Slide 1: Second Quarter Presentation Aug 2021
Second Quarter Presentation Aug 2021
Slide 2: Forward Looking Statements
Forward Looking Statements MATTERS DISCUSSED IN THIS DOCUMENT MAY CONSTITUTE FORWARD-LOOKING STATEMENTS. THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 PROVIDES SAFE HARBOR PROTECTIONS FOR FORWARD-LOOKING STATEMENTS IN ORDER TO ENCOURAGE COMPANIES TO PROVIDE PROSPECTIVE INFORMATION ABOUT THEIR
Slide 3: Highlights
Highlights Reported earnings basis load to discharge Q2 2021 Q3 2021 est. % done VLCC $15,000 $14,000 70% Suezmax $11,000 $9,800 64% LR2/Aframax $10,600 $11,800 63% • Net loss of $26.6 million, or $0.13 per diluted share • Adjusted net loss of $23.2 million, or $0.12 per diluted share • Acquisition
Slide 4: Income Statement – Highlights
Income Statement – Highlights 2021 2021 2020 Adjustment items for Q2 2021: (in thousands of $ except per share data) Apr - Jun Jan - Mar Jan - Dec Total operating revenues (net of voyage expenses) 79 955 107 113 868 089 • $0.8 million gain on marketable securities Other operating gain 596 537 29 902
Slide 5: Balance Sheet - Highlights
Balance Sheet - Highlights 2021 2021 2020 Notes (in millions $) Jun 30 Mar 31 Dec 31 Assets • $257 million in cash and cash equivalents, Cash 142 154 190 including undrawn amount of unsecured Other current assets 190 221 189 facility, marketable securities and minimum cash requirements bank as per 3
Slide 6: Cash Breakeven and Cash Generation Potential
Cash Breakeven and Cash Generation Potential Low cash breakeven levels provide significant operating leverage & protect our cash flows during periods of market weakness Highly attractive terms on the obtained financing commitments on four acquired Increased Cash Generation Potential after VLCCs decr
Slide 7: Q221 Tanker Market
Q221 Tanker Market Sliding rates but positive developments in oil demand • Global oil consumption averaged 96.7 million bbl/day in Q2-21, up 2.1 mbd from Q1-21. Production averaged 94.9 million bbl/day hence the world continued to draw 1.8 mbd of inventories • Tanker rates gradually slipped througho
Slide 8: Tanker Orderbooks
Tanker Orderbooks Tanker orderbooks are shrinking as vessels deliver • New ordering has naturally been muted during Q2-21 80 VLCC 60 • Delivery window for ordering a significant number of VLCC or Suezmax is now firmly 2024 40 65 68 53 58 13 20 39 49 47 49 40 48 38 37 • The overall tanker orderbook f
Slide 9: Oil In Transit
Oil In Transit Volume of oil being transported is back to 2019 levels 1 050 Oil In Transit Commentary 1 000 • 2020 was a noisy year for oil transportation • Saudi-Russia price war distorted Q1 and 950 919 Q2. Covid-19 demand shock and following 903 908 inventory build followed suit 900 • Q4-20 crude
Slide 10: VLCC Fleet Paradox
VLCC Fleet Paradox Adjusted for inefficient tonnage – fleet growth has been moderate 1 000 VLCC Fleet Development Commentary 950 • We may all speculate in what the older 900 847 generation of VLCC’s are doing 850 • It’s undisputable that a 20-year-old vessel 800 will struggle as a very limited numbe
Slide 11: Summary
Summary • Demand, and supply of oil continues to rise, ‘Delta type’ infections cloud the outlook in Asia • Asset prices remain firm, steel prices continue to rise and activity good for non-tanker assets • The tanker fleet continues to age, the overall orderbook shrinks and potential delivery windows
Slide 12: Questions & Answers
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Slide 14: Appendix I Reconciliation
Appendix Appendix I Reconciliation (Million $ except per share) Q2 2021 Q1 2021 Q4 2020 FY 2020 Total operating revenues net of voyage expenses Total operating revenues 170 194 175 1 221 This presentation describes: total operating revenues net of Voyage expenses -90 -87 -74 -353 Total operating rev