted Result for the last 4 quarters: USD 28.7 million • EBIT in Q3: USD 13.1 million • NORDEN continues to shift exposure from tankers towards dry cargo: ▪ Acquired 1 secondhand Supramax and 2 Supramax newbu
Slide 7: Dry and Tanker Market in Q3 2020
02. ASSET MANAGEMENT DRY AND TANKER MARKET IN Q3 2020 Dry cargo slowly regaining strength Struggling tanker market • Gradual improvements in dry cargo market in Q3 • Tanker rates continued decline in Q3 • Supramax and Panamax values ended Q3 in line with end of Q2 • Asset prices and period rates hav
Slide 8: Market Outlook, Dry Cargo
02. ASSET MANAGEMENT MARKET OUTLOOK, DRY CARGO Supply growth continues to slow down in Q3 Dry cargo tracking Chinese resiliency • Fleet growth moving below 2% • Chinese imports driven by infrastructure investments and agricultural demand • Providing underlying support for dry cargo market • Brazilia
Slide 9: Market Outlook, Tanker
02. ASSET MANAGEMENT MARKET OUTLOOK, TANKER Oil demand slowly recovering Low order books providing market support • Oil demand rebounding, but slower than previously anticipated • Orders around 7% of fleet – lowest level in 25 years • Refinery runs will not return to 2019 levels before the start of
Slide 10: Dry Operator: Outstanding Result Through Active Management
02. DRY OPERATOR OUTSTANDING RESULT THROUGH ACTIVE MANAGEMENT Adjusted result of USD 31 million in Q3 Gradual improvement • Last four quarter total of USD 45 million • The dry cargo spot market slowly improved in Q3 • Last four quarter average adjusted result of USD 456 per vessel day • Average Supr
Slide 11: Tanker Operator: Challenging Period, Even for the Q3 Season
02. TANKER OPERATOR CHALLENGING PERIOD, EVEN FOR THE Q3 SEASON Adjusted result of USD -10 million in Q3 Low oil production and demand still lingering • Last four quarter total of USD 41.9 million • Significant reductions in global oil production and refinery activities combined with decreased demand
Slide 12: 2020 Guidance and Final Words
03. 2020 GUIDANCE AND FINAL WORDS 12 PRESENTATION OF Q3 2020 RESULTS
Slide 13: 2020 Guidance
03. 2020 GUIDANCE NORDEN raises guidance to an Adjusted Result for 2020 between USD 90 to 120 million. Asset management Dry operator Tanker operator • Still expects significant improvement in • Expects better Q4 2020 result than Q4 • Adjusted result around same level as for 2019 2020 profits compare
Slide 14: Substantial Value Beyond Asset Values
03. FINAL WORDS SUBSTANTIAL VALUE BEYOND ASSET VALUES Asset Management Dry Operator Tanker Operator Active management of cyclical Providing efficient global transport Providing efficient global transport market exposure within dry cargo solutions to customers and active solutions to and active manag
Slide 15: On Track for Best Result in 10 Years
03. FINAL WORDS ON TRACK FOR BEST RESULT IN 10 YEARS • Outstanding Q3 result from Dry Operator - sum of right decisions - Signifying operator’s ability to adjust its position - Generating high earnings in modest market • Agile business model proving to be crucial amid market volatility • Record high
Slide 16: Forward Looking Statements
03. 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 2020 and subsequent years are subject to uncertainty, and NORDEN’s actual
Slide 17: 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 17 PRESENTATION OF Q3 2020 RESULTS
Slide 18: Appendix
04. APPENDIX 18 PRESENTATION OF Q3 2020 RESULTS
Slide 19: Enabling Smarter Global Trade
04. APPENDIX ENABLING SMARTER GLOBAL TRADE Since 1871, NORDEN has been at the heart of global trade > Providing industry-leading operator and owner activities > Transporting dry cargo and product tanker commodities across the globe Vessels Diversified cargo base ~450 ~90% ~10% Dry Cargo Product Tank
Slide 20: Consolidated Income Statement
04. APPENDIX CONSOLIDATED INCOME STATEMENT USD million Q3 Q3 Q1-Q3 Q1-Q3 FY 2020 2019 2020 2020 2019 Revenue 656.0 650.3 1,886.3 1,928.4 2,583.9 Other operating income 4.0 3.3 13.7 11.2 16.3 Vessel operation costs -549.3 -589.3 -1,572.2 -1,750.4 -2,305.2 Contribution margin 110.7 64.3 327.8 189.2 29
Slide 21: Q3 2020 Financial Statement - Segments
04. APPENDIX Q3 2020 FINANCIAL STATEMENT - SEGMENTS USD million Q3 2020 Q3 2019 Asset Dry Tanker Asset Dry Tanker Management Operator Operator Eliminations Total Management Operator Operator Eliminations Total Segment information Revenue –services rendered, external 22.7 539.7 93.1 0.0 655.5 15.9 53
Slide 22: Cash Flow
04. APPENDIX CASH FLOW USD million Q3 Q3 Q1-Q3 Q1-Q3 FY 2020 2019 2020 2020 2019 USD million Profit/loss for the period 26.5 0.5 83.2 -13.2 19.2 Liquidity at beginning of the period 142.2 99.6 92.9 115.2 115.2 Reversal of items from the income statement 61.2 53.2 177.0 146.1 206.7 Exchange rate adju
Slide 23: Asset Management Fleet
04. APPENDIX ASSET MANAGEMENT FLEET Asset Management fleet Dry Cargo Tankers Total Active fleet Owned vessels1) 13 24 37 Leased vessels1)2) 38 14 52 Total active 51 38 89 For delivery Owned vessels1) 8 0 8 Leased vessels1)2) 2 9 11 Total for delivery 10 9 19 Purchase options 39 23 62 Period option d
Slide 24: Major Shipping Trends
04. APPENDIX MAJOR SHIPPING TRENDS Decarbonisation Shorter shipping cycles A changing China story Digitalisation • Climate change is a driver • Increased uncertainty and • Chinese economy developing • The industry is still highly complexity towards being less commodity analogue • Decreased global us
Slide 25: NORDEN's Transformation
04. APPENDIX NORDEN’S TRANSFORMATION NORDEN has transitioned to a new business unit structure, which brings more agility and focus. This transition will facilitate: Higher risk adjusted returns Better performance Beyond NAV • Short term trading-oriented • Transparency by establishment • Clear value
Slide 26: Business Unit Structure
04. APPENDIX BUSINESS UNIT STRUCTURE Asset Management Dry Operator Tanker Operator Active management of cyclical Providing efficient global transport Providing efficient global transport market exposure within dry cargo and solutions to customers and active solutions to and active management of prod
Slide 27: Business Unit Value Drivers
04. APPENDIX BUSINESS UNIT VALUE DRIVERS Market Regional Options Employment Clip deals Vessel Vessel Minimising Technical Pool exposure exposure arbitrage selection operation ballast management Management Taking a view on Taking a view on Securing and Choosing Securing margin Evaluating Speed settin
Slide 28: The Share (DNORD)
04. APPENDIX THE SHARE (DNORD) MASTER DATA COMPOSITION OF SHAREHOLDERS Shareholder capital DKK 40,700,000 Number of shares and denomination 40,700,000 shares of DKK 1 30.8% A/S Motortramp Classes of shares 1 5.8% NORDEN (treasury shares) Voting and ownership restrictions None 22.1% Other top 20 shar
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