Dampskibsselskabet Norden A/s · OMXCOP:DNORD
Dampskibsselskabet Norden A/s — Q1 2021 Earnings Presentation
18 slides from Dampskibsselskabet Norden A/s's earnings presentation, May 6, 2021
Slide 1: Presentation of Q1 2021 Results
PRESENTATION OF Q1 2021 RESULTS Copenhagen, Denmark, 6 May 2021
Slide 2: Agenda for Today
AGENDA FOR TODAY 01. Group Results 02. Business unit performance & Market outlook • Asset Management • Dry Operator • Tanker Operator 04. Guidance for 2021 05. Final words and Q&A 2 PRESENTATION OF Q1 2021
Slide 3: Highlights Q1 2021
01. HIGHLIGHTS Q1 2021 3 PRESENTATION OF Q1 2021
Slide 4: Business Update
01. HIGHLIGHTS Q1 2021 BUSINESS UPDATE Building significant value for rest of 2021 Adjusted Group Result last 5 years Guidance • Adjusted Result Q1 2021: USD -6 million (Q1 2020: USD 29 million) 140 106 75-125 120 • Value of NORDEN’s owned and leased fleet increased by USD 106 million 100 80 • Signi
Slide 5: Business Unit Performance and Market Outlook
02. BUSINESS UNIT PERFORMANCE AND MARKET OUTLOOK 5 PRESENTATION OF Q1 2021
Slide 6: Fleet Values Benefitting from Strong Dry Market
02. ASSET MANAGEMENT FLEET VALUES BENEFITTING FROM STRONG DRY MARKET Adjusted Result Q1 2021: USD 2 million Asset Management key figures • Total market value of portfolio increased by USD 106 million 2021 2020 Last 4 USD million Q1 Q1 Quarters • Well-positioned to benefit from stronger dry cargo mar
Slide 7: Significant Optionality in Portfolio
02. ASSET MANAGEMENT SIGNIFICANT OPTIONALITY IN PORTFOLIO • 66,406 optional days in total • 74 extension options and 72 purchase options in total • By end of 2022: 20 period extension options on dry cargo vessels and 4 on tanker vessels 7 PRESENTATION OF Q1 2021
Slide 8: Dry and Tanker Market in Q1 2021
02. ASSET MANAGEMENT DRY AND TANKER MARKET IN Q1 2021 Soaring dry cargo rates Early signs of improved tanker market • Dry cargo asset prices and period rates gained additional • Tanker asset prices and period rates started to increase gradually after momentum in Q1 2021 having remained stable at his
Slide 9: Market Outlook in Dry Cargo
02. ASSET MANAGEMENT MARKET OUTLOOK IN DRY CARGO Continued strong market Supply growth continues to slow down • The strong dry market is expected to continue during 2021 • No sign of accelerating ordering despite strong market - although at more stabilised market rates • Yards filling up with record
Slide 10: Market Outlook in Tanker
02. ASSET MANAGEMENT MARKET OUTLOOK IN TANKER Expecting slow market improvements Orderbooks remain low • Gradual rebound in both supply and demand for oil to gradually • Product tanker orders continue to show lowest levels in 25 years improve during H2 – yet still long way to recovery • New ordering
Slide 11: Soaring Dry Rates Prompted Quick Repositioning
02. DRY OPERATOR SOARING DRY RATES PROMPTED QUICK REPOSITIONING Adjusted Result Q1 2021: USD 0 million • Quick readjustment to capitalise on increased dry market rates • Expansion across regions and vessel types • Significant ‘long’ position (more tonnage than cargoes) built up to • Average fleet of
Slide 12: Preparing for Second Half-Year Improvements
02. TANKER OPERATOR PREPARING FOR SECOND HALF-YEAR IMPROVEMENTS Adjusted Result Q1 2021 USD -8 million • Challenging Q1 in line with lowered global demand • Average fleet size of 120 vessels incl. pool vessels • High coverage mitigating worst effects • Gradual improvements expected from end of Q2 on
Slide 13: 2021 Guidance and Final Words
03. 2021 GUIDANCE AND FINAL WORDS 13 PRESENTATION OF Q1 2021
Slide 14: 2021 Guidance
03. 2021 GUIDANCE NORDEN raises its expectations for the annual Adjusted Result to USD 75 to 125 million. - Based on strong performance in Dry Operator, expecting significantly increased earnings in Q2 and H2 2021. Dividend policy: Paying out minimum 50% of the annual Adjusted Result. Asset Manageme
Slide 15: Substantial Value Beyond Asset Values
03. FINAL WORDS SUBSTANTIAL VALUE BEYOND ASSET VALUES Asset Management Dry Operator Tanker Operator Active management of cyclical Providing efficient global transport Providing efficient global transport market exposure within dry cargo solutions to customers and active solutions to and active manag
Slide 16: Building Significant Value in Q1
03. FINAL WORDS BUILDING SIGNIFICANT VALUE IN Q1 • A great quarter heavily focused on building value for rest of 2021 • Guidance raised for 2021: USD 75-125 million • Value of owned and leased fleet increased significantly by USD 106 million • Benefitted from shifting fleet exposure towards Dry Carg
Slide 17: Forward Looking Statements
03. FINAL WORDS – DISCLAIMER FORWARD LOOKING STATEMENTS This presentation contains certain forward-looking statements reflecting the management’s present judgment of future events and financial results. Statements relating to 2021 and subsequent years are subject to uncertainty, and NORDEN’s actual
Slide 18: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION Dampskibsselskabet NORDEN A/S 52, Strandvejen DK-2900 Hellerup Denmark Phone: +45 3315 0451 www.ds-norden.com Connect with us 18 PRESENTATION OF Q1 2021
Dampskibsselskabet NORDEN — Q1 2021 Earnings Presentation on 6ix