Vallianz Holdings Limited · SGX:WPC
Vallianz — 2Q 2015 Earnings Presentation
18 slides from Vallianz's earnings presentation, Aug 12, 2015
Slide 1: Corporate Presentation
Corporate Presentation 12 August 2015 This presentation has been prepared by the Company and its contents have been reviewed by the Company’s sponsor, Provenance Capital Pte. Ltd., for compliance with the relevant rules of the Singapore Exchange Securities Trading Limited (the “SGX-ST”). The Company
Slide 2: Disclaimer
DISCLAIMER This presentation and the information contained herein does not constitute or form any part of any offer or invitation to sell or issue, or any solicitation of any offer to subscribe for or purchase any securities of Vallianz Holdings Limited (the “Company”) or any of its subsidiaries and
Slide 3: Business Overview
BUSINESS OVERVIEW Fast Growing Provider of Offshore Support Vessels and Integrated Marine Solutions • Integrated marine services – vessel ownership, chartering, ship management and crewing services • Own and operate a young and growing fleet of offshore support vessels • Strong foothold in the Middl
Slide 4: Young and Diversified Fleet
YOUNG AND DIVERISIFED FLEET Own 40 Offshore Support Vessels Owned Fleet Owned Fleet Capacity Vessels Owned Fleet Average Age = 3 Years AHT 4200 – 4750 BHP 2 8 AHTS (DP1) 5150 – 6400 BHP 14 6 AHTS (DP2) 6000 – 7300 BHP 5 PSV (DP2) 2529 – 3300T DW 6 4 Towing Tug 3200 BHP 2 Others 1350 - 2400 BHP 11 2
Slide 5: Corporate Highlights
CORPORATE HIGHLIGHTS Continues to Win New Long-Term Charter Contracts Amid Uncertain Market Climate 2015 July 13 US$300M 5 years + 2-year option 3Q2015 to Year 2022 Contract Value Contract Duration Charter Period SUPPLY TWO SELF-ELEVATING PLATFORMS TO As project manager, Vallianz will work closely w
Slide 6: Financial Highlights: Profit and Loss Summary
FINANCIAL HIGHLIGHTS Profit and Loss Summary yoy yoy (US$ M) 1Q15 2Q15 2Q14 1H15 1H14 change change Revenue 60.7 65.0 38.6 68.6% 125.7 66.3 89.8% Gross Profit 16.0 17.8 13.9 27.9% 33.8 24.2 39.5% EBITDA 19.8 21.3 14.8 43.9% 41.2 26.0 58.5% Net Profit After 5.5 4.6 5.8 (20.9%) 10.1 11.2 (9.8%) Tax Ne
Slide 7: Financial Highlights: Steady Growth in Revenue
FINANCIAL HIGHLIGHTS Steady Growth in Revenue Group Revenue (US$ M) 180 160 153.7 140 120 125.7 90% 100 69% yoy 80 60 66.3 65.0 60.7 40 48.1 38.6 39.3 20 27.7 0 FY2014 1H2014 1H2015 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 Average Fleet Utilisation in 2Q15 = approximately 82%
Slide 8: Financial Highlights: Change in Revenue Composition
FINANCIAL HIGHLIGHTS Change in Revenue Composition Revenue Breakdown (1H14) Revenue Breakdown (1H15) Ship management Vessel and Shipyard Vessel Management services, chartering & & Services, 32% brokerage, 8% Chartering & 87% brokerage, Investment, 66% Investment, 5% 2% • Chartering revenue derived f
Slide 9: Financial Highlights: Sustained Profitability
FINANCIAL HIGHLIGHTS Sustained Profitability Despite Weaker Market Environment EBITDA (US$ M) GROSS PROFIT MARGIN 61.5 2Q15 27% 1Q15 26% 41.2 44% yoy 4Q14 35% 25.9 3Q14 37% 21.4 18.6 17.0 19.8 14.7 2Q14 36% 11.2 1Q14 37% FY2014 1H2014 1H2015 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 NET PROFIT (US$ M) GPM stabl
Slide 10: Financial Highlights: Balance Sheet and Key Ratios
FINANCIAL HIGHLIGHTS Balance Sheet and Key Financial Ratios 30 Jun 2015 31 Dec 2014 (US$’ 000) (US$’ 000) Total Cash and Cash Equivalents 15,661 20,754 Total Assets 987,783 971,714 Total Debt 532,206 544,104 Total Equity 258,987 240,748 30 Jun 2015 31 Dec 2014 Return on Average Equity (1) 9.0% 15.9%
Slide 11: Financial Highlights: Debt and Capital Management
FINANCIAL HIGHLIGHTS Debt and Capital Management Financing backed by book value of owned vessels Improvement in gearing Net and Gross Gearing 611.0 Working Capital 34.8 3.50 MTN 117.1 3.09 3.01 3.00 2.95 2.81 2.75 2.50 2.53 2.26 2.19 2.05 Assets 2.16 2.09 Financing 2.00 1.98 380.3 1.50 (US$ M) 1.00
Slide 12: Financial Highlights: Improving Cash Flow
FINANCIAL HIGHLIGHTS Improving Cash Flow (US$ M) (US$ M) 7.8 19.2 11.1 24.1 0 2.0 5.8 -6.3 -4.9 0 18.8 -7.7 -52.5 -47.7 -46.2 -14.8 -32.9 • Cash flows turned positive • Completed major capex to drive initial growth -117.3 -155.5 -272.8 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 1H2014 2H2014 1H2015 O
Slide 13: Group Outlook
Group Outlook
Slide 14: Robust Order Book
ROBUST ORDER BOOK Order book of US$968M; Clear Revenue Visibility for next 5 years US$303M US$97M US$503M US$35M US$30M Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Order Book 1000 968 (US$ M) 800 600 540 470 462 400 200 0 31 Dec 2013 31 Dec 2014 31 Mar 2015 July 2015
Slide 15: Group Outlook: Defensively Positioned
GROUP OUTLOOK Vallianz is Defensively Positioned in Current Environment Our OSV chartering business focuses on shallow water oil field projects • Lower break-even costs • Less susceptible to capex cuts Securing long-term charter contracts • 5 years • Higher revenue stability to ride out oil price vo
Slide 16: Group Outlook: Positive Long-Term Growth Outlook
GROUP OUTLOOK Vallianz Maintains Positive Long-Term Growth Outlook Strategy & Focus – Business Sustainability Despite presently Jackup demand by region tougher market MARKET STRATEGY Middle East jackup demand continues to environment, • Near-term: Focus on Middle East increase Vallianz achieved : •
Slide 17: Key Takeaways
KEY TAKEAWAYS Fast growing OSV player with young fleet & integrated capabilities Strongly anchored in the Middle East market Penetrating new growth markets to expand future earnings base Defensively positioned – longer-term charter contracts, focus on shallow waters, high exposure to NOCs Clear turn
Slide 18: Vallianz Holdings Limited Contact Details
Vallianz Holdings Limited Investor Relations Contact 12 International Business Park Octant Consulting #03-02 Swiber@IBP Tel: +65 6296 3583 Singapore 609920 herman@octant.com.sg Tel: +65 6505 0600 lisa@octant.com.sg