Dampskibsselskabet Norden A/s · OMXCOP:DNORD
Dampskibsselskabet Norden A/s — Q3 2021 Earnings Presentation
19 slides from Dampskibsselskabet Norden A/s's earnings presentation, Nov 4, 2021
Slide 1: Presentation of Q3 2021 Results
PRESENTATION OF Q3 2021 RESULTS Copenhagen, Denmark, 4 November 2021
Slide 2: Agenda for Today
AGENDA FOR TODAY 01. Highlights Q3 2021 02. Business unit performance • Asset Management • Dry Operator • Tanker Operator 03. Market development & outlook 04. Guidance for 2021 and final words 05. Q&A 2 PRESENTATION OF Q3 2021
Slide 3: Highlights Q3 2021
01. HIGHLIGHTS Q3 2021 3 PRESENTATION OF Q3 2021
Slide 4: Highlights Q3 2021 Business Update
01. HIGHLIGHTS Q3 2021 BUSINESS UPDATE GROUP HIGHLIGHTS PROFIT/LOSS LAST 5 YEARS • Q3 2021 USD 65 million - best quarterly result since Q1 2011 • Even stronger results expected for Q4 Guidance*: 225 150-200 • Guidance narrowed to Adjusted Result of USD 150 – 200 million 175 – on track to deliver bes
Slide 5: Business Unit Performance
02. BUSINESS UNIT PERFORMANCE 5 PRESENTATION OF Q3 2021
Slide 6: Asset Management: Profit from Asset Trading
02. ASSET MANAGEMENT PROFIT FROM ASSET TRADING PROFIT/LOSS FOR THE PAST 5 QUARTERS PROFIT FOR Q3 2021: USD 8 MILLION 10 • Vessel sales gain of USD 13 million 5 • Value of NORDEN’s portfolio increased to USD 1.4 billion USD million 0 • Portfolio consists of 113 vessels; 70 leased and 43 owned -5 • En
Slide 7: Asset Management: Extensive Optionality in Portfolio
02. ASSET MANAGEMENT EXTENSIVE OPTIONALITY IN PORTFOLIO • 60,015 period option days in total, corresponding to ~165 full-year extension options • Purchase options: 71 options in total (51 in dry cargo, 20 in tankers); 57 of these options callable by end-2024 • Period extension options: 37 options on
Slide 8: Dry Operator: Increased Earnings Based on Strong Arbitrage
02. DRY OPERATOR INCREASED EARNINGS BASED ON STRONG ARBITRAGE QUARTERLY RESULTS 70 60 PROFIT FOR Q3 2021: USD 68 MILLION 50 • Delivered best quarterly result since unit was formed USD million 40 33.9 • Capitalised on dry cargo rate increases on back of significant long position in H1 30 20 14.6 • Re
Slide 9: Tanker Operator: Positioned for 2022 Market Improvements
02. TANKER OPERATOR POSITIONED FOR 2022 MARKET IMPROVEMENTS QUARTERLY RESULTS LOSS FOR Q3 2021: USD -11 MILLION 25 • Positioning for market improvements – signs of market bottoming out 20 15 • Adding increased exposure through T/C vessels with attractive optionality USD million 10 • Additional 10 ve
Slide 10: Market Development and Outlook
03. MARKET DEVELOPMENT AND OUTLOOK 10 PRESENTATION OF Q3 2021
Slide 11: Dry and Tanker Market in Q3 2021
03. MARKETS DRY AND TANKER MARKET IN Q3 2021 Exceptionally strong dry cargo market Weak tanker market • Asset prices and period rates continued to soar in Q3 • Oil inventories gradually being drawn down during Q3 • Vessels in short supply, boosting spot rates in the short-term • Crude carrier rates
Slide 12: Market Outlook in Dry Cargo
03. MARKETS MARKET OUTLOOK IN DRY CARGO Expected to remain strong despite recent decline Low supply growth still supportive • Forward rates started to decline after Q3 • Low order book supporting period rates and 2nd hand prices • Dry cargo market to remain strong moving into 2022 • Marginal increas
Slide 13: Market Outlook in Tanker
03. MARKETS MARKET OUTLOOK IN TANKER Spot market rates bottoming out Orderbooks remain low • Global oil inventories continue to be drawn down • Low orderbooks protecting asset prices • Energy shortages in the short-term could support oil demand • New ordering activity limited by container vessels •
Slide 14: 2021 Guidance and Final Words
04. 2021 GUIDANCE AND FINAL WORDS 14 PRESENTATION OF Q3 2021
Slide 15: 2021 Guidance
04. 2021 GUIDANCE NORDEN narrows guidance for FY 2021 Adjusted Result to USD 150 to 200 million (from USD 140 to 220 million) • Expecting a strong Q4 for Dry Operator – neutralised position ahead of spot market declines after Q3 • Sacrificing short-term operating earnings in Q4 in exchange for dry c
Slide 16: Final Words: Substantial Value Beyond Asset Values
04. FINAL WORDS SUBSTANTIAL VALUE BEYOND ASSET VALUES Asset Management Dry Operator Tanker Operator Active management of cyclical Providing efficient global transport Providing efficient global transport market exposure within dry cargo solutions to customers and active solutions to and active manag
Slide 17: Final Words: On Track for Best Result in 11 Years
04. FINAL WORDS ON TRACK FOR BEST RESULT IN 11 YEARS • Best quarterly result since Q1 2011 • Expecting even stronger results for Q4 - having neutralised dry cargo exposure for Q4 ahead of recent rate declines • Narrowed guidance for the full-year Adjusted Result of USD 150-200 million • Initiating s
Slide 18: Disclaimer: Forward Looking Statements
04. FINAL WORDS – DISCLAIMER 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 2021 and subsequent years are subject to uncertainty, and NORDEN’s actual
Slide 19: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION Dampskibsselskabet NORDEN A/S 52, Strandvejen DK-2900 Hellerup Denmark Phone: +45 3315 0451 www.ds-norden.com Connect with us 19 PRESENTATION OF Q3 2021
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