Clarkson PLC · LSE:CKN
Clarkson — FY2011 Earnings Presentation
26 slides from Clarkson's earnings presentation, Mar 8, 2012
Slide 1: Final Results Announcement Year ended 31st December 2011
CLARKSONS Service provider to Global Maritime, Energy & Natural Resources Final Results Announcement Year ended 31st December 2011 8th March 2012 Andi Case & Jeff Woyda
Slide 2: Agenda
Agenda ● Financial review – Jeff Woyda, CFO ● Market overview – Andi Case, CEO ● Outlook – Andi Case, CEO 8 March 2012 2 www.clarksons.com
Slide 3: Financial Review
Financial Review 8 March 2012 3 www.clarksons.com
Slide 4: Results summary
Results summary Change 2011 2010 % Revenue Continuing operations £194.6m £202.6m -3.9% EBIT Continuing operations before exceptional item £31.9m £33.6m -5.1% Profit before taxation Continuing operations before exceptional item £32.2m £32.4m -0.6% Profit before taxation Continuing operations after ex
Slide 5: Clarksons profit by segment
Clarksons 2011 2010 Profit Profit £m £m Broking 35.9 41.3 Financial (2.3) (4.3) Support 1.7 0.5 Research 2.0 1.5 8 March 2012 5 www.clarksons.com
Slide 6: Broking Revenue
Broking Revenue 8 March 2012 6 www.clarksons.com
Slide 7: Profit & Loss
Profit & Loss Broking Revenue Growth in Support Acquisition of EnShip, enhancing the Transaction volumes increased offer of agency services Reduced average rates CPS increased market share and client base Overseas Strengthened teams in Australia and Financial Revenue Asia Healthy
Slide 8: Profit & Loss
Profit & Loss During 2011: Fund Management 2 funds closed No ongoing costs Corporate borrowings Repaid in full by February 2011 RCF renegotiated down to £25m, no draw down of this facility Exit from other businesses Technical services business sold Logistics operation closed 8 Ma
Slide 9: Profit & Loss – One off non-repeatable
Profit & Loss – One off non-repeatable £m Bad debt recovery 0.7 Historic exchange gain 0.8 IAS 19 pension credit 1.2 Total 2.7 8 March 2012 9 www.clarksons.com
Slide 10: Dividend
Dividend 8 March 2012 10 www.clarksons.com
Slide 11: Clarkson share price vs BDI
Clarkson share price vs BDI 8 March 2012 11 www.clarksons.com
Slide 12: Net Funds
Net Funds 31 December 31 December 2011 2010 £m £m Cash and cash equivalents 132.9 176.3 Reserved for bonus (full cost) (61.8) (69.8) Net cash 71.1 106.5 Borrowings - (44.0) Net available funds 71.1 62.5 Reserved for final dividend (6.1) (5.7) 8 March 2012 12 www.clarksons.com
Slide 13: Balance Sheet
Balance Sheet 2007 2008 2009 2010 2011 £m £m £m £m £m Fixed assets 25.4 29.1 27.4 21.6 21.3 Intangibles 47.2 32.2 32.5 32.7 40.3 72.6 61.4 59.9 54.3 61.6 Investments 16.4 16.1 14.9 13.2 1.9 Working capital (25.8) (22.0) (9.3) (12.8) (4.7) Net funds 10.9 38.4 38.2 62.5 71.1 (14.9) 16.4 28.9 49.7 66.4
Slide 14: Forward Order Book
Forward Order Book (for invoicing in the following year) 2011* 2010* US$m US$m Broking 91 92 Financials 1 3 Total FOB 92 95 *Best estimates of deliverable FOB 8 March 2012 14 www.clarksons.com
Slide 15: The Market
The Market 8 March 2012 15 www.clarksons.com
Slide 16: Clarksea Index, US$000 per day
US$000 per day 30 40 10 20 50 60 0 1998 1999 2000 2001 2002 Clarksea Index 2003 2004 2005 2006 2007 2008 2009 2010 16 2011 2012 8 March 2012 www.clarksons.com
Slide 17: VLCC Rates & Prices
VLCC Rates & Prices Data Source: Clarksons 8 March 2012 17 www.clarksons.com
Slide 18: MR Rates & Prices
MR Rates & Prices Data Source: Clarksons 8 March 2012 18 www.clarksons.com
Slide 19: SP 1 Year TC Rates
SP 1 Year TC Rates Data Source: Clarksons 8 March 2012 19 www.clarksons.com 19
Slide 20: Capesize asset prices vs. period rates
Capesize asset prices vs. period rates Baltic Average 4TCs 1 yr tc rate 3 yr tc rate NB Price 5yr old price 210,000 160 200,000 150 190,000 180,000 140 170,000 130 160,000 120 150,000 140,000 110 130,000 100 $million 120,000 $/day 90 110,000 80 100,000 90,000 70 80,000 60 70,000 50 60,000 50,000 40
Slide 21: Containerships - 3500 TEU Sector Earnings & Prices
Containerships - 3500 TEU Sector Earnings & Prices $/day US$m 45,000 80 Newbuild Price 40,000 5yo Price 70 35,000 1-Year T/C Rate 60 30,000 50 25,000 40 20,000 30 15,000 10,000 20 5,000 10 0 0 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Source : Clarkso
Slide 22: Newbuilding Price Movements and TC levels
Newbuilding Price Movements and TC levels VLGC *75,000 cbm until Oct ’07, 82,000 cbm from Nov ‘07 Data Source: Clarksons 8 March 2012 www.clarksons.com
Slide 23: Assessed Hire Rates and Newbuilding Prices
Assessed Hire Rates and Newbuilding Prices LNG Charter Rates basis a Modern Conventional DFDE LNG Carrier Spot 1 year 3 years 15 years Newbuilding Prices* 160 205 204 140 203 202 '000 US$/day 120 201 MM US$ 100 200 199 80 198 197 60 196 40 195 * 160k cbm LNG (DFDE, Atlantic Max) Newbuilding Prices D
Slide 24: OSV Market Developments
OSV Market Developments Large AHTS Market Developments Large PSV Market Developments 1 Yr TC Rate (LHS) NB (RHS) 5 Yr Old (RHS) 1 Yr TC Rate (LHS) NB (RHS) 5 Yr Old (RHS) 60,000 140 50,000 80 70 50,000 120 40,000 60 100 40,000 $'000/day $'000/day 30,000 50 80 $m $m 30,000 40 60 20,000 30 20,000 40 2
Slide 25: Offshore Freight Rates North Sea
Offshore Freight Rates North Sea AHTS Spot Rates PSV Spot Earnings 13-16k BHP 18k+ BHP < 600m2 600-800m2 120,000 35,000 30,000 100,000 25,000 80,000 £ per day £ per day 20,000 60,000 15,000 40,000 10,000 20,000 5,000 0 0 Jan-10 Jan-11 Jul-10 Jul-11 Apr-10 Oct-10 Apr-11 Oct-11 Jan-10 Jan-11 Jul-11 Ju
Slide 26: Outlook
Outlook Market Challenges ● Supply/demand imbalance ● Debt environment ● Macroeconomic uncertainty Clarksons ● Strategy in place ● Strong balance sheet ● Forward order book ● CCM now transactional ● Ready to evaluate all opportunities 8 March 2012 26 www.clarksons.com