Ocean Yield ASA — Investor Presentation (June 2013)
28 slides from Ocean Yield ASA's investor presentation, June 2013
Slide 1: Company Presentation
Company Presentation June 2013
Slide 2: Disclaimer
Disclaimer IMPORTANT NOTICES ABOUT THIS PRESENTATION This presentation (the “Presentation”) has been prepared by Ocean Yield ASA (the "Company" and together with its subsidiaries the "Group"). This Presentation contains forward-looking statements, including statements about the Group's markets and i
Slide 3: Ocean Yield
Ocean Yield Established by Aker ASA in Q1 2012 with an attractive portfolio of oil service assets with long term charters Ocean Yield has invested about USD 650 million in five vessels during the last 12 months Target of USD 350 million in annual new investments Intends to raise equity to fund furth
Slide 4: Attractive and diversified portfolio of oil service and industrial shipping assets
Attractive and diversified portfolio of oil service and industrial shipping assets Initial asset base… …and USD 650 million in recent acquisitions FPSO Subsea vessel Lewek Connector Dhirubhai 1 Subsea construction 2 x car carrier 6500 CEU vessel (newbuilds) Wayfarer Seismic vessel 2 x AHTS (newbuild
Slide 5: USD 1.7 billion in contracted EBITDA with average charter tenor of 7.5 years
USD 1.7 billion in contracted EBITDA with average charter tenor of 7.5 years Firm period Unit Counterparty Contract type 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 ends Dhirubhai-1 Reliance Bareboat / O&M Sep-18 Lewek Connector EMAS/Ezra Holding Bareboat Oct-22 Wayfarer Ak
Slide 6: Growth strategy: Target ~USD 350 million in annual investments
Growth strategy Target ~USD 350 million in annual investments Modern assets Target Oil service assets Industrial shipping Solid counterparties Chartering Bareboat charters 5–15 years tenor, current avg. 7.5 years Bank debt on project basis ~70% Financing Equity ~30% June 13 Company presentation 6
Slide 7: Sale-leaseback – an attractive financing source
Sale-leaseback – an attractive financing source Up to 5-15 years funding at a fixed interest rate Off balance sheet financing at competitive rate ~8-9 % p.a. WACC Attractive funding Enables growth without dilution for current shareholders source for growth Diversification of funding sources Purchase
Slide 8: Management with extensive network and experience within the industry
Management with extensive network and experience within the industry Lars Solbakken – Chief Executive Officer (1957) Employment history: CEO Norwegian Car Carriers ASA CEO Ship Finance International Ltd. General Manager of Fortis Bank (Nederland) N.V., Oslo Branch Senior Vice President and H
Slide 9: Board of Directors with relevant industrial and capital markets experience
Board of Directors with relevant industrial and capital markets experience Board composition post listing Trond Brandsrud – Chairman of the Board (1958) CFO Aker ASA Previous CFO in Seadrill and more than 20 years experience from Shell Kjell Inge Røkke – Board Member (1958) Largest shareholder
Slide 10: Strong and committed owner in Aker ASA
Strong and committed owner in Aker ASA Aker is an Industrial Holding Company established in 1841 Controls 4 listed companies on Oslo Stock Exchange Industrial Holdings Aker Solutions 40%* Aker Solutions and Kværner are controlled through a joint venture company owned 70% by Aker and 30% by the Det n
Slide 11: Key financials
Key financials Pro-forma Income statement – USD M Q1 2013 Q4 2012 2012 Operating revenue 56.6 50.8 188.0 Vessel operating expenses (3.9) (4.1) (16.3) Wages and other personnel expenses (1.7) (2.9) (10.1) Other operating expenses (2.2) (4.5) (10.2) EBITDA 48.8 39.4 151.4 Depreciation & amortisation (
Slide 12: Ocean Yield - Summary
Ocean Yield - Summary Attractive and growing dividend Substantial contract backlog provides stability and visibility in future earnings and dividend capacity Significant deal flow underpins strong growth Attractive risk reward for sale & leaseback transactions Management with extensive experience in
Slide 13: Financials
Financials Detailed project info June 13 Company presentation 13
Slide 14: Revenue backlog of USD 1.9 billion per end Q1 2013
