Ocean Yield ASA — Q4 2016 Earnings Presentation
20 slides from Ocean Yield ASA's earnings presentation, Feb 17, 2017
Slide 1: Presentation Q4 2016
Presentation Q4 2016 17th February 2017
Slide 2: Fourth Quarter 2016 financial highlights
Fourth Quarter 2016 financial highlights Quarterly dividend increased to USD 0.1825 per share – Increase of 0.5 cents vs. Q3 – 11% increase annualized – USD 0.73 per share annualized – Dividend yield of 9.6% p.a. EBITDA was USD 74.4m vs. USD 68.7m in Q3 – EBITDA adjusted for finance lease effects wa
Slide 3: Recent events
Recent events Termination of charter contract for Lewek Connector Farstad restructuring Refinancing of American Shipping Company bonds February 17 Fourth Quarter 2016 2
Slide 4: Lewek Connector update
Lewek Connector update 16th December: EMAS Chiyoda Subsea introduced short-term standstill related to charter payments 13th February: Ocean Yield terminated the contracted in order to protect legal interests 16th February: Entered into a 4 months contract with a related company of Ezra Holdings at a
Slide 5: Farstad Shipping restructuring
Farstad Shipping restructuring Charter rates – Reduced to NOK ~99,400 /d for 2017-2021 – Increased to NOK ~209,300 /d for 2022-2023 – NOK 170,000 /d for 2024-2025 Balloon payment of NOK 128.2 million due in Dec’23 – Potential earlier prepayments based on cash sweep Will receive 316 million shares in
Slide 6: Successful refinancing of bonds by American Shipping Company (AMSC)
Successful refinancing of bonds by American Shipping Company (AMSC) New bond issued by AMSC – Size: USD 220 million – Coupon: 9.25% p.a. fixed – Maturity: February 2022 – Allocation: Ocean Yield allocated USD 50 million in the issue AMSC to exercise the call option of the existing bond at 101% – Oce
Slide 7: Delivery schedule of vessels
Delivery schedule of vessels Delivery schedule (# vessels) 6 6 6 1 5 1 Chemical 4 4 Product 3 3 Car carriers 3 Container 1 3 2 Aker Wayfarer1 2 2 Gas 1 1 1 1 1 1 1 1 0 Q1’16 Q2’16 Q3’16 Q4’16 Q1’17 Q2’17 Q3’17 1) Including redelivery of Aker Wayfarer after major modification February 17 Fourth Quart
Slide 8: Fleet overview per Q4 2016
Fleet overview per Q4 2016 Chemical tankers 10 Major European Container vessels1 4 2 container line Car carriers 6 Product tankers 4 Subsea construction 2 3 Gas carriers 1 1 Offshore supply 2 # Delivered FPSO 1 # To be delivered 1) 49.5% ownership in six container vessels and 2) 75.0% ownership in S
Slide 9: Charter backlog by client per Q4 2016
Charter backlog by client per Q4 2016 (including Lewek Connector) EBITDA* backlog of USD 3.1 billion Major European container line 11 % 25 % 7% 4% Avg. remaining 2% charter tenor of 5% 11.1 years 8% 6% 13 % 12 % 7% *EBITDA backlog based on management’s estimates on DB-1, certain options not being ex
Slide 10: Quarterly EBITDA and net profit
Quarterly EBITDA and net profit EBITDA per quarter (USDm) 74.4 68.7 63.4 56.4 56.6 58.7 55.4 54.2 53.9 55.2 56.0 53.2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 2016 Net profit per quarter (USDm) 32.7 30.5 28.6 28.1 28.3 24.5 25.8 25.5 22.7 18.6 17.1 0.7 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2
Slide 11: Adjusted EBITDA and net profit
Adjusted EBITDA and net profit EBITDA adjusted for finance lease effects (USDm) 82.8 75.6 69.3 63.6 57.3 58.4 59.6 59.8 53.2 55.4 54.2 55.1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 2016 Adjusted net profit (USDm) 36.9 33.4 31.6 29.0 27.1 26.9 27.1 27.9 27.6 25.6 26.3 26.2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 12: Growth in cash dividends for 13 consecutive quarters
Growth in cash dividends for 13 consecutive quarters Adjusted earnings per share (USD cents)2 Dividend yield 24.66 23.21 23.94 9.6%1 p.a. 20.17 19.73 19.86 20.55 20.25 21.28 19.10 19.60 19.54 Pay-out ratio on Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 adjusted Q4 EPS 2014 2015 2016 Dividend per share (USD
Slide 13: P&L
P&L Income statement Comments Q3 Q4 Revenues Amounts in USD million 2016 2016 Increased revenue from delivery of Total revenues and other income 76.2 82.0 6 newbuildings during Q4 in addition Vessel operating expenses (4.6) (4.4) to full earnings contribution from Wages and other personnel expenses
Slide 14: Adjusted net profit
Adjusted net profit Adjustments Comments Q3 Q4 Amounts in USD million 2016 2016 Net profit 32.7 0.7 - Impairment charges - 36.2 • Largely related to the vessel Lewek Connector - Repurchase of bonds 0.5 - • Repurchase of OCY02 and OCY03 - Cancellations/repayment of loans 0.4 0.9 • Related to Aker ASA
Slide 15: Balance sheet
Balance sheet Balance sheet Q3 Q4 Q3 Q4 ASSETS (USD million) 2016 2016 EQUITY AND LIABILITIES 2016 2016 Vessels and equipment 1 301.0 1,243.8 Equity to holders of the parent 816.3 804.2 Intangible assets 9.8 9.8 Non-controlling interests 10.2 11.0 Deferred tax assets 22.2 20.5 Total equity 826.5 815
Slide 16: Contractual obligations and financing
Contractual obligations and financing Contractual obligations and financing, Q4 2016 Other Oil Gas Container Amounts in USD million Total Service Carriers Vessels Already paid - 24.3 0.6 24.9 2017 - 56.7 57.7 114.4 Total contractual obligations - 81.0 58.2 139.2 Total remaining payments - 56.7 57.7
Slide 17: Outlook
Outlook 2017 earnings – Positive impact from delivery of 3 vessels during 2017 – Full earnings effect from 17 vessels delivered during 2016 – Reduced earnings from Lewek Connector New investments – Investment capacity is strengthened after sale of bonds in AMSC – Attractive timing for new investment
Slide 18: February 17 Fourth Quarter 2016
February 17 Fourth Quarter 2016 18
Slide 19: February 17 Fourth Quarter 2016
February 17 Fourth Quarter 2016 19
Slide 20: February 17
= OCEAN YIELD — February 17 20