Lianson Fleet Group Bhd · MYX:LFG
Lianson Fleet Group Bhd — Icon Offshore Berhad — Q3 2014 Earnings Presentation
31 slides from Lianson Fleet Group Bhd's earnings presentation, Nov 27, 2014
Slide 1: ICON Offshore Berhad Analyst Briefing
ICON OFFSHORE BERHAD Analyst Briefing 27 November 2014
Slide 2: Disclosure Statement
Disclosure Statement The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase any securities (“Securities”) of Icon Offshore Berhad (“ICON”) in Malaysia, the United
Slide 3: Table of contents
Table of contents 1. Industry Outlook 2. Operational Highlights 3. Financial Overview 4. Business Strategies Appendices 2
Slide 4: Industry Outlook
———— 1. Industry Outlook
Slide 5: Industry trends and leading indicators
Industry trends and leading indicators Short term weakness on crude oil prices expected …driven by rapid rise in crude production & Oil Prices has been declining… slowing global economy 120 YTD High: US$115.06/bbl (19 June 2014) 115 110 105 YTD Average: US$106.06/bbl 100 95 YTD Low: US$83.78/bbl (15
Slide 6: Production in Malaysia to continue despite signs of weakness in O&G market
Production in Malaysia to continue despite signs of weakness in O&G market Output is still low compared to past performance Although weakening oil prices might suggest that capex spending could be slowing down, National Oil companies such as PETRONAS typically plan for the long term and the recent
Slide 7: Old fleets need to be replaced – drilling to continue
Old fleets need to be replaced – drilling to continue Age profile of rigs in Malaysia – 18 rigs to be replaced… …leading to better OSV to rig ratio as rig count increases Older rigs to be replaced –creates new tenders for OSVs O&G contribution to the Malaysian government PETRONAS plans for long te
Slide 8: Stable day rates for smaller AHTS and some fluctuations in medium dwt PSV
Stable day rates for smaller AHTS and some fluctuations in medium dwt PSV AHTS Term Rates for South East Asia PSV Term Rates for South East Asia Stable rates for smaller AHTS (3,000 – 5,999 bhp) Some fluctuations for PSV within 3,000 – 3,999 dwt 66% of ICON’s fleet compromise of AHTS vessels withi
Slide 9: Operational Highlights
————— 2. Operational Highlights
Slide 10: Operational Highlights (1/3)
Operational Highlights (1/3) Overall utilisation impacted by AHT and SSV vessels ICON will continue to focus on its utilisation rates. 2013 YTD 2014 AHTS 93.3% 88.1% Core vessels are maintaining >80% utilisation rates due to existing long term contracts. AHT 59.2% 42.7% SSV 95.9% 70.9% 2 SSV c
Slide 11: Operational Highlights (2/3)
Operational Highlights (2/3) Vessels under construction Under Construction Shipyard Location Expected Delivery PSV Labuan, Malaysia Q1 2015 1 Tanjung Piai 2 FCB Skagen, Denmark Q2 2015 2 NB123 / (to be named) AWB Guangzhou, China Q1 2015 3 SH104 / Icon Valiant AHTS Lumut, Malaysia Q1 2016 4 G016 / I
Slide 12: Operational Highlights (3/3)
Operational Highlights (3/3) Excellent HSE record in line with target YTD Aug 2014 FY 2013 FY 2012 Lost Time Injury (LTI) 0 0 0 Restricted Workday Case / 1 0 2 Medical Treatment Case First Aid Case 0 1 2 Property Damage 11 11 0 Near Miss 5 4 2 Unsafe Act & Unsafe Condition 10,678 11,260 2,562 (UCUX)
Slide 13: Financial Overview
———— 3. Financial Overview
Slide 14: Key takeaways
Key takeaways Review of performance for the current period ended 30 September 2014 against the corresponding period ended 30 September 2013 Revenue For the period ended September 2014, the Group recorded a total revenue of RM241.8 million driven by average fleet utilisation of 79.2% mainly from AHTS
Slide 15: Group Financial Overview
Group Financial Overview Revenue (RM Mil) 300 120 248.3 -2.6% 241.8 97.8 250 100 -13.7% The Group’s own vessels revenue increased by 11.7 3.4 Quarter on Quarter 12.3% for the period ended Sept 2014 as the Cumulative Period 14.7 79.7 40.2 6.6 18.3 200 80 3.9 forerunner charter in revenue are now repl
Slide 16: Business Segment Financial Overview
Business Segment Financial Overview Revenue/Utilisation by Vessel Type (RM Mil) Revenue by Geography (RM Mil) 70 Q32013 Q32014 60 50 Malaysia Malaysia Brunei Brunei 40 Qatar Qatar Vietnam Vietnam 30 93% Others 84% Others 52 47 20 10 11 EBITDA by Geography (RM Mil) 7 7 6 8 3 4 4 0 AHTS AHT SSV PSV Ot
Slide 17: Leverage & Capitalisation
