Ocean Yield ASA — Q1 2019 Earnings Presentation
16 slides from Ocean Yield ASA's earnings presentation, May 8, 2019
Slide 1: Q1 2019 Presentation
Q1 2019 PRESENTATION 8th May 2019
Slide 2: Q1 2019 Financial Highlights
Q1 2019 FINANCIAL HIGHLIGHTS • Declared Q1 2019 dividend of USD 0.1910 per share - USD 0.764 per share annualized - Dividend yield of 10.3% p.a. - Declared cash dividends for 23 consecutive quarters • EBITDA was USD 51.9m vs. Q4 of USD 35.5m - EBITDA adjusted for finance leases was USD 67.8m vs. USD
Slide 3: Recent Events
RECENT EVENTS • Dhirubhai-1 - Reached final agreement with former charterer - Extension of option agreement with Aker Energy • Short-term charters for the vessel Connector • Investments and deliveries - Acquisition and delivery of one modern suezmax tanker - Acquisition of two modern ultramax dry bu
Slide 4: Investment in Two Ultramax Dry Bulk Vessels with Long-Term Charters
INVESTMENT IN TWO ULTRAMAX DRY BULK VESSELS WITH LONG-TERM CHARTERS TRANSACTION DETAILS Net purchase price Total of USD 42.0m / USD 21.0m per vessel Charter 11 years bareboat Purchase options Several purchase options during the charter Scrubber financing USD 3.0m / USD 1.5m per vessel in early 2020
Slide 5: Charter Backlog
CHARTER BACKLOG EBITDA1 BACKLOG OF USD 3.5 BILLION FLEET2 Tankers 25 8% Container vessels 10 18% 4% 3% Dry-bulk 9 4% 8% 2% Avg. remaining charter Oil-service 7 5% tenor of 10.9 years 5% 4% 2% 2% Car carriers 6 3% 13% 10% 2% 6% Gas carriers 2 FPSO 1 Total 60 Average age 3.6 yr 1) EBITDA backlog based
Slide 6: Dhirubhai-1
DHIRUBHAI-1 • Agreement reached with former charterer - Final cash payment of USD 25.4m ▪ USD 23.7m was received in Q1 2019 ▪ USD 1.7m expected to be received in Q2 2019 - FPSO successfully re-exported to Sri Lanka and is preparing for new employment - Remaining demobilization activities in India ex
Slide 7: Connector / Far Senator & Far Statesman
CONNECTOR / FAR SENATOR & FAR STATESMAN • Connector - Very limited revenues in Q1 - Commenced a short-term time-charter for subsea work in the North Sea on 20th March 2019 - Immediately entered into a new time-charter for subsea installation and cable repair for a period of 28 days plus options. Fir
Slide 8: Quarterly Financial Highlights
QUARTERLY FINANCIAL HIGHLIGHTS EBITDA PER QUARTER (USDM) 80.6 80.4 77.8 84.3 85.1 63.4 68.7 74.4 71.2 74.3 58.7 51.9 35.5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2017 2018 2019 NET PROFIT PER QUARTER (USDM) 32.7 36.8 30.6 31.3 30.9 33.3 35.1 39.9 18.6 25.5 8.4 0.7 -49.9 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q
Slide 9: Adjusted EBITDA and Net Profit
ADJUSTED EBITDA AND NET PROFIT EBITDA ADJUSTED FOR FINANCE LEASES (USDM) 89.3 89.3 95.1 100.4 82.8 79.1 83.1 86.8 69.3 75.6 63.6 67.8 51.3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2017 2018 2019 ADJUSTED NET PROFIT (USDM) 36.9 37.9 37.3 33.4 33.4 33.5 36.3 34.4 33.9 29.0 31.6 12.5 8.4 Q1 Q2 Q3 Q4
Slide 10: Cash Dividends for 23 Consecutive Quarters
CASH DIVIDENDS FOR 23 CONSECUTIVE QUARTERS DIVIDEND PER SHARE (USD CENTS) DIVIDEND YIELD 18.25 18.50 18.75 18.85 18.95 19.05 19.10 19.10 19.10 19.10 16.75 17.25 17.75 10.3%1 p.a. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 1) Per 7.05.2019, Q1 2019 DPS annualized, share price of NOK 64.7, NOK/USD of 8.75
Slide 11: Income Statement
INCOME STATEMENT INCOME STATEMENT Q4 Q1 Amounts in USD million 2018 2019 Operating revenues 34.0 26.0 Finance lease revenue 24.4 24.9 Income from investments in associates 5.8 5.7 Other revenue - 1.8 Total revenues and other income 64.2 58.4 Vessel operating expenses (4.2) (1.8) Wages and other pers
Slide 12: Adjusted Net Profit
ADJUSTED NET PROFIT ADJUSTMENTS Q4 Q1 Amounts in USD million 2018 2019 Net profit -49.9 8.4 FPSO - write down of trade receivables 19.5 FPSO - impairment of goodwill 9.8 FPSO - increase in field abandonment costs 9.1 Impairment of Far Senator/Far Statesman 13.4 Connector - write down of trade receiv
Slide 13: Balance Sheet
BALANCE SHEET BALANCE SHEET Q4 Q1 Q4 Q1 Amounts in USD million 2018 2019 2018 2019 ASSETS EQUITY AND LIABILITIES Equity to holders of the parent 845.7 818.6 Vessels and equipment 1,195.6 1,178.6 Non-controlling interests 0.0 12.4 Investments in associates 191.9 187.4 Total equity 845.7 831.0 Finance
Slide 14: Financing Overview per Q1'19 Adjusted for Dry Bulk Transaction
FINANCING OVERVIEW PER Q1’19 ADJUSTED FOR DRY BULK TRANSACTION REMAINING CAPEX AND FINANCING OVERVIEW (USDM) 165 139 147 42 33 27 18 Remaining Undrawn Remaining Remaining Dry bulk Remaining Available VLCCs committed cash dry bulk carriers cash liquidity bank payments carriers bank payments Q1’19 fin
Slide 15: Outlook
OUTLOOK • Strong focus on the redeployment of the FPSO Dhirubhai-1 • Continues to see attractive investment opportunities across several segments • Based on the opportunity for a long-term contract on the FPSO, Ocean Yield intends to continue its policy of paying attractive quarterly dividends to it
Slide 16: Investor Relations
INVESTOR RELATIONS Marius Magelie, SVP Finance & Investor Relations +47 24 13 01 82 mm@oceanyield.no www.oceanyield.no/IR