Ocean Yield ASA — Q2 2017 Earnings Presentation
20 slides from Ocean Yield ASA's earnings presentation, Jul 14, 2017
Slide 1: Presentation Q2 2017
Presentation Q2 2017 14th July 2017
Slide 2: Second Quarter 2017 financial highlights
Second Quarter 2017 financial highlights Quarterly dividend increased to USD 0.1875 per share – Increase of 0.25 cents vs. Q1 – 5% increase annualized – USD 0.75 per share annualized – Dividend yield of 9.3% p.a. – 15th consecutive quarterly dividend increase EBITDA was USD 74.3m vs. USD 71.2m in Q1
Slide 3: Recent events
Recent events Investment in two PSVs with long term charter to Aker BP ASA Investment in one Suezmax tanker with long-term charter Navig8 Product Tankers, the counterparty for 4 LR2 product Tankers, is in the process of merging with Scorpio Tankers Charter contract for the Lewek Connector extended u
Slide 4: Acquisition of two vessels with long term charters to Aker BP ASA
Acquisition of two vessels with long term charters to Aker BP ASA Transaction details Total purchase price USD 105.3 million Total bank loan USD 65.0 million Charter type Bareboat charter Charter expiry Sep/Dec 2029 Charter rate USD 17,253 per day per vessel Charter EBITDA USD 12.6 million p.a. Char
Slide 5: Acquisition of suezmax crude tanker with 14 years charter
Acquisition of suezmax crude tanker with 14 years charter Transaction details Purchase price USD 54 million Seller’s credit USD 7 million Net purchase price USD 47 million Charter duration 14 years Charter type Hell & high water bareboat Charterer Okeanis Marine Holdings SA. Owner The Alafouzos fami
Slide 6: Update on Dhirubhai-1
Update on Dhirubhai-1 Production uptime of 99.8% in Q2 2017 Firm contract until Sep’18. Purchase option at the end of the charter contract at USD 255m. Reliance and BP to expand production on the KG-D6 block – Intend to develop three additional fields on the KG-D6 block ● Contracts for development o
Slide 7: Proposed changes to the Norwegian tonnage tax regime
Proposed changes to the Norwegian tonnage tax regime Norwegian Tonnage Tax regime – The Norwegian ministry of Finance has notified ESA of a continuation of the regime for an additional 10 years – Restrictions on the use of bareboat charter contracts proposed – Current regime extended until YE ’17 wh
Slide 8: Charter backlog by client end of Q2 2017
Charter backlog by client end of Q2 2017 EBITDA* backlog of USD 2.9 billion Fleet 15 Tankers 11 % Major European 25 % container line 4% 7 Oil-service 5% Container Avg. remaining 5% 6 vessels 2% charter tenor of 3% 5% 11.4 years 8% 6 Car Carriers 12 % 13 % 7% 2 Gas Carriers 1 FPSO *EBITDA backlog bas
Slide 9: Quarterly EBITDA and net profit
Quarterly EBITDA and net profit EBITDA per quarter (USDm) 74.4 74.3 71.2 68.7 63.4 58.7 55.2 56.0 56.4 56.6 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 Q1 2017 Q2 Net profit per quarter (USDm) 36.8 32.7 30.6 28.1 28.3 25.8 25.5 22.7 18.6 0.7 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 Q1 2017 Q2 July 17 Second Quarter
Slide 10: Adjusted EBITDA and net profit
Adjusted EBITDA and net profit EBITDA adjusted for finance lease effects (USDm) 82.8 83.1 79.1 75.6 69.3 63.6 57.3 58.4 59.6 59.8 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 Q1 2017 Q2 Adjusted net profit (USDm) 36.9 33.4 33.4 33.5 31.6 29.0 27.1 28.0 27.6 26.8 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 Q1 2017 Q2 Jul
Slide 11: Growth in cash dividends for 15 consecutive quarters
Growth in cash dividends for 15 consecutive quarters Dividend yield Adjusted earnings per share (USD cents)1 24.66 9.3%2 p.a. 23.94 23.21 22.34 22.41 21.28 20.55 20.25 19.73 19.86 Pay-out ratio on adjusted Q2 EPS Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 Q1 2017 Q2 84% Dividend per share (USD cents) +9% Adj
Slide 12: Profit & loss
Profit & loss Income statement Comments Q1 Q2 Amounts in USD million 2017 2017 Revenues Operating revenues 57.2 59.5 Delivery of 4 vessels during Q2 in Finance lease revenue 16.1 16.2 addition to full quarter earnings for 2 container vessels delivered in Q1 Income from investments in associates 5.3
Slide 13: Adjusted net profit
Adjusted net profit Adjustments Comments Q1 Q2 Amounts in USD million 2017 2017 Net profit 36.8 30.6 - Impairment charges - - - Gain on AMSC bonds (5.7) - - Cancellations/repayment of loans 0.1 - - Foreign exchange gains/losses 0.6 5.4 • Mainly related to bond and bank loans in NOK - Mark to market
Slide 14: Balance sheet
Balance sheet Balance sheet Q1 Q2 Q1 Q2 ASSETS (USD million) 2017 2017 EQUITY AND LIABILITIES (USD million) 2017 2017 Goodwill 9.8 9.8 Equity to holders of the parent 813.5 812.2 Vessels and equipment 1,228.6 1,361.1 Non-controlling interests* 11.3 11.6 Investments in associates 186.6 185.8 Total eq
Slide 15: Strong liquidity position
Strong liquidity position Cash and securities available for sale per Q2’17 (USD million) 236 51 185 58 127 Cash Available Total available Bonds in AMSC Total available drawing facilities cash liquidity Comments • No capex commitments July 17 Second Quarter 2017 15
Slide 16: Outlook
Outlook New investments – A strong balance sheet and available liquidity of USD 236 million gives substantial investment capacity – Low asset values should make 2017/2018 an attractive timing for new investments Q3 2017 earnings will have positive contribution from four vessels delivered at the end
Slide 17: July 17 Second Quarter 2017
July 17 Second Quarter 2017 17
Slide 18: July 17 Second Quarter 2017
July 17 Second Quarter 2017 18
Slide 19: July 17 Second Quarter 2017
July 17 Second Quarter 2017 19
Slide 20: July 17
= OCEAN YIELD — July 17 20