D'amico International Shipping S.a. · MIL:DIS
D'amico International Shipping — FY 2020 Earnings Presentation
51 slides from D'amico International Shipping's earnings presentation, Mar 11, 2021
Slide 1: FY 2020 Presentation
FY 2020 Presentation d’Amico International Shipping March 11th, 2021
Slide 2: Disclaimer
DISCLAIMER. There shall be no offering or sale of any securities of d’Amico International Shipping S.A. in the United States of America, Switzerland, Canada, Australia, Japan, the United Kingdom or any jurisdiction in which such offer, solicitation or sale would be unlawful prior to its registration
Slide 3: Agenda
AGENDA. ▪ Executive summary ▪ DIS’ overview and key financials ▪ Market overview ▪ Why invest in DIS ▪ DIS’ ESG ▪ Appendix
Slide 4: Executive summary
Executive summary. • Net result – DIS posted a Net profit of US$16.6m in FY’20 vs. US$(27.5)m in FY’19 and an Adjusted net result (excluding non-recurring/non-cash items from both periods) of US$22.5m in FY’20 vs. US$ (7.7)m in FY’19 (US$30.2m increase y-o-y). • TCE – DIS’ daily spot rate was US$16,
Slide 5: Executive summary (continued)
Executive summary (continued). • Buyback program – Since January 2020 DIS invested around €1.0 million in share repurchases. In particular, in Q1’20, DIS repurchased n. 2,382,000 own shares at the average price per share of €0.0996, for a total consideration of €237,303.60. In Q4’20, DIS repurchased
Slide 6: DIS' overview and key financials
DIS’ overview and key financials
Slide 7: A modern, high-quality and versatile fleet
A modern, high-quality and versatile fleet. December 31st, 2020 DIS Fleet1 LR1 MR Handy Total % Owned 5.0 8.0 6.0 19.0 47.5% Bareboat chartered 1.0 8.0 0.0 9.0 22.5% Time chartered-in long-term 0.0 9.0 0.0 9.0 22.5% Time chartered-in short-term 0.0 3.0 0.0 3.0 7.5% TOTAL 6.0 28.0 6.0 40.0 100.0% • D
Slide 8: Rapidly declining CAPEX commitments
Rapidly declining CAPEX1 commitments. Investment plan US$/mm 250.0 194.6 200.0 3.9 DIS has no remaining newbuilding 164.4 151.1 CAPEX, having fully completed its long- 150.0 12.8 0.7 term investment plan in FY’19 101.2 85.3 83.7 79.0 1.0 100.0 190.7 8.1 2.5 1.4 65.2 151.6 150.3 5.2 50.0 100.2 77.1 8
Slide 9: Lighter bank debt repayments and low refinancing risk
Lighter bank debt repayments and low refinancing risk Forecasted bank debt financing cash-flow Daily bank loan repayment on owned vessels (Excluding overdraft facilities)1,2,3 (Excluding overdraft facilities)1,2,3 US$/mm US$/mm US$/mm US$/day 150.0 80.0 60.0 6,600 6,147 - 60.0 6,200 100.0 50.0 40.0
Slide 10: DIS' purchase options on leased vessels
DIS’ purchase options on leased vessels. Purch. Purch. First Ex. Option Vessel Name Build Date Option First Obligation 1 (In/Out of the money) Ex. Date Date High Priority 2 Mar-05 Oct-19 Oct-22 In the money/exercised High Freedom Jan-14 Feb-20 Feb-28 In the money High Fidelity Aug-14 May-20 May-27 I
Slide 11: Contracts and fleet mix to drive future results
Contracts and fleet mix to drive future results. Increasing average TC rates1 • TC contract rates have reached a bottom in Q2’19 % of ‘employment days’ US$/day 70% 17,866 18,000 and average rates of signed contracts rise 17,500 throughout 2020. 60% 17,000 • TC contracts allows DIS to: 50% 16,236 16,
Slide 12: Large potential upside to earnings
Large potential upside to earnings. Estimated Fleet Evolution (Avg. N. of Vessels)1,2 Estimated Spot Exposure (Avg. N of Vessels)3 N. of ships (based on ‘available days’) N. of ships (based on ‘employment days’) 45 60 38.2 37.2 40 36.9 50 35 7.8 7.0 7.0 30 40 25 10.2 9.2 8.9 30 20 15 20 32.8 35.8 10
Slide 13: DIS has focused also on cost savings
DIS has focused also on cost savings. Daily Operating Costs – Owned and General & Administrative Costs bareboat vessels1 US$/day US$/m 7,200 17.0 7,000 16.0 6,800 15.0 6,600 14.0 7,121 16.2 6,400 13.0 6,684 6,671 6,200 12.0 12.9 12.0 6,000 11.0 FY'18 FY'19 FY'20 FY'18 FY'19 FY'20 DIS has focused not
Slide 14: Financial results. Net financial position
Financial results. Net financial position (US$ million) Dec. 31st, 2019 Dec. 31st, 2020 Gross debt (600.9) (532.0) IFRS 16 – additional liabilities (122.8) (96.4) Cash and cash equivalents 33.6 62.1 Other current financial assets1 7.3 4.7 Net financial position (NFP) (682.8) (561.5) Net financial po
Slide 15: Financial results. FY'20 Results
Financial results. FY’20 Results Non-recurring items: (US$ million) Q4’19 Q4’20 FY’19 FY’20 (US$ million) Q4’19 Q4’20 FY’19 FY’20 TCE Earnings 72.2 53.6 258.3 257.8 Result on disposal of vessels (0.5) (0.6) (2.0) (1.3) Result on disposal of vessels (0.5) (0.6) (2.0) (1.3) Non-recurring financial ite
Slide 16: Financial results. Key operating measures
Financial results. Key operating measures Key Operating Q1 2019 Q2 2019 Q3 2019 Q4 2019 FY 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 FY 2020 Measures Avg. n. of vessels 49.4 49.8 48.5 47.6 48.8 46.0 44.4 41.9 40.4 43.2 Fleet contact 46.4% 48.0% 51.5% 60.4% 51.6% 64.6% 62.6% 63.0% 56.6% 61.9% coverage Dai
Slide 17: Market overview - market fundamentals
Market overview – market fundamentals
Slide 18: TC rates and asset values seem to have bottomed
TC rates and asset seem to have bottomed. 1 Year TC MR (Eco) rate1 5 & 10 year-old MR values1 US$/day US$/m 19,000 18,550 17,875 35 18,000 31.0 28.0 17,000 30 15,906 27.0 27.5 26.5 26.8 26.0 16,000 15,500 16,575 16,625 25.0 25.0 29.0 15,250 14,850 14,875 25 27.5 15,000 22.0 26.0 14,250 25.0 13,969 2
Slide 19: Oil demand and refining throughputs recovering
Oil demand and refining throughputs recovering. Global oil demand1 Global refinery throughputs1 Million barrels per day Million barrels per