Ocean Yield ASA — Investor Day (November 2016)
33 slides from Ocean Yield ASA's investor day presentation, November 2016
Slide 1: Credit Capital Markets Day
Credit Capital Markets Day November 2016
Slide 2: Ocean Yield ASA
Ocean Yield ASA Fleet Diversified fleet of 34 vessels, incl. newbuildings1 Employment Long term charters, avg. tenor of 11.2 years Inv. strategy Modern vessels / long term charters / multi-segment Growth Strong built in growth from delivery of newbuildings Risks Key risk factors are counterparty and
Slide 3: Equity and liquidity position strengthened with recent equity and bond issues
Equity and liquidity position strengthened significantly with recent equity and bond issues Equity issue on 31st August 2016 – Amount: NOK 862 million – Issue price: NOK 64 /share – Purpose: New investments Bond issue on 12th September 2016 – Amount: NOK 750 million – Maturity: September 2021 – Inte
Slide 4: Bond overview
Bond overview Bond terms OCY02 OCY03 OCY 04 Face value NOK 1,000 million NOK 1,000 million NOK 750 million Repurchased NOK 245.5 million NOK 92.5 million Coupon NIBOR + 3.90% p.a. NIBOR + 4.00% p.a. NIBOR + 4.50% p.a. Maturity March 2019 April 2020 Sept. 2021 Tap issue NOK 400m @ NIBOR + 3.65% p.a.
Slide 5: Delivery of newbuildings will give increased earnings
Delivery of newbuildings will give increased earnings Delivery schedule (# vessels) 7 7 6 6 1 5 4 Chemical 1 Product 4 Car carriers 3 3 Container 3 1 3 Aker Wayfarer1 2 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 modificati
Slide 6: Quarterly EBITDA and net profit
Quarterly EBITDA and net profit EBITDA per quarter (USDm) 68.7 63.4 58.7 55.6 55.4 54.2 53.9 55.2 56.0 56.4 56.6 52.7 53.2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2013 2014 2015 2016 Net profit per quarter (USDm) 32.7 30.5 28.6 28.1 28.3 26.5 25.8 25.5 24.5 22.7 19.1 18.6 17.1 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 7: Adjusted EBITDA and net profit
Adjusted EBITDA and net profit EBITDA adjusted for finance lease effects (USDm) 75.6 69.3 63.6 59.6 59.8 55.6 55.4 54.2 55.1 57.3 58.4 52.7 53.2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2013 2014 2015 2016 Adjusted net profit (USDm) 33.4 31.6 29.0 26.3 26.2 27.1 26.9 27.1 27.9 27.6 24.9 25.6 21.5 Q3 Q
Slide 8: Acquisition of two chemical tankers with 12 years charter to Navig8 Ltd.
Acquisition of two chemical tankers with 12 years charter to Navig8 Ltd. Vessel details No of vessels 2x Vessel type IMOII chemical tanker Built 2013 Vessel size 45,000 dwt Delivery October & November 2016 Transaction details Purchase price USD 35 million Seller’s credit USD 6 million Charter durati
Slide 9: Fleet overview per Q3 2016
Fleet overview per Q3 2016 Chemical tankers 6 4 Major European Container vessels1 3 3 container line Car carriers 6 Product tankers 4 Subsea construction 2 3 Gas carriers3 2 Offshore supply 2 # Delivered FPSO 1 # To be delivered 1) 49.5% ownership in six container vessels, 2) 75.0% ownership in SBM
Slide 10: Charter backlog by client per Q3 2016
Charter backlog by client per Q3 2016 Q3 EBITDA* backlog of USD 3.2 billion Major European container line 11 % 24 % 7% 4% Avg. remaining 2% charter tenor of 5% 8% 11.2 years 7% 13 % 12 % 7% *EBITDA backlog based on management’s estimates on DB-1, certain options not being exercised, LIBOR forward cu
Slide 11: Summary
Summary A large diversified fleet of modern vessels, all on long term charter. Strong earnings growth from delivery of newbuildings, all fully funded. Substantial debt service capacity from EBITDA backlog of USD 3.2 billion with average weighted tenor of 11.2 years. Strong liquidity position with Q3
