Singapore Exchange Ltd. · SGX:S68

Singapore Exchange — Rickmers Maritime — Q3 2015 Earnings Presentation

20 slides from Singapore Exchange's earnings presentation, Nov 4, 2015

  1. Slide 1: Financial Results Presentation Third Quarter 2015

    FINANCIAL RESULTS PRESENTATION THIRD QUARTER 2015 4 NOVEMBER 2015

  2. Slide 2: Disclaimer

    Disclaimer This presentation should be read in conjunction with Rickmers Maritime’s financial statements for the third quarter and nine months ended 30 September 2015, released via the SGXNET. This presentation is not and does not constitute or form part of, and is not made in connection with, any o

  3. Slide 3: Table of Contents

    TABLE OF CONTENTS  Highlights  Financial Performance  Business Review  Moving Forward

  4. Slide 4: Highlights

    Highlights  Maintained profitability : Net profit of US$9m in 3Q2015 and US$0.4m in 9M2015  Lower revenue in 3Q2015 and 9M2015 : Due mainly to lower charter rates following the expiry of long-term charters  Maintained vessel performance : High utilisation rate of 99.9% in 3Q2015  Taken prudent s

  5. Slide 5: Table of Contents

    TABLE OF CONTENTS  Highlights  Financial Performance  Business Review  Moving Forward

  6. Slide 6: Income Statement

    Income Statement In US$'000 3Q2015 3Q2014 %∆ 9M2015 9M2014 %∆ Charter revenue 27,358 33,013 (17) 84,463 98,456 (14) Other income 946 1,612 (41) 4,371 4,849 (10) Other gains - net 3,240 1,105 193 4,363 12,500 (65) Total income 31,544 35,730 (12) 93,197 115,805 (20) Add/(less): Depreciation (8,695) (9

  7. Slide 7: Balance Sheet

    Balance Sheet In US$'000 As at 30 Sep 2015 As at 31 Dec 2014 %∆ Assets Cash and cash equivalents 51,690 60,008 (14) Net book value of vessels 840,106 882,572 (5) Other current and non-current assets 5,692 8,483 (33) Total assets 897,488 951,063 (6) Liabilities Secured bank loans 325,930 363,571 (10)

  8. Slide 8: Statement of Cash Flows

    Statement of Cash Flows In US$'000 3Q2015 3Q2014 9M2015 9M2014 Cash flow from: Operating activities 16,897 22,206 52,806 67,071 Investing activities (75) (462) (1,469) (1,862) Financing activities (14,589) (30,399) (58,780) (59,573) Net change in cash & cash equivalents 2,233 (8,655) (7,443) 5,636 C

  9. Slide 9: Outstanding Bank Loans

    Outstanding Bank Loans as at 30 September 2015 Loan Facility Margin above 3- Year of Face Value Carrying Amount VTL Requirement Security month US$ LIBOR Maturity US$' million US$'million in Loan Facility IPO Facility 1.75% 2017 209.7 209.6 125% Secured against the initial 10 vessels in the IPO Fleet

  10. Slide 10: Bank Loans Repayment Profile

    Bank Loans Repayment Profile  Total bank debt repaid in 9M2015: US$37.8 million  Total bank debt remaining: US$326.7 million (as at 30 Sep 2015) Actual Estimated 9M 4Q FY FY FY FY FY Repayment (in US$ million) 2015 2015 2016 2017 2018 2019 2020-2021 Scheduled bank loan repayments 35.0 11.7 46.3 19

  11. Slide 11: Gearing

    Gearing  Gearing ratio^ improved slightly from 47% as at end-2014 to 45% as at end-Sep 2015  EBITDA-to-interest coverage ratio for 3Q2015 : 5.1x 63% 59% 49% 47% 45% Gearing ratio^ External Bank Loans + Convertible Loan + Medium−Term Notes ^ Gearing Ratio = (Total Unitholders′ Funds + External Bank

  12. Slide 12: Table of Contents

    TABLE OF CONTENTS  Highlights  Financial Performance  Business Review  Moving Forward

  13. Slide 13: Fleet Utilisation

    Fleet Utilisation  Maintained high vessel utilisation rate : 99.9% in 3Q2015 and 99.5% in 9M2015  Average age of vessels : 8.0 years as at 30 Sep 2015 3Q2015 3Q2014 9M2015 9M2014 Number of Vessels 16 16 16 16 Vessel Ownership Days 1,472 1,472 4,368 4,368 Off-Hire Days* 1.7 4.8 21.3^ 91.6# Fleet Ut

  14. Slide 14: Fleet Employment Profile

    Fleet Employment Profile  Average remaining charter period : 1.2 years as at 30 Sep 2015  Secured revenue to the last contract expiry in 2019: US$163.3m Minimum Time Charter Period  The fleet is 97% employed for 2015 Expiration Period Name TEU Charterparty Charter Rate 2015 2016 2017 2018 2019 Ri

  15. Slide 15: Diversified Portfolio of Charterers

    Diversified Portfolio of Charterers  Vessels chartered to leading container liner companies to minimise counterparty risk 9M2015 Revenue : US$84.5 m 9M2014 Revenue : US$98.5 m Italia MSC Italia Marittima MSC Marittima Hanjin NYK Line 1.6% 10.3% 0.4% 1.8% Maersk 6.8% 5.5% Maersk Hanjin 5.7% 2.7% 8.4

  16. Slide 16: Container Time Charter Market

    Container Time Charter Market  Acute imbalance between global supply and demand triggered widespread capacity reduction by liner companies towards the end of 3Q2015  Daily charter rates for 3,500 TEU and 4,400 TEU panamax vessels dropped significantly in Oct 2015  Global container trade is expect

  17. Slide 17: Business Outlook

    Business Outlook  Time charter rates are expected to remain at low levels heading into 2016  The slowdown has direct impact on Rickmers Maritime’s business : 11 vessels will be trading in the spot market in 2016  Taken the prudent step to suspend distributions in order to conserve cash to weather

  18. Slide 18: Table of Contents

    TABLE OF CONTENTS  Highlights  Financial Performance  Business Review  Moving Forward

  19. Slide 19: Moving Forward

    Moving Forward  Secured revenue of US$163.3m between 30 Sep 2015 and the expiry of the last charter party contract in 2019  Average remaining charter period: 1.2 years as at 30 Sep 2015  Remain focused on keeping the Trust’s vessels employed  Secure shorter and more flexible charters in order to

  20. Slide 20: Thank You

    THANK YOU For more information, please visit: www.rickmers-maritime.com

Rickmers Maritime — Q3 2015 Earnings Presentation on 6ix