D'amico International Shipping S.a. · MIL:DIS
D'amico International Shipping — H1 2014 Earnings Presentation
29 slides from D'amico International Shipping's earnings presentation, Jul 30, 2014
Slide 1: Q2 & H1 2014 Results Presentation
Q2 & H1 2014 Results Presentation d’Amico International Shipping July 30th, 2014
Slide 2: Agenda
AGENDA. Executive Summary Highlights Financial Results Product Tanker Market & Outlook Appendix
Slide 3: Executive Summary
EXECUTIVE SUMMARY. H1’14 results affected by a temporary turbulence in the Product tanker market – due to the harsh winter in the US and the closure of several refineries in the US Gulf for maintenance. These are only temporary and unexpected disruptions, which do not change the positive market fund
Slide 4: Highlights
Highlights
Slide 5: Highlights: Main events
HIGHLIGHTS. Main events New-building plan – Order of 2 additional MR ‘ECO Design’ ships in April’14 at Hyundai Mipo South Korea, at US$ 36.6m and expected to be delivered in Q4’16/Jan.’17. Addition of 1 further MR ‘ECO Design’ ship at US$ 35.5m. DIS’ orderbook currently comprises of 16 vessels (incl
Slide 6: Highlights: Product tankers market
HIGHLIGHTS. Products tankers market Spot returns –Product tanker markets have weakened during Q2’14 from Q1’14 levels as US refined product exports have declined down to 3.1mb/d during Q2’14, which equates to a drop of 500,000b/d from Q1 levels curtailing products tanker demand growth in the Atlanti
Slide 7: DIS Fleet profile
DIS. Fleet profile Jun. 30th, 2014 DIS Fleet2 MR Handy Total % Owned 17.3 3.0 20.3 52% Time chartered-in 16.5 2.0 18.5 48% TOTAL 33.8 5.0 38.8 100% DIS controls a modern fleet of 38.8 product tankers Flexible and double-hull fleet – 66% IMO classed, with an average age of 5.9 years (industry average
Slide 8: DIS Highlights: New-Building project
DIS HIGHLIGHTS. New-Building project New-Building Project Large newbuilding program: Tot. N. of ordered vessels – 6 Handysize Product Tanker Vessels and 9.3 Medium Range Product Tanker Vessels Total Capex Plan – US$ 490.7m Financing – Capex plan already financed with main financial institutions at v
Slide 9: Financial Results
Financial Results
Slide 10: Financial Results: Q2 & H1 2014 Results
FINANCIAL RESULTS. Q2 & H1 2014 Results (US$ million) Q2 20131 Q2 2014 H1 20131 H1 2014 TCE Earnings 49.2 48.7 99.3 95.1 Profit on disposal 13.9 6.4 13.9 6.4 EBITDA 21.8 10.4 32.5 14.2 EBITDA Margin 44.3% 21.4% 32.7% 14.9% EBIT 14.3 1.7 17.3 (2.5) Net Profit 13.9 1.4 17.7 (5.5) TCE Earnings – US$ 95
Slide 11: Financial Results: Key Operating Measures
FINANCIAL RESULTS. Key Operating Measures Key Operating Measures Q1 2013 Q2 2013 H1 2013 Q1 2014 Q2 2014 H1 2014 Avg. n. of vessel 38.5 38.6 38.6 39.6 39.1 39.4 Fleet contact coverage 39.8% 41.5% 40.6% 56.1% 55.2% 55.6% Daily TCE Spot (US$/d) 14,272 13,929 14,102 12,191 13,144 12,677 Daily TCE Cover
Slide 12: Financial Results: Net Financial Position
FINANCIAL RESULTS. Net Financial Position (US$ million) Dec. 31st, 2013 Mar. 31st, 2014 Jun. 30th, 2014 Gross debt (222.1) (296.3) (313.1) Cash/Current fin.assets 34.5 51.2 32.5 Net financial position (187.6) (245.1) (280.6) NFP of US$ (280.6)m at the end of June’14 with US$ 137.6m investments made
Slide 13: Product Tanker Market & Outlook
Product Tanker Market & Outlook
Slide 14: Market Overview: Earnings & vessels price
MARKET OVERVIEW. Earnings & vessels price Average Rates for MR1 Product New-building/secondhand values 2001 - 2014 Tankers (US$) 60 32,000 50 27,000 35000 30000 40 22,000 25000 $/day mill $ 30 17,000 dollar/day 20000 15000 20 12,000 10000 10 7,000 5000 0 0 2,000 2002 2003 2004 2005 2006 2007 2008 20
Slide 15: Demand / Supply Balance
DEMAND / SUPPLY. “Balance” Tonne mile demand %1 Global Oil Demand1 2013 – 2019 Million barrels p/d 14 12 60 10 58 8 56 54 6 52 4 50 2 48 46 0 44 -2 42 40 -4 Total OECD Total non-OECD 2014 2015 2016 2017 2018 2019 Products Seabourne Trade MR Growth Global oil demand will grow by 1.3% per annum from 9