Leverage & Capitalisation Capital Structure Key Ratios as 30 September 2014 1.48x RM mil 2012 2013 3Q2014 Total Assets 1427.9 1575.7 1766.0 0.63x 0.53x Total Equity 265.8 379.4 1067.9 Total Debt (1) 1028.4 1103.3 676.5 Cash and cash equivalents 54.0 47.3 110.2 Current ratio Gearing ratio (gross) Net
Slide 18: Business Strategies
——————— 4. Business Strategies
Slide 19: Business Strategies
Business Strategies Riding out current volatile oil prices with focus on long term and sustainable growth 1 Earnings visibility Order book growth and active fleet management 5 2 Operational excellence Operational & financial Safety and People discipline Sustain margins and liquidity 4 3 Future growt
Slide 20: Earnings visibility
1 Earnings visibility a) Grow and replenish order book through competitive bidding locally and overseas Order Book Summary Situation today Strategy forward Order Book Large order book with several tenders still RM'm Sep-14 2015 2016 2017 >2017 Total awaiting results Firm Charter 57.0 175.3 147.4 123
Slide 21: Earnings visibility
1 Earnings visibility b) Improve fleet utilisation through active fleet management Fleet Utilisation Rate Continue to assess sale opportunities for smaller and older vessels 2013 YTD 2014 We successfully disposed of one (1) AHT and one (1) Utility vessel in FY2104 and will continue to pursue AHTS 93
Slide 22: Operational and financial discipline
2 Operational and financial discipline a) Sustain margins through efficiency by enhancing processes and operating culture Leader in operational efficiency… . . . with improvement opportunities Cash GP Margin1 • Generate costs savings through costs synergy initiatives (e.g. bulk Streamline purchases
Slide 23: Operational and financial discipline
2 Operational and financial discipline b) Maintain a strong balance sheet position and conserve cash Summary of Key Financials Strong balance sheet for fund raising activities YTD Gearing has improved to 0.53x as a result of our IPO. FY2012 FY2013 Sept 2014 On-going discussion with our bankers are t
Slide 24: Revenue growth through fleet expansion and renewal
3 Revenue growth through fleet expansion and renewal a) Revenue will be bolstered by delivery of vessels in FY2015 and FY2016… UV SSV AHT AHTS PSV AWB FCB TOTAL FY2014(F) Quantity 1 4 3 21 1 1 - 31 % of fleet 3% 13% 10% 68% 3% 3% - 100% Avg. Age 6.0 7.5 5.7 4.7 0.5 0.3 - 4.9 FY2015(F) Quantity 1 4 3
Slide 25: Revenue growth through fleet expansion and renewal
3 Revenue growth through fleet expansion and renewal b) Capitalise on strong balance sheet for future growth through additional ship buildings and/or off-the-shelf acquisitions 3.00 1600 1400 2.50 1200 2.00 709 1000 1.50 800 600 1.00 0.67 400 690 0.50 200 0.53 - - 0 Gross Gearing Borrowings Current
Slide 26: Strategic expansion
4 Strategic expansion Joint ventures or M&As to create opportunities in other markets Geographical presence of ICON Revenue breakdown by geography Geographical presence and worldwide experience Egypt India Others Iraq Myanmar (Thailand, Malaysia Qatar and Qatar (90.3%) Brunei) Thailand (9.7%) Vietna
Slide 27: Operational excellence
5 Operational excellence a) Maintaining high HSE standards 5 Safety Awareness Coach Commitment to uphold our HSE track record and maintain our zero Total Recordable Incident Case Frequency (“TRICF”) Excellent HSE Performance award by Health, Safety and PetroVietnam Technical Services Corp (2011) Env
Slide 28: Operational excellence
5 Operational excellence b) Talent management and extensive trainings for cadets & crew Talent Management Icon Maritime Training Centre (“IMTC”) Awarded HR Asia™ Best Companies To Work For In Improve skills of crew working on offshore vessels Asia 2014 through a continuous learning process (e.g.
Slide 29: Appendices
———— Appendices
Slide 30: Key Milestones
Key Milestones TKS(1) founded TKS took delivery ICON took ICON entered by Tanjung of its first two delivery of 5 new into a joint- Offshore vessels, 1 AHTS AHTS vessels and venture Berhad and and 1 UV 1 new PSV, the arrangement began first Malaysian to penetrate operations by constructed diesel Brun
Slide 31: Computation of adjusted EBITDA and adjusted Profit After Taxation
Computation of adjusted EBITDA and adjusted Profit After Taxation Computation of Adjusted PAT Computation of PAT to EBITDA and Adjusted EBITDA Cumulative Quarter Cumulative Quarter Quarter Ended Quarter Ended Ended Ended 30.9.2014 30.9.2013 30.9.2014 30.9.2013 30.9.2014 30.9.2013 30.9.2014 30.9.2013