Taylor Maritime Limited · LSE:TMI
Taylor Maritime — Q3 FY24 Earnings Presentation
14 slides from Taylor Maritime's earnings presentation, Jan 24, 2025
Slide 1: Q3 FY24 Trading Update
Q3 FY24 Trading Update 24 January 2025 Strictly Private and Confidential
Slide 2: Disclaimer
Strictly Private & Confidential Disclaimer Important disclosures - NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO, THE UNITED STATES (SAVE AS PROVIDED HEREIN), AUSTRALIA, SOUTH AFRICA, CANADA OR JAPAN OR ANY OTHER JURISDICTION WHERE TO DO SO MIGHT CONSTITUTE A VIOLA
Slide 3: Third Quarter Review – Highlights
Strictly Private & Confidential Third Quarter Review – Highlights Refinancing of Group debt, transfer of listing category after shareholders approve special resolutions, special dividend of 4 cents per share declared in addition to regular interim dividend of 2 cents per share Operating Performance
Slide 4: Third Quarter Review – Charter Market
Strictly Private & Confidential Third Quarter Review – Charter Market Market rates declined steadily as seasonal end of year commodity demand strength failed to materialise with Chinese stockpiles already high and US trade policy uncertainty dampening sentiment Handysize & Supra/Ultramax Spot Rates
Slide 5: Third Quarter Review – Portfolio Deployment for the Combined Fleet
Strictly Private & Confidential Third Quarter Review – Portfolio Deployment for the Combined Fleet Combined Fleet Time Charter Equivalent (“TCE”) for the quarter averaged $12,150 per day Est. TCE per day1 at quarter end ($) Forward Coverage – Financial Year 2024 Forward Coverage TCE Earnings: $12,45
Slide 6: TMI Debt Reduction Progress
Strictly Private & Confidential TMI Debt Reduction Progress Our proactive strategy to strengthen the balance sheet has resulted in $208 million debt reduction since the Grindrod transaction with further repayments planned DELEVERAGING PROGRESS SINCE GRINDROD TRANSACTION Group ‘Look Through’ Leverage
Slide 7: Cash Breakeven Overview for Q4 FY2024
Strictly Private & Confidential Cash Breakeven Overview for Q4 FY2024 Fleet Breakeven Analysis for Q4 FY24 ($ per ship, per day)1 $1,981 $14,240 $14,000 $524 $12,000 $566 $1,382 $10,000 $2,676 $8,000 $7,111 $6,000 $4,000 $2,000 $0 Opex G&A Interest expenses DD Reserves Debt repayment Dividend Group
Slide 8: Macroeconomic Outlook
Strictly Private & Confidential Macroeconomic Outlook Geopolitical risk remains high TRUMP ADMINISTRATION CEASEFIRE IN GAZA KNOWNS UNKNOWNS KNOWNS ◼ Trade tariffs on various countries. ◼ Diverse outcomes directed by ◼ Agreement began with a 42-day first phase Slight increase in stockpile trades subs
Slide 9: Demand Fundamentals
Strictly Private & Confidential Demand Fundamentals Consensus on softer demand growth China’s economic growth Trade growth and inefficiencies Early signs of recovery but not without risks ◼ Minor bulk trade continues to expand while geopolitical trade adjustments could provide resilience to the 0.3%
Slide 10: Freight Fundamentals
Strictly Private & Confidential Freight Fundamentals Freight seasonality Fleet Supply Response Seasonal fluctuations Response to recalibrate markets ◼ Typical of the dry bulk market is a weak start to year mainly ◼ An inverse relationship exists between freight rates and number of influenced by less
Slide 11: Supply Fundamentals
Strictly Private & Confidential Supply Fundamentals TMI positioned in the premium band of the complex decarbonisation cycle Decarbonisation of shipping intensifies ◼ With carbon intensity regulation ramping up, non- or sub-compliant ◼ High fuel consuming vessels, such as the early Chinese-built and
Slide 12: Summary
Strictly Private & Confidential Summary Freight market is expected to be softer year-on-year, but resilience in asset values Asset Values - Newbuild prices have plateaued after a year of strong ordering - Shipyards are full and with long ordering backlogs together with “green” fleet renewals and pot
Slide 13: Strategic Priorities
Strictly Private & Confidential Strategic Priorities TMI maintains strong conviction in the medium-term investment opportunity set SHORT-TERM FOCUS: ◼ Further deleveraging through select asset disposals ($208 million in debt reductions over past two years) ◼ Continue to streamline operations ($18 mi
Slide 14: Questions
Strictly Private & Confidential Questions Strictly Private and Confidential