Pt Berlian Laju Tanker Tbk · IDX:BLTA
Pt Berlian Laju Tanker Tbk — DNB Nor Conference 2011
40 slides from Pt Berlian Laju Tanker Tbk's conference presentation, Sep 9, 2011
Slide 1: Company Presentation
Company Presentation SEPTEMBER 2011 Nott for N f reproduction d ti or distribution. di t ib ti Th The iinformation f ti contained t i dh herein i may b be subject bj t tto change h without ith t prior i notice. ti THIS DOCUMENT MAY NOT BE DISTRIBUTED IN, OR TO ANY PERSON RESIDENT IN THE U.S., CANADA
Slide 2: Agenda
Agenda Section 1. Company Highlights 2 2. Market Developments - Chemical tanker market recovery - Implementation of Indonesian cabotage (domestic monopoly) 3. Financials 4. IPO of Buana 5. Recent Financing Initiatives
Slide 3: BLT History and Milestones
BLT History and Milestones 1981 * Established with 2 tankers on charter to Pertamina Evolution from domestic tanker business to a (Indonesian state‐owned oil company) leading international player 1986 * Entered into chemical transportation 1989 * Entered into gas transportation 1990 * Listed on Jaka
Slide 4: Strategic Objective
Strategic Objective Revenue contract coverage Consistent Cash Flow Growth Growth G th through Diversified the cycles business mix 4
Slide 5: PT Berlian Laju Tanker Tbk (BLT) - Overview
PT Berlian Laju Tanker Tbk (BLT) - Overview Leading worldwide seaborne liquid bulk cargo transportation specialist and one of the largest chemical tanker operators in the world 102 tankers* 2.4 million DWT Average age 7.5 years Chemical tankers Oil tankers Gas tankers FPSO/FSO tankers 67 operation
Slide 6: Large & Growing Modern Chemical Fleet of BLT
Large & Growing Modern Chemical Fleet of BLT Chemical Tankers Owned Built DWT Type(1) Owned Built DWT Type(1) Bareboat Chartered Built DWT Type(1) (2) MT Bauhinia 1997 5,851 IMO II/III SUS MT CB Virgin Gorda 2004 32,000 IMO II/III SUS MT Pramoni 2008 19,990 IMO II/III SUS (2) MT Celosia 1997 7,477 I
Slide 7: Oil and Gas Fleet of BLT and Newbuilding Projects
Oil and Gas Fleet of BLT and Newbuilding Projects Oil Tankers Gas Tankers New Vessels Under Construction Owned Built DWT Type Hull(1) Owned Built CBM Owned Built DWT/CBM Type MT Tridonawati 1991 154,970 Crude Oil DH MT Gas Indonesia 1990 3,518 MT TBN 1 2012 3,500 Gas Tanker MT Trirasa 1991 154,970 C
Slide 8: Key Company Highlights
Key Company Highlights Attractive opportunities Large, modern fleet Over 3 years Demand up ~ 25% while Supply -1% Fleet age profile Strong A play on improved GDP and industrial production Young and modern chemical chemical growth g tanker vessels market Increased ton-mile demand as more Midd
Slide 9: Key Customers and Operating Areas
Key Customers and Operating Areas Glasgow Rotterdam Beijing Seoul Westport,CT Tokyo Shanghai Middle East Dubai Myanmar Taiwan North Af rica Hong Kong Mumbai Bangkok Singapore Jakarta Sao Paulo Headquarter Australia Representative Office / Operation Center Chembulk Trading Coverage BLT Trading Covera
Slide 10: Strong Operational Performance Relative to Peers
Strong Operational Performance Relative to Peers Revenue growth EBITDA margin 100.00% 60.00% 80.00% 50.00% 60.00% 40.00% 40.00% 30.00% 20.00% 0.00% 20.00% 2003 2004 2005 2006 2007 2008 2009 2010 ‐20.00% 10.00% ‐40.00% 0.00% ‐60.00% 2003 2004 2005 2006 2007 2008 2009 2010 Odfjell Stolt BLT Odfjell St
Slide 11: Consistent Growth Through the Cycles
Consistent Growth Through the Cycles EBITDA 350 320 Global economic crisis i i 300 250 236 236 258 188 200 US$ Mil Asian 9/11 155 150 economic aftermath 129 crisis Recession 100 after Gulf War 54 44 37 40 50 24 32 39 38 7 8 14 16 16 16 5 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Slide 12: Agenda
Agenda Section 1. Company Highlights 2 2. Market Developments - Chemical tanker market recovery - Implementation of Indonesian cabotage (domestic monopoly) 3. Financials 4. IPO of Buana 5. Recent Financing Initiatives
Slide 13: Expected Chemical Market Demand Recovery
Expected Chemical Market Demand Recovery Correlation between GDP growth and chemical index 250 6 The chemical tanker 5 market is highly correlated 200 4 with global GDP growth Chem.Index 3 GDP y/y % 150 Further, chemicals are 2 early cyclical and the 100 1 demand for chemicals and plastics has o
Slide 14: Reduced Supply Growth Tightens Market
