Dampskibsselskabet Norden A/s · OMXCOP:DNORD
Dampskibsselskabet Norden A/s — Norden — Q3 2010 Earnings Presentation
15 slides from Dampskibsselskabet Norden A/s's earnings presentation, Nov 16, 2010
Slide 1: NORDEN 3rd Quarter Results 2010
NORDEN 3rd QUARTER RESULTS 2010 THE PREFERRED PARTNER IN GLOBAL TRAMP SHIPPING. UNIQUE PEOPLE. OPEN MINDED TEAM Copenhagen, 16 November 2010 SPIRIT. NUMBER ONE. Dampskibsselskabet NORDEN A/S | 52 Strandvejen | DK-2900 Hellerup | www.ds-norden.com 1
Slide 2: Today's Agenda
TODAY’S AGENDA Q3 2010 Group highlights Financial highlights Major transactions and business review Market outlook Dry Cargo Tanker Full-year expectations Perspective: Well positioned for future growth Q & A Session 2
Slide 3: Q3 2010 Highlights
Q3 2010 HIGHLIGHTS Group financials Key messages USDm EBITDA • Group EBITDA USD 22m against USD 28m in Major the same period last year settlements • Dry Cargo earnings affected by • Lower market 60 • Repositioning voyages 42 • Long term cover (discounted to spot levels) – 53 2011 now 78% covered 28
Slide 4: Q3 2010 Key Financials
Q3 2010 KEY FINANCIALS Earnings Gearing reduced further Dry Cargo earnings negatively Strong cash position – USDm 659 in affected by period deferments due net interest bearing assets to repositioning voyages 60% of T/C obligations covered by Small EBITDA loss in Tanker – revenue from coverage produc
Slide 5: Significant Increase in Coverage
SIGNIFICANT INCREASE IN COVERAGE Coverage Q3 Fleet activity Concluded several COAs with Active fleet of 218 vessels, up 29 industrial clients vessels since Q2 Total Dry Cargo coverage increased Declared 2 purchase options by almost 14,000 days from 2011 Increased the number of owned and onwards duri
Slide 6: Dry Cargo – Spot Market Development
DRY CARGO – SPOT MARKET DEVELOPMENT Rebounded Capesize market as India banned Iron Ore export and Iron Ore was sourced from Brazil Soft development in Q4 for Panamax to Handysize as US grain export disappointed T/C Earnings 50.000 (USD per day) 45.000 40.000 35.000 30.000 25.000 20.000 15.000 10.000
Slide 7: Dry Cargo Market
DRY CARGO MARKET Continued strong demand for coal in Asia Declining iron ore trade from India to China Coal imports Chinese iron ore imports 18 (m tons) 70 (m tons) 35% 16 60 30% 14 50 25% 12 10 40 20% 8 30 15% 6 20 10% 4 10 5% 2 - - 0% Jul-08 Jul-09 Jul-10 Jan-08 Mar-08 May-08 Sep-08 Nov-08 Jan-09
Slide 8: Port Congestion at 6-7%
PORT CONGESTION AT 6-7% Congestion is down in recent weeks, but still near record high level China and Australia account for the majority of congestion Mainly in coal ports Sources: RS Platou November 2010 8
Slide 9: Dry Cargo Market
DRY CARGO MARKET Clear trend of growth in actual deliveries Net fleet growth in NORDEN’s main segments much smaller than in Capesize Mill dwt Dry Bulk Deliveries Pct 35 50% 45% 30 40% 25 35% 30% 20 25% 15 20% 10 15% 10% 5 5% 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2008 2009 2010 Planned Actual Non
Slide 10: Tanker Market
TANKER MARKET Oil demand is gradually coming back. Growth purely in emerging markets Peak fleet growth is behind us in NORDEN’s main segments Limited new orders have lowered future growth estimates Global Oil Demand (mb/d) Mill dwt Clean Tanker Fleet Growth 116 12% 89 88,7 11,3% 88,5 89 114 10% 88 8
Slide 11: Revised 2010 Full Year Guidance
REVISED 2010 FULL YEAR GUIDANCE Revised guidance Key assumptions USDm Dry Cargo Tanker Total Guidance based on current capacity and coverage EBITDA 235-255 -5-5 220-250 No significant new counterparty issues Profit from Only known vessel sales and vessel sales 29 purchases are included in guidance R
Slide 12: Very Strong Position for the Future
VERY STRONG POSITION FOR THE FUTURE Since Q3 2008: Growing owned fleet while maintaining financial strength Indexed development in key figures • Cash position +16% 160% • TC obligations -50% 150% 140% • Newbuilding installments -66% 120% 116% 100% • Owned vessels +50% 80% • While having paid out div
Slide 13: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains certain forward-looking statements reflecting the management’s present judgment of future events and financial results. Statements relating to the remainder of 2010 and subsequent years are subject to uncertainty, and NORDEN’s actual results may
Slide 14: Dampskibsselskabet NORDEN A/S
Q&A Carsten Mortensen, CEO Dampskibsselskabet NORDEN A/S Michael Tønnes Jørgensen, CFO 52 Strandvejen DK-2900 Hellerup Denmark T: +45 3315 0451 F: +45 3315 6199 Martin Badsted, SVP www.ds-norden.com 14
Slide 15: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION Q&A Session 15