Clarkson PLC · LSE:CKN
Clarkson — H1 2023 Earnings Presentation
26 slides from Clarkson's earnings presentation, Aug 7, 2023
Slide 1: Results Presentation
Results Presentation 30 June 2023 Andi Case & Jeff Woyda 7th August 2023
Slide 2: Financial results
Financial results Jeff Woyda Chief Operating Officer & Chief Financial Officer
Slide 3: Results summary
Results summary To 30 June 2023 2022 £m £m Revenue 321.1 266.7 +20.4% Underlying profit before taxation 53.1 42.2 +25.8% (Before acquisition related costs) Acquisition related costs (0.9) (0.2) Profit before taxation 52.2 42.0 +24.3% (after acquisition related costs) Underlying earnings per share 13
Slide 4: Segmental performance
Segmental performance Revenue, profit and margin Revenue Revenue Profit Profit Margin Margin 2023 2022 2023 2022 2023 2022 £m £m £m £m Broking 257.2 211.2 58.2 47.0 22.6% 22.3% Financial 26.5 27.6 5.0 5.7 18.9% 20.7% Support 27.2 18.3 3.4 2.0 12.5% 10.9% Research 10.2 9.6 3.7 3.4 36.3% 35.4% Results
Slide 5: USD v GBP Exchange Rate
USD v GBP Exchange Rate GBP 1 is worth the following in USD June June 2023 2022 Arithmetic average for the period January to June 1.2379 1.2858 Spot rate as at 30 June 1.2648 1.2172 December 1.3500 2022 1.3000 Half Ave Arithmetic average for the period June to December 1.1741 1.2500 Half Ave Year Av
Slide 6: Sea related IT costs
Sea related IT costs At the period end Jun Jun 2023 2022 £m £m Items taken to income statement Non capitalized items (Sea/ only) (4.9) (4.0) Amortisation (2.1) (1.9) 2023 Dec 2022 Jun 2022 £m £m £m Software-related intangible assets as at 1 January 15.1 17.1 17.1 Additions 1.1 2.0 1.2 Amortisation (
Slide 7: The intelligent marketplace for fixing freight
The intelligent marketplace for fixing freight Key areas of progress H1 2023 • 30% of estimated fixture volume in Dry & Wet recaps & CP’s • > 40,000 fixtures annually, market volumes impacted by economic backdrop • Over 550 broker clients • Additional 70 clients signed up in H1 across Sea products •
Slide 8: Balance sheet
Balance sheet At 30 June (comparatives are at December year-end) Dec Dec Dec Dec Jun 2019 2020 2021 2022 2023 £m £m £m £m £m Tangible fixed assets 28.9 28.6 24.7 29.1 30.0 Intangible fixed assets (software only) 9.9 15.6 17.1 15.1 14.1 Investments (relating to convertible bonds) 6.7 5.5 0.7 0.4 0.2
Slide 9: Net available funds and free cash resource
Net available funds and free cash resource 30 June 31 Dec 30 June 2023 2022 2022 £m £m £m Cash and cash equivalents 275.7 384.4 231.6 Interest-bearing loans and borrowing - - - Current investment deposits 9.9 3.1 5.4 Net cash equivalents 285.6 387.5 237.0 Reserved for bonus (full cost) (136.7) (225.
Slide 10: Movement in free cash resources
Movement in free cash resources 1 January 2023 to 30 June 2023 Results Presentation|30 June 2023 10 Andi Case & Jeff Woyda|7th August 2023
Slide 11: Dividend history
Dividend history 21 years of progressive dividend 64 57 53 54 50 51 40 43 39 37 32 33 30 26 27 26 24 22 16 30 11 25 25 27 29 9 21 22 22 23 24 16 16 17 18 18 19 10 12 14 6 7 9 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Interim Final N
Slide 12: Our markets
Our markets Andi Case Chief Executive Officer
Slide 13: Key market dynamics
Key market dynamics First Half 2023 Most shipping sectors remain in positive territory Freight rates and activity • Strong day rates across “energy” shipping sectors including tankers, gas and offshore • Softer market conditions across container and bulk carrier markets. • Strong S&P activity contin
Slide 14: Seaborne Trade
Seaborne Trade Containers aside, volume growth expected in 2023 despite global economic weakness Dry Bulk 13 15% Jan-May 2023: Cars (No.); Thousands Oil 23.3% 12 +3.3% y-o-y Containers Coal; 10.5% Gas 11 10% Others LPG; 9.9% 10 9 Crude; 6.1% 5% 8 Iron Ore; 5.9% 7 Grain; 4.4% 0% 6 Chemicals; 3.5% 5 4
Slide 15: ClarkSea Index: Still in Positive Territory
ClarkSea Index: Still in Positive Territory Most shipping sectors remain in positive territory, despite an easing of overall conditions Half Yearly Averages, $/day 45,000 40,000 38,884 36,388 35,743 35,000 30,000 24,119 25,000 20,717 20,000 18,404 14,655 16,373 14,164 15,000 11,495 13,358 13,304 11,
Slide 16: Where are we in the cycle?