Slide 12: Appendix
Appendix November 16 Credit Capital Markets Day 12
Slide 13: Strong value proposition for our clients
Strong value proposition for our clients Up to 100% leverage Up to 15 years tenor Flexible Floating or leasing fixed interest product at a rate competitive cost of capital Purchase options On- or off- balance sheet November 16 Credit Capital Markets Day 13
Slide 14: Third Quarter 2016 financial highlights
Third Quarter 2016 financial highlights Quarterly dividend increased to USD 0.1775 per share – Increase of 0.5 cents vs. Q2 – 13% increase annualized – USD 0.71 per share annualized EBITDA was USD 68.7m vs. USD 63.4m in Q2 – EBITDA adjusted for finance lease effects was USD 75.6m vs. USD 69.3m in Q2
Slide 15: P&L Income statement
P&L Income statement Comments Q2 Q3 Revenues Amounts in USD million 2016 2016 Increased revenue from delivery of Total revenues 70.1 76.2 newbuildings, Aker Wayfarer and income from investment in associates Vessel operating expenses (4.0) (4.6) (Container transaction) Wages and other personnel expen
Slide 16: Adjusted net profit after tax
Adjusted net profit after tax Adjustments Comments Q2 Q3 Amounts in USD million 2016 2016 Profit after tax 25.5 32.7 - Repurchase of bonds - 0.5 • Repurchase of OCY02 and OCY03 - Part cancellation of loan from Aker ASA - 0.4 • Upfront fee related to period cancelled - Foreign exchange gains/losses (
Slide 17: Balance sheet
Balance sheet Balance sheet Q2 Q3 Q2 Q3 Amounts in USD million 2016 2016 2016 2016 ASSETS EQUITY AND LIABILITIES Vessels and equipment 1 338.5 1 301.0 Equity att. to equity holders of the parent 699.6 816.3 Intangible assets 9.8 9.8 Non controlling interests 9.5 10.2 Finance lease receivables 555.4
Slide 18: Newbuilding program fully funded
Newbuilding program fully funded Contractual obligations and financing, Q3 2016 Other Oil Gas Container Other Amounts in USD million Total Service Carriers Vessels Shipping Already paid - 72.9 0.9 32.3 106.0 2016 - 72.9 57.7 98.9 229.4 2017 - 97.2 28.8 - 126.0 Total contractual obligations - 243.0 8
Slide 19: Remaining charter tenor by segment
Remaining charter tenor1 by segment Average 11.2 Major European Container vessels 14.9 container line Chemical tankers 13.9 Product tankers 12.6 Car carriers 10.0 Gas carriers 10.0 Subsea construction 9.3 Offshore supply 8.6 FPSO 2.0 # Years remaining 1) Average weighted tenor based on EBITDA Novemb
Slide 20: Delivery schedule of vessels
Delivery schedule of vessels Project Vessel Type Exp. Delivery Quantum Pacific JV MSC Diana Container 19,500 TEU 6th July ’16 Quantum Pacific JV MSC Ingy Container 19,500 TEU 6th July ’16 Akastor / AKOFS Offshore Aker Wayfarer Modification 7th July ’16 Navig8 Chemical Tankers Navig8 Topaz Chemical c
Slide 21: Acquisition of 49.5% interest in six mega container vessels with 15 years charter
Acquisition of 49.5% interest in six mega container vessels with 15 years charter Vessel details No of vessels 6x Type Container vessel Vessel capacity 19,500 TEU Delivery Jul’16 until Feb’17 Yard Samsung H. I., Korea Financial details Equity ownership 49.5% JV Partner Quantum Pacific Shipping Equit
Slide 22: 4 x LR2 product tankers with 13 years charter
Navig8 Product Tankers Inc. 4 x LR2 product tankers with 13 years charter LR2 product tankers Navig8 Product Tankers Inc. Vessel(s) 4 x 110,000 dwt • Established in 2013 by Navig8 Group • Book equity of USD 447 million Yard Sungdong Shipbuilding, Korea • Listed on Norwegian OTC (“EIGHT”) Built 2016
