Ocean Yield ASA — Investor Day (March 2015)
28 slides from Ocean Yield ASA's investor day presentation, March 2015
Slide 1: Aker Companies Investor Day
Aker Companies Investor Day March 2015
Slide 2: Ocean Yield – The dividend yield company
Ocean Yield – The dividend yield company Established by Aker ASA in 2012 Listed on the Oslo Stock Exchange, market cap USD 815 million Diversified portfolio of modern fuel efficient vessels Ocean Yield in brief All vessels on long term contracts to strong counterparties Growth strategy – committed i
Slide 3: Attractive and diversified portfolio of industrial shipping and oil service assets
Attractive and diversified portfolio of industrial shipping and oil service assets Floating Production Car Carriers (PCTCs) Storage Offloading Newbuilds (8,500 CEU) Dhirubhai-1 XS1462E & XS1462F Subsea Equipment Support Vessel Jacksonville & Jeddah Wayfarer (6,500 CEU) INDUSTRIAL SHIPPING OIL SERVIC
Slide 4: All vessels on long term charter with USD 2.2 billion in EBITDA backlog
All vessels on long term charter with USD 2.2 billion in EBITDA* backlog Unit Type Built Counterparty 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Höegh XS1462F PCTC 2016 Höegh Autoliners Höegh XSI462E PCTC 2016 Höegh Autoliners Wayfarer OCV 2010 AKOFS / Akastor SBM Installe
Slide 5: Acquisition of SBM Installer with 12 year bareboat charter completed in December 2014
Acquisition of SBM Installer with 12 year bareboat charter completed in December 2014 Vessel: SBM Installer Type: Diving Support & Construction Vessel Built / Yard: 2013 / Keppel, Singapore Price: USD 150 million Debt: USD 110m non-recourse Ownership: 75% Ocean Yield 25% SBM Offshore Delivery: Decem
Slide 6: Liquified Ethylene Gas Carriers – 3 newbuildings
Liquified Ethylene Gas Carriers – 3 newbuildings Vessel: 3 Liquified Ethylene Gas (LEG) Carriers Yard cost: USD ~243 million (total for the three newbuildings) Yard / Delivery: Sinopacific Offshore & Engineering, China, with delivery in H2 2016 Term: 15 years (10 years fixed and 5 years floating rat
Slide 7: Portfolio growth
Portfolio growth Invested USD 1.3bn in 13 vessels since the company was established 1st April 2012 (3 years) – Committed investments of USD 540m in 2014 ● 3x LEG carriers – Hartmann/Sabic ● 2x car carriers – Hoegh Autoliners ● Wayfarer modification and upgrade - Akastor ● 1x Diving Support and Offsh
Slide 8: Risk management
Risk management Counterparty risk Operating risk (Dhirubhai-1) Currency risk Interest rate risk Financing risk Terminal value risk No direct market exposure March 15 Aker Companies Investor Day 8
Slide 9: In compliance with covenants in bond agreement
In compliance with covenants in bond agreement OCY02 Unsecured Bond Issue – 2014/2019 Shadow rating*: Company BB- (one BB rating) Outstanding amount: NOK 1,000 million Coupon: NIBOR +3.90% p.a. Tap issue: NOK 400 million in July 2014 at NIBOR +3.65% p.a. Maturity: March 2019 Q4 2014 Financial covena
Slide 10: Significant growth in EBITDA from delivery of new projects
Significant growth in EBITDA from delivery of new projects EBITDA1 per quarter (USDm) 48.8 50.6 55.6 52.7 53.2 55.4 54.2 53.9 Q4 EBITDA negatively 38.1 39.4 impacted by Wayfarer finance lease reclassification of USD Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2013 2014 3.4m and safety shut- down of Dhirubhai
Slide 11: Adjusted Net Profit and Dividend per share
Adjusted Net Profit and Dividend per share Dividend yield Adjusted net profit per share, annualized basis (USD)** 0.74 0.64 0.76 0.78 0.78 0.81 9.4%* p.a. Pay-out ratio on Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 adjusted Q4 EPS Dividend per share, annualized basis (USD) 70% +16% 0.50 0.52 0.
