Ocean Yield ASA — Q4 2018 Earnings Presentation
20 slides from Ocean Yield ASA's earnings presentation, Feb 13, 2019
Slide 1: Q4 2018 Presentation
Q4 2018 PRESENTATION 13th February 2019
Slide 2: Q4 2018 Financial Highlights
Q4 2018 FINANCIAL HIGHLIGHTS • Declared Q4 2018 dividend of USD 0.1910 per share - USD 0.764 per share annualized - Dividend yield of 10.6% p.a. - Declared cash dividends for 22 consecutive quarters • EBITDA was USD 35.5m vs. USD 85.1m in Q3 - EBITDA adjusted for finance leases was USD 51.3m vs. USD
Slide 3: Recent Events
RECENT EVENTS • Dhirubhai-1 - Option agreement with Aker Energy for a 15 year bareboat charter for the potential use for oil production offshore Ghana - Agreement with former charterer with respect to outstanding issues expected to be signed shortly • Investments and deliveries - Investment and deli
Slide 4: Charter Backlog
CHARTER BACKLOG EBITDA1 BACKLOG OF USD 3.6 BILLION FLEET2 Tankers 25 8% Container vessels 10 18 % 4% 3% Oil-service 7 5% 8% 2% Avg. remaining charter Dry-bulk 7 5% tenor of 11.1 years 5% 4% 2% Car carriers 6 3% 13 % 10 % 2% 6% Gas carriers 2 FPSO 1 Total 58 Average age 3.4 yr 1) EBITDA backlog based
Slide 5: Dhirubhai-1
DHIRUBHAI-1 • Current status - Agreement with former charterer on certain contractual issues expected to be signed shortly. Final cash payment of USD 25.9m expected in H1 2019 - Re-export process of the FPSO will start immediately after signing of the above agreement - Remaining demobilization activ
Slide 6: Dhirubhai-1: Option Agreement with Aker Energy for Potential Long-Term Charter
DHIRUBHAI-1: OPTION AGREEMENT WITH AKER ENERGY FOR POTENTIAL LONG-TERM CHARTER • Aker Energy secured option for long-term charter - Aker Energy will pay USD 3m for the option - Option for charter must be exercised before 1st May 2019 - Option could be extended by 30 days against additional compensat
Slide 7: Connector / Solstad Offshore
CONNECTOR / SOLSTAD OFFSHORE • Connector - The vessel completed its time-charter for cable-lay installation on Ørsted’s Hornsea Project One early in December - The vessel is currently being marketed for new projects - Positive long term outlook for subsea and cable-lay installation, but uncertain em
Slide 8: Investment in One Suezmax Crude Tanker with Long Term Charter
INVESTMENT IN ONE SUEZMAX CRUDE TANKER WITH LONG TERM CHARTER TRANSACTION DETAILS Gross purchase price USD 56.0m Seller’s credit USD 7.0m Net purchase price USD 49.0m Charter 13 years bareboat Purchase options Several purchase options during the charter VESSEL DETAILS Vessel type Suezmax crude tanke
Slide 9: Quarterly Financial Highlights
QUARTERLY FINANCIAL HIGHLIGHTS EBITDA PER QUARTER (USDM) 80,6 80,4 84,3 85,1 74,4 74,3 77,8 68,7 71,2 58,7 63,4 35,5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2017 2018 NET PROFIT PER QUARTER (USDM) 32,7 36,8 33,3 35,1 39,9 25,5 30,6 31,3 30,9 18,6 0,7 -49,9 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2
Slide 10: Adjusted EBITDA and Net Profit
ADJUSTED EBITDA AND NET PROFIT EBITDA ADJUSTED FOR FINANCE LEASES (USDM) 89,3 89,3 95,1 100,4 82,8 83,1 86,8 75,6 79,1 69,3 70.8 63,6 19.5 51.3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2017 2018 Impairment of receivables related to FPSO ADJUSTED NET PROFIT (USDM) 36,9 36,3 37,9 37,3 31,6 33,4 33,4 3
Slide 11: Cash Dividends for 22 Consecutive Quarters
CASH DIVIDENDS FOR 22 CONSECUTIVE QUARTERS DIVIDEND PER SHARE (USD CENTS) DIVIDEND YIELD 18,25 18,50 18,75 18,85 18,95 19,05 19,10 19,10 19,10 16,75 17,25 17,75 10.6%1 p.a. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1) Per 12.02.2019, Q4 2018 DPS annualized, share price of NOK 62.10, NOK/USD of 8.7 2016 20
Slide 12: Income Statement
INCOME STATEMENT INCOME STATEMENT Q3 Q4 Amounts in USD million 2018 2018 Operating revenues 66.2 34.0 Finance lease revenue 22.6 24.4 Income from investments in associates 6.1 5.8 Total revenues and other income 94.9 64.2 Vessel operating expenses (6.0) (4.2) Wages and other personnel expenses (1.8)
Slide 13: Adjusted Net Profit
ADJUSTED NET PROFIT ADJUSTMENTS Q3 Q3 Amounts in USD million 2018 2018 Net profit 39.9 -49.9 FPSO - write down of trade receivables 0.0 19.5 FPSO - impairment of goodwill 0.0 9.8 FPSO - increase in field abandonment costs 0.0 9.1 Impairment of Far Senator/Far Statesman 0.0 13.4 Loss from repurchase
Slide 14: Balance Sheet
BALANCE SHEET BALANCE SHEET Q3 Q4 Q3 Q4 Amounts in USD million 2018 2018 2018 2018 ASSETS EQUITY AND LIABILITIES Goodwill 9.8 0.0 Equity to holders of the parent 942.4 845.7 Vessels and equipment 1,234.0 1,195.6 Non-controlling interests 11.6 0.0 Investments in associates 197.8 191.9 Total equity 95
Slide 15: Financing Overview per Q4 2018
FINANCING OVERVIEW PER Q4 2018 REMAINING CAPEX AND FINANCING OVERVIEW (USDM) 206 142 197 49 39 19 10 Remaining Undrawn Remaining Remaining Suezmax Proforma Available VLCCs committed cash Suezmax bank rem. cash liquidity bank payments per Q1’19 financing payments Q4’18 financing per Q4’18 per Q1’19 C
Slide 16: Outlook
OUTLOOK • Strong focus on the redeployment of the FPSO Dhirubhai-1 and the announced agreement with Aker Energy may result in a new 15-year contract • Continues to see attractive investment opportunities across several segments and will continue to focus on further growth through investments in new
Slide 17: Notes
NOTES February 19 7
Slide 18: Notes
NOTES February 19 18
Slide 19: Notes
NOTES February 19 19
Slide 20: Investor Relations
INVESTOR RELATIONS Marius Magelie, SVP Finance & IR +47 24 13 01 82 mm@oceanyield.no www.oceanyield.no/IR