Reduced Supply Growth Tightens Market Scrapping has accelerated to historically No orders for stainless steel newbuildings have been high levels due to strict oil major placed since 2Q2008 except for Odfjell’s recent order requirements For next 2-3 years there will be very few new ships Aver
Slide 15: Chemical Tanker Rate Developments
Chemical Tanker Rate Developments G lf F East/India/Med Gulf-Far E t/I di /M d H Houston-Rotterdam t R tt d 2.00 1.60 1.50 1.80 1.40 1.60 1.30 1.40 1.20 1.10 1.20 1.00 1.00 0.90 0.80 0.80 Gulf-Far East 15K Chemical Rates Gulf-Med 15K Chemical Rates Houston-Rotterdam 3,000mt Easychems Houston-Rott 5,
Slide 16: Agenda
Agenda Section 1. Company Highlights 2 2. Market Developments - Chemical tanker market recovery - Implementation of Indonesian cabotage (domestic monopoly) 3. Financials 4. IPO of Buana 5. Recent Financing Initiatives
Slide 17: Large Indonesian Domestic Market
Large Indonesian Domestic Market Key country data - Indonesia Population GDP (2009) - 240 million, 1.1% growth p.a. - $512b (19th largest globally) - Fourth largest population, - $2,239 per capita vs. $3,259 behind China China, India and US in China and $8 $8,118 118 in neighboring Malaysia La
Slide 18: Cabotage Opportunities
Cabotage Opportunities Cabotage implementation presents a compelling opportunity Areas covered Key requirements Shipping of cargo between one Indonesian port and • Vessels must be Indonesian flagged another th • Must be owned by Indonesian shipping company Oil and gas tankers • Must be >51% Indo
Slide 19: Cabotage Development
Cabotage Development Cabotage Strengthening through Time KMK 1305/KMK/00/1988 – importation of ships is subject to zero import duties UU No. 21 Tahun 1992 – Shipping Law – groundbreaking rules on the birth of Cabotage KMK Nomor 416/KMK.04/1996 – tax for national shipping companies at 1.2% of r
Slide 20: Cabotage Development
Cabotage Development Cabotage has created favourable market for domestic shipowners 9Successful implementation of Cabotage since 2005 9Favourable freight rate environment Buana’s average freight rates1 38-60% premium for domestic rates Avg. 1 year time-charter rates in US$ per day (as of 4Q2010) TCE
Slide 21: Domestic Market Development
Domestic Market Development Indonesia’s oil and coal consumption expected to continue growing Indonesia Oil and Oil Products Imports Indonesian Coal Demand (thousand barrels per day) (million ton) Growth 2005 –09 = 80.9% Growth 2005 –15E = 214% 700 140 600 120 500 100 400 80 300 60 200 40 100 20 0 0
Slide 22: Domestic Market Development
Domestic Market Development 1 Indonesia’s gas consumption is amongst the lowest in the region and is expected to grow with government policy In 2008 the government changed their policy to focus on increasing the use of gas domestically Convert 10 million kiloliters in kerosene consumption to 4 m
Slide 23: Domestic Market Development
Domestic Market Development Significant untapped potential and implementation of Cabotage have created a favourable environment for Indonesian-flagged FPSOs and FSOs Charterer/ operator Ship name Built Age Type Camar Resources Maera Ayu 1975 36 FSO JOB Pertamina - Petrochina Eas t Java Cinta Natom a
Slide 24: Cabotage advantage
Cabotage advantage Sample Cabotage Project IRR • In January 2010 BLT signed a contract with • In May 2010 BLT signed a contract with Kangean Pertamina for the provision of a VLGC (80,000 (80 000 cbm Energy Indonesia for the provision of an FPSO (7 (7,000 000 gas tanker) BPD/61,000 DWT Floating Produ
Slide 25: Agenda
Agenda Section 1. Company Highlights 2 2. Market Developments - Chemical tanker market recovery - Implementation of Indonesian cabotage (domestic monopoly) 3. Financials 4. IPO of Buana 5. Recent Financing Initiatives
Slide 26: Segmental Analysis
Segmental Analysis 16 160 CHEMICAL 14 GAS 140 12 120 10 100 8 80 6 60 4 40 20 2 0 0 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Revenue EBITDA Revenue EBITDA 40 9 OIL 8 FPSO/FSO 30 7 20 6 5 10 4 0 3 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11
Slide 27: BLT – P&L
BLT – P&L (in US Dollar '000) - IFRS INCOME STATEMENT 30-Jun-11 31-Mar-11 31-Dec-10 TOTAL REVENUE 323,111 159,824 656,854 Voyage Costs (120,822) (58,453) (221,201) TCE REVENUE 202,289 101,371 435,653 Operating Costs (82,193) (42,334) (195,617) Depreciation (66,768) (33,610) (145,583) TOTAL COST OF R
