Ocean Yield ASA — Q3 2016 Earnings Presentation
24 slides from Ocean Yield ASA's earnings presentation, Nov 3, 2016
Slide 1: Presentation Q3 2016
Presentation Q3 2016 3rd November 2016
Slide 2: Third Quarter 2016 financial highlights
Third Quarter 2016 financial highlights Quarterly dividend increased to USD 0.1775 per share – Increase of 0.5 cents vs. Q2 – 13% increase annualized – USD 0.71 per share annualized – Dividend yield of 8.4% p.a. EBITDA was USD 68.7m vs. USD 63.4m in Q2 – EBITDA adjusted for finance lease effects was
Slide 3: Recent events
Recent events Issuance of new equity and unsecured bonds Investment in two chemical tankers with long term charters Gas vessels - amendment of terms and cancellation of the 3rd vessel Delivery of 5 newbuildings and completion of Aker Wayfarer modification during Q3 Dhirubhai-1 – Reduced revenues and
Slide 4: Equity and bond issues
Equity and bond issues Equity issue on 31st August 2016 – Amount: NOK 862 million – Issue price: NOK 64 /share – Purpose: New investments Bond issue on 12th September 2016 – Amount: NOK 750 million – Maturity: September 2021 – Interest rate: NIBOR + 450 bps p.a. – Purpose: Reduce Aker ASA loan facil
Slide 5: Acquisition of two chemical tankers with 12 years charter to Navig8 Ltd.
Acquisition of two chemical tankers with 12 years charter to Navig8 Ltd. Vessel details No of vessels 2x Vessel type IMOII chemical tanker Vessel size 45,000 dwt Delivery October & November 2016 Transaction details Purchase price USD 35 million Seller’s credit USD 6 million Charter duration 12 years
Slide 6: Gas carriers under construction at Sinopacific Offshore & Engineering (SOE)
Gas carriers under construction at Sinopacific Offshore & Engineering (SOE) Three newbuildings ordered at SOE in China with 15 years bareboat charter to Hartmann SOE filed for receivership in August 2016 Agreement on amended terms – 1st vessel to be delivered in November – 2nd vessel will be finance
Slide 7: "Gaschem Beluga" on sea trial
1st liquefied ethylene gas (LEG) carrier “Gaschem Beluga” on sea trial November 16 Third Quarter 2016 7
Slide 8: Delivery schedule of vessels
Delivery schedule of vessels Delivery schedule (# vessels) 7 7 6 6 1 5 4 Chemical 1 Product 4 Car carriers 3 3 Container 3 1 3 Aker Wayfarer1 2 2 2 Gas 1 1 1 1 1 1 1 1 0 Q1’16 Q2’16 Q3’16 Q4’16 Q1’17 Q2’17 Q3’17 1) Including redelivery of Aker Wayfarer after major modification November 16 Third Quar
Slide 9: Fleet overview per Q3 2016
Fleet overview per Q3 2016 Chemical tankers 6 4 Major European Container vessels1 3 3 container line Car carriers 6 Product tankers 4 Subsea construction 2 3 Gas carriers3 2 Offshore supply 2 # Delivered FPSO 1 # To be delivered 1) 49.5% ownership in six container vessels, 2) 75.0% ownership in SBM
Slide 10: Charter backlog by client per Q3 2016
Charter backlog by client per Q3 2016 Q3 EBITDA* backlog of USD 3.2 billion Major European container line 11 % 24 % 7% 4% Avg. remaining 2% charter tenor of 5% 8% 11.2 years 7% 13 % 12 % 7% *EBITDA backlog based on management’s estimates on DB-1, certain options not being exercised, LIBOR forward cu
Slide 11: Quarterly EBITDA and net profit
Quarterly EBITDA and net profit EBITDA per quarter (USDm) 68.7 63.4 58.7 55.6 55.4 54.2 53.9 55.2 56.0 56.4 56.6 52.7 53.2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2013 2014 2015 2016 Net profit per quarter (USDm) 32.7 30.5 28.6 28.1 28.3 26.5 25.8 25.5 24.5 22.7 19.1 18.6 17.1 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 12: Adjusted EBITDA and net profit