Slide 16: Growth in Refinery Capacity and Oil Demand
GROWTH IN REFINERY CAPACITY AND OIL DEMAND. Refinery growth versus Demand Capacity additions 2014-2019 by region mb/d 3.5 3 thousand barrels per day 2.5 800 2 600 1.5 400 1 200 0.5 0 -200 2014 2015 2016 2017 2018 2019 0 -400 -0.5 Asia Middle East FSU Latin Africa North Europe OECD North America OECD
Slide 17: United States: Petroleum Market
. UNITED STATES. Petroleum Market US Products exports (000’b/d) Principle export destinations (000’ b/d) 4000 3500 Asia, 400 South America, 1,250 3000 Canada, 480 2500 2000 1500 1000 500 Other, 520 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 H1 2014 Caribbean, 300 Europe, 7
Slide 18: DIS Market Opportunities
DIS MARKET OPPORTUNITIES. In order to summarize: • Strong trend of refineries shifting towards oil production areas, especially in Asia and the Middle East, should lead to an increase in product tankers demand • Long term time Charter rates have remained stable and asset values have followed the sam
Slide 19: d'Amico International Shipping disclaimer
D’AMICO INTERNATIONAL SHIPPING. This document does not constitute or form part of any offer to sell or issue, or invitation to purchase or subscribe for, or any solicitation of any offer to purchase or subscribe for, any securities of d’Amico International Shipping S.A. (or the “Company”), nor shall
Slide 20: Appendix
Appendix
Slide 21: DIS' Shareholdings Structure
DIS’SHAREHOLDINGS STRUCTURE. Key Information on DIS’ Shares 1 d'Amico International SA 60.6% 2 Oceanic Opportunities Master Fund L.P. 3.59% 3 Oceanic Hedge Fund 2.02% 4 Others 32.5% 5 d'Amico International Shipping S.A. 1.20% Listing Market Borsa Italiana, STAR No. of shares 421,955,307 Market Cap1
Slide 22: d'Amico's Group Structure
D’AMICO’S GROUP STRUCTURE. 77.9% 60.6% DIS benefits from the support of d’Amico Società di Navigazione S.p.A. 22
Slide 23: DIS' Current Fleet Overview
DIS’CURRENT FLEET OVERVIEW. MR Fleet Owned Tonnage (dwt) Year Built Builder, Country Interest1 IMO Classified 2 High Sun 49,990 2014 Hyundai MIPO, South Korea 33% IMO II/IMO III High Discovery 50,036 2014 Hyundai MIPO, South Korea 100% IMO II/IMO III High Freedom 49,990 2014 Hyundai MIPO, South Kore
Slide 24: DIS' Current Fleet Overview (cont'd)
DIS’CURRENT FLEET OVERVIEW. (CONT’D) Handy Fleet Owned Tonnage (dwt) Year Built Builder, Country Interest1 IMO Classified Cielo di New York 39,990 2014 Hyundai MIPO, South Korea 100% IMO II/IMO III Cielo di Gaeta 39,990 2014 Hyundai MIPO, South Korea 100% IMO II/IMO III Cielo di Salerno 36,032 2002
Slide 25: DIS' New Building Program
DIS’NEW BUILDING PROGRAM. Name of vessel / Hull Number Estimated tonnage (dwt) MR/Handysize Estimated delivery date Builder, Country Interest1 Owned 2014 2387 – Tbn 50,000 MR Q4-2014 Hyundai MIPO, South Korea 100% 409 – Tbn 50,000 MR Q3-2014 Hyundai MIPO, South Korea 100% 2015 2388 – Tbn 50,000 MR Q
Slide 26: Supply: Slippage & net fleet growth
SUPPLY. Slippage & net fleet growth About 45 MR Product tankers have been delivered in Q1 2014. About 20 tankers were permanently removed, with an average age of 24 years There has been very strong ordering of MR tankers over the last couple of years, however there is a certain amount of speculation
Slide 27: Demand: Growth
DEMAND. Growth FSU distillate exports will rise to about 1.2mb/d by 2019 up from 600,000b/d in 2008 Africa gasoline imports will rise in line with demand growth and will reach 600,000b/d in 2019 up from 400,000b/d in 2013. This makes it a potential export market for the gasoline surplus in Europe In
Slide 28: Global Product Supply Balances 2013-2019
Global Product Supply Balances 2013-2019 Product supply balances between regions will increase in importance to the product tanker market over the next five years. Europe deficit in distillates is set to increase from 1mb/d to 1.5mb/d by 2019. In contrast USA and the FSU surplus will rise to 1.4mb/d
Slide 29: Thank you!
Thank you!
d'Amico International Shipping — H1 2014 Earnings Presentation on 6ix