Clarkson PLC · LSE:CKN
Clarkson — H1 2011 Earnings Presentation
21 slides from Clarkson's earnings presentation, Aug 24, 2011
Slide 1: Interim Results Announcement
Interim Results Announcement 6 months ended 30 June 2011 Andi A di Case C & Jeff J ff Woyda W d 24 August 2011 www.clarksons.com
Slide 2: Agenda
Interim Results Announcement Agenda ● Financial Overview – Jeff Woyda, CFO ● The Market – Andi Case, CEO ● Outlook – Andi Case, CEO 2 24 August 2011 www.clarksons.com
Slide 3: Results summary
Interim Results Announcement Results summary 2011 2010 £m £m R Revenue £88 6m £88.6m £101 0m £101.0m Profit before taxation £13.5m £16.7m One-off item £0m £2.0m P fi b Profit before f taxation i (Before one-off item) £13 5m £13.5m £14 7m £14.7m Earnings per share 52.6p 66.7p Dividend per share 18.0p
Slide 4: Overall Market Headwind
Interim Results Announcement Overall Market Headwind • Freight rate decline • Exchange rate • Lower FOB brought forward Offset by y • Increase in transaction volumes • Increase in market share 4 24 August 2011 www.clarksons.com
Slide 5: Effect of Forward Order Book
Interim Results Announcement Effect of Forward Order Book Increase/ Increase/ 2011 2010 (Decrease) (Decrease) US$m US$m US$m % Forward Order Book at 1 January 95 0 95.0 113 0 113.0 (18 0) (18.0) (15 9%) (15.9%) 5 24 August 2011 www.clarksons.com
Slide 6: Underlying US$ Revenues
Interim Results Announcement Underlying US$ Revenues Increase/ Increase/ 2011 2010 (Decrease) (Decrease) US$m US$m US$m % Revenue from Continuing Businesses 140 7 140.7 146 4 146.4 (5 7) (5.7) (3 9%) (3.9%) 6 24 August 2011 www.clarksons.com
Slide 7: Effect of Exchange rate
Interim Results Announcement Effect of Exchange rate Increase/ Increase/ 2011 2010 (Decrease) (Decrease) US$m US$m US$m % Revenue from Continuing Businesses 140.7 146.4 (5.7) (3.9%) Increase/ Increase/ 2011 2010 (Decrease) (Decrease) £m £m £m % Total Revenue reported 88.6 101.0 Less: Revenue from di
Slide 8: Items of good housekeeping (in last 12 months)
Interim Results Announcement Items of good housekeeping (in last 12 months) ¾Repaid bank borrowings – now debt free reducing on going interest costs ¾Closed Logistics – Stopped losses in this area ¾Sold Technical Services – exited non core loss making business ¾Ceased Fund Management – stopped losse
Slide 9: Dividend
Interim Results Announcement Dividend 9 24 August 2011 www.clarksons.com
Slide 10: Net Funds
Interim Results Announcement Net Funds 30 June 31 December 2011 2010 £m £m Cash and short-term deposits £101.3m £176.3m Reserved for Bonus (full cost) (£29.5m) (£69.8m) Net Cash £71.8m £106.5m B Borrowings i - (£44 0 ) (£44.0m) Net available Funds £71.8m £62.5m Reserved for Dividend (£3.4m) (£5.7m)
Slide 11: Balance Sheet
Interim Results Announcement Balance Sheet 2006 2007 2008 2009 2010 2011 £m £m £m £m £m £m Fixed Assets 27.2 25.4 29.1 27.4 21.6 22.6 Intangibles 42.4 47.2 32.3 32.5 32.7 32.6 69.6 72.6 61.4 59.9 54.3 55.2 Investments 14.0 16.4 16.1 14.9 13.2 1.9 Working Capital (18.0) (25.8) (22.0) (9.3) (12.8) (7.