Slide 28: BLT – Balance sheet
BLT – Balance sheet (in US Dollar '000) - IFRS BALANCE SHEET 30-Jun-11 31-Dec-10 31-Dec-09 ASSETS Cash and Equivalents 197,883 164,248 163,630 Other Current Assets 256,453 219,640 174,521 Fixed Assets 2,430,450 2,346,239 1,991,975 Other Assets 150,206 140,558 191,889 Total Assets 3,034,992 2,870,685
Slide 29: Agenda
Agenda Section 1. Company Highlights 2 2. Market Developments - Chemical tanker market recovery - Implementation of Indonesian cabotage (domestic monopoly) 3. Financials 4. IPO of Buana 5. Recent Financing Initiatives
Slide 30: Buana Fleet Overview
Buana Fleet Overview • Approx. 90% of revenues from contracts • Non-compete Agreement with BLT • BLT Global focus, Buana Domestic focus • BLT focuses on Chemical 15 owned vessels + 6 leased vessels1 Tankers,, Buana focuses on Energy gy 633,869 DWT sectors Oil tankers Gas tankers FPSO/ FSO Chemical t
Slide 31: Buana's Market Position
Buana’s Market Position Market leader in the Indonesian energy shipping market Leading player in the highest value sectors Leading market share FPSO M k t share Market h by b product d t segments t Buana Others 12 1,2 G tankers Gas t k 3 C d oil Crude il & product d t tankers t k Owns the only Ind
Slide 32: Diversified and flexible fleet
Diversified and flexible fleet Diversified fleet mix Fleet flexibility Oil Gas FPSO/FSO Chemical Oil Current fleet mix1 Chemical Tanker FPSO/FSO Gas 10% Owns several oil tankers which can be Limited Li it d correlation l ti FPSO/ FSO converted to FPSOs or FSOs across segments 10% Oil Owns the on
Slide 33: Buana's Financial Strength
Buana’s Financial Strength Scale and financial strength to fund growth Total debt1 / Book capital2 (x) Total debt1 / EBITDA (x) As at Dec 31, 2010 As at Dec 31, 2010 0.4x 3 9x 3.9x 0.2x 1.5x Buana3 Pro-forma 4 Buana3 Pro-forma 4 Strong relationships with multiple financial institutions Strong capaci
Slide 34: Buana's Financial Strength
Buana’s Financial Strength Buana Performance will jump in 2011 due to: Impact of implementation of cabotage New contracts already obtained, bringing contract coverage of revenues to around d 90% Utilization to increase from 83% to around 95% (for example, in 2010 the FPSO Brotojoyo was being u
Slide 35: Buana's Financial Strength
Buana’s Financial Strength Shipping markets weakened from 2008 into 2009 R Revenue (IDR bi bio)) * 1400 Buana did not enjoy any benefit from cabotage before 2010 1200 1028.8 Utilization increased gradually into 2010 and 2011 1000 Freight rates rose by as much as 100% into 2011 800 In 2010
Slide 36: Buana's Financial Strength
Buana’s Financial Strength Buana’s balance sheet has Net Debt/Equity very low leverage, even 0.80 including the shareholder 0.70 loan 0.67 0.60 0 62 0.62 With the recent IPO of 0.50 USD120 mio, Buana’s 0.40 0.46 balance sheet has become 0.30 even stronger 0.20 0.21 On pro forma basis, Buana’s 0.1
Slide 37: Comparative Valuation
Comparative Valuation EV/EBITDA / PER Ent. Value Mkt Cap 2011 2012 2011 2012 (USD bio) (USD bio) (x) (x) (x) (x) Qatar Gas Transport Co. Ltd. 9.2 2.8 12.4 12.3 12.0 10.9 Teekay k Corporation 8.3 2.5 10.3 9.5 Frontline Limited 4.7 1.9 11.9 10.5 Teekay LNG Partners LP 4.3 2.2 15.2 14.2 18.0 17.6 Ship
Slide 38: Agenda
Agenda Section 1. Company Highlights 2 2. Market Developments - Chemical tanker market recovery - Implementation of Indonesian cabotage (domestic monopoly) 3. Financials 4. IPO of Buana 5. Recent Financing Initiatives
Slide 39: Strengthen Balance Sheet/Liquidity
Strengthen Balance Sheet/Liquidity Successful Fund Raising in 2009 – 2011 Even in early 2009 when funding was scarce, BLT obtained additional funding from international and New Bank Debt US$263m 1H 2009 domestic banks Sale and US$102m Mar-09 Leaseback US$80m Sep-10 Realized additional equity thr
Slide 40: Strengthen Balance Sheet/Liquidity - Initial Public Offering of Buana
Strengthen Balance Sheet/Liquidity 9 Initial Public Offering of Buana 9 Total Proceeds USD120mil, total market value approx USD310mil 9 Listing Date 23 May 2011 9 USD 685 Refinancing Facilities 9 Flatten the repayment profile to reflect the young age of the fleet 9 Align the repayment profile with e