Ocean Yield ASA — Q4 2015 Earnings Presentation
20 slides from Ocean Yield ASA's earnings presentation, Feb 18, 2016
Slide 1: Presentation Q4 2015
Presentation Q4 2015 18th February 2016
Slide 2: Fourth Quarter 2015 financial highlights
Fourth Quarter 2015 financial highlights Quarterly dividend increased to USD 0.1625 per share – Increase of 0.5 cents versus Q3’15, equal to 14% increase annualized – USD 0.65 per share annualized, representing a dividend yield of 10.6% p.a. EBITDA was USD 56.6m, compared with USD 56.4m in Q3’15 EBI
Slide 3: Full year 2015 Results
Full year 2015 Results Total revenues of USD 256.7m compared with USD 249.3m in 2014 EBITDA of USD 224.2m compared with USD 216.7m in 2014 Operating profit of USD 98.9m compared with USD 116.4m in 2014 Net profit after tax of USD 105.0m compared with USD 100.8m in 2014 EBITDA charter backlog of USD
Slide 4: Recent events
Recent events American Shipping Company ASA closed its USD 450m senior secured debt refinancing. – Consequently, the interest under the Bonds switched from 50% cash and 50% payment-in-kind to 100% cash – Positive cash effect of about USD 6m per year Agreed to certain amendments to the current agreem
Slide 5: Amendments to the charter agreements with Höegh Autoliners
Amendments to the charter agreements with Höegh Autoliners Asset swap of 2 PCTC 8,500 CEU newbuildings – Agreed to acquire the sister vessels XS C and XS D with earlier delivery dates with 12 year “hell and high” bareboat charters following a delay in the original newbuilding schedule – Agreed to se
Slide 6: Expected delivery schedule newbuildings
Expected delivery schedule newbuildings Project Vessel Type Exp. delivery Navig8 Product Tankers Steadfast LR2 115,000 dwt February 2016 Navig8 Product Tankers Symphony LR2 115,000 dwt March 2016 Höegh Autoliners XS C PCTC 8,500 CEU March 2016 Navig8 Chemical Tankers Navig8 Turquoise Chemical carrie
Slide 7: Another quarter with steady EBITDA
Another quarter with steady EBITDA EBITDA1 per quarter (USDm) 55.6 52.7 53.2 55.4 54.2 53.9 55.2 56.0 56.4 56.6 Q4 EBITDA Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 adjusted for 2013 2014 2015 finance lease Net profit per quarter (USDm) effects was USD 26.5 28.6 30.5 28.1 28.3 59.8m. 19.1 24.5 25.8 22.7 17.1 Q4
Slide 8: Declared growth in cash dividends for the 9th consecutive quarter
Declared growth in cash dividends for the 9th consecutive quarter Adjusted earnings per share (USD)2 Dividend yield 0.191 0.196 0.195 0.202 0.197 0.199 0.205 0.205 10.6%1 p.a. 0.186 0.161 Pay-out ratio on Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 adjusted Q4 EPS 2013 2014 2015 Dividend per share (USD) 79% +14%
Slide 9: P&L Income statement
P&L Income statement Comments Q3 Q4 Q4 Jan - Dec Jan - Dec Finance lease revenue Amounts in USD million 2015 2015 2014 2015 2014 Navig8 Chemical Tankers Operating revenues 58.7 58.6 56.1 233.1 243.3 contributed with USD 2.3m in Q4 vs. Finance lease revenue 6.6 7.0 6.0 23.6 6.0 USD 1.7m in Q3. Cash r
Slide 10: Adjusted net profit after tax
Adjusted net profit after tax1 Adjustments Comments Q3 Q4 Amounts in USD million 2015 2015 Profit after tax 22.7 28.3 - Loss from sale of vessels and equipment (0.1) - • Related to Dhirubhai-1 - Impairment charges and other items - 28.6 • Goodwill impairment related to Dhirubhai-1 - One-off adjustme
Slide 11: Balance sheet
Balance sheet Balance sheet Q3 Q4 Q3 Q4 Amounts in USD million 2015 2015 2015 2015 ASSETS EQUITY AND LIABILITIES Vessels and equipment 1 250.4 1 239.5 Equity to holders of the parent 716.7 697.2 Intangible assets 38.3 9.8 Non controlling interests 11.0 11.6 Deferred tax assets 11.5 36.4 Total equity
Slide 12: Bond overview
Bond overview Bond terms OCY02 OCY03 Outstanding amount NOK 1,000 million NOK 1,000 million Coupon NIBOR + 3.90% p.a. NIBOR + 4.00% p.a. Maturity March 2019 April 2020 Tap issue NOK 400m @ NIBOR + 3.65% p.a. in July 2014 Financial covenants Q4 2015 Q3 2015 Minimum Book Equity of 25% 35.0% 36.6% Mini
Slide 13: Contractual obligations and financing
Contractual obligations and financing Contractual obligations and financing Other Oil Gas Car Other Amounts in USD million FPSO Total Service Carriers Carriers Shipping Already paid - 34.1 64.8 31.1 92.6 222.6 2016 - 55.1 81.0 93.6 239.8 469.5 2017 - - 97.2 - - 97.2 Total contractual obligations - 8
Slide 14: Diversified fleet of modern fuel efficient vessels
Diversified fleet of modern fuel efficient vessels 4 x newbuildings 3 x newbuildings Product Tankers Liquefied Ethylene LR2 115,000 dwt Gas Carriers Steadfast, Symphony, 3 x 36,000 cbm Supreme & Sanctity Chemical Tankers Diving Support & 37,000 dwt IMO2 Construction Vessel Aronaldo, Aquamarine, SBM
Slide 15: Summary
Summary Increased quarterly dividends for the 9th consecutive quarter to USD 0.1625 per share. 2016 and 2017 is expected to be challenging years for companies within oil-service sector. Some of Ocean Yield’s counterparties may also be negatively affected by challenging market conditions. Despite the
Slide 16: Appendix
Appendix March 16 Fourth Quarter 2015 16
Slide 17: EBITDA backlog of USD 2.7bn with average tenor of 10.3 years
EBITDA* backlog of USD 2.7bn with average tenor of 10.3 years VESSEL TYPE BUILT COUNTERPARTY 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Navig8 Tanzanite Chem, MR 2016 Navig8 Chemical Tankers Navig8 Tourmaline Chem, MR 2016 Navig8 Chemical Tankers Navig8 Topaz Che
Slide 18: EBITDA backlog of USD 2.7bn with average tenor of 10.3 years
EBITDA* backlog of USD 2.7bn with average tenor of 10.3 years Charter backlog by counterparty Navig8 Product SBM Offshore AKOFS / Akastor Tankers 6% 15% 10% Reliance Industries Navig8 11% Chemical Tankers 16% EMAS AMC / Ezra Holdings Hartmann SPVs 10% / SABIC Höegh 12% Farstad Supply Autoliners 5% 1
Slide 19: March 16
= OCEAN YIELD March 16
Slide 20: March 16
= OCEAN YIELD — March 16 20