Ocean Yield ASA — Q3 2017 Earnings Presentation
16 slides from Ocean Yield ASA's earnings presentation, Nov 3, 2017
Slide 1: Ocean Yield ASA Q3 2017 presentation
Ocean Yield ASA Q3 2017 presentation 3rd November 2017
Slide 2: Third Quarter 2017 financial highlights
Third Quarter 2017 financial highlights Quarterly dividend increased to USD 0.1885 per share – Increase of USD 0.10 cents vs. Q2 2017 – USD 0.754 per share annualized – Dividend yield of 8.4% p.a. – 16th consecutive quarterly dividend increase EBITDA was USD 80.6m vs. USD 74.3m in Q2 – EBITDA adjust
Slide 3: Market for sale & leaseback transactions
Market for sale & leaseback transactions Reduced transaction volumes for modern vessels year to date, driven by low newbuilding activity Increased activity observed in Q4, supported by improving market fundamentals Expects higher volumes of sale & lease back transactions in 2018 Low asset values and
Slide 4: Update on Dhirubhai-1
Update on Dhirubhai-1 Production uptime of close to 100% in Q3 2017 Only USD 30m debt outstanding on the vessel at the end of Q3 2017 Expect production on the MA field to continue beyond the end of the firm contract in September 2018 – Purchase option at the end of the charter contract at USD 255m R
Slide 5: Proposed changes to the Norwegian tonnage tax regime
Proposed changes to the Norwegian tonnage tax regime The Norwegian ministry of Finance has notified ESA of a continuation of the tonnage tax regime for an additional 10 years Restrictions on the use of bareboat charter contracts proposed Current regime extended until YE ’17 while discussions with ES
Slide 6: Charter backlog by client end of Q3 2017
Charter backlog by client end of Q3 2017 EBITDA* backlog of USD 2.9 billion Fleet 15 Tankers 11 % Major European 25 % container line 5% 7 Oil-service 5% Container Avg. remaining 5% 6 vessels 2% charter tenor of 3% 4% 11.2 years 8% 6 Car Carriers 12 % 13 % 7% 2 Gas Carriers 1 FPSO *EBITDA backlog bas
Slide 7: Quarterly EBITDA and net profit
Quarterly EBITDA and net profit EBITDA per quarter (USDm) 80.6 74.4 74.3 71.2 68.7 63.4 56.4 56.6 58.7 55.2 56.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2015 2016 2017 Net profit per quarter (USDm) 36.8 32.7 31.3 30.6 28.1 28.3 25.8 25.5 22.7 18.6 0.7 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2015 2016 2017 Novembe
Slide 8: Adjusted EBITDA and net profit
Adjusted EBITDA and net profit EBITDA adjusted for finance lease effects (USDm) 89.3 82.8 83.1 79.1 75.6 69.3 63.6 57.3 58.4 59.6 59.8 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2015 2016 2017 Adjusted net profit (USDm) 36.9 36.3 33.4 33.4 33.5 31.6 28.0 29.0 26.8 27.1 27.6 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 20
Slide 9: Growth in cash dividends for 16 consecutive quarters
Growth in cash dividends for 16 consecutive quarters Dividend yield Adjusted earnings per share (USD cents)1 24.66 8.4%2 p.a. 23.94 24.36 23.21 22.34 22.41 21.28 20.55 20.25 19.73 19.86 Pay-out ratio on adjusted Q3 EPS Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2015 2016 2017 77% Dividend per share (USD cents
Slide 10: Profit & loss
Profit & loss Income statement Comments Q2 Q3 Revenues Amounts in USD million 2017 2017 Operating revenues 59.5 66.6 Increased due to full quarter earnings for four vessels delivered Finance lease revenue 16.2 16.4 during Q2 Income from investments in associates 6.5 5.8 Total revenues and other inco
Slide 11: Adjusted net profit
Adjusted net profit Adjustments Comments Q2 Q3 Amounts in USD million 2017 2017 Net profit 30.6 31.3 - Impairment charges - - - Foreign exchange gains/losses 5.4 41.4 • Mainly related to bond and bank loans in NOK - Mark to market of derivatives (6.2) (44.4) • USD/NOK cross currency and interest rat
Slide 12: Balance sheet
Balance sheet Balance sheet Q2 Q3 Q2 Q3 ASSETS (USD million) 2017 2017 EQUITY AND LIABILITIES (USD million) 2017 2017 Goodwill 9.8 9.8 Equity to holders of the parent 812.2 815.0 Vessels and equipment 1 361.1 1,340.7 Non-controlling interests* 11.6 10.0 Investments in associates 185.8 186.1 Total eq
Slide 13: Strong liquidity position
Strong liquidity position Cash and securities available for sale per Q3’17 (USD million) 221 51 171 54 117 Cash Available Total available Bonds in AMSC Total available drawing facilities cash liquidity Comments • No capex commitments November 17 Third Quarter 2017 13
Slide 14: Outlook
Outlook Reduced sale & lease-back volumes for modern vessels year to date, driven by low newbuilding activity – Expects increased transaction volumes in 2018 Ocean Yield well positioned to continue to grow the fleet – Strong balance sheet and liquidity position – Access to capital markets Lewek Conn
Slide 15: Notes
Notes November 17 Third Quarter 2017 15
Slide 16: Investor Relations
Investor Relations Marius Magelie, SVP Finance & IR +47 24 13 01 82, mm@oceanyield.no www.oceanyield.no/IR November 17 16