Dampskibsselskabet Norden A/s · OMXCOP:DNORD
Dampskibsselskabet Norden A/s — Q2 2021 Earnings Presentation
18 slides from Dampskibsselskabet Norden A/s's earnings presentation, Aug 18, 2021
Slide 1: Presentation of Q2 2021 Results
PRESENTATION OF Q2 2021 RESULTS Copenhagen, Denmark, 18 August 2021
Slide 2: Agenda for Today
AGENDA FOR TODAY 01. Group Results 02. Business unit performance & Market outlook • Asset Management • Dry Operator • Tanker Operator 04. Guidance for 2021 05. Final words and Q&A 2 PRESENTATION OF Q2 2021
Slide 3: Highlights Q2 and H1 2021
01. HIGHLIGHTS Q2 AND H1 2021 3 PRESENTATION OF Q2 2021
Slide 4: Business Update
01. HIGHLIGHTS Q2 AND H1 2021 BUSINESS UPDATE Adjusted Group Result last 5 years Guidance On track to deliver best result in 11 years 200 140-220 180 • Adjusted Result Q2 2021: USD 32 million (Q2 2020: USD 29 million) 160 140 • Best quarterly result since Q2 2015 - Even stronger results expected for
Slide 5: Business Unit Performance and Market Outlook
02. BUSINESS UNIT PERFORMANCE AND MARKET OUTLOOK 5 PRESENTATION OF Q2 2021
Slide 6: Dry Cargo Portfolio Value Continues to Increase
02. ASSET MANAGEMENT DRY CARGO PORTFOLIO VALUE CONTINUES TO INCREASE Adjusted Result Q2 2021: USD 2 million Asset Management key figures • Significant asset value increase in line with dry cargo market improvements 2021 2020 Last 4 USD million Q2 Q2 quarters • Market value of portfolio up USD 258 mi
Slide 7: Extensive Optionality in Portfolio
02. ASSET MANAGEMENT EXTENSIVE OPTIONALITY IN PORTFOLIO • 65,713 period option days in total, corresponding to ~180 full-year extension options • 69 purchase options in total (49 in dry cargo, 20 in tankers) • By mid-2023: 23 period extension options on dry cargo vessels and 2 on tanker vessels Exte
Slide 8: Dry and Tanker Market in Q2 2021
02. ASSET MANAGEMENT DRY AND TANKER MARKET IN Q2 2021 Exceptionally strong dry cargo market Challenged, yet stabilising, tanker market • Asset prices and period rates continued to soar in Q2 • Continued limited demand and high oil inventories • Spot market increased by 60% for Supramax and 71% for P
Slide 9: Market Outlook in Dry Cargo
02. ASSET MANAGEMENT MARKET OUTLOOK IN DRY CARGO Strong dry cargo market to continue Continued slowdown in supply growth • Dry cargo market rates to remain strong for some time • Low order book continues to support period rates and secondhand prices • Global market demand expected to increase, offse
Slide 10: Market Outlook in Tanker
02. ASSET MANAGEMENT MARKET OUTLOOK IN TANKER Spot market rates bottoming out Orderbooks remain low • Gradual, yet slow, improvement still expected during H2 2021 • Low orderbooks to provide supporting effect on asset prices • No large upside until expected oil production rebound in 2022 • New order
Slide 11: Capitalising on Long Position
02. DRY OPERATOR CAPITALISING ON LONG POSITION Adjusted Result Q2 2021: USD 34 million • Starting to capitalise on extensive long position in soaring dry cargo market • Record-high activity with 343 vessels operated on average • Continuously utilising extensive arbitrage opportunities and optimising
Slide 12: Adding Optionality for Medium-Term Improvements
02. TANKER OPERATOR ADDING OPTIONALITY FOR MEDIUM-TERM IMPROVEMENTS Adjusted Result Q2 2021 USD -4 million • Continues to manage short-term exposure on operated fleet • Third party pool management activity growing • Using forward freight agreements, time charter-out contracts • International Seaways
Slide 13: 2021 Guidance and Final Words
03. 2021 GUIDANCE AND FINAL WORDS 13 PRESENTATION OF Q2 2021
Slide 14: 2021 Guidance
03. 2021 GUIDANCE NORDEN increases its expectations for the 2021 Adjusted Result: USD 140 to 220 million - expecting significantly improved second half year, based on strong performance in Dry Operator Dividend policy: Paying out minimum 50% of the annual Adjusted Result. Asset Management Dry Operat
Slide 15: Substantial Value Beyond Asset Values
03. 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 16: On Track for Best Result in 11 Years
03. FINAL WORDS ON TRACK FOR BEST RESULT IN 11 YEARS • Best quarterly result since Q2 2015 • On track to deliver best result in 11 years, despite all-time low tanker market • Expecting significantly higher earnings in H2 • Guidance increased to USD 140-220 million (raised 3 times since Q1) • Value o
Slide 17: Forward Looking Statements
03. 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 18: 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 18 PRESENTATION OF Q2 2021
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