D'amico International Shipping S.a. · MIL:DIS
D'amico International Shipping — Q3 2020 Earnings Presentation
41 slides from D'amico International Shipping's earnings presentation, Nov 12, 2020
Slide 1: Q3 & 9M 2020 Presentation
Q3 & 9M 2020 Presentation d’Amico International Shipping November 12th, 2020
Slide 2: Disclaimer
DISCLAIMER. There shall be no offering or sale of any securities of d’Amico International Shipping S.A. in the United States of America, Switzerland, Canada, Australia, Japan, the United Kingdom or any jurisdiction in which such offer, solicitation or sale would be unlawful prior to its registration
Slide 3: Agenda
AGENDA. ▪ Executive summary ▪ DIS’ overview and key financials ▪ Market overview ▪ Why invest in DIS ▪ Appendix
Slide 4: Executive summary
Executive summary. • Net result – DIS posted a Net profit of US$ 15.4m in the first 9M’20 vs. US$ (32.5)m in the first 9M’19 and Adjusted net result (excluding non-recurring/non-cash items from both periods) of US$ 26.1m in the first 9M’20 vs. US$ (15.1)m in the first 9M’19 (a US$ 41.1m increase y-o
Slide 5: Executive summary (continued)
Executive summary (continued). • Market update – At the beginning of the year, the general outlook for the tanker sector was very positive, based on strong fundamentals linked to the implementation of IMO 2020 and its anticipated positive effects on the demand for the seaborne transportation of refi
Slide 6: DIS' overview and key financials
DIS’ overview and key financials
Slide 7: A modern, high-quality and versatile fleet
A modern, high-quality and versatile fleet. September 30th, 2020 DIS Fleet1 LR1 MR Handy Total % Owned 5.0 10.0 6.0 21.0 51.2% Bareboat chartered 1.0 8.0 0.0 9.0 22.0% Time chartered-in long-term 0.0 8.0 0.0 8.0 19.5% Time chartered-in short-term 0.0 3.0 0.0 3.0 7.3% TOTAL 6.0 29.0 6.0 41.0 100.0% •
Slide 8: Rapidly declining CAPEX commitments
Rapidly declining CAPEX1 commitments. Investment plan US$/mm 250.0 194.6 200.0 3.9 DIS has no remaining newbuilding 164.4 151.1 CAPEX having fully completed its long- 12.8 150.0 0.7 101.2 term investment plan in FY’19 85.3 83.7 79.0 1.0 100.0 190.7 8.1 2.5 1.4 65.2 151.6 150.3 5.2 50.0 100.2 77.1 81
Slide 9: Lighter bank debt repayments and low refinancing risk
Lighter bank debt repayments and low refinancing risk Forecasted bank debt financing cash-flow Daily bank loan repayment on owned vessels (Excluding overdraft facilities)1,2,3 (Excluding overdraft facilities)4,5 US$/mm US$/mm US$/mm US$/day 60.0 6,400 100.0 100.0 6,147 80.0 80.0 - 50.0 6,000 60.0 60
Slide 10: DIS' purchase options on leased vessels
DIS’ purchase options on leased vessels. Purch. Purch. First Ex. Option Vessel Name Build Date Option First Obligation 1 (In/Out of the money) Ex. Date Date High Priority Mar-05 Oct-19 Oct-22 In the money High Freedom Jan-14 Feb-20 Feb-28 In the money High Fidelity Aug-14 May-20 May-27 In the money
Slide 11: Contracts and fleet mix to drive future results
Contracts and fleet mix to drive future results. Increasing average TC rates1,2 • TC contract rates have reached a bottom in Q2’19 % of ‘employment days’ US$/day 70% 17,000 and average rates of signed contracts rise 16,272 16,278 16,558 16,604 throughout 2020. • 16,236 16,500 TC contracts allows DIS