Slide 23: 8 x chemical tankers with 15 years charter
Navig8 Chemical Tankers Inc. 8 x chemical tankers with 15 years charter Chemical tankers, IMOII Navig8 Chemical Tankers Inc. Vessel(s) 4 x 37,000 dwt 4 x 49,000 dwt • Established in 2013 by Oaktree and Navig8 Group Yard Hyundai MIPO, Korea STX, Korea • Book equity of USD 439 million Built 2015 2016
Slide 24: 2 x liquefied ethylene carrier newbuildings
Hartmann 2 x liquefied ethylene carrier newbuildings Liquefied ethylene carriers Hartmann Group Vessel(s) 2 x newbuildings • Charterer is SPVs owned by the Hartmann Group Yard Sinopacific Offshore & Engineering, China • Activities include ship-owning, technical and Delivery Q4’16 and Q3’17 commercia
Slide 25: 6 x car carriers on long term charter
Höegh Autoliners 6 x car carriers on long term charter Car carriers Höegh Autoliners Vessel(s) Beijing & Xiamen, 4900 CEU PCTCs, 2010 built • One of 5 leading global providers of car and Jacksonville & Jeddah, 6500 CEU PCTCs, 2014 built rolling cargo shipping and logistics Trapper & Tracer, 8500 CEU
Slide 26: SBM Installer
SBM Offshore SBM Installer Diving support & construction vessel SBM Offshore Vessel(s) SBM Installer • Charter guarantor is SBM Holding Inc. S.A. • Listed in Amsterdam with ticker “SBMO” Built / Yard 2013 / Keppel, Singapore • EBITDA H1’16 annualized of USD 650 million Ownership Ocean Yield: 75% SBM
Slide 27: Aker Wayfarer
Akastor Aker Wayfarer Deepwater subsea equipment support vessel Akastor ASA Vessel(s) Aker Wayfarer • Counterparty is AKOFS Offshore, with guarantee from Akastor ASA Built / Yard 2010 (Modification completed in 2016) • Implicit guarantee from Aker Solutions ASA Shipyard STX Europe (Søviknes), Norway
Slide 28: Far Senator & Far Statesman
Farstad Supply Far Senator & Far Statesman Anker handling tug supply vessel Farstad Vessel(s) Far Senator & Far Statesman • Farstad Shipping ASA operates a fleet of about 56 various offshore vessels and is the Contract 12 years “Hell & high” bareboat until 2025 bond issuing entity Counterparty Farst
Slide 29: Lewek Connector
Ezra Holdings Lewek Connector Ultra deepwater multipurpose flex-lay construction vessel Ezra Holdings Vessel(s) Lewek Connector • Global offshore contractor and provider of offshore solutions Shipyard / Built STX Europe (Søviknes), Norway / 2011 1. Subsea services (EMAS Chiyoda Key features 2x subse
Slide 30: Dhirubhai-1
Reliance Industries Dhirubhai-1 Floating Production, Storage and Offloading (FPSO) unit Reliance Industries Vessel(s) Dhirubhai-1 • Reliance Ind. is a conglomerate within oil & gas, refining, textiles, retail & telecom with Charterer Reliance Industries Ltd. listing in London and Mumbai Shipyard / B
Slide 31: Bonds owned in AMSC
American Shipping Company Bonds owned in AMSC Bonds owned in AMSC American Shipping Company Nominal value USD 201 million • Listed on Oslo Stock Exchange with ticker AMSC NO Book value USD 196 million • US Jones Act product tanker company that Maturity February 2018 owns 10 modern US-built MR produc
Slide 32: Management and key employees
Management and key employees Lars Solbakken – Chief Executive Officer (1957) Eirik Eide – Chief Financial Officer (1970) • CEO Norwegian Car Carriers • CFO Ship Finance International • CEO Ship Finance International • Head of Corporate Finance, Orkla Finans • General Manager of Fortis Bank (Nederlan
Slide 33: November 16 Credit Capital Markets Day
November 16 Credit Capital Markets Day 33