Ocean Yield ASA — Pareto Öhman Corporate Bond Conference 2013
11 slides from Ocean Yield ASA's conference presentation, January 2013
Slide 1: Ocean Yield AS – Pareto Öhman Corporate Bond Conference 2013
OCEAN YIELD AS Pareto Öhman Corporate Bond Conference 2013 January 2013
Slide 2: Ocean Yield
Ocean Yield • Established by Aker ASA in Q1 2012, with an attractive portfolio of oil service assets • Ocean Yield committed to invest ~USD 440 million in 2012 • Long term employment and focus on bareboat charters gives stable earnings • Growth strategy – will invest in oil service and industrial sh
Slide 3: Attractive portfolio of oil service and industrial shipping assets
Attractive portfolio of oil service and industrial shipping assets Initial asset base… …and recent acquistions FPSO – Dhirubhai 1 Subsea vessel – Lewek Subsea Connector construction vessel- Wayfarer 2X car carrier 6500 CEU Seismic (newbuilds) vessel- Geco Triton • Bonds in AMSC, book value USDm 146*
Slide 4: Solid contract backlog and end-users
Solid contract backlog and end‐users Firm period Unit Counterparty Contract type 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 ends Dhirubhai‐1 Reliance Bareboat / O&M sep.18 Lewek Connector Ezra Holding Bareboat okt.22 Wayfarer Aker Solutions Bareboat okt.20 Höegh 4401 Höegh
Slide 5: Strategy for further growth
Strategy for further growth Key investment criteria for new projects Oil Service Assets Industrial Shipping Modern Assets Solid counterparties Chartering Bareboat charters 5‐15 years, current avg. 7.5 years Bank debt on project basis ~70% Financing Equity ~30% Economics Equity IRR
Slide 6: Risk factors
Risk factors • Counterparty risk • Operating risk Dhirubhai 1 • Interest rate risk • Refinancing risk • Residual value risk 6
Slide 7: Plans Initial Public Offering
Plans Initial Public Offering • Will raise new equity to fund further growth • Listing of the company on Oslo Stock Exchange • Timing of listing dependent on market conditions • May raise equity pre‐IPO • Will create attractive yield stock by paying stable dividends • Aker committed to remaining maj
Slide 8: Senior unsecured bond details
Senior unsecured bond details Company rating*: B+ Bond rating*: B Outstanding amount: NOK 600m Coupon: NIBOR +6.50% p.a., quarterly interest payments Maturity: 6 July 2017 Financial covenants: ‐ Book equity > 25% ‐ Free liquidity > the higher of (a) USD 25m and (b) 3% of NIBD ‐ Interest coverage rat
Slide 9: Key financials
Key financials Consolidated Jan-Sept 2012 Key figures - USD million Q3 2012 Q2 2012 (pro-forma) Revenues 46 46 137 EBITDA 38 39 112 Net profit 12 12 33 Cash 202 78 Total assets 1283 1160 Interest bearing debt 650 551 Total equity 521 500 Equity ratio (%) 41 43 9
Slide 10: Ocean Yield – Summary
Ocean Yield Summary • Strong sponsor • Substantial contract backlog • Stable cashflow from long term contracts • Conservative investment profile • Experienced board of directors and management • Positive market outlook for target segments 10
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