Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — First Ship Lease Trust — Shareholder Meeting (May 2018)
30 slides from Singapore Exchange's shareholder meeting presentation, May 9, 2018
Slide 1: First Ship Lease Trust Eleventh Annual General Meeting
First Ship Lease Trust Eleventh Annual General Meeting 9 May 2018
Slide 2: 2017: Year in review
2017: Year in review Operational Performance Recent developments Summary Questions & Answers
Slide 3: 2017: Key milestones
2017: Key milestones Debt reduced by FSL Hong Kong FSL Hamburg entered Disposal of FSL Santos US$20.0m through deployed in Teekay Hafnia Pool. for US$6.2m. cash utilisation. Group. Loan balance reduced FSL Osaka pledged to Extension of Bareboat to US$151.3m. Lenders. charters for Specialty, Seniorit
Slide 4: 2017: Financial highlights
2017: Financial highlights Revenue Net cash generated from operations 62.8 106.6 57.6 98.1 53.2 93.4 90.0 81.5 40.8 36.0 FY 2017 FY 2016 FY 2015 FY 2014 FY 2013 FY 2017 FY 2016 FY 2015 FY 2014 FY 2013 Profit / (Loss) for the year Results from operating activities FY 2017 FY 2016 FY 2015 FY 2014 FY 2
Slide 5: 2017: Gearing, Bank Debt and Value-to-Loan
2017: Gearing, Bank Debt and Value-to-Loan Bank debt reduced from US$425m in June 2013 to US$151.3m as at 31 December 2017, by: Scheduled and voluntary repayments Proceeds from the sale of FSL Santos Gearing ratio improved from 57.6% in FY2012 to 46.6% in FY2017. VTL remains within Lender
Slide 6: Unit price performance
Unit price performance (1) Unit Price Performance Over The 5-Year Period 0.25 Previous 5 Years (04/05/2013 – 04/05/2018) 0.2 Open (SG cts) 12.5 High (SG cts) 19.3 0.15 Low (SG cts) 6.9 Close (SG cts) 8.3 0.1 Average Daily 698,710 Traded Volume 0.05 (Units) Source: Bloomberg (04 May 2018) 0 6
Slide 7: 2017: Year in review – Operational performance
2017: Year in review Operational performance Recent developments Summary Questions & Answers
Slide 8: 2017: Fleet deployment by revenue
2017: Fleet deployment by revenue (1) Pool 17% Market-rate BBC Fixed-rate BBC 14% 50% Time Charter 18% Spot 1% Note 1: BBCE revenue for the year ended 31 December 2017 8
Slide 9: 2017 vs 2016 Operational performance and market trend
2017 vs 2016 Operational performance and market trend 40,000 Industry Overview: • Container market remains challenging: 35,000 Consolidation in 2017 although rates remain depressed 30,000 Forecast continued low demand in Panamax Containership 1 Year TCE Rate (USD per day) 2018 25,000 Aframax H
Slide 10: Panamax Containership: operational performance and market trend
2017 vs 2016 Operational performance and market trend Panamax Containership Panamax Containership (YM Eminence, YM Elixir and YM Enhancer) 14,000 12,000 10,000 8,000 6,000 4,000 2,000 - 2013 2014 2015 2016 2017 1 Year TCE Rate (USD per day) Last 5 Years Average TCE Rate (USD per day) Source: Clarkso
Slide 11: LR2: operational performance and market trend
2017 vs 2016 Operational performance and market trend LR2 (TORM Margrethe and TORM Marie) LR2 30,000 25,000 20,000 15,000 10,000 5,000 - 2013 2014 2015 2016 2017 1 Year TCE Rate (USD per day) Last 5 Years Average TCE Rate (USD per day) Source: Clarkson 25 20 20.7 20.0 15 US$MILLION (34.5%) 10 11.9 1
Slide 12: Aframax: operational performance and market trend
2017 vs 2016 Operational performance and market trend Aframax Aframax (FSL Hong Kong and FSL Shanghai) 40,000 30,000 20,000 10,000 - 2013 2014 2015 2016 2017 1 Year TCE Rate (USD per day) Last 5 Years Average TCE Rate (USD per day) Source: Clarkson 25 20 20.7 20.0 15 US$MILLION 10 (56.0%) 11.9 10.9
Slide 13: MR: operational performance and market trend
2017 vs 2016 Operational performance and market trend MR MR (FSL Hamburg, FSL Singapore and FSL Osaka) 20,000 15,000 10,000 5,000 - 2013 2014 2015 2016 2017 1 Year TCE Rate (USD per day) Last 5 Years Average TCE Rate (USD per day) Source: Clarkson 25 20 20.7 20.0 15 US$MILLION 10 (14.9%) 11.9 10.9 1
Slide 14: Specialised Product Tanker: operational performance and market trend
2017 vs 2016 Operational performance and market trend Specialised Product Tanker Specialised tankers (Speciality, Seniority, Superiority, Cumbrian Fisher, 25,000 Clyde Fisher, Solway Fisher and Shannon Fisher) 20,000 15,000 10,000 5,000 - 2013 2014 2015 2016 2017 1 Year TCE Rate (USD per day) Last 5
Slide 15: Chemical Tanker: operational performance and market trend
2017 vs 2016 Operational performance and market trend Chemical Tanker Chemical tankers (FSL New York, FSL London and FSL Tokyo) 20,000 15,000 10,000 5,000 - 2013 2014 2015 2016 2017 1 Year TCE Rate (USD per day) Last 5 Years Average TCE Rate (USD per day) Source: Clarkson 25 20 20.7 20.0 15 US$MILLI
Slide 16: Feeder Containership: operational performance and market trend
2017 vs 2016 Operational performance and market trend Feeder Containership Feeder (FSL Busan and FSL Santos*) 10,000 8,000 6,000 4,000 2,000 - 2013 2014 2015 2016 2017 1 Year TCE Rate (USD per day) Last 5 Years Average TCE Rate (USD per day) Source: Clarkson 25 20 20.7 20.0 15 US$MILLION 10 11.9 10.
