Torm Plc Class A · OMXCOP:TRMD_A
Torm Plc Class A — Q1 2010 Earnings Presentation
22 slides from Torm Plc Class A's earnings presentation, 2010
Slide 1: Presentation of Q1 2010 results
Presentation of Q1 2010 results 1
Slide 2: Safe Harbour Statement
Safe Harbour Statement Matters discussed in this presentation may constitute forward-looking statements. Such statements reflect TORM's current expectations and are subject to certain risks and uncertainties that could negatively impact TORM's business. To understand these risks and uncertainties, p
Slide 3: Financial Highlights for Q1 2010
Financial summary Financial Highlights for Q1 2010 Tanker market Dry bulk market Finance CSR Financials (USDm) Gross profit per quarter 120 98 Gross profit of USD 56m in Q1 2010 100 80 •Positive development in gross profit since Q2 2009 driven by increased number of earning days and 60 54 52 56 lowe
Slide 4: TORM has scale advantages with proven results
Financial summary TORM has scale advantages with proven results Tanker market Dry bulk market Finance CSR TORM is one of the worlds largest product tanker companies Product tanker vessels controlled by TORM 140 • Large and high quality fleet: • >~30 vessels in each pool 120 • Global presence 100 • Y
Slide 5: Continued difficult conditions on the product tanker market
Financial summary Continued difficult conditions on the product tanker market Tanker market Dry bulk market Finance CSR Freight rates (MR and LRs) Rates have remained low despite economic recovery USDt MR spot rates and 1 year T/C rates 30 Positive •Increased petrochemical production in the Far East
Slide 6: Floating storage – significant decline during Q1 2010
Financial summary Floating storage – significant decline during Q1 2010 Tanker market Dry bulk market Finance CSR Floating storage has been significant… mbbl Cleanproductson floatingstorage* 120 100 80 60 Floating storage was significant during 2009 40 driven by a steep contango curve on middle dist
Slide 7: Economic recovery in the USA & Europe lagging Asia but catching up
Financial summary Economic recovery in the USA & Europe lagging Asia but Tanker market Dry bulk market catching up Finance CSR Significant shock to the Asia was relatively less impacted The Advanced Countries are manufacturing cycle in the OECD catching up One of the deepest cycles in record Develop
Slide 8: Product tanker vessel prices have stabilised and increased
Financial summary Product tanker vessel prices have stabilised and increased - Tanker market Dry bulk market continued limited S&P activity Finance CSR Vessel price development* USDm MR newbuilding and second-hand prices 55 Newbuilding and second-hand prices have 50 increased during Q1 2010, indicat
Slide 9: Product tanker market - demand will outgrow supply from 2010 to 2012
Financial summary Product Tanker market - Tanker market Dry bulk market demand will outgrow supply from 2010 to 2012 Finance CSR Demand and supply development (2010 - 2012) N u m b er o f vessels* Demand Supply 750 Swing factors: 87 •Order book delays 74 500 111 •Delays in refineries 85 77 5 •Floati
Slide 10: Refinery dis-location improve long-term prospects
Financial summary Refinery dis-location improve long-term prospects Tanker market Dry bulk market Finance CSR Low utilisation rates due to pressure Increasing output in new locations… on refinery margins… 100 Refineryutilisationrates(%) 15,000 Refinerythroughput 95 14,000 Mill. metricton/ day %of to
Slide 11: Supply affected by slippage and potential cancellations
Financial summary Supply affected by slippage and potential cancellations Tanker market Dry bulk market Finance Slippage was significant in 2009… CSR 2009 order book Newbuildings (LR2, LR1, MR and SR) No of vessels No of vessels 350 120 27% 300 Significant slippage continues in 2010 100 250 •2009, s
Slide 12: Dry bulk market has remained at a relatively strong level in Q1
Financial summary Dry bulk market has remained at a relatively strong level in Q1 Tanker market Dry bulk market Finance CSR Freight rates development USDt Panamax spot rates and 1 year T/C rates 100 90 Panamax rates have remained strong in Q1 2010 80 70 60 Rates supported by 50 •Chinese coal and iro
Slide 13: Greater Efficiency Power has lead to significant savings
Financial summary “Greater Efficiency Power” has lead to significant savings Tanker market Dry bulk market Finance CSR Status on Greater Efficiency Power Efficiency programme “Greater Efficiency Development in operating cost per day (USD/day) Power” launched by the end of 2008 9,000 8,000 Key initia
Slide 14: Financing – no loan to value covenants and solid cash and credit facilities
Financial summary Financing – no loan to value covenants and solid cash and Tanker market Dry bulk market credit facilities Finance CSR TORM has a sound financial position USDm Remaining capex and liquidity 800 • TORM’s total cash and unused credit facilities 700 totalled USD 700m as per 31 March 20
Slide 15: TORM maintains its forecast for 2010
Financial summary TORM maintains its forecast for 2010 Tanker market Dry bulk market Finance CSR • TORM expects a loss before tax of USD 15m to 60m for 2010, however towards 2010 Guidance the lower end of the range USDm Change in freight rates (USD/ day) Sensitivity – change in profit Segment -2,000
Slide 16: Corporate Social Responsibility
Financial summary Corporate Social Responsibility Tanker market Dry bulk market Finance CSR Focus on environment has never been ..therefore TORM has decided on an bigger and shipping has a key role ambitious CSR strategy with green focus • Increasing political focus on environmental • TORM signed th
Slide 17: Appendix
Appendix
Slide 18: Introduction to TORM
Company facts Introduction to TORM Strategy and key facts Global footprint based on regional power and presence A world leading product tanker company •Among leading owners in size •120 years of history Strategy •Superior advantage through modern product tanker fleet, sizeable market share through p
Slide 19: Earning days, TC cost and coverage for 2010
Finance Earning days, TC cost and coverage for 2010 Earning days, TC cost and coverage TORM has for the remaining of 2010 2011 2012 2010 2011 2012 2010 24,349 earning days in the Owned days Tanker Division and 3,395 LR2 3.268 4.389 4.392 LR1 1.873 2.533 2.539 earning days in the Bulk Division MR 9.9
Slide 20: TORM fleet overview
Finance TORM fleet overview TORM fleet overview 12/31/2006 12/31/2007 12/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012 12/31/2013 Owned vessels Tanker LR2 7.0 9.5 12.5 12.5 12.5 12.5 12.5 12.5 LR1 6.0 7.5 7.5 7.5 7.5 7.5 7.5 7.5 MR 18.0 29.0 29.0 33.0 38.0 42.0 44.0 44.0 SR - 10.0 10.0 11.0 11
Slide 21: Detailed key figures overview
Finance Detailed key figures overview Key figures overview USD million Q1 2009 2009 2008 2007 2006 P&L Revenue 205 862 1,184 774 604 EBITDA 55 203 572 288 301 Net income 2 -17 361 792 235 Balance Total assets 3,226 3,227 3,317 2,959 2,089 Long term assets 2,926 2,944 2,913 2,703 1,970 Equity 1,248 1
Slide 22: 22
22