Ocean Yield ASA — Debt Investor Presentation (June 2012)
27 slides from Ocean Yield ASA's debt investor presentation, Jun 25, 2012
Slide 1: Ocean Yield AS Senior Unsecured Bond Issue
OCEAN YIELD AS Senior Unsecured Bond Issue Investor Presentation 25 June 2012
Slide 2: Highlights
Highlights Ocean Yield – A vessels owning company with focus on low risk investments in oil service & industrial shipping • Ocean Yield is 100% owned by Aker and defined as an “industrial holding” Strong sponsor • Planned IPO and listing on OSE; Aker committed to remain a majority owner post an IPO
Slide 3: Transaction details/main terms
Transaction details/main terms • Issuer: Ocean Yield AS (a 100% owned subsidiary of Aker ASA) • Amount: Minimum NOK 500 million • Coupon: 3 months NIBOR + 6.5% p.a., quarterly interest payments • Settlement: Expected to be 6 July 2012 • Tenor: 5 years • Use of proceeds: General corporate purposes an
Slide 4: Company Overview
Company Overview
Slide 5: Ocean Yield profile
Ocean Yield profile • A company with long-term employment and risk diversification focus • Conservative business profile with focus on low-risk investments in oil service & industrial maritime assets with long-term contracts • Builds on Aker’s strong offshore- and capital markets track record • Owns
Slide 6: Solid contract backlog and end-users
Solid contract backlog and end-users Charterer Rating Market Cap ~USD 1.2 bn contracted revenues Reliance BBB USD 43.2 bn Aker Solutions BB+ USD 3.5 bn Schlumberger A+ USD 86.0 bn ~USD 1 bn contracted EBITDA* *EBITDA as reported, incl. mob. Fees. Pareto estimates 6
Slide 7: Attractive asset base with long term contracts
Attractive asset base with long term contracts Aker Wayfarer – Offshore Construction Vessel • Built in 2010 • Subsea / offshore installation and construction • On bareboat charter to Aker Solutions (rated BB+) until 2020 Dhirubhai-1 – FPSO • Converted into FPSO in 2008 • On bareboat charter to Relia
Slide 8: Simplified legal chart and bond structure
Simplified legal chart and bond structure New Senior Ocean Yield AS Unsecured Bond (ISSUER)* Aker Ship Aker Invest Aker Floating Ocean Lease AS** AS Production ASA Holding AS 10% 90% Aker Invest II KS Aker AFP Aker Ship Lease 1 Aker Ship NOK 1,0 bn Contracting FP American Operations AS AS Lease 2 AS
Slide 9: Ocean Yield Strategy
Ocean Yield Strategy Operational Strategy Financial Strategy Mission Sound financial profile • Build a company with long-term employment, risk • Equity ratio currently at 42% diversification and stable dividend • Long-term fixed contracts provide stable earnings • Build on Aker’s oil service and c
Slide 10: Key investment criteria
Key investment criteria Market risk Counterparty risk • Firm contracts with a duration of 5-12 years • New charterers expected to have solid • Targeted segments are oil service and credit quality industrial shipping Asset risk • Limited direct market exposure • Minimize asset risk by focusing
Slide 11: Aker – a strong shareholder with long-term perspective
Aker – a strong shareholder with long-term perspective Net asset value (NOK bn) NAV of NOK 22.5 bn (including NOK 0.8 bn in unpaid dividends) • Established in 1841 • Industrial holding company that exercises active ownership with a long term investment horizon • Ownership interests are concentrated
Slide 12: Experienced management
Experienced management Lars Solbakken – Chief Executive Officer (1957) Employment history: • CEO Norwegian Car Carriers ASA • CEO Ship Finance International Ltd. • General Manager of Fortis Bank (Nederland) N.V., Oslo Branch. • Senior Vice President and Head of Equity Issues and M&A, Christiania Ban
Slide 13: Board of Directors
