Dampskibsselskabet Norden A/s · OMXCOP:DNORD
Dampskibsselskabet Norden A/s — Norden — Q2 2015 Earnings Presentation
29 slides from Dampskibsselskabet Norden A/s's earnings presentation, Aug 12, 2015
Slide 1: NORDEN Results Second quarter and first half-year of 2015
NORDEN RESULTS Second quarter and first half-year of 2015 Hellerup, Denmark 12 August 2015 NORDEN – Second quarter and first half-year of 2015 results | 1 Our business is global tramp shipping
Slide 2: Agenda
AGENDA Group highlights Financials Dry Cargo Tankers 2015 expectations Q & A NORDEN – Second quarter and first half-year of 2015 results | 2 Our business is global tramp shipping
Slide 3: Q2 Highlights
Q2 HIGHLIGHTS EBIT Key messages 100 Group EBIT for the second quarter of 50 30 36 2015 of USD 36 mill. (USD -27 mill.) 0 -28 -50 -27 -28 Best Tanker result in NORDENs history -100 -150 Maximizing earnings in very strong -200 -230* spot market -250 -258 -300 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2
Slide 4: Tanker result continues to climb
FINANCIALS TANKER RESULT CONTINUES TO CLIMB Group EBIT of USD 36 million EBIT Dry Cargo Tankers Dry Cargo EBIT of USD 6 million 40 35 33 4 6 30 28 Tanker EBIT of USD 33 million -10 -18 25 -22 -60 20 17 Million USD Million USD -110 15 -160 10 Dry Cargo -210 5 0 -260 45% higher than the 1-ye
Slide 5: Asset prices have bottomed
FINANCIALS ASSET PRICES HAVE BOTTOMED Asset values for Dry Cargo flattened out at the end of Q2 and have started to increase Tanker values have still not moved much in spite of strong spot market Market value of NORDEN’s fleet below book values by USD 166 million 5-year secondhand prices Added
Slide 6: Strong cash generation
FINANCIALS STRONG CASH GENERATION Cash flow from operations USD 65 million Partly driven by improving working capital Combined undrawn credit facilities, cash and securities at USD 742 million Cover for yard payments per 30/6 Gearing 800 1.80 700 1.60 Undrawn 1.40 600 credit facilities 1.20
Slide 7: Dry Cargo: very poor Q2 but recent rebound
DRY CARGO VERY POOR Q2 BUT RECENT REBOUND Very depressed market in all Capesize Panamax segments in Q2 despite an 45,000 18,000 increase towards the end of 40,000 16,000 35,000 14,000 the quarter 30,000 12,000 USD/day USD/day 25,000 10,000 20,000 8,000 Chinese imports declining due 15,000 6,000
Slide 8: Continued low fleet growth
DRY CARGO CONTINUED LOW FLEET GROWTH Very limited fleet growth in Q2 Scrapping rate around 5% annualised However the pace of scrapping has slowed down. Chinese Iron ore stocks back to low point seen in 2013 – restocking potential expected to support demand in the 2H 2015 China iron ore inven
Slide 9: Tanker market continues to prosper
TANKERS TANKER MARKET CONTINUES TO PROSPER The product tanker market has remained strong for both East and West-bound trade – strongly supported by high gasoline demand in especially the US Strong crude freight rates as demand for refinery feedstock and crude storage incentive remained high Spot
Slide 10: Increasing oil demand
TANKERS INCREASING OIL DEMAND Expectations for 2015 oil demand growth increased and high initial expectations to 2016 demand growth Low oil prices led to high global refinery utilization rates High refinery activity in Europe Unexpected strong demand for gasoline High fleet growth for prod
Slide 11: 2015 Full Year Guidance
2015 FULL YEAR GUIDANCE Outlook Comments USDm Dry Cargo Tankers Total Full year EBIT guidance raised to USD 70 to 100 million. EBIT -25 to 0 90 to 120 70 to 100 (Previously USD 50 to 90 million) Profit from vessel -7 7 0 sales Expectations for Tankers raised to CAPEX 0-20 USD 90 to 120 million.
Slide 12: 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 the remainder of 2015 and subsequent years are subject to uncertainty, and NORDEN’s actual results may therefore differ from the p
Slide 13: Thank you for your attention
Thank you for your attention http://www.linkedin.com/company/ds-norden/ http://twitter.com/DS_NORDEN http://www.facebook.com/shippingtrainee.com http://www.facebook.com/dampskibsselskabetnorden Dampskibsselskabet NORDEN A/S 52, Strandvejen DK-2900 Hellerup Denmark Phone: +45 3315 0451 www.ds-norden.
