Ocean Yield ASA — Q2 2016 Earnings Presentation
20 slides from Ocean Yield ASA's earnings presentation, Jul 13, 2016
Slide 1: Presentation Q2 2016
Presentation Q2 2016 13th July 2016
Slide 2: Second Quarter 2016 financial highlights
Second Quarter 2016 financial highlights Quarterly dividend increased to USD 0.1725 per share – Increase of 0.5 cents versus Q1’16, equal to 12% increase annualized – USD 0.69 per share annualized, representing a dividend yield of 8.6% p.a. EBITDA was USD 63.4m, compared with USD 58.7m in Q1’16 – EB
Slide 3: Recent events
Recent events Acquisition of 49.5% interest in six mega container vessels with 15-year charter contracts Delivery of 3 newbuildings with long-term contracts Signed USD 202.5m loan agreement related to 3 gas carriers Farstad Shipping ASA has entered into standstill agreement with secured lenders. No
Slide 4: Acquisition of 49.5% interest in six mega container vessels with 15 years charter
Acquisition of 49.5% interest in six mega container vessels with 15 years charter Vessel details No of vessels 6x Vessel type Container vessel Vessel capacity 19,500 TEU Delivery Jul’16 until Feb’17 Yard Samsung H. I., Korea Financial details Equity ownership 49.5% JV Partner Quantum Pacific Shippin
Slide 5: Delivery of newbuildings will give increased earnings already from Q3
Delivery of newbuildings will give increased earnings already from Q3 Delivery schedule (# vessels) 7 7 6 2 Chemical 5 1 Product 4 4 Car carriers 3 3 1 3 Container 3 1 3 1 Aker Wayfarer 2 2 2 Gas 1 1 2 1 1 1 1 0 Q1’16 Q2’16 Q3’16 Q4’16 Q1’17 July 16 Second Quarter 2016 5
Slide 6: Fleet overview Q2 2016
Fleet overview Q2 2016 Chemical tankers 5 3 1 Major European Container vessels 6 container line Car carriers 6 Product tankers 3 1 Gas carriers 3 2 Subsea construction 3 Offshore supply 2 # Delivered FPSO 1 # Newbuildings 1) 49.5% ownership in six container vessels, 2) 75.0% ownership in SBM Install
Slide 7: Remaining charter tenor by client
Remaining charter tenor by client Average 11.2 Major European Container vessels 15.0 container line Chemical tankers 14.5 Product tankers 12.8 Car carriers 10.2 Gas carriers 10.0 Subsea construction 9.6 Offshore supply 8.8 FPSO 2.2 # Years remaining July 16 Second Quarter 2016 7
Slide 8: Charter backlog by client
Charter backlog by client Q2 EBITDA* backlog of USD 3.3 billion with avg. tenor of 11.2 years Major European container line 11 % 23 % 7% 4% 8% 5% 8% 12 % 12 % 10 % *EBITDA backlog based on management’s estimates on DB-1, certain options not being exercised, LIBOR forward curve, USDNOK and adj. for f
Slide 9: Quarterly EBITDA and net profit
Quarterly EBITDA and net profit EBITDA per quarter (USDm) 63.4 55.6 55.4 55.2 56.0 56.4 56.6 58.7 52.7 53.2 54.2 53.9 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2013 2014 2015 2016 Net profit per quarter (USDm) 28.6 30.5 26.5 28.1 28.3 24.5 25.8 25.5 22.7 19.1 17.1 18.6 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 10: Adjusted EBITDA and net profit
Adjusted EBITDA and net profit EBITDA adjusted for finance lease effects (USDm) 69.3 59.6 59.8 63.6 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 2013 2014 2015 2016 Adjusted net profit (USDm) 31.6 27.1 27.1 27.9 27.6 29.0 24.9 25.6 26.3 26.2 26.9 21.5 Q3 Q4 Q1 Q2 Q3 Q4
Slide 11: Growth in cash dividends for 11 consecutive quarters
Growth in cash dividends for 11 consecutive quarters Adjusted earnings per share (USD cents)2 Dividend yield 23.21 20.50 20.25 21.28 8.6%1 p.a. 18.62 19.10 19.60 19.54 20.16 19.72 19.86 16.07 Pay-out ratio on Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 adjusted Q2 EPS 2013 2014 2015 2016 Dividend per share
Slide 12: P&L
P&L Income statement Comments Q1 Q2 Q2 FY Amounts in USD million 2016 2016 2015 2015 Revenues Operating revenues 58.8 60.8 58.1 233.1 Increased revenue from delivery Finance lease revenue 7.3 9.3 5.1 23.6 of six vessel during H1 2016 Total revenues 66.1 70.1 63.2 256.7 Vessel operating expenses (4.8
Slide 13: Adjusted net profit after tax
Adjusted net profit after tax1 Adjustments Comments Q1 Q2 Amounts in USD million 2016 2016 Profit after tax 18.6 25.5 - Impairment charges and other items - - - Foreign exchange gains/losses 13.2 (2.8) • Mainly related to bond and bank loans in NOK - Mark to market of derivatives (6.0) 4.8 • USD/NOK
Slide 14: Balance sheet
Balance sheet Balance sheet Q1 Q2 Q1 Q2 USD million 2016 2016 2016 2016 ASSETS EQUITY AND LIABILITIES Vessels and equipment 1 293.1 1 338.5 Total equity to equity holders of the parent 696.7 699.6 Intangible assets 9.8 9.8 Non-controlling interests 11.5 9.5 Deferred tax assets 33.3 29.2 Total equity
Slide 15: Contractual obligations and financing
Contractual obligations and financing Contractual obligations and financing Other Oil Gas Container Other Amounts in USD million Total Service Carriers Vessels Shipping Already paid 64.4 72.9 1.6 62.2 201.1 2016 24.8 72.9 131.3 94.1 323.1 2017 - 97.2 28.8 - 126.0 Total contractual obligations 89.2 2
Slide 16: Summary
Summary The delivery of newbuildings in addition to the container investment and the completion of Aker Wayfarer is expected to give increased earnings already from Q3 2016 Expects to continue to make new investments in modern vessels on long- term charter in order to build a substantially larger an
Slide 17: Appendix
Appendix July 16 Second Quarter 2016 17
Slide 18: Expected delivery schedule newbuildings and modification
Expected delivery schedule newbuildings and modification Project Vessel Type Exp. delivery Quantum Pacific JV MSC Diana Container 19,500 TEU Delivered July 2016 Quantum Pacific JV MSC Ingy Container 19,500 TEU Delivered July 2016 Akastor / AKOFS Offshore Aker Wayfarer Modification Delivered July 201
Slide 19: July 16 Second Quarter 2016
July 16 Second Quarter 2016 19
Slide 20: July 16
= OCEAN YIELD — July 16 20