Ocean Yield ASA — Q3 2015 Earnings Presentation
20 slides from Ocean Yield ASA's earnings presentation, Nov 3, 2015
Slide 1: Presentation Q3 2015
Presentation Q3 2015 3rd November 2015
Slide 2: Third Quarter 2015 financial highlights
Third Quarter 2015 financial highlights Quarterly dividend increased to USD 0.1575 per share – Increase of 0.5 cents versus Q2’15, equal to 13% increase annualized – USD 0.63 per share annualized, representing a dividend yield of 7.7% p.a. – The dividend will be paid on or about 16th November. – The
Slide 3: Events during Q3 2015
Events during Q3 2015 Acquisition of 4 newbuilding LR 2 product tankers with 13 years bareboat charters to Navig8 Product Tankers Inc. Successful delivery of 2 x 37,000 IMO II chemical tankers from Hyundai Mipo Dockyard with 15 years charter to Navig8 Chemical Tankers Inc. Agreed with AMSC to increa
Slide 4: Acquisition of 4 LR2 Product Tankers with 13 years charter to Navig8 Product Tankers
Acquisition of 4 LR2 Product Tankers with 13 years charter to Navig8 Product Tankers Inc. LR2 NAVIG8 PRODUCT TANKERS INC. Vessels: 4 x 115,000 dwt • Established in 2013 by Navig8 Group Yard: Sungdong Shipbuilding, Korea • Book equity of about USD 400m and NAV of about USD 600m Built: 2016 • Listed o
Slide 5: Another quarter with steady production on the FPSO Dhirubhai-1
Another quarter with steady production on the FPSO Dhirubhai-1 Steady production with operational utilization of 100% in Q3 2015 Gas prices in India are regulated and declined to USD 4.16 per mmbtu from Oct’15 and until Mar’16 Kakinada – Same price level as the period Sep’08 until Sep’14 – Gas price
Slide 6: Agreed with AMSC to increase cash interest payments on unsecured bond to 100%
Agreed with AMSC to increase cash interest payments on unsecured bond to 100% Ocean Yield owns bonds in American Shipping Company ASA – Nominal value of USD 201m – Book value of USD 190m – Maturity in February 2018 – Interest of LIBOR + 6.00% p.a. AMSC signed loan agreements for a total of USD 450m
Slide 7: Steady EBITDA with expected strong growth during 2016 from delivery of newbuildings
Steady EBITDA with expected strong growth during 2016 from delivery of newbuildings EBITDA1 per quarter (USDm) 55.6 52.7 53.2 55.4 54.2 53.9 55.2 56.0 56.4 Q3 EBITDA Q3 2013 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 adjusted for finance lease Net profit per quarter (USDm) effects was USD 28.6 30.5 28.1 59.6
Slide 8: Declared growth in cash dividends for the 8th consecutive quarter
Declared growth in cash dividends for the 8th consecutive quarter Adjusted earnings per share (USD)2 Dividend yield 0.191 0.196 0.195 0.202 0.200 0.201 0.208 7.7%1 p.a. 0.186 0.161 Pay-out ratio on Q3 2013 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 adjusted Q3 EPS Dividend per share (USD) 76% +15% 0.1475 0.1
Slide 9: P&L Income statement
P&L Income statement Comments Q2 Q3 Jan-Sep Jan-Sep Finance lease revenue Amounts in USD million 2015 2015 2015 2014 Navig8 Chemical Tankers contributed with USD 1.7m in Q3 Operating revenues 58.1 58.7 174.5 187.2 vs. USD 0.2m in Q2. Cash Finance lease revenue 5.1 6.6 16.6 - received was USD 2.7m in
Slide 10: Net profit after tax adjusted for non-recurring items
Net profit after tax adjusted for non-recurring items Adjustments Comments Q2 Q3 Amounts in USD million 2015 2015 Profit after tax 25.8 22.7 - Loss from sale of vessels and equipment 0.1 (0.1) • Related to Dhirubhai-1 - One-off adjustment to Financial Income - - - One-off adjustment to Financial Exp
Slide 11: Balance sheet
Balance sheet Balance sheet Q2 Q3 Q2 Q3 Amounts in USD million 2015 2015 2015 2015 ASSETS EQUITY AND LIABILITIES Vessels and equipment 1 269.1 1 250.4 Equity to holders of the parent 719.7 716.7 Intangible assets 38.3 38.3 Non-controlling interests 11.0 11.0 Deferred tax assets 11.4 11.5 Total equit
Slide 12: Contractual obligations and financing
Contractual obligations and financing Contractual obligations and financing Other Oil Gas Car Other Amounts in USD million FPSO Total Service Carriers Carriers Shipping Already paid - 21.8 48.6 31.1 67.9 169.4 Q4 2015 - 11.4 24.3 6.5 33.9 76.1 2016 - 55.9 170.1 87.2 230.6 543.8 Total contractual obl
Slide 13: Accounting recognition of Navig8 Product Tankers finance lease
Accounting recognition of Navig8 Product Tankers finance lease Cash received vs. income recognition (USDm)* 21,8 22,1 22,2 22,1 21,8 17,4 11,7 11,8 11,6 11,2 10,6 10,3 10,1 10,3 10,6 10,9 11,1 7,1 2016 2017 2018 2019 2020 2021 Recognized over P/L Repayment of finance lease *Estimates based on curren
Slide 14: Diversified fleet of modern fuel efficient vessels
Diversified fleet of modern fuel efficient vessels Newb. Newb. Newb. Newb. Newbuilding Newbuilding Newbuilding Product Tankers Liquefied Ethylene 115,000 dwt LR2 Gas Carriers 36,000 cbm Diving Support & Chemical Tankers Construction Vessel 37,000 dwt IMO2 SBM Installer Aronaldo, Aquamarine, Amessi &
Slide 15: EBITDA backlog of USD 2.75bn with average tenor of 10.4 years
EBITDA* backlog of USD 2.75bn with average tenor of 10.4 years Charter backlog by counterparty Navig8 Product SBM Offshore AKOFS / Akastor Tankers 6% 15% 10% Reliance Navig8 Industries Chemical 13% Tankers 15% EMAS AMC / Ezra Holdings Hartmann SPVs 10% / SABIC Höegh 11% Farstad Supply Autoliners 5%
Slide 16: Summary
Summary Increased quarterly dividends for the 8th consecutive quarter. With a strong financial position, the company expects to continue its policy of paying increasing quarterly dividends to its shareholders Invested about USD 500m in new assets in 2015. A total of 13 newbuildings with long-term co
Slide 17: Appendix
Appendix November 15 Third Quarter 2015 17
Slide 18: EBITDA backlog of USD 2.8bn with average tenor of 10.4 years
EBITDA* backlog of USD 2.8bn with average tenor of 10.4 years VESSEL TYPE BUILT COUNTERPARTY 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Navig8 Tanzanite Chem, MR 2016 Navig8 Chemical Tankers Navig8 Tourmaline Chem, MR 2016 Navig8 Chemical Tankers Navig8 Topa
Slide 19: Accounting recognition of finance lease; cash received vs. income recognition
Accounting recognition of finance lease; cash received vs. income recognition Navig8 Chemical Tankers (USDm)* 29,1 29,8 30,2 30,3 29,3 24,8 20,6 20,3 20,1 19,3 20,6 18,4 8,5 9,2 9,9 10,2 10,0 6,4 2016 2017 2018 2019 2020 2021 Recognized over P/L Repayment of finance lease *Estimates based on current
Slide 20: November 15
= OCEAN YIELD — November 15 20