Slide 1: Second Quarter Presentation Aug 2020
Second Quarter Presentation Aug 2020
Slide 2: Forward Looking Statements
Forward Looking Statements MATTERS DISCUSSED IN THIS DOCUMENT MAY CONSTITUTE FORWARD-LOOKING STATEMENTS. THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 PROVIDES SAFE HARBOR PROTECTIONS FOR FORWARD-LOOKING STATEMENTS IN ORDER TO ENCOURAGE COMPANIES TO PROVIDE PROSPECTIVE INFORMATION ABOUT THEIR
Slide 3: Highlights
Highlights • Net income of $199.7 million, or $1.01 per diluted share • Adjusted net income of $206.1 million, or $1.04 per diluted share • Declared a cash dividend of $0.50 per share • Repaid $60 million of the $275.0 million senior unsecured facility • Signed loan facility of up to $328.6 million
Slide 4: Income Statement – Highlights
Income Statement – Highlights 2020 2020 2019 (in thousands of $ except per share data) Apr - Jun Jan - Mar Jan - Dec Adjustment items for Q2 2020: Total operating revenues (net of voyage expenses) 301 120 288 518 561 841 • $0.9 million unrealized gain on marketable Other operating gain 12 886 11 333
Slide 5: Balance Sheet - Highlights
Balance Sheet - Highlights 2020 2020 2019 (in millions $) Jun 30 Mar 31 Dec 31 Notes Assets Cash 241 231 177 • $462 million in cash and cash equivalents, Other current assets 227 268 271 including undrawn amount of unsecured Non-current assets facility, marketable securities and minimum Vessels and
Slide 6: Cash Breakeven and Cash Generation Potential
Cash Breakeven and Cash Generation Potential Well positioned to generate significant cash flow Daily cash breakeven and OPEX Cash sensitivity above breakeven levels 25 000 1 000 5,00 $ 4,56 $22 600 4,50 $901 20 000 $18 900 800 4,00 $19 100 $ 3,49 3,50 $15 700 $691 15 000 600 3,00 $ per share / year
Slide 7: Q2 Tanker Market
Q2 Tanker Market • Seismic oil demand fall, but strong recovery throughout the quarter • Rallying crude oil prices reversed floating storage incentives and freight rates slipped • Covid-19 related challenges extensive throughout the shipping industry • Freight rate correction has been gradual due to
Slide 8: Global fleet capacity continue to slow
Global fleet capacity continue to slow Core market metrics favorable, low order books and aging fleet VLCC fleet Commentary 80 60 • New vessels enter the market, at a controlled pace 40 65 69 24 • Periodical survey backlog likely # of vessels 53 58 49 47 50 39 20 38 39 27 36 36 29 31 19 28 31 23 21
Slide 9: Present Tanker Market and Outlook
Present Tanker Market and Outlook • Demand shock likely behind us, but significant month on month volatility expected • Freight market soft as volumes and ton-miles under pressure • Significant portion of OPEC+ cuts expected to return in the coming quarters • Vessel supply muted due to Covid-19 rela
Slide 10: Questions & Answers
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Slide 12: Appendix
Appendix Appendix 1 Reconciliation (Million $ except per share) Q2 2020 Q1 2020 YTD 2020 Q2 2019 FULL YEAR This presentation describes: total operating revenues net of 2019 voyage expenses, net income attributable to the Company Total operating revenues net of voyage expenses Total operating revenue