Adjusted EBITDA and net profit EBITDA adjusted for finance lease effects (USDm) 75.6 69.3 63.6 59.6 59.8 55.6 55.4 54.2 55.1 57.3 58.4 52.7 53.2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2013 2014 2015 2016 Adjusted net profit (USDm) 33.4 31.6 29.0 26.3 26.2 27.1 26.9 27.1 27.9 27.6 24.9 25.6 21.5 Q3 Q
Slide 13: Growth in cash dividends for consecutive quarters
Growth in cash dividends for 12 consecutive quarters Adjusted earnings per share (USD cents)2 Dividend yield 23.21 23.94 20.55 20.25 21.28 8.4%1 p.a. 18.62 19.10 19.60 19.54 20.17 19.73 19.86 16.07 Pay-out ratio on Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 adjusted Q3 EPS 2013 2014 2015 2016 Dividend p
Slide 14: P&L
P&L Income statement Comments Q2 Q3 Revenues Amounts in USD million 2016 2016 Increased revenue from delivery of Total revenues 70.1 76.2 newbuildings, Aker Wayfarer and income from investment in associates Vessel operating expenses (4.0) (4.6) (Container transaction) Wages and other personnel expen
Slide 15: Adjusted net profit after tax
Adjusted net profit after tax Adjustments Comments Q2 Q3 Amounts in USD million 2016 2016 Profit after tax 25.5 32.7 - Repurchase of bonds - 0.5 • Repurchase of OCY02 and OCY03 - Part cancellation of loan from Aker ASA - 0.4 • Upfront fee related to period cancelled - Foreign exchange gains/losses (
Slide 16: Balance sheet
Balance sheet Balance sheet Q2 Q3 Q2 Q3 Amounts in USD million 2016 2016 2016 2016 ASSETS EQUITY AND LIABILITIES Vessels and equipment 1 338.5 1 301.0 Equity att. to equity holders of the parent 699.6 816.3 Intangible assets 9.8 9.8 Non controlling interests 9.5 10.2 Finance lease receivables 555.4
Slide 17: Contractual obligations and financing
Contractual obligations and financing Contractual obligations and financing, Q3 2016 Other Oil Gas Container Other Amounts in USD million Total Service Carriers Vessels Shipping Already paid - 72.9 0.9 32.3 106.0 2016 - 72.9 57.7 98.9 229.4 2017 - 97.2 28.8 - 126.0 Total contractual obligations - 24
Slide 18: Summary
Summary Expect increased revenues in Q4 – Full quarter earnings effect from vessels delivered during Q3 – Delivery of 7 newbuildings during Q4 Intend to continue to make new investments in modern vessels to build a substantially larger and more diversified company Intend to continue its dividend pol
Slide 19: Appendix
Appendix November 16 Third Quarter 2016 19
Slide 20: Remaining charter tenor by segment
Remaining charter tenor1 by segment Average 11.2 Major European Container vessels 14.9 container line Chemical tankers 13.9 Product tankers 12.6 Car carriers 10.0 Gas carriers 10.0 Subsea construction 9.3 Offshore supply 8.6 FPSO 2.0 # Years remaining 1) Average weighted tenor based on EBITDA Novemb
Slide 21: Delivery schedule of vessels
Delivery schedule of vessels Project Vessel Type Exp. Delivery Quantum Pacific JV MSC Diana Container 19,500 TEU 6th July ’16 Quantum Pacific JV MSC Ingy Container 19,500 TEU 6th July ’16 Akastor / AKOFS Offshore Aker Wayfarer Modification 7th July ’16 Navig8 Chemical Tankers Navig8 Topaz Chemical c
Slide 22: November 16
= OCEAN YIELD November 16
Slide 23: November 16
= OCEAN YIELD November 16
Slide 24: November 16
= OCEAN YIELD — November 16 24