Ocean Yield ASA — Q4 2014 Earnings Presentation
20 slides from Ocean Yield ASA's earnings presentation, Feb 26, 2015
Slide 1: Fourth Quarter 2014 Presentation
Fourth Quarter 2014 Presentation 26 February 2015
Slide 2: Fourth Quarter 2014 highlights
Fourth Quarter 2014 highlights Quarterly dividend increased to USD 0.1425 per share – Increase of 0.5 cents or 3.6% versus Q3’14 (14.5% annualized) – USD 0.57 per share annualized, representing a dividend yield of 9.4% p.a. EBITDA was USD 53.9m compared with USD 52.7m in Q4’13 – Negatively impacted
Slide 3: Recent transactions
Recent transactions Acquired the vessel SBM Installer in December for USD 150m in combination with a 12-year bareboat charter to the SBM Offshore Group Sale of Geco Triton for USD 8.2m to Western Geco Increased existing loan facility with USD 50.5m secured by Dhirubhai-1. The increased loan amount w
Slide 4: Attractive and diversified portfolio of industrial shipping and oil service assets
Attractive and diversified portfolio of industrial shipping and oil service assets Floating Production Car Carriers (PCTCs) Storage Offloading Newbuilds 8,500 CEU Dhirubhai-1 XS1462E & XS1462F Subsea Equipment Support Vessel Jacksonville & Jeddah (6,500 CEU) Wayfarer INDUSTRIAL SHIPPING OIL SERVICE
Slide 5: All vessels on long term charter with USD 2.2 billion in EBITDA backlog
All vessels on long term charter with USD 2.2 billion in EBITDA* backlog Unit Type Built Counterparty 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Höegh XS1462F PCTC 2016 Höegh Autoliners Höegh XSI462E PCTC 2016 Höegh Autoliners Wayfarer OCV 2010 AKOFS / Akastor SBM Installe
Slide 6: Acquisition of SBM Installer with 12 year bareboat charter completed in December 2014
Acquisition of SBM Installer with 12 year bareboat charter completed in December 2014 Vessel: SBM Installer Type: Diving Support & Construction Vessel Built / Yard: 2013 / Keppel, Singapore Price: USD 150 million Debt: USD 110m non-recourse Ownership: 75% Ocean Yield 25% SBM Offshore Delivery: Decem
Slide 7: Sale of the seismic vessel Geco Triton
Sale of the seismic vessel Geco Triton Geco Triton sold to Western Geco for USD 8.2m in December Book value was USD 12.0 million, resulting in a book loss of USD 3.8 million in Q4 Net cash proceeds of USD 8.2 million as there was no loan secured by the vessel Main reasons for the sale of vessel – Ne
Slide 8: Significant growth in EBITDA from delivery of new projects
Significant growth in EBITDA from delivery of new projects EBITDA1 per quarter (USDm) 48.8 50.6 55.6 52.7 53.2 55.4 54.2 53.9 Q4 EBITDA negatively 38.1 39.4 impacted by Wayfarer finance lease reclassification of USD Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2013 2014 3.4m and safety shut- down of Dhirubhai
Slide 9: Adjusted Net Profit and Dividend per share
Adjusted Net Profit and Dividend per share Dividend yield Adjusted net profit per share, annualized basis (USD)** 0.74 0.64 0.76 0.78 0.78 0.81 9.4%* p.a. Pay-out ratio on Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 adjusted Q4 EPS Dividend per share, annualized basis (USD) 70% +16% 0.50 0.52 0.
Slide 10: P&L Income statement
P&L Income statement Comments 3rd Quarter 4th Quarter 4th Quarter Jan - Dec Jan - Dec Amounts in USD million Note 2014 2014 2013 2014 2013 Revenues: Operating revenues 65.4 62.1 60.6 249.3 239.0 Negatively impacted by Aker Vessel operating expenses (3.7) (3.9) (2.7) (14.6) (14.2) Wayfarer financial
Slide 11: Net profit after tax adjusted for non-recurring items
Net profit after tax adjusted for non-recurring items Adjustments Comments 3rd Quarter 4th Quarter Amounts in USD million 2014 2014 Profit after tax 24.5 30.5 - One-off adj. to Other Operating Expenses 2.9 - • Provision in connection with AFP’s insurance dispute - Loss from sale of vessel 3.8 • Sale
Slide 12: Balance sheet
Balance sheet Balance sheet 30 September 31 December 30 September 31 December Amounts in USD million 2014 2014 Amounts in USD million 2014 2014 ASSETS EQUITY AND LIABILITIES Vessels and equipment 1 194.6 1 308.0 Total equity attributable to equity holders of the parent 710.0 708.1 Intangible assets
Slide 13: Contractual obligations and financing
Contractual obligations and financing Contractual obligations newbuildings / modification of Aker Wayfarer Other Oil Gas Car Amounts in USD million FPSO Service Carriers Carriers Total Already paid - 14.0 24.3 24.9 63.2 2015 - 19.3 48.6 12.5 80.3 2016 - 55.9 170.1 87.2 313.2 Total contractual obliga
Slide 14: In compliance with covenants in bond agreement
In compliance with covenants in bond agreement OCY02 Unsecured Bond Issue – 2014/2019 Q4 2014 Q3 2014 Minimum Book Equity of 25% 39.7% 40.1% Minimum Cash of $ 25 Million $76.4 M $148.2 M EBITDA ÷ Interest expenses > 2.5x 7.32x 6.82x February 15 Fourth Quarter 2014 14
Slide 15: Adjusted earnings and dividend yield
Adjusted earnings and dividend yield Adjusted earnings & dividend yield, latest fiscal quarter annualized 16% 15% 14% 13.3 % p.a. 13% 12% 12.3 % p.a. 11% 10% 9.4 % p.a. 9% 8.3 % p.a. 8% 7% Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 1) Latest fiscal quarter adjusted EPS (USD) × 4 ÷ Latest share
Slide 16: Strategy and outlook
Strategy and outlook Well positioned to continue to pay attractive and increasing quarterly dividends Challenging shipping and oil-service markets in 2015 is not expected to have a negative effect on earnings as all vessels are on long term charter to relatively strong counterparties The current mar
Slide 17: Appendix
Appendix February 15 Fourth Quarter 2014 17
Slide 18: Aker Wayfarer – P/L recognition and new rate after FX conversion
Aker Wayfarer – P/L recognition and new rate after FX conversion Cash received vs. income recognition (USDm)* Revised base bareboat rate 41,4 41,6 41,8 36,0 28,3 29,3 27,5 25,4 19,8 25,8 8,5 10,2 12,1 14,1 16,4 Additional BB rate to cover the vessel upgrade 2015 2016 2017 2018 2019 Recognized over P
Slide 19: [Intentionally left blank]
[Intentionally left blank] February 15 Fourth Quarter 2014 19
Slide 20: February 15
= OCEAN YIELD — February 15 20