Where are we in the cycle? Timeline of each cycle not defined and varies Offshore renewables (wind) Weakening market Chemical/Specialised Tankers Strong market LPG Offshore Crude and Products Tankers LNG Recovering market Containers Weak market Dry Cargo Results Presentation|30 June 2023 16 Andi Cas
Slide 17: Trends By Sector & Impact on Clarksons
Trends By Sector & Impact on Clarksons Strong rates in “energy” shipping tankers, gas and offshore: softer conditions in container and bulk carrier. Softer markets in 2023 Stronger markets in 2023 → Containerships: normalised Gas Carriers: positive Tankers: strong Clarksons Avg. Containership Earn
Slide 18: Chinese Economy: 'Re-Opening' With Headwinds But Focus On Growth
Chinese Economy: ‘Re-Opening’ With Headwinds But Focus On Growth Weak trends in 2022, but end to ‘zero-Covid’ policy driving some improvements in 2023 despite property pressures Source: Clarksons Research Results Presentation|30 June 2023 18 Andi Case & Jeff Woyda|7th August 2023
Slide 19: Port Congestion Normalising
Port Congestion Normalising Congestion ‘back to normal’ in containers & bulkcarriers; some pockets of disruption remain e.g. car carriers… Source: Clarksons Research. Data based on the proportion of vessels in the fleet in a defined port or anchorage location based on vessel's closest to midday AIS
Slide 20: Supply side constraints developing in key markets
Supply side constraints developing in key markets Supply outlook appears manageable; orderbook remains historically low at ~10% of fleet DWT… Global Fleet Development, m dwt 3,000 Fleet, end year Fleet growth peaked at c. 9% in 2010 10% Fleet Growth % 9% 2,500 8% 7% 2,000 6% 1,500 5% 4% 1,000 3% 2%
Slide 21: Asset Price Trends: S&P Markets Still Active
Asset Price Trends: S&P Markets Still Active Secondhand prices in tankers still rising; newbuilding and scrap prices remain firm Secondhand Prices Newbuilding Price Index Indian Recycle/Scrap Price $m $/ldt 120 135 Index, Jan-20=100 800 VLCC 5yr Old 4,500 TEU Boxship 10yr Old 130 700 100 Capesize 5y
Slide 22: Energy Security: Offshore Oil & Gas Still 16% Of Global Energy Supply
Energy Security: Offshore Oil & Gas Still 16% Of Global Energy Supply Offshore Dayrates have made a strong recovery across through 2022/23 on improved project CAPEX Clarksons Offshore Index (dayrate index for AHTS, PSV, jack-ups, floaters and subsea MSVs) Offshore Oil & Gas Investment 120 Offshore b
Slide 23: Offshore Wind Growth Accelerating: Vital Role In Energy Transition
Offshore Wind Growth Accelerating: Vital Role In Energy Transition ~12,400 turbines and ~60GW of offshore wind capacity installed today; 30,000 turbines & ~250GW by 2030? Source: Clarksons Research. All data available on Renewables Intelligence Network. Results Presentation|30 June 2023 23 Andi Case
Slide 24: Outlook
Outlook Andi Case Chief Executive Officer
Slide 25: Outlook: Tailwinds vs Headwinds
Outlook Tailwinds vs Headwinds Headwinds / global factors Sentiment Geopolitical Exchange rate Global GDP War – how USD vs contraction? long and how GBP,NOK… deep? Headwind? Inflation? Tailwinds Markets Company Supply side Regulation & Renewables & Forward order Cash generation Progressive challenge
Slide 26: Thank you
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