Slide 12: Share price performance in NOK and USD
Share price performance in NOK and USD Share price performance since IPO 90% NOK USD 80% 79% 70% 60% 50% 40% 35% 30% 20% 10% 0% -10% Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Source: Infront, Company calculations March 15 Aker Companies Investor Day 12
Slide 13: Earnings and dividend yield above historical average since 2014
Earnings and dividend yield above historical average since 2014 Adjusted earnings & dividend yield, latest fiscal quarter annualized Key share data 16% 15% # shares outstanding 134.5m Avg. volume YTD 160k 14% 13.2 % p.a. 13% Market cap. 815m 12.3 % p.a. Book equity 719m 12% Price / book 1.13x 11% Ad
Slide 14: Share price sensitivity
Share price sensitivity Share price sensitivity (NOK) Dividend yield 9.5 % 9.0 % 8.5 % 8.0 % 7.5 % 7.0 % 14.25 49 52 55 58 62 66 Q4'14 dividend, 70% pay-out ratio 14.75 51 53 57 60 64 69 Quarterly DPS (USD cents) 15.25 52 55 59 62 66 71 15.75 54 57 60 64 69 73 20.00 69 73 77 82 87 93 Corresponds to
Slide 15: Strategy and outlook
Strategy and outlook Challenging oil-service market in 2015 is not expected to have a negative effect on earnings as all vessels are on long term charter to relatively strong counterparties. The current market may provide interesting investment opportunities and we intend to continue with our invest
Slide 16: Appendix
Appendix March 15 Aker Companies Investor Day 16
Slide 17: Fourth Quarter 2014 highlights
Fourth Quarter 2014 highlights Quarterly dividend increased to USD 0.1425 per share – Increase of 0.5 cents or 3.6% versus Q3’14 (14.5% annualized) – USD 0.57 per share annualized, representing a dividend yield of 9.4% p.a. EBITDA was USD 53.9m compared with USD 52.7m in Q4’13 – Negatively impacted
Slide 18: Recent transactions
Recent transactions Acquired the vessel SBM Installer in December for USD 150m in combination with a 12-year bareboat charter to the SBM Offshore Group Sale of Geco Triton for USD 8.2m to Western Geco Increased existing loan facility with USD 50.5m secured by Dhirubhai-1. The increased loan amount w
Slide 19: P&L Income statement
P&L Income statement Comments 3rd Quarter 4th Quarter 4th Quarter Jan - Dec Jan - Dec Amounts in USD million Note 2014 2014 2013 2014 2013 Revenues: Operating revenues 65.4 62.1 60.6 249.3 239.0 Negatively impacted by Aker Vessel operating expenses (3.7) (3.9) (2.7) (14.6) (14.2) Wayfarer financial
Slide 20: Net profit after tax adjusted for non-recurring items
Net profit after tax adjusted for non-recurring items Adjustments Comments 3rd Quarter 4th Quarter Amounts in USD million 2014 2014 Profit after tax 24.5 30.5 - One-off adj. to Other Operating Expenses 2.9 - • Provision in connection with AFP’s insurance dispute - Loss from sale of vessel 3.8 • Sale
Slide 21: Balance sheet
Balance sheet Balance sheet 30 September 31 December 30 September 31 December Amounts in USD million 2014 2014 Amounts in USD million 2014 2014 ASSETS EQUITY AND LIABILITIES Vessels and equipment 1 194.6 1 308.0 Total equity attributable to equity holders of the parent 710.0 708.1 Intangible assets
Slide 22: Contractual obligations and financing
Contractual obligations and financing Contractual obligations newbuildings / modification of Aker Wayfarer Other Oil Gas Car Amounts in USD million FPSO Service Carriers Carriers Total Already paid - 14.0 24.3 24.9 63.2 2015 - 19.3 48.6 12.5 80.3 2016 - 55.9 170.1 87.2 313.2 Total contractual obliga
Slide 23: Steady production on the FPSO Dhirubhai-1
Steady production on the FPSO Dhirubhai-1 Firm contract with Reliance Industries until Sep’18, however, expected to remain on field until the reservoir is extracted Kakinada – The oilfield is owned 60% by Reliance Ind., 30% by BP and 10% by Niko Resources 99.5% utilization on Dhirubhai-1 in 2014 Gas
Slide 24: Management
Management Lars Solbakken – Chief Executive Officer (1957) Eirik Eide – Chief Financial Officer (1970) • CEO Norwegian Car Carriers • CFO Ship Finance International • CEO Ship Finance International • Head of Corporate Finance, Orkla Finans • General Manager of Fortis Bank (Nederland), Oslo Branch. •
Slide 25: Board composition
Board composition Jens Ismar Annicken Gann Kildahl Trond Brandsrud Anne-Christin Døvigen Kjell Inge Røkke Board member (1957) Board member (1968) Chairman (1958) Board member (1965) Board Member (1958) CEO Western Bulk CFO Grieg Star / Grieg CFO Aker ASA Joint Head of Business Largest shar
Slide 26: Intentionally left blank
Intentionally left blank March 15 Aker Companies Investor Day 26
Slide 27: Summary of risk factors
Summary of risk factors Risks relating to the Business The Company depends on the performance of the charterers of its vessels for its operating cash flows The Company is exposed to operating, technical and certain other risks relating to the FPSO Dhirubhai-1 The Company may not be able to charter o
Slide 28: March 15
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