Ocean Yield ASA — Q4 2019 Earnings Presentation
16 slides from Ocean Yield ASA's earnings presentation, Feb 13, 2020
Slide 1: Q4 2019 Presentation
Q4 2019 PRESENTATION 13th February 2020
Slide 2: Q4 2019 Financial Highlights
Q4 2019 FINANCIAL HIGHLIGHTS • Declared Q4 2019 dividend of USD 0.1910 per share - Declared cash dividends for 26 consecutive quarters • EBITDA was USD 56.6m vs. Q3 of USD 57.2m - EBITDA adjusted for finance leases was USD 80.0m vs. USD 80.8m in Q3 • Net profit after tax was USD 9.6m vs. Q3 of USD -
Slide 3: Recent Events
RECENT EVENTS • Vessels with long-term charter - Acquisition and delivery of one ethylene gas carrier - Acquisition and delivery of two newcastlemax dry bulk newbuildings - Acquisition and delivery of four LR2 product tankers - Notice of declaration of purchase options on two chemical tankers - Acqu
Slide 4: Investment in Three Dry Bulk Vessels with Long-Term Charters
INVESTMENT IN THREE DRY BULK VESSELS WITH LONG- TERM CHARTERS TRANSACTION DETAILS Net purchase price Total of USD 62.8m for 3 vessels Charter 9, 10 and 12 years bareboat Options Several options during the charter Scrubber financing USD 4.5m / USD 1.5m per vessel in 2020 VESSEL DETAILS Vessel Type Bu
Slide 5: Vessels with Long-Term Charters
VESSELS WITH LONG-TERM CHARTERS EBITDA1 BACKLOG OF USD 3.6 BILLION, INCLUDING RECENT TRANSACTIONS FLEET2 Product / chemical 20 16 % 6% 3% Dry bulk 16 3% 4% 7% Container vessels 10 2% Avg. remaining 4% 9 3% charter tenor of 3% Crude 10.5 years 4% 2% 3% 1% 8% Car carriers 6 5% 3% 7% 12 % 5% Oil-servic
Slide 6: FPSO Dhirubhai-1
FPSO DHIRUBHAI-1 • Sale - Several opportunities are being evaluated, however, this is taking more time than earlier envisaged - The option agreement with Aker Energy expired at the end of 2019 - Discussions are continuing with respect to potential use of the unit in Ghana • Demobilization in India -
Slide 7: Connector / FAR Senator & FAR Statesman
CONNECTOR / FAR SENATOR & FAR STATESMAN • Connector - Completed its previous short-term contract in October - Awarded a new time-charter contract with Ocean Installer ▪ Expected duration of about 175 days ▪ Expected commencement in early March ▪ Subsea installation work in South China Sea’s - Expect
Slide 8: Adjusted EBITDA and Net Profit
ADJUSTED EBITDA AND NET PROFIT EBITDA ADJUSTED FOR FINANCE LEASES (USDM) ADJ. NET PROFIT Q4 2019 From vessels with long-term charter of USD 26.6m From vessels without ADJUSTED NET PROFIT (USDM) long-term charter of USD -11.3m
Slide 9: Income Statement
INCOME STATEMENT INCOME STATEMENT
Slide 10: Adjusted EBITDA and Net Profit: Adjustments
ADJUSTED EBITDA AND NET PROFIT ADJUSTMENTS
Slide 11: Segment Reporting
SEGMENT REPORTING ADJUSTED INCOME SEGMENT Q4 2019 *The segment Other and eliminations is mainly interest expenses related to the bond loans in Ocean Yield ASA and G&A.
Slide 12: Balance Sheet
BALANCE SHEET BALANCE SHEET Q3 Q4 Q3 Q4 Amounts in USD million 2019 2019 2019 2019 ASSETS EQUITY AND LIABILITIES Common equity 679 738 Vessels and equipment 1,067 1,054 Hybrid capital 125 125 Investments in associates 174 178 Non-controlling interests 13 13 Finance lease receivables 1,266 1,484 Tota
Slide 13: Capex and Financing Overview
CAPEX AND FINANCING OVERVIEW CAPEX AND EXPECTED FINANCING AS PER Q4 2019 ADJUSTED FOR RECENT TRANSACTIONS 53 COMMENTS • Remaining capex per Q4 2019 adjusted for recent transactions relate to one newcastlemax on charter to CMB and three dry bulk vessels on charter to Scorpio Bulkers
Slide 14: Recent Financing
RECENT FINANCING • Secured bank loans - SBM Installer refinancing USD 75 million - 4 Navig8 LR2s USD 126 million - Navigator Aurora USD 54 million - Bulk Shanghai/Seoul USD 76 million - Newcastlemax NB (CMB) USD 37 million - Interlink Eternity USD 16 million • Sr. Unsecured Bond - Amount NOK 750 mil
Slide 15: Outlook
OUTLOOK • Attractive investment opportunities across several segments • Several opportunities are being evaluated for the FPSO Dhirubhai-1. This is, however, taking more time than earlier envisaged • The current intention of the Board of Directors is to adjust the dividend from USD 0.1910 to USD 0.1
Slide 16: Investor Relations
INVESTOR RELATIONS Marius Magelie, SVP Finance & Investor Relations +47 24 13 01 82 mm@oceanyield.no www.oceanyield.no/IR