Paragon Shipping Inc · OTC:PRGNF
Paragon Shipping — Investor Presentation (November 2014)
17 slides from Paragon Shipping's investor presentation, November 2014
Slide 1: Investor Presentation
Investor Presentation November 2014
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains certain statements that may be deemed to be “forward-looking statements” within the meaning of the Securities Acts. Forward-looking statements reflect management's current views with respect to future events and financial performance and may incl
Slide 3: Company Overview
Company Overview Paragon Shipping Inc. – NasdaqGM :PRGN • Completed private placement in December 2006 • Completed IPO in August 2007 • CEO owns 27.9% of the common stock of Paragon Current Fleet: • 16 drybulk carriers, average age of 7.1 years • Own 11.2% of Box Ships Inc. (NYSE:TEU) Built In Growt
Slide 4: Delivery of M/V Gentle Seas & M/V Peaceful Seas
Delivery of M/V Gentle Seas & M/V Peaceful Seas Approximately 63,350 dwt each – 15% increase to dwt fleet size Reduction in fleet age to 7.1 from 8.1 years Expected Fuel Consumption < 10% & Cargo Capacity >20% Visual Graph Source: Oshima Shipbuilding, Morgan Stanley Research Slide 4
Slide 5: Asset Values & Fleet Growth
Asset Values & Fleet Growth Average age of Paragon’s current fleet – 7.1 years vs. 9.0 years for the industry Reduction in fleet age from 7.1 to 6.4 years on a fully-deployed basis 21 vessels totaling 1.35 million Dwt on a fully-deployed basis Market Value of Fleet on a fully deployed basis: $460 mi
Slide 6: Chartering Update
Chartering Update Spot exposure – significant upside potential Rem ainder N am e Type 2015 2016 2014 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 C oral Seas Panam ax Dream Seas Panam ax Prosperous Seas Handysiz e Precious Seas Handysiz e C alm Seas Panam ax Sapphire Seas Supram ax O n t h e Wat er Kind Seas
Slide 7: High Quality Counterparties
High Quality Counterparties Slide 7
Slide 8: Financing Update
Financing Update Reduced quarterly installments through 2015 to an average of $5.1 million from an average of $6.6 million Reduced fleet’s 2015 cash flow daily breakeven by 7.4% Increased average life of loan portfolio by approximately one year “Covenant light” facilities – increased financial flexi
Slide 9: Major Drybulk Seaborne Trades
Major Drybulk Seaborne Trades Grains Grains Coal Coal Grains Iron Ore Coal Iron Ore Coal Major Coal Trades Major Iron Ore Trades Major Grain Trades Australia – Far East Australia – Japan U.S. Gulf – Latin America Australia – W. Europe Australia – China U.S. Gulf - Japan S. Africa – W. Europe Brazil
Slide 10: 2013 Paragon Trading Pattern
2013 Paragon Trading Pattern 13% 4% 22% 7% Coal / Coke 5% Iron Ore 9% Agricultural products Fertilizers Alumina / Bauxite Sulphur 40% Other Minor Bulks Total Quantity Shipped Percentage Coal / Coke 832,621 22% Iron Ore 185,840 5% Agricultural products 1,538,237 40% Fertilizers 361,658 9% Alumina / B
Slide 11: Drybulk Seaborne Demand Growth
Drybulk Seaborne Demand Growth Seaborne demand remains robust Market growing by more than 4.5% CAGR in volumes through 2016 Agriculture Construction CAGR Iron Ore Coal Other TOTAL related related 2010 – 2013 7.0% 7.5% 2.1% 7.1% 3.4% 6.3% 2013 – 2016(f) 7.2% 3.4% 4.5% 2.3% 2.7% 4.5% Source: Clarkson’
Slide 12: Supply Fundamentals
Supply Fundamentals Orderbook currently stands at 23.7% of existing fleet Deletions remain significant – 2014YTD: 38 m. dwt delivered vs 12 m. dwt scrapped (or 32%) Drybulk fleet growth is slowing Outstanding Orderbook by Vessel Type Global Fleet vs Orderbook 73 m 800 100% 80 66 m Million Dwt 60 600
Slide 13: Drybulk Market
Drybulk Market TC Rates: Remained weak throughout Q314 - Steadily improving since late October Asset Values: Declined notably following the intense volatility of the TC market Average T/C Routes (USD Per Day) 5 Year Old Secondhand Prices (USD Mil.) 50,000 Capesize 60 Panamax Supramax 50 40,000 Handy
Slide 14: Operating Performance
Operating Performance 9M14 vs 9M13 - 8.5% YOY increase in average number of vessels 9M14 vs 9M13 - 9.2% YOY decrease in daily TVOE 3Q 2013 3Q 2014 9M 2013 9M 2014 F leet Data Average num ber of vessels 1 3 .0 1 4 .0 1 2 .9 1 4 .0 C alendar days for fleet 1 ,1 9 6 1 ,2 8 8 3 ,5 2 1 3 ,8 1 6 Available
Slide 15: Financial Performance
Financial Performance Net revenue, net of voyage expenses: $8.4 million in 3Q 2014 Adjusted EBITDA: $0.7 million in 3Q 2014 3Q 2013 3Q 2014 9M 2013 9M 2014 F inancial Performance Net Revenue, net of voyage expenses $ 11.0 m $ 8.4 m $ 35.7 m $ 28.4 m EBITDA ($ 1.4 m) $ 0.7 m $ 7.3 m ($ 20.5 m) Adjust
Slide 16: Investment Summary
Investment Summary Drybulk Market • Strong demand for Iron Ore, Coal and Grains will continue to drive the market recovery • Manageable orderbook and the scrapping of older vessels will keep supply in check • Charter market remains volatile, but a continuing improvement is expected Paragon’s Strengt
Slide 17: Investor Relations / Media Contacts
Investor Relations /Media: Company: Allen & Caron Inc. Paragon Shipping Inc. Rudy Barrio (Investors) Robert Perri, CFA Tel: (212) 691-8087 Chief Financial Officer Email: r.barrio@allencaron.com 15 Karamanli Ave. Len Hall (Media) GR 166 73, Voula, Greece Tel: (949) 474-4300 Tel: +30 (210) 8914 600 Em
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