Board of Directors Svein Aaser – Chairman (1946) • Previous CEO in DnB NOR, Hafslund Nycomed, Storebrand Skade, NORA Food Products • Previous President in The Confederation of Norwegian Enterprise (NHO) • Chairman of the Board in Telenor, Det norske Oljeselskap. Board seats in several other companie
Slide 14: Financials
Financials
Slide 15: Pro-forma consolidated opening Balance Sheet (Q1 2012)
Pro-forma consolidated opening Balance Sheet (Q1 2012) Assets USDm USDm Equity and Liabilities Current Assets: Current Liabilities: Cash & Cash Equivalents 64 Current assets 19 84 Short term debt (incl. curr.portion of LTD) Total Current Assets 83 84 Total Current Liabilities Fixed Assets: Long Term
Slide 16: Solid financial platform
Solid financial platform Total Assets vs. Liabilities and Equity (USDm)* USD 500 million in equity* – split by asset 1,200 Other Cash Other 1,000 AMSC bonds 64 Geco Triton Shareholder's Aker FPSO 800 Aker Wayfarer Equity 214 Aker Wayfarer 600 Geco Triton Gearing Debt Aker 141 AMSC Bonds ~60% Wayfare
Slide 17: Financial highlights – Existing contracts only
Financial highlights – Existing contracts only Debt levels 2012-2017 (USDm) Loan-to-Value 2012-2017 (USDm) 600 900 819 527 761 800 500 583 699 179 435 700 541 633 494 561 400 161 340 600 527 443 483 500 435 387 300 348 143 240 324 400 340 274 200 125 141 300 240 197 89 200 236 141 100 107 220 205 11
Slide 18: Detailed project info
Detailed project info
Slide 19: Dhirubhai-1
Dhirubhai-1 • Vessel type: FPSO • Built: 2008 (converted from Suezmax) • Yard: Jurong Shipyard, Singapore • Owner: AFP Contracting AS • Charterer: Reliance Industries Limited (rated BBB) • Contract type: Bareboat charter plus O&M Charter • Charter start: 21 September 2008 • Charter end: 21 September
Slide 20: Dhirubhai-1 – Financing
Dhirubhai-1 – Financing • Borrower: Aker Contracting ASA • Guarantor: Aker Floating Production AS • Facility amount: USD 565 million • Outstanding 25.04.12: USD 368 million • Lenders: Bank syndicate with 11 banks • Maturity: 31 May 2018 • Repayments: USD 13.1 – 19.4 million per quarter plus cash swe
Slide 21: Aker Wayfarer
Aker Wayfarer • Vessel type: Multi Purpose Construction vessel • Design: OSCV 06L • Equipment: Two subsea cranes (400mt/100mt capacity). DP III. 140 people accommodation. 2,210 m2 deck area. • Built: 2010 • Yard: STX Europe, Søviknes (Norway) • Charterer: Aker Solutions ASA (rated BB+) • Contract ty
Slide 22: Aker Wayfarer – Financing
Aker Wayfarer – Financing • Borrower: Aker Ship Lease AS • Guarantor: Aker Ship Lease 1 AS • Facility amount: NOK 1,238 million • Outstanding 31/12/11: NOK 1,135 million • Lenders: Eksportfinans • Guarantors: DNB / GIEK • Maturity Eksportfinans: 2022 (funding) • Maturity GIEK (80%): 2022 • Maturity
Slide 23: Geco Triton
Geco Triton • Vessel type: Seismic • Built: 1998 (converted) • Yard: Jurong Singapore • Charterer: Schlumberger (Western Geco) (rated A1) • Contract type: Bareboat charter • Charter start: 1998 • Charter end: December 2015 23
Slide 24: American Shipping Company – Bond holdings
American Shipping Company – Bond holdings Company overview • US Jones Act product tanker company • Owns 10 modern US-built 46,000 dwt MR product tankers • All on long term charters to OSG initially until 2014- 2016 • Charters in the process of being extended until 2019 after approval of extension of
Slide 25: Summary
Summary
Slide 26: Summary
Summary Ocean Yield builds on Aker’s track record within the offshore space and intends to expand its fleet of long-term contracted vessels within oil service and industrial shipping • Solid financial platform • Experienced board and management already in place • Aker committed to remain a majorit
Slide 27: Slide 27