Slide 17: 2017 vs 2016 BBCE Revenue
2017 vs 2016 BBCE Revenue Total BBCE revenue from vessels: FY 2017 : US$55.3 million FY 2016* : US$72.8 million Decrease of 24.1% *Reduced fleet with the disposal of two containerships in February 2016 17
Slide 18: Revenue backlog
Revenue backlog Remaining contracted revenue stood at US$65.0m as at 31 December 2017 30 2 25 US$ million 20 15 26 24 10 12 5 0 1 2018 2019 2020 2021 Bareboat Charter Time charter 18
Slide 19: Vessel portfolio
Vessel portfolio Vessel Year build Size (DWT) 2018 2019 2020 2021 2022 Product Tankers Cumbri a n Fi s her 2004 12,921 Cl yde Fi s her 2005 12,984 Ves sels on fixed-rate Sha nnon Fi s her 2006 5,421 ba reboat charters Sol wa y Fi s her 2006 5,421 Speci a l i ty 2006 4,426 Seni ori ty 2006 4,426 Supe
Slide 20: FY2017: Scheduled Redeliveries
FY2017: Scheduled Redeliveries Nine vessels were redelivered in FY2017; all vessels were redeployed or their leases extended; Speciality, Superiority, Seniority, FSL Hong Kong, FSL Shanghai, FSL Hamburg, FSL Singapore, Cumbrian Fisher and Clyde Fisher. Redeployment of FSL Hong Kong and FSL Shang
Slide 21: 2017: Year in review – Recent developments
2017: Year in review Operational Performance Recent developments Summary Questions & Answers
Slide 22: 2018: Key milestones to date
2018: Key milestones to date 16 Jan: 27 Feb: 2 May: Disposal of FSL Tokyo Extension of scheme Debt for US$13.8m of arrangement reduced to relating to US$119.7m Syndicated Loan Facility 18 Jan: Disposal of FSL Busan for US$6.2m 28 Feb: 24 Apr: Change of Sponsor – Proposed Prime Group. issue of Stathi
Slide 23: Vessel Disposals
Vessel Disposals FSL Tokyo FSL Busan Vessel type: Chemical tanker Vessel type: Containership vessel Disposed: 16 January 2018 Disposed: 18 January 2018 Cash consideration: US$13.8m Cash consideration: US$6.2m Impairment charge Q4 2017: US$9.0m Gain on disposal: US$0.75m Rationale: Rationale: - Furth
Slide 24: New Sponsor: Prime Group
New Sponsor: Prime Group On 28 February 2018, Prime Shareholdings Inc. (“Prime Group”), a leading international ship-owner and management group had took ownership of FSL Holdings Board Appointments: Stathis Topouzoglou - Non-Independent Director (28 February 2018); Non- Executive Chairman (9 M
Slide 25: Refinancing
Refinancing The Trust has been in negotiations with Lenders for an extension of the maturity by one year. Following expiry of Syndicated Loan Facility on 20 December 2017, the Trust sought and received protection through a scheme of arrangement under section 210 of the Companies Act (Chapter 50)
Slide 26: Refinancing, continued
Refinancing, continued On 24 April 2018, the Board announced: Bond Issue: Proposed issue of US$7.25m of 7% convertible bonds to VGO Special Situations I (Luxembourg), representing 16.67% of the Trust if all the bonds are converted. 95% of proceeds to be used for repayment of the existing loan fa
Slide 27: 2017: Year in review – Summary
2017: Year in review Operational Performance Recent developments Summary Questions & Answers
Slide 28: Summary
Summary 2017 saw positive cash generation despite challenging market conditions: Continued full deployment of the fleet Four consecutive quarters of positive cash generation Substantial headway in reducing outstanding bank debt, repaying US$71.9m during FY2017 Further reduction of debt in
Slide 29: Questions & Answers
2017: Year in review Operational Performance Recent developments Summary Questions & Answers
Slide 30: Thank you.
TRUST Thank you.
First Ship Lease Trust — Shareholder Meeting (May 2018) on 6ix