Ocean Yield ASA — Q1 2015 Earnings Presentation
16 slides from Ocean Yield ASA's earnings presentation, May 5, 2015
Slide 1: Presentation Q1 2015
Presentation Q1 2015 5th May 2015
Slide 2: First Quarter 2015 highlights
First Quarter 2015 highlights Quarterly dividend increased to USD 0.1475 per share – Increase of 0.5 cents versus Q4’14 – USD 0.59 per share annualized, representing a dividend yield of 7.8% p.a. EBITDA was USD 55.2m, compared with USD 53.9m in Q4’14 Net profit was USD 28.1m, compared with USD 30.5m
Slide 3: Recent transactions
Recent transactions Acquisition of 8 newbuilding chemical tankers – Total gross price of USD 306.8m – 15-year bareboat charters to Navig8 Chemical Tankers Inc. – USD 212m bank facility to finance the transaction New revolving USD 220m credit facility with security in Aker Wayfarer – To refinance exi
Slide 4: Attractive and diversified portfolio of industrial shipping and oil service assets
Attractive and diversified portfolio of industrial shipping and oil service assets Newbuildings Chemical Carriers Diving Support & Construction Vessel 4x 37,000 dwt IMO2 Newbuilds SBM Installer Newbuildings Subsea Equipment 4x 49,000 dwt MR IMO2 Support Vessel Newbuilds Wayfarer Newbuildings INDUSTR
Slide 5: EBITDA backlog of USD 2.7bn with average tenor of 10.2 years
EBITDA* backlog of USD 2.7bn with average tenor of 10.2 years VESSEL TYPE BUILT COUNTERPARTY 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Navig8 - STX 1724, MR Chem 2016 Navig8 Chemicals Navig8 - STX 1723, MR Chem 2016 Navig8 Chemicals Navig8 - STX 1722, MR Ch
Slide 6: Acquisition of 8x chemical tankers with 15y bareboat charters to Navig8 Chemical Tankers Inc.
Acquisition of 8x chemical tankers with 15y bareboat charters to Navig8 Chemical Tankers Inc. 4 x 37,000 dwt 4 x 49,000 dwt NAVIG8 CHEMICAL TANKERS Vessel type Chemical tanker, IMOII Chemical tanker, IMOII • Established in 2013 by Oaktree and Navig8 Group Yard: Hyundai MIPO, Korea STX, Korea • Raise
Slide 7: New USD 220 million revolving credit facility secured by Aker Wayfarer
New USD 220 million revolving credit facility secured by Aker Wayfarer New Aker Wayfarer revolving credit facility Facility Size: USD 220m Maturity: 2021 Balloon: USD 120m Amortization: USD 4.55m per quarter Margin: LIBOR + 200 bps Lenders: DnB, BnP Paribas, ING, KfW Security: Aker Wayfarer Borrower
Slide 8: Successful placement of new NOK 1,000 million unsecured bond (OCY03)
Successful placement of new NOK 1,000 million unsecured bond (OCY03) Bond terms OCY02 OCY03 Outstanding amount NOK 1,000 million NOK 1,000 million Coupon NIBOR + 3.90% p.a. NIBOR + 4.00% p.a. Maturity March 2019 April 2020 Tap issue NOK 400m @ NIBOR + 3.65% p.a. in July 2014 Financial covenants 1.)
Slide 9: Steady EBITDA with built-in growth from delivery of newbuildings
Steady EBITDA with built-in growth from delivery of newbuildings EBITDA1 per quarter (USDm) 48.8 50.6 55.6 52.7 53.2 55.4 54.2 53.9 55.2 38.1 39.4 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Committed 2012 2013 2014 2015 projects will add Net profit per quarter (USDm) about 40% to Q1 EBITDA once 30.5 28.1 deli
Slide 10: Adjusted Net Profit and Dividend per share
Adjusted Net Profit and Dividend per share Dividend yield Adjusted net profit per share, annualized basis (USD)** 0.74 0.64 0.76 0.78 0.78 0.81 0.80 7.8%* p.a. Pay-out ratio on Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 adjusted Q1 EPS Dividend per share, annualized basis (USD) 74% +18%
Slide 11: P&L
P&L Income statement Comments 4th Quarter 1st Quarter 1st Quarter Jan - Dec Amounts in USD million Note 2014 2015 2014 2014 Revenues: Operating revenues 5 62.1 62.6 59.7 249.3 Vessel operating expenses 6 (3.9) (4.1) (3.5) (14.6) Full quarter for SBM Installer Wages and other personnel expenses 7 (2.
Slide 12: Net profit after tax adjusted for non-recurring items
Net profit after tax adjusted for non-recurring items Adjustments Comments 4th Quarter 1st Quarter Amounts in USD million 2014 2015 Profit after tax 30.5 28.1 - Loss from sale of vessel 3.8 - • Sale of Geco Triton - One-off adjustment to Financial Income - - - One-off adjustment to Financial Expense
Slide 13: Balance sheet
Balance sheet Balance sheet 31 March 31 December 31 March 31 December Amounts in USD million 2015 2014 2015 2014 ASSETS EQUITY AND LIABILITIES Vessels and equipment 1 271.8 1 308.0 Equity att. to equity holders of the parent 712.6 708.1 Intangible assets 38.3 38.3 Non-controlling interests 10.5 10.6
Slide 14: Contractual obligations and financing
Contractual obligations and financing Contractual obligations, including financing committed post Q1 Other Oil Gas Car Other Amounts in USD million FPSO Total Service Carriers Carriers Shipping Already paid - 14.3 24.3 24.9 - 63.5 2015 - 19.1 48.6 12.5 171.5 251.6 2016 - 55.9 170.1 87.2 105.1 418.3
Slide 15: Summary and outlook
Summary and outlook Committed USD ~880m in new investments over the past 12 months, which should increase the current EBITDA by 40% once delivered The EBITDA contract backlog has an average weighted tenor of 10.2 years and is becoming more diversified Strong cash position due to the recent NOK 1,000
Slide 16: May 15
= OCEAN YIELD — May 15 16