Revenue backlog of USD 1.9 billion per end Q1 2013 USD million Vessel Total 20132) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Dhirubhai-1, total .......................................................... 700.8 95.5 124.8 129.1 127.6 128.4 95.3 — — — — — — — — of which is barebo
Slide 15: Overview of company capitalisation
Overview of company capitalisation Capitalisation per end Q1 2013 Incl. new investments Breakdown per asset mUSD 1,800 204 1,581 148 1,600 894 64 194 1,377 1,400 551 1,200 1,000 800 123 600 547 308 400 210 200 15 30 0 Book equity Interest- Cash Total Remaining Incl new AMSC Wayfarer Dhirubhai-1 Höeg
Slide 16: Profit & Loss
Profit & Loss Pro-forma Income statement – USD M Q1 2013 Q4 2012 2012 Operating revenue 56.6 50.8 188.0 Vessel operating expenses (3.9) (4.1) (16.3) Wages and other personnel expenses (1.7) (2.9) (10.1) Other operating expenses (2.2) (4.5) (10.2) EBITDA 48.8 39.4 151.4 Depreciation & amortisation (2
Slide 17: Balance sheet Q1 2013
Balance sheet Q1 2013 Assets USD M USD M Equity and Liabilities Current Assets: Current Liabilities: Cash & Cash Equivalents 63.7 16.8 Trade and other payables Current assets 18.9 93.0 Current portion of Long Term Debt Total Current Assets 82.7 109.8 Total Current Liabilities Fixed Assets: Long Term
Slide 18: Q1 2013 debt overview – attractive long term financing in place
Q1 2013 debt overview – attractive long term financing in place Original Outstanding Profile Interest rate Other Facility amount amount per Q1* Cash sweep Dhirubhai 1 USDm 583 USDm 314 10 year LIBOR+1.5% p.a. 50% of excess cash LIBOR + ~3.0% Lewek Connector USDm 235 USDm 224 12 year p.a. NIBOR+ 1.65
Slide 19: Detailed project info
Financials Detailed project info June 13 Company presentation 19
Slide 20: Farstad vessels – 2 newbuilds
Farstad vessels – 2 newbuilds Vessel and charter Vessel: Far Senator & Far Statesman Type: Anchor Handling Tug Supply Vessels (AHTS) Built: March/May 2013 - newbuilds Charter: Bareboat charter Yard: STX Charterer: Farstad Supply AS (main vessel owning subsidiary of Farstad Shipping ASA – listed on O
Slide 21: Höegh vessels – 2 newbuilds
Höegh vessels – 2 newbuilds Vessel and charter Vessel: Hull 4401 & 4402 Type: Car carrier vessels (PCTC), 6500 ceu Built: April/August 2014 - newbuilds Charter: Bareboat charter Yard: DSME - Romania Charterer: Höegh Autoliners Shipping AS Guarantor: Höegh Autoliners Holding AS Charter end: April/Aug
Slide 22: Lewek Connector
Lewek Connector Vessel and charter Vessel: Lewek Connector Type: Multi purpose cable lay vessel Built: 2011 Charter: Bareboat charter Yard: STX Europe, Søviknes (Norway) Charterer: EMAS-AMC AS Guarantor: Ezra Holdings Limited (listed on Singapore Exchange) Charter end: October 2022 Options: Year 5 (
Slide 23: Aker Wayfarer
Aker Wayfarer Vessel and charter Vessel: Aker Wayfarer Type: Subsea construction & installation vessel Built: 2010 Charter: Bareboat charter Yard: STX Europe, Søviknes (Norway) Charterer: AKOFS Wayfarer Guarantor: Aker Solutions ASA (rated BB+) Charter end: September 2020 Options: No options Financi
Slide 24: Dhirubhai 1 - FPSO
Dhirubhai 1 - FPSO Vessel and charter Vessel: Dhirubhai-1 FPSO Type: FPSO Built: Converted in 2008 Charter: Bareboat charter & operating agreement Field: MA-D6 (India) Charterer: Reliance Industries Limited (BP is field partner(30 %)) Charter end: September 2018 Options: Sep 2013 ($541m), Sep 2014 (
Slide 25: Dhirubhai 1 - FPSO
Dhirubhai 1 - FPSO The MA oil and gas field, one of several fields in the KG-D6 block, is located about 60 kilometres offshore east coast of India, south-east of Kakinada. The MA field is also referred to as the D26 field Reliance Industries is the operator of the KG-D6 block. Reliance Industries an
Slide 26: Geco Triton
Geco Triton Vessel and charter Vessel: Geco Triton Type: Seismic vessel Built: Converted in 1998 Charter: Bareboat charter Yard: Jurong Singapore Charterer: Geco Ship AS Guarantor: WesternGeco AS Charter end: December 2015 Options: No purchase option Financing Lenders: Debt free Facility: - Maturity
Slide 27: American Shipping Company – Bonds
American Shipping Company – Bonds Bonds Ocean Yield owns 93% of the bonds in AMSC Nominal value per end Q1: ~USD 184.5 million Book value per end Q1: ~USD 148 million (~80% of par) Interest rate: NIBOR + 4.75% per annum – PIK interest Capitalisation AMSC per end Q1 2013 Maturity: February 2018 Total
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