Ads Maritime Holding Plc · OSL:ADS
Ads Maritime — ADS Crude Carriers — Den store selskapskvelden – SMB 2019
20 slides from Ads Maritime's conference presentation, Jun 4, 2019
Slide 1: Den store selskapskvelden – SMB 2019
Den store selskapskvelden – SMB 2019 Oslo, 4 June 2019 Bjørn Tore Larsen, Chairman
Slide 2: Disclaimer
Disclaimer This Presentation of ADS Crude Carriers Plc (“ADS Crude Carriers” or the “Company”) has been prepared solely for information purposes. This Presentation may not be distributed, reproduced or used without the consent of the Company. The information contained herein does not purport to cont
Slide 3: ADS Crude Carriers at a glance
ADS Crude Carriers at a glance • 3 x top-rated 2002 built VLCCs, all sister vessels acquired at the bottom of the market in mid-2018 • Limited down side on vessel values Strategy • Partnered with leading and well established managers • Low cost base • Low debt and no fixed loan amortization • Favour
Slide 4: ADS Crude Carriers: The story so far
ADS Crude Carriers: The story so far A new shipping company; established mid-2018 • July 2018 • Agreed acquisition of 3 x VLCCs for USD 22.5 million per vessel • Debt USD 10 million per vessel • USD 57 million equity raise 16 July 2018 • August 2018 – listed on Merkur Markets 28 August • Q4 2018 – f
Slide 5: ADS Crude Carriers in 2019
ADS Crude Carriers in 2019 Already paying dividends; preparing for the future • Q1 2019 – dividend declared in only the second full quarter of vessel operations • Q2 2019 – manufacturing of scrubbers successfully completed • Q3 2019 – yard slots scheduled for first half of the months of July, Aug. a
Slide 6: ADS Crude Carriers: key partners
ADS Crude Carriers: key partners Arendals Dampskibsselskab AS are the corporate managers of ADS Crude Carriers Plc • Private Norwegian shipping company founded in 1857 • Manages shipping and offshore projects and investments on behalf of its shareholders and third parties • Arendals Dampskibsselskab
Slide 7: Why scrubbers?
Why scrubbers? • From 1 January 2020 new regulations require that vessel sulphur emissions are reduced • Vessel owners have two options to comply: i. Use more expensive low-sulphur fuel (MGO) ii. Install emissions cleaning system (eg. scrubbers) to enable removal of sulphur from the cheaper high-sul
Slide 8: Tanker market
Tanker market Average TCE for tankers 2012-2019 80 • ADS Crude Carriers cash break 70 even significantly lower than USD thousands per day 60 historical market rate 50 40 • Positive market sentiment for 30 2019 and 2020 20 Broker forecast TCE for VLCCs (USD per day) 2019 2020 10 Arctic Securities 35
Slide 9: The share
The share As at 3 June 2019 • Listed on Merkur Markets since 28 August 2018 • Share price NOK 20.20 • Discount to NAV of ~20%¹ • Market Cap ~NOK 475m 9 ¹ = based on a vessel value of USD 25 million and NOK:USD forex of 8.70
Slide 10: Ownership
Ownership Top 20 shareholders Rank Holding Holding% Name 1 4 031 800 17.2 % SHIP FINANCE INTERNATIONAL LTD 2 2 021 754 8.6 % ADS SHIPPING LIMITED 3 4 1 478 375 1 456 360 6.3 % HORTULAN AS 6.2 % NORDA ASA Free float 72.4% 5 6 1 344 203 891 340 5.7 % VERDIPAPIRFONDET DNB SMB 3.8 % Morgan Stanley & Co.
Slide 11: Appendices
Appendices FRONT PAGE MONROVIA
Slide 12: Income statement
Income statement Q1 2019 Quarter ended • Second quarter of full vessel operation (In millions of USD) Q1 2019 Q4 2018 Q3 2018 Net revenue² 6.5 6.8 1.1 • TCE¹ achieved of USD 24,093 per day OPEX (2.5) (2.7) (1.9) • USD 24,697 in Q4 2018 G&A (0.3) (0.2) (0.4) Depreciation (1.3) (1.3) (0.6) Operating p
Slide 13: Balance sheet
Balance sheet Q1 2019 As at end • Limited down side on vessel values (In millions of USD) Q1 2019 Q4 2018 Q3 2018 • Vessel carrying value USD 22 million per vessel, compared to estimated current recycling value Vessels 66.4 67.7 67.3 Current assets 23.5 24.4 17.1 USD 16 million¹ Total assets 89.9 92
Slide 14: Cash flow
Cash flow Q1 2019 Quarter ended • USD 4.0 million cash from operations Q1 2019 Q4 2018 Q3 2018 (In millions of USD) • Working capital movements USD 0.3 million Cash from operations 4.0 3.2 (5.8) Cash investment in vessels (1.2) (0.5) (67.9) Cash from financing activities (0.5) (0.4) 85.0 • USD 1.2 m
Slide 15: Debt overview
Debt overview Interest bearing debt as at 31 March 2019 As at end Q1 2019 Nominal outstanding Maturity Interest The vessel loans are repayable in full at USD millions maturity. Additionally, 50% of any dividend payment exceeding the below thresholds is Vessel 1 – Front Page 10.0 31 Dec 2022 4.5% + L
Slide 16: CAPEX
CAPEX CAPEX requirement 2019 - 2022¹ USD millions • CAPEX requirement consists of: 9.0 • Mandatory intermediate surveys 16.5 • Scrubber investments • All spend expected in 2019¹ 7.5 • Remaining USD 7.5 million element expected to be financed through a combination of cash from operations and new debt
Slide 17: Cash break even
Cash break even Break even 2019 - 2022 USD thousands BE cash cost includes OPEX, G&A, interest, scrubber investment and intermediate survey cost calculated from 1 January 2019 until 20-year lifetime of vessel (2022) • Calculated on an average basis across the period, across the fleet • Based on vess
Slide 18: Dividend
Dividend Key information relating to the cash dividend declared for Q1 2019 • Amount: USD 0.04 per share (payable in NOK at the prevailing forex rate on or around the last day including the right) • Date of approval: 28 May 2019 • Last day including right: 11 June 2019 • Ex-div date: 12 June 2019 •
Slide 19: The Fleet
The Fleet Front Page to be renamed ADS Page during Q3 2019 19
Slide 20: ADS CRUDE CARRIERS PLC
ADS CRUDE CARRIERS PLC
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