Ocean Yield ASA — Pareto Conference 2014
17 slides from Ocean Yield ASA's conference presentation, September 2014
Slide 1: Pareto Conference September 2014
Pareto Conference September 2014
Slide 2: Ocean Yield – The dividend yield company
Ocean Yield – The dividend yield company A modern and diversified fleet of oil-service and shipping assets Ocean Yield in brief All vessels on long-term charter, substantial charter-backlog Target growth of minimum USD 350 million in annual investments Current dividend yield of 7.7% p.a. Capacity to
Slide 3: Attractive and diversified portfolio of oil service and industrial shipping assets
Attractive and diversified portfolio of oil service and industrial shipping assets Initial asset base… …and USD 1.1 billion in recent acquisitions FPSO Subsea vessel Lewek Connector Dhirubhai 1 Subsea construction 2 x AHTSs’ vessel FAR Senator Wayfarer FAR Statesman Seismic vessel 6 x car carriers 2
Slide 4: All vessels on long term charter with USD 2.0 billion in contracted EBITDA
All vessels on long term charter with USD 2.0 billion in contracted EBITDA* Unit # no Counterparty 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Dhirubhai-1 1 Reliance Wayfarer 1 Aker Solutions Lewek Connector 1 EMAS / Ezra Holding Höegh Jacksonville & Jeddah 2 Höegh Aut
Slide 5: Strong sector diversification
Strong sector diversification Contracted EBITDA per segment Seismic AHTS 0.4% 11.9% Subsea vessels 27.7% Gas carriers 15.5% 21.6% 22.9% Car carriers FPSO * Per end Q2 2014. EBITDA as reported, incl. mob. fees. Figures are based on management’s estimates regarding operating expenses on the Dhirubhai-
Slide 6: Liquified Ethylene Gas Carriers – 3 newbuildings
Liquified Ethylene Gas Carriers – 3 newbuildings Vessel: 3 Liquified Ethylene Gas (LEG) Carriers Yard cost: ~USD 243 million (total for the three newbuildings) Yard / Delivery: Sinopacific Offshore & Engineering, China, with delivery in H2 2016 Term: 15 years (10 years fixed and 5 years floating rat
Slide 7: Significant EBITDA growth from newbuildings
Significant EBITDA growth from newbuildings EBITDA per quarter (USDm) 48.8 50.6 55.6 52.7 53.2 55.4 Already committed 38.8 38.1 39.4 projects will add USD 15m to Q2 EBITDA Q2’12 Q3’12 Q4’12 Q1’13 Q2’13 Q3’13 Q4’13 Q1’14 Q2’14 September 14 Pareto Conference 2014 7
Slide 8: Adjusted Net Profit / Dividend per share
Adjusted Net Profit / Dividend per share Dividend yield Adj. Net profit per share, annualized basis (USD)** 0.74 0.64 0.76 0.78 7.7%* p.a Pay-out ratio on Q3 2013 Q4 2013 Q1 2014 Q2 2014 adjusted Q2 EPS Dividend per share, annualized basis (USD) 66% +8% 0.48 0.49 0.50 0.52 Adjusted earnings yield 11
Slide 9: New investments
New investments Invested USD 1.1bn in 12 vessels since the company was established 1st April 2012 (~2.5 years) Our target is minimum USD 350m in new investments per year ● Modern assets within oil-service and industrial shipping ● Equity returns targeted in the range of 13-15% p.a. ● Reasonable cred
Slide 10: Attractive credit markets will reduce funding costs
Attractive credit markets will reduce funding costs Lower margins on bank loans ● Opportunity to reduce interest cost by refinancing existing bank loans ● Recently arranged a USD 250m bank facility at LIBOR +2.25% p.a. ● Bank margins on new facilities are indicated at even lower levels Reduced fundi
Slide 11: Risk factors
Risk factors Counterparty risk Operating risk Dhirubhai 1 Residual risk Interest rate risk Refinancing risk September 14 Pareto Conference 2014 11
Slide 12: Investment highlights
Investment highlights Increased earnings per share ● Delivery of newbuildings ● New investments without raising new equity ● Reduced funding cost Growing dividends per share ● Higher pay-out ratio ● Increased earnings September 14 Pareto Conference 2014 12
Slide 13: Q&A
Q&A September 14 Pareto Conference 2014 13
Slide 14: P&L Income statement
P&L Income statement Comments Operating Expenses: Lower 2nd Quarter 2nd Quarter First Half First Half than budgeted in Q2 related Amounts in USD million 2014 2013 2014 2013 to the FPSO Dhirubhai-1 Operating revenues 62.1 60.0 121.8 116.6 Financial Expenses: One-off Vessel operating expenses (3.5) (3
Slide 15: Net profit after tax adjusted for non-recurring items
Net profit after tax adjusted for non-recurring items Adjustments Comments 1st Quarter 2nd Quarter Amounts in USD million 2014 2014 Profit after tax 28.6 17.1 - One-off adjustment to Financial Income (11.5) - - One-off adjustment to Financial Expenses 6.0 5.9 Accounting effect of financing of car ca
Slide 16: Balance sheet
Balance sheet Balance sheet 30 June 30 June 30 June 30 June Amounts in USD million 2014 2013 Amounts in USD million 2014 2013 Total equity 707.1 522.0 ASSETS Vessels and equipment 1 366.4 1 307.3 Interest-bearing debt 811.5 838.7 Intangible assets 38.3 38.3 Deferred tax liabilities 1.0 1.3 Deferred
Slide 17: September 14 Pareto Conference 2014
September 14 Pareto Conference 2014 17