Ocean Yield ASA — Q2 2019 Earnings Presentation
16 slides from Ocean Yield ASA's earnings presentation, Jul 12, 2019
Slide 1: Q2 2019 Presentation
Q2 2019 PRESENTATION 12th July 2019
Slide 2: Q2 2019 Financial Highlights
Q2 2019 FINANCIAL HIGHLIGHTS • Declared Q2 2019 dividend of USD 0.1910 per share - USD 0.764 per share annualized - Dividend yield of 11.3% p.a. - Declared cash dividends for 24 consecutive quarters • EBITDA was USD 56.8m vs. Q1 of USD 51.9m - EBITDA adjusted for finance leases was USD 74.5m vs. USD
Slide 3: Recent Events
RECENT EVENTS • Investments and deliveries - Acquisition and delivery of two modern ultramax dry bulk vessels - Acquisition of one newcastlemax dry bulk newbuilding - Delivery of three in a series of four VLCC newbuildings • Financing - Refinancing of the PSVs NS Fraya/Orla in the Japanese bank mark
Slide 4: Investment in a Newcastlemax Dry Bulk Vessel with Long-Term Charter
INVESTMENT IN A NEWCASTLEMAX DRY BULK VESSEL WITH LONG-TERM CHARTER TRANSACTION DETAILS Net purchase price USD 40.0m Charter 15 years bareboat Purchase options Several purchase options Charterer CMB VESSEL DETAILS Vessel type Newcastlemax dry bulk carrier Size 206,000 dwt Delivery Q1 2020
Slide 5: Charter Backlog
CHARTER BACKLOG EBITDA1 BACKLOG OF USD 3.3 BILLION FLEET2 Tankers 25 7% Container vessels 10 18 % 4% 3% Dry-bulk 10 8% 6% Avg. remaining charter Oil-service 7 tenor of 10.9 years 2% 5% 5% 2% 2% 4% 3% Car carriers 6 10 % 14 % 2% 6% Gas carriers 2 FPSO 1 Total 61 1) EBITDA backlog based on certain opt
Slide 6: FPSO Dhirubhai-1
FPSO DHIRUBHAI-1 • Current status - In Sri Lanka preparing for new employment - Vessel preservation work successfully completed. Further reduction in cost levels have been initiated - Remaining demobilization activities to be performed in H2 2019 - Demobilization provision increased by USD 4.5m to U
Slide 7: Connector / Far Senator & Far Statesman
CONNECTOR / FAR SENATOR & FAR STATESMAN • Connector - Trading on short-term charters during Q2, performing subsea installation and cable repair work in the North Sea - Entered into a new time-charter with start-up in early July for 55 days firm with 50 days extension options - Focusing on short-term
Slide 8: Quarterly Financial Highlights
QUARTERLY FINANCIAL HIGHLIGHTS EBITDA PER QUARTER (USDM) 80.6 80.4 84.3 85.1 74.3 77.8 71.2 51.9 56.8 35.5 Q1 2017 Q2 Q3 Q4 Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 NET PROFIT PER QUARTER (USDM) 36.8 33.3 35.1 39.9 30.6 31.3 30.9 8.4 5.3 -49.9 Q1 2017 Q2 Q3 Q4 Q1 2018 Q2 Q3 Q4 Q1 2019 Q2
Slide 9: Adjusted EBITDA and Net Profit
ADJUSTED EBITDA AND NET PROFIT EBITDA ADJUSTED FOR FINANCE LEASES (USDM) 95.1 100.4 83.1 89.3 89.3 86.8 79.1 74.5 67.8 51.3 Q1 2017 Q2 Q3 Q4 Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 ADJUSTED NET PROFIT (USDM) 36.3 37.9 37.3 33.4 33.5 34.4 33.9 12.5 11.3 8.4 Q1 2017 Q2 Q3 Q4 Q1 2018 Q2 Q3 Q4 Q1 2019 Q2
Slide 10: Cash Dividends for 24 Consecutive Quarters
CASH DIVIDENDS FOR 24 CONSECUTIVE QUARTERS DIVIDEND PER SHARE (USD CENTS) DIVIDEND YIELD 18.50 18.75 18.85 18.95 19.05 19.10 19.10 19.10 19.10 19.10 11.3%1 p.a. Q1 2017 Q2 Q3 Q4 Q1 2018 Q2 Q3 Q4 Q1 2019 Q2 1) Per 11.7.2019, Q2 2019 DPS annualized, share price of NOK 57.9, NOK/USD of 8.55
Slide 11: Income Statement
INCOME STATEMENT INCOME STATEMENT Q1 Q2 Amounts in USD million 2019 2019 Operating revenues 26.0 30.1 Finance lease revenue 24.9 26.6 Income from investments in associates 5.7 5.9 Other revenue 1.8 3.9 Total revenues and other income 58.4 66.5 Vessel operating expenses (1.8) (4.6) Wages and other pe
Slide 12: Adjusted Net Profit
ADJUSTED NET PROFIT ADJUSTMENTS Q1 Q2 Amounts in USD million 2019 2019 Net profit after tax 8.4 5.3 Increase in field abandonment provision 0.0 4.5 Foreign exchange gains/losses 3.5 3.5 • Bond and bank loans in NOK Change in fair value of financial instruments -3.9 -2.0 Changes in deferred tax, net
Slide 13: Balance Sheet
BALANCE SHEET BALANCE SHEET Q1 Q2 Q1 Q2 Amounts in USD million 2019 2019 2019 2019 ASSETS EQUITY AND LIABILITIES Equity to holders of the parent 818.6 784.4 Vessels and equipment 1,178.6 1,160.2 Non-controlling interests 12.4 12.6 Investments in associates 187.4 178.4 Total equity 831.0 796.9 Financ
Slide 14: Capex and Financing Overview
CAPEX AND FINANCING OVERVIEW REMAINING CAPEX AND FINANCING PER Q2 2019 (USDM) 125 40 85 87 76 18 37 -6 2 VLCCs Dry bulk Total Committed Liquidity Indicated Remaining Cash remaining VLCC from dry bulk cash Q2’19 capex financing PSV refi financing payments COMMENTS • Remaining obligations per Q2 2019
Slide 15: Outlook
OUTLOOK • Strong focus on securing new employment for the FPSO Dhirubhai-1 • Attractive investment opportunities across several segments • If no satisfactory employment can be firmed up for the FPSO before the reporting of the Q1 2020 results, an adjustment of the current dividend level of USD 0.191
Slide 16: Investor Relations
INVESTOR RELATIONS Marius Magelie, SVP Finance & Investor Relations +47 24 13 01 82 mm@oceanyield.no www.oceanyield.no/IR