Slide 12: Clarksea Index
Interim Results Announcement Clarksea Index 12 24 August 2011 www.clarksons.com
Slide 13: Baltic Dry Freight Rates
Interim Results Announcement Baltic Dry Freight Rates Cape Index (BCI) Panamax Index (BPI) Supramax Index (BSI) Handy Index (BHSI) 50,000 45,000 40,000 35,000 30 000 30,000 $/day 25,000 20,000 15,000 10,000 5,000 0 Aug-10 0 Nov-10 0 Jan-10 0 Feb-10 0 Apr-10 0 Jun-10 0 Jul-10 0 Sep-10 0 Oct-10 0 Dec-
Slide 14: Tanker Spot Earnings
$ per day 14 , 15,000 45,000 75,000 90,000 0 30,000 60,000 30 000 Jan-10 Feb-10 Mar-10 VLCC Apr-10 May-10 Jun-10 Jul-10 Aug-10 Data Source: Clarksons Sep-10 Oct-10 Suezmax Nov-10 Crude Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 Aframax May-11 Jun-11 $ per day 10,000 15,000 20,000 25,000 0 5,000 Jan-10 Feb-1
Slide 15: Container 6-12m Timecharter Rates
Interim Results Announcement Container 6-12m Timecharter Rates 30,000 25 000 25,000 20,000 1k TEU 2k TEU $/day y 15,000 2.75k TEU 3.5k TEU 10,000 4.4k TEU 5,000 0 Aug-10 0 Nov-10 0 Jan-10 0 Feb-10 0 Apr-10 0 Jun-10 0 Jul-10 0 Sep-10 0 Oct-10 0 Dec-10 0 Jan-11 1 Feb-11 1 Apr-11 1 Jun-11 1 May-10 0 Ma
Slide 16: LPG Timecharter Rates
Interim Results Announcement LPG Timecharter Rates 82K CBM Modern 59K CBM 35K CBM Semi Ref 15K CBM 800 700 $'000/Month h 600 500 400 Apr-10 Aug-10 Apr-11 Feb-10 Jun-10 Jul-10 Sep-10 Oct-10 Nov-10 Jun-11 Jan-10 Mar-10 May-10 Dec-10 Feb-11 Jan-11 Mar-11 May-11 Data Source: Clarksons 16 24 August 2011
Slide 17: Specialised Product Freight Rates
Interim Results Announcement Specialised Product Freight Rates Rottdam-Houston 5k mt Easychem ME Gulf-Far East 15k mt Chems 65 60 SD pmt) 55 50 ght Rate (US 45 40 Freig 35 30 25 Apr 10 Aug 10 Apr 11 Jan 10 Feb 10 Jun 10 Mar 10 May 10 Jul 10 Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11 Jun 11 Mar 11 May
Slide 18: Offshore Freight Rates North Sea
Interim Results Announcement Offshore Freight Rates North Sea AHTS Spot Rates PSV Spot Earnings 13-16k BHP 18k BHP+ < 600m2 600-800m2 55,000 35,000 50,000 30,000 45,000 40,000 25,000 35 000 35,000 20,000 £/day 30,000 £/day 25,000 15,000 20,000 15,000 10,000 10,000 5,000 5,000 0 0 Apr-10 Apr-11 Apr-1
Slide 19: 5yr old Secondhand Prices
Interim Results Announcement 5yr old Secondhand Prices VLCC Capesize P'max Container 100 80 on $ millio 60 40 20 Apr-10 Aug-10 Apr-11 May-10 May-11 Jan-10 Jan-11 Feb-10 Mar-10 Jun-10 Jul-10 Sep-10 Oct-10 Nov-10 Dec-10 Feb-11 Mar-11 Jun-11 19 Data Source: Clarksons 24 August 2011 www.clarksons.com
Slide 20: Outlook
Interim Results Announcement Outlook • Investment services – Making progress in a poor market environment • Clarkson continues to improve focus on • Client demands • Geographic spread • Product diversification ● Strong balance sheet ● Enables investment in teams ● Optimises ability to take advantage
Slide 21: Disclaimer
Interim Results Announcement Disclaimer THIS PRESENTATION IS CONFIDENTIAL AND IS SOLELY FOR THE USE OF THE RECIPIENT . NEITHER THE WHOLE NOR ANY PART OF THE INFORMATION CONTAINED IN THE PRESENTATION MAY BE DISCLOSED TO, OR USED OR RELIED UPON BY, ANY OTHER PERSON OR USED FOR ANY OTHER PURPOSE WITHOU