Ocean Yield ASA — Q3 2019 Earnings Presentation
16 slides from Ocean Yield ASA's earnings presentation, Oct 30, 2019
Slide 1: Q3 2019 Presentation
Q3 2019 PRESENTATION 30th October 2019
Slide 2: Q3 2019 Financial Highlights
Q3 2019 FINANCIAL HIGHLIGHTS • Declared Q3 2019 dividend of USD 0.1910 per share - Dividend yield of 12.9% p.a. - Declared cash dividends for 25 consecutive quarters • EBITDA was USD 57.2m vs. Q2 of USD 56.8m - EBITDA adjusted for finance leases was USD 80.8m vs. USD 75.4m in Q2 - Limited EBITDA con
Slide 3: Investment in Two Newcastlemax Dry Bulk Vessels with Long-Term Charter to 2020 Bulkers
INVESTMENT IN TWO NEWCASTLEMAX DRY BULK VESSELS WITH LONG-TERM CHARTER TO 2020 BULKERS TRANSACTION DETAILS Net purchase price USD 42.0m Charter 13 years bareboat Purchase options Several purchase options Purchase obligation After year 13 Charterer 2020 Bulkers VESSEL DETAILS Vessel type Newcastlemax
Slide 4: Investment in a Gas Carrier with Long-Term Charter to Navigator Gas
INVESTMENT IN A GAS CARRIER WITH LONG-TERM CHARTER TO NAVIGATOR GAS TRANSACTION DETAILS Net purchase price USD 69.75m Charter 13 years bareboat Purchase options Several purchase options Charterer Navigator Gas VESSEL DETAILS Vessel type Ethylene gas carrier Vessel Navigator Aurora Size 37,300 cbm Bu
Slide 5: Investment in One Handysize Dry Bulk Vessel with Long-Term Charter to Interlink Maritime
INVESTMENT IN ONE HANDYSIZE DRY BULK VESSEL WITH LONG-TERM CHARTER TO INTERLINK MARITIME TRANSACTION DETAILS Net purchase price USD 18.0m Charter 13 years bareboat Purchase options Several purchase options Purchase obligation After year 13 Charterer Interlink Maritime VESSEL DETAILS Vessel type Hand
Slide 6: Vessels with Long-Term Charters
VESSELS WITH LONG-TERM CHARTERS EBITDA1 BACKLOG OF USD 3.5 BILLION, INCLUDING RECENT TRANSACTIONS FLEET2 Product / chemical 16 7% Dry bulk 13 17 % 4% 3% 7% Container vessels 10 4% 2% Avg. remaining 9 5% 4% charter tenor of Crude 10.8 years 1% 3% 2% 4% 1% Car carriers 6 9% 5% 3% 2% 13 % 5% Oil-servic
Slide 7: FPSO Dhirubhai-1
FPSO DHIRUBHAI-1 • Employment opportunities - The FPSO Dhirubai-1 is being evaluated for several employment opportunities - Final investment decisions on relevant prospects are not expected before H2 2020 • Demobilization in India - Removal of risers, moorings and bouy in India to be performed from
Slide 8: Connector / FAR Senator & FAR Statesman
CONNECTOR / FAR SENATOR & FAR STATESMAN • Connector - Trading on short-term charters during Q3 - Risk of lower utilization during the seasonally weaker winter months - Net profit of USD -3.4m in Q3 2019 • FAR Senator & FAR Statesman - Agreed to extend standstill of charter payments until 31st Octobe
Slide 9: Adjusted EBITDA and Net Profit
ADJUSTED EBITDA AND NET PROFIT EBITDA ADJUSTED FOR FINANCE LEASES (USDM) 95.1 100.4 83.1 89.3 89.3 86.8 79.1 74.5 80.8 67.8 51.3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2017 2018 2019 ADJUSTED NET PROFIT (USDM) 36.3 37.9 37.3 33.4 33.5 34.4 33.9 12.5 11.3 11.0 8.4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2017 2018
Slide 10: Income Statement
INCOME STATEMENT INCOME STATEMENT Q2 Q3 Amounts in USD million 2019 2019 Operating revenues 30.1 26.9 Finance lease revenue 26.6 30.4 Income from investments in associates 5.9 5.4 Other revenue 3.9 3.6 Total revenues and other income 66.5 66.3 Vessel operating expenses (4.6) (4.5) Wages and other pe
Slide 11: Adjusted Net Profit
ADJUSTED NET PROFIT ADJUSTMENTS Q2 Q3 Amounts in USD million 2019 2019 Net profit after tax 5.3 -63.2 Increase in field abandonment provision 4.5 0.0 Impairment of Dhirubhai-1 0.0 68.4 Refinancing of NS Orla/NS Frayja 0.0 0.5 • Capitalized loan expenses Foreign exchange gains/losses 3.5 -17.8 • Main
Slide 12: Balance Sheet
BALANCE SHEET BALANCE SHEET Q2 Q3 Q2 Q3 Amounts in USD million 2019 2019 2019 2019 ASSETS EQUITY AND LIABILITIES Common equity 784 681 Vessels and equipment 1,160 1,067 Hybrid capital 0 123 Investments in associates 178 174 Non-controlling interests 13 13 Finance lease receivables 1,348 1,436 Total
Slide 13: Capex and Financing Overview
CAPEX AND FINANCING OVERVIEW REMAINING CAPEX / FINANCING PER Q3’19 ADJUSTED FOR RECENT TRANSACTIONS (USDM) 183 70 130 113 53 -1 3x 1 x gas carrier Remaining capex Secured Expected Remaining newcastlemax bank funding bank funding cash payments COMMENTS • Remaining obligations per Q3 2019 adjusted for
Slide 14: Successful Placement of Hybrid Bond
SUCCESSFUL PLACEMENT OF HYBRID BOND • Amount USD 125 million • Tenor Perpeptual • Coupon LIBOR + 6.50% p.a. • First call After 5 years at par • Step-up 5% p.a. after 5.5 years • Accounting treatment 100% equity • Use of proceeds New investments and general corporate purposes
Slide 15: Outlook
OUTLOOK • The FPSO Dhirubhai-1 is being evaluated for several employment opportunities, but final investment decision for these prospects is not expected before H2 2020 • The current intention of the Board of Directors is to adjust the dividend from USD 0.1910 to USD 0.1500 per share per quarter as
Slide 16: Investor Relations
INVESTOR RELATIONS Marius Magelie, SVP Finance & Investor Relations +47 24 13 01 82 mm@oceanyield.no www.oceanyield.no/IR