Ocean Yield ASA — Pareto Securities Oil & Offshore Conference 2019
16 slides from Ocean Yield ASA's conference presentation, September 2019
Slide 1: Pareto Securities Oil & Offshore Conference
PARETO SECURITIES OIL & OFFSHORE CONFERENCE September 2019
Slide 2: The Dividend Yield Company
THE DIVIDEND YIELD COMPANY Ship leasing company listed on the OSE LISTING Market cap of USD 1 billion Modern diversified fleet of 62 vessels FLEET Average age of only 3.7 years EBITDA contract backlog of USD 3.3bn EMPLOYMENT Average contract tenor of 10.9 years Ambition to continue to increase the p
Slide 3: Investment Strategy
INVESTMENT STRATEGY Modern Long-term Acceptable Multi Growth VESSELS CHARTERS COUNTERPARTIES SEGMENT STRATEGY
Slide 4: Attractive Market for New Leasing Transactions
ATTRACTIVE MARKET FOR NEW LEASING TRANSACTIONS ▪ Substantial increase in volume of leasing transactions ▪ Banks are reducing shipping exposure ▪ Bond market is only competitive for large companies ▪ Equity capital is currently expensive ▪ Competition ▪ Chinese leasing companies ▪ Japanese leasing co
Slide 5: Significant Growth Since Start-up
SIGNIFICANT GROWTH SINCE START-UP ANNOUNCED TRANSACTIONS, # VESSELS ACCUMULATED 62 Chemical / product tankers 57 Crude tankers 16 Oil-Service 16 Dry Bulk 40 9 Container vessels 34 8 14 7 Car Carriers 26 14 7 4 11 Gas Carriers 7 12 7 FPSO 14 5 10 10 10 5 5 6 6 6 5 3 3 6 6 6 6 6 6 1 4 1 2 2 1 1 2 1 2
Slide 6: Vessels with Long-Term Charters
VESSELS WITH LONG-TERM CHARTERS EBITDA1 BACKLOG OF USD 3.3 BILLION PER Q2 2019 FLEET2 Product / chemical 16 7% Dry bulk 11 18% 4% 3% Container vessels 10 8% 6% Avg. remaining 2% charter tenor of 5% Crude 9 5% 10.9 years 2% 2% 4% 3% Car carriers 6 10% 14% 2% 6% Oil-service 4 Gas carriers 2 Total 58 1
Slide 7: Vessels without Long-Term Charter
VESSELS WITHOUT LONG-TERM CHARTER Opportunities for long-term charters ▪ Option agreement with Aker Energy FPSO ▪ Paid technical study for an independent oil- DHIRUBHAI-1 company ▪ Working with other potential charterers ▪ Subsea construction and cable-lay vessel CONNECTOR ▪ Focusing on short-term c
Slide 8: Access to Bank Funding at Attractive Terms
ACCESS TO BANK FUNDING AT ATTRACTIVE TERMS BANK GROUP COMMENTARY ▪ Bank funding at attractive terms ▪ Large and diversified bank group ▪ Proactively working to broaden sources of financing ▪ Recent refinancing has lowered costs and increased tenor ▪ Streamlined and standardised documentation
Slide 9: Successful Placement of Hybrid Bond
SUCCESSFUL PLACEMENT OF HYBRID BOND • Amount USD 125 million • Tenor Perpeptual • Coupon LIBOR + 6.50% p.a. • First call After 5 years at par • Step-up 5% p.a. after 5.5 years • Accounting treatment 100% equity • Use of proceeds New investments and general corporate purposes
Slide 10: Bond Overview
BOND OVERVIEW BOND TERMS OCY03 OCY04 OCY05 OCY06 Type Sr. Unsecured Sr. Unsecured Sr. Unsecured Hybrid Outstanding NOK 897.5m NOK 750m NOK 750m USD 125m Coupon NIBOR + 4.00% NIBOR + 4.50% NIBOR + 3.65% LIBOR + 6.50% Spread1 16 bps 126 bps 380 bps 646 bps Maturity April 2020 September 2021 May 2023 P
Slide 11: 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 12: Risk Management
RISK MANAGEMENT % Residual Counterparty Operations Interest cost Financing value
Slide 13: Commitment to ESG
COMMITMENT TO ESG ▪ Fleet of modern vessels with low climate footprint - Total average fleet age of 3.7 years - Most of the large tanker and container vessels will be scrubber fitted - Two gas carriers with dual fuel engines first vessels to run on ethane - Ballast water treatment systems in place ▪
Slide 14: Summary
SUMMARY • Stable earnings from 58 vessels on long-term charter • Strong focus on securing satsifactory earnings from four vessels without long-term charters • Attractive investment opportunities across several segments • If no satisfactory employment is firmed up for the FPSO within reporting of Q1
Slide 15: Notes
NOTES September 19 15
Slide 16: Investor Relations
INVESTOR RELATIONS Marius Magelie, SVP Finance & Investor Relations +47 24 13 01 82 mm@oceanyield.no www.oceanyield.no/IR
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