Slide 14: Back up
BACK UP NORDEN – Second quarter and first half-year of 2015 results | 14 Our business is global tramp shipping
Slide 15: A leading global tramp operator
A LEADING GLOBAL TRAMP OPERATOR DRY CARGO Capesize Post-Panamax Panamax Supramax Handysize 250 200 150 100 50 0 Dry cargo Tankers NORDEN vessels Pool vessels Tankers TANKERS MR Handysize Modern fleet Global network of offices and port captains Pools in Dry cargo (Handysize & Post-Panamax) and
Slide 16: Asset light business model
ASSET LIGHT BUSINESS MODEL… Active fleet can quickly be adjusted to demand and market conditions Fleet employment based on portfolio view Significant asset upside through purchase options Flexible fleet Coverage and customer focus Capacity Employment Sale and purchase Customer relations Co
Slide 17: Enabling value creation based on the cycle and throughout the cycle
…ENABLING VALUE CREATION BASED ON THE CYCLE AND THROUGHOUT THE CYCLE Exploiting the cycle Creating value throughout the cycle Taking a view on the fundamental market and Creating value above industry level irrespective of adjusting our exposure market conditions Levers: Levers: Commercial operations
Slide 18: Overall results
OVERALL RESULTS USDm Q2 2014 Q1 2015 Q2 2015 EBITDA - Dry Cargo -6 15 19 EBITDA - Tankers 1 34 35 Unallocated -3 -2 -2 EBITDA - Group -7 47 52 Depreciation -16 -17 -17 EBIT Group -27 30 36 Net profit -42 39 43 Cash from operations -29 -3 65 Net Cash flow -4 -19 15 Cash and securities 323 220 340 NOR
Slide 19: Last 5 years performance
LAST 5 YEARS PERFORMANCE Earnings per share (USD) Return on equity 5.8 12.9% 2.1 4.4% -2.9% -1.2 -15.1% -6.8 -10.3 -30.3% 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Cash flows, operations and investments (USDm) Dividend yield 4.0% 7 298 3.0% 120 122 -9 66 -62 -46 -380 -355 1.8% 1.8% 2010 2011
Slide 20: New building prices
NEW BUILDING PRICES Panamax (Dry) MR (Tank) 60 60 50 50 40 40 $ Million $ Million 30 30 20 20 10 10 - - Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 2015 1976 1979 1982 1985 1988 1991 1994 1997 20
Slide 21: Dry Cargo 12 month rolling average
USD/day USD/day - - 10,000 15,000 20,000 25,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 5,000 5,000 Jan-10 Jan-10 Apr-10 Apr-10 Capesize Supramax Jul-10 Jul-10 Oct-10 Oct-10 DRY CARGO Jan-11 Jan-11 Apr-11 Apr-11 Jul-11 Jul-11 Oct-11 Oct-11 Jan-12 Jan-12 Apr-12 Apr-12 Jul-12 Ju
Slide 22: Dry Cargo regional rates
DRY CARGO REGIONAL RATES Handysize Supramax Panamax 7 14 10 6 12 8 5 10 6 4 8 4 1,000 USD/day 1,000 USD/day 1,000 USD/day 3 6 2 2 4 0 1 2 -2 0 -1 0 -4 -2 -2 -6 -3 -4 -8 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Slide 23: Financial strength
FINANCIAL STRENGTH Strong capital structure Net committed cash Strong focus on cash flow USDm Q2 2015 Q1 2015 generation Adjusted net interest bearing 41 -8 assets* Cash in low-risk deposit T/C obligations** -1,337 -1,398 accounts and securities Newbuilding instalments less -295 -309 proceeds fr
Slide 24: Fleet values
FLEET VALUES NORDEN – Second quarter and first half-year of 2015 results | 24 Our business is global tramp shipping
Slide 25: Dry cargo fleet overview
DRY CARGO FLEET OVERVIEW NORDEN – Second quarter and first half-year of 2015 results | 25 Our business is global tramp shipping
Slide 26: Product tanker fleet overview
PRODUCT TANKER FLEET OVERVIEW NORDEN – Second quarter and first half-year of 2015 results | 26 Our business is global tramp shipping
Slide 27: Dry Cargo
DRY CARGO NORDEN – Second quarter and first half-year of 2015 results | 27 Our business is global tramp shipping
Slide 28: Product Tankers
PRODUCT TANKERS NORDEN – Second quarter and first half-year of 2015 results | 28 Our business is global tramp shipping
Slide 29: The share (DNORD)
THE SHARE (DNORD) Master data Composition of shareholders 16,357 registered shareholders Shareholder capital DKK 42,200,000 owning 90.6% Number of shares and 42,200,000 shares of Approx. 38% international denomination DKK 1 ownership Classes of shares 1 Voting and ownership restrictions None NAS