Ocean Yield ASA — Q1 2016 Earnings Presentation
20 slides from Ocean Yield ASA's earnings presentation, May 10, 2016
Slide 1: Presentation Q1 2016
Presentation Q1 2016 10th May 2016
Slide 2: First Quarter 2016 financial highlights
First Quarter 2016 financial highlights Quarterly dividend increased to USD 0.1675 per share – Increase of 0.5 cents versus Q4’15, equal to 14% increase annualized – USD 0.67 per share annualized, representing a dividend yield of 10.3% p.a. EBITDA was USD 58.7m, compared with USD 56.6m in Q4’15 EBIT
Slide 3: Recent events
Recent events Delivery of four newbuildings with long term charter Financing of the three Liquefied Ethylene Gas Carriers FPSO Dhirubhai-1 – Steady production with 100% utilization – New gas pricing regime in India – Increased loan facility May 16 First Quarter 2016 3
Slide 4: Expected delivery schedule newbuildings and modification
Expected delivery schedule newbuildings and modification Project Vessel Type Exp. delivery Navig8 Product Tankers Navig8 Symphony LR2 110,000 dwt Delivered February 2016 Höegh Autoliners Höegh Tracer PCTC 8,500 CEU Delivered March 2016 Navig8 Product Tankers Navig8 Sanctity LR2 110,000 dwt Delivered
Slide 5: Long term financing of ethylene gas carriers
Long term financing of ethylene gas carriers Received commitment letter for a USD 202.5m credit facility for financing of the three Liquefied Ethylene Gas Carriers. Subject to agreement on final documentation. Key terms – Loan amount: USD 67.5m per vessel – Contract price: USD 81.0m per vessel – Ten
Slide 6: FPSO Dhirubhai-1
FPSO Dhirubhai-1 Another quarter with steady production with operational utilization of 100% in Q1 2016 New price regime in India for undeveloped deep-water gas discoveries to stimulate increased investments – Gas from new fields will be priced based on a formula linked to the average cost of naphth
Slide 7: Diversified fleet of modern fuel efficient vessels
Diversified fleet of modern fuel efficient vessels 2 x newbuildings 3 x newbuildings Product Tankers Liquefied Ethylene LR2 110,000 dwt Gas Carriers Symphony, Steadfast, 3 x 36,000 cbm Supreme & Sanctity Chemical Tankers Diving Support & 37,000 dwt IMO2 Construction Vessel Aronaldo, Aquamarine, SBM
Slide 8: Quarterly EBITDA and net profit
Quarterly EBITDA and net profit EBITDA per quarter (USDm) 55.6 52.7 53.2 55.4 54.2 53.9 55.2 56.0 56.4 56.6 58.7 Q1 2016 EBITDA adjusted for finance Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 lease effects was 2013 2014 2015 2016 USD 63.6m vs. USD Net profit per quarter (USDm) 59.7m in Q4 2015. 26.5 28.6 24.5
Slide 9: Declared growth in cash dividends for the 10th consecutive quarter
Declared growth in cash dividends for the 10th consecutive quarter Adjusted earnings per share (USD)2 Dividend yield 0.196 0.195 0.202 0.197 0.199 0.205 0.203 0.213 10.3%1 p.a. 0.186 0.191 0.161 Pay-out ratio on Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 adjusted Q1 EPS 2013 2014 2015 2016 Dividend per share
Slide 10: P&L Income statement
P&L Income statement Comments Q4 Q1 Q1 FY Amounts in USD million 2015 2016 2015 2015 Revenues Operating revenues 58.6 58.8 57.7 233.1 Positively impacted by delivery of Finance lease revenue 7.0 7.3 4.9 23.6 three vessels during Q1 Total revenues 65.6 66.1 62.6 256.7 Vessel operating expenses (3.9)
Slide 11: Adjusted net profit after tax
Adjusted net profit after tax1 Adjustments Comments Q4 Q1 Amounts in USD million 2015 2016 Profit after tax 28.3 18.6 - Impairment charges and other items 28.6 - • Goodwill impairment related to Dhirubhai-1 - Other non-recurring items 1.3 - • Related to build-up of potential de-mobilization expenses
Slide 12: Balance sheet
Balance sheet Balance sheet Q4 Q1 Q4 Q1 Amounts in USD million 2015 2016 Amounts in USD million 2015 2016 ASSETS EQUITY AND LIABILITIES Vessels and equipment 1 239.5 1 293.1 Equity attributable to the parent 697.2 696.7 Intangible assets 9.8 9.8 Non controlling interests 11.6 11.5 Deferred tax asset
Slide 13: Contractual obligations and financing
Contractual obligations and financing Contractual obligations and financing Other Oil Gas Car Other Amounts in USD million FPSO Total Service Carriers Carriers Shipping Already paid - 52.7 64.8 18.6 74.5 210.7 2016 - 36.5 81.0 43.7 164.8 325.9 2017 - - 97.2 - - 97.2 Total contractual obligations - 8
Slide 14: Summary
Summary New pricing regime in India for undeveloped gas discoveries is triggering increased investments, which is considered positive for long-term employment of the FPSO after expiry of current contract USD 202.5m financing for the 3 gas carriers at competitive terms gives very attractive equity re
Slide 15: Appendix
Appendix May 16 First Quarter 2016 15
Slide 16: EBITDA backlog of USD 2.6bn with average tenor of 10.2 years
EBITDA* backlog of USD 2.6bn with average tenor of 10.2 years VESSEL TYPE BUILT COUNTERPARTY 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Navig8 Tanzanite Chem, MR 2016 Navig8 Chemical Tankers Navig8 Tourmaline Chem, MR 2016 Navig8 Chemical Tankers Navig8 Topaz Che
Slide 17: EBITDA backlog of USD 2.6bn with average tenor of 10.2 years
EBITDA* backlog of USD 2.6bn with average tenor of 10.2 years Charter backlog by counterparty Navig8 Product SBM Offshore AKOFS / Akastor Tankers 6% 15% 10% Reliance Industries Navig8 11% Chemical Tankers 16% EMAS AMC / Ezra Holdings 10% Hartmann SPVs / SABIC Höegh 12% Farstad Supply Autoliners 6% 1
Slide 18: First Quarter 2016
= OCEAN YIELD First Quarter 2016
Slide 19: First Quarter 2016
= OCEAN YIELD First Quarter 2016
Slide 20: May 16 First Quarter 2016
= OCEAN YIELD — May 16 First Quarter 2016 20