Slide 12: Large potential upside to earnings
Large potential upside to earnings. Estimated Fleet Evolution (Avg. N. of Vessels)1,2,4 Estimated Spot Exposure (Avg. N of Vessels)3,4 N. of ships (based on ‘available days’) N. of ships (based on ‘employment days’) 45 60 40.4 40 37.4 35.8 50 35 9.0 9.0 8.8 30 40 25 11.0 9.5 30 9.0 20 15 20 32.3 10
Slide 13: DIS has focused also on cost savings
DIS has focused also on cost savings. Daily Operating Costs – Owned and General & Administrative Costs – Total bareboat vessels1 Fleet2 US$/day US$/m 7,600 850 7,400 800 7,200 750 7,000 700 6,800 7,280 650 800 6,600 771 600 684 6,400 6,716 6,732 6,200 550 6,000 500 9M'18 9M'19 9M'20 9M'18 9M'19 9M'2
Slide 14: Financial results. Net financial position
Financial results. Net financial position (US$ million) Dec. 31st, 2019 Sep. 30th, 2020 Gross debt (600.9) (559.1) IFRS 16 – additional liabilities (122.8) (103.6) Cash and cash equivalents 33.6 59.3 Other current financial assets1 7.3 4.6 Net financial position (NFP) (682.8) (598.7) Net financial p
Slide 15: Financial results. First 9M'20 Results
Financial results. First 9M’20 Results Non-recurring items: (US$ million) Q3’19 Q3’20 9M’19 9M’20 (US$ million) Q3’19 Q3’20 9M’19 9M’20 TCE Earnings 59.8 54.1 186.1 204.2 Result on disposal of vessels (0.6) (0.6) (1.5) (0.7) Result on disposal of vessels (0.6) (0.6) (1.5) (0.7) Non-recurring financi
Slide 16: Financial results. Key operating measures
Financial results. Key operating measures Key Operating Q1 2019 Q2 2019 Q3 2019 9M 2019 Q4 2019 FY 2019 Q1 2020 Q2 2020 Q3 2020 9M 2020 Measures Avg. n. of vessels 49.4 49.8 48.5 49.2 47.6 48.8 46.0 44.4 41.9 44.1 Fleet contact 46.4% 48.0% 51.5% 48.7% 60.4% 51.6% 64.6% 62.6% 63.0% 63.5% coverage Dai
Slide 17: Market overview – market fundamentals
Market overview – market fundamentals
Slide 18: TC rates and asset values reverse trend following Covid-19
TC rates and asset values reverse trend following Covid-19. 1 Year TC MR (Conventional, non-Eco) rate1 5 & 10year-old MR values1 US$/day US$/m 18,000 16,925 35 17,000 16,600 31.0 28.0 30 16,000 26.5 26.8 27.0 26.0 15,844 25.0 25.0 29.0 15,000 25 27.5 22.0 13,900 13,906 14,094 25.0 26.0 13,875 14,725
Slide 19: Large drop in oil demand and refining throughputs
Large drop in oil demand and refining throughputs. Global oil demand1 Global refinery throughputs1 Million barrels per day Million barrels per day 100.0 90.0 90.0 80.0 84.1 85.0 82.9 82.9 83.1 82.1 81.8 82.1 81.8 70.0 80.6 81.2 80.1 80.2 60.0 80.0 82.4 50.0 99.2 99.4 100.8 100.9 96.1 100.1 78.2 94.1
Slide 20: Large but temporary build-up in floating storage
Large but temporary build-up in floating storage. Crude oil price (Brent, US$ bbl), forward curve1 CPP vs DPP Floating Storage2 Million barrels 42.0 350 41.0 325 40.6 40.8 41.0 300 40.2 39.9 39.9 275 40.0 39.7 250 39.3 39.0 225 39.0 38.6 200 38.2 175 150 38.0 125 37.7 100 37.0 75 50 36.0 25 0 Jan'20
Slide 21: Longer-term: healthy and resilient demand growth
Longer-term: healthy and resilient demand growth. World seaborne refined products trade1 Billion Tonne-miles 3,500 • Seaborne oil product trade demand has contracted in 2019 and is expected to fall sharply in 3,000 2,500 2020 before resuming growth in 2021; It has been growing at a CAGR of 3.1% sinc
Slide 22: Longer-term: large potential upside to asset values
Longer-term: large potential upside to asset values. Historical MR TC and spot rates1 Historical MR asset values1 US$/day US$/m 45,000 60 40,000 1 YR TC and Spot rates are 55 respectively ~55% and ~88% 50 NB, 5yr old and 10yr old vessels are 35,000 below the last cycle peak 45 respectively ~36%, ~52
Slide 23: Longer-term: growth in refinery capacity
Longer-term: growth in refinery capacity. Capacity additions 2019-2024 by region Refinery growth 2020-2024 kb/d 2% 1800 2,039 2,091 2400 12% 1600 2000 1,665 1400 27% 1200 1600 1000 1,018 973 1200 10% 800 800 600 315 400 400 200 0 0 -200 2019 2020 2021 2022 2023 2024 -400 21% -400 -800 OECD North Ame
Slide 24: Longer-term: changes in refining landscape driving demand
Longer-term: changes in refining landscape driving demand. Forecasted changes in refining throughput 2019-20251 m bbl/d 5.0 4.8 4.1 4.0 3.0 2.2 2.0 1.3 1.0 0.8 0.8 0.7 0.4 0.2 0.2 0.0 Europe FSU Other Latin India North Africa Middle China Atlantic East of Total -0.4 Asia America America East Basin S
Slide 25: Slowing fleet growth
Slowing fleet growth. MR & LR1 deliveries and scrapping (m dwt) (lhs), and net Current MR & LR1 fleet age fleet growth (%)1 (rhs) profile1 24% of current fleet Million Dwt 12 11.6% 11.9% 12% Million Dwt 11.3% 35 10 10% 29.7 6% of current fleet 9.7% 6% of current fleet 9.5% 8.7% 30 8 8% 25 6 6% 20 4.
Slide 26: Reduction in fleet growth expected already in H2'20
Reduction in fleet growth expected already in H2’20. MR & LR1 deliveries, 20201 40 35 30 N. Of vessels 25 20 34 15 28 24 23 25 10 20 21 5 0 Q1'20 Q2'20 Q3'20 Q4'20 Estimated deliveries Actual deliveries MR & LR1 demolitions, 2018-20201 16 14 12 N. Of vessels 10 8 14 13 13 6 10 9 4 6 5 2 4 4 4 2 0 Q1
Slide 27: Limited newbuild orders
Limited newbuild orders. MR Newbuilding parity curve vs MR & LR1 orders second-hand values1 US$ Million N. Of vessels 40.00 35.00 250 35.00 28.70 30.00 200 26.00 25.00 22.39 150 20.00 17.00 16.09 225 15.00 100 189 11.00 143 135 80 10.00 50 100 97 85 66 68 73 5.00 30 35 0 15 0.00 0 1 2 3 4 5 6 7 8 9
Slide 28: Strong long-term fundamentals
Strong long-term fundamentals. Seaborne volume and MR/LR1 fleet growth (lhs)%1 vs 1year MR and LR1 TC rate (rhs) YoY% US$/day 15.00 35,000 31,090 29,185 30,000 27,006 10.00 23,446 23,597 25,000 22,819 5.00 18,866 17,754 18,127 20,000 16,492 16,625 16,629 17,479 15,078 13,169 13,131 15,000 - 13,339 1
Slide 29: Why invest in DIS
Why invest in DIS
Slide 30: Historical NAV evolution
Historical NAV evolution. DIS’ Historical NAV evolution1 US$/m 1000 0.94 US$/share 1.00 0.90 900 0.90 800 0.76 0.80 0.89 0.72 700 0.65 0.70 0.56 600 0.53 0.60 500 0.42 0.50 0.40 400 0.35 0.34 0.36 0.40 0.31 296 314 313 285 266 300 374 218 230 0.24 0.25 0.30 334 0.23 302 0.16 0.25 0.22 200 255 0.14 0
Slide 31: Why invest in DIS today
Why invest in DIS today. • Young-fleet, most of which acquired at historically attractive prices and at top-tier yards. Furthermore, vessels are mostly eco-design (70% of owned and bareboat ships following delivery of all DIS’ newbuildings) and IMO classed (78% of owned and bareboat ships following
Slide 32: Appendix
INTERNATIONAL SHIPPING SA.
Slide 33: DIS' Shareholdings Structure
DIS’ Shareholdings Structure. Key Information on DIS’ shares 3 d'Amico International SA 65.66% Others 33.64% d'Amico International Shipping SA 0.70% 100% 2 1 Listing market Borsa Italiana, STAR No. of shares 1,241,045,340 Market capitalisation1 €106.7 million Shares repurchased / % of share capital
Slide 34: d'Amico Group Structure
d’Amico Group Structure. 100% d’Amico Società di Navigazione Spa d’Amico International S.A. 100% 100% d’Amico Shipping Ishima Pte Ltd Italia SpA 51% 85% Mida Maritime Rudder S.A.M. Company d.a.c 76.9% 100% Sirius Ship d’Amico Dry d.a.c. Management S.r.l. 65.66% d’Amico International Shipping S.A. 33
Slide 35: Financial results. Consolidated Income Statement
Financial results. Consolidated Income Statement 9 MONTHS 9 MONTHS Q3 2020 Q3 2019 US$ Thousand 2020 2019 64,337 82,088 Revenue 249,679 260,506 (10,255) (22,269) Voyage costs (45,523) (74,380) 54,082 59,819 Time charter equivalent earnings 204,156 186,126 (877) (12,132) (7,842) Time charter hire cos
Slide 36: Financial results. Consolidated Balance Sheet
Financial results. Consolidated Balance Sheet CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION As at As at US$ Thousand 30 September 2020 31 December 2019 ASSETS Property, plant and equipment and Right-of-use assets 901,133 958,312 Investments in jointly controlled entities 4,312 4,382
Slide 37: Financial results. Consolidated Statement of Cash Flow
Financial results. Consolidated Statement of Cash Flow 9 MONTHS 9 MONTHS Q3 2020 Q3 2019 US$ Thousand 2020 2019 (1,732) (8,155) Profit (loss) for the period 15,406 (32,476) 16,805 18,016 Depreciation, amortisation and write-down 51,354 55,220 2,300 1,302 Impairment 6,286 13,438 19 75 Current and def
Slide 38: DIS' Current Fleet Overview. LR1 & MR Fleet
DIS’CURRENT FLEET OVERVIEW. LR1 & MR Fleet Owned - LR1 Tonnage (dwt) Year Built Builder, Country Interest1 IMO Classified Cielo di Londra 75,000 2019 Hyundai MIPO, South Korea (Vinashin) 100% - Cielo di Cagliari 75,000 2018 Hyundai MIPO, South Korea (Vinashin) 100% - Cielo Rosso 75,000 2018 Hyundai
Slide 39: DIS' Current Fleet Overview. MR Fleet
DIS’CURRENT FLEET OVERVIEW. MR Fleet TC - IN Long Term with purchase option Tonnage (dwt) Year Built Builder, Country Interest1 IMO Classified High Leader 50,000 2018 Japan Marine United Co., Japan 100% IMO II/IMO III High Navigator 50,000 2018 Japan Marine United Co., Japan 100% IMO II/IMO III High
Slide 40: DIS' Current Fleet Overview. Handy Fleet
DIS’CURRENT FLEET OVERVIEW. Handy Fleet Owned Tonnage (dwt) Year Built Builder, Country Interest1 IMO Classified Cielo di Salerno 39,043 2016 Hyundai MIPO, South Korea (Vinashin) 100% IMO II/IMO III Cielo di Hanoi 39,043 2016 Hyundai MIPO, South Korea (Vinashin) 100% IMO II/IMO III Cielo di Capri 39
Slide 41: Thank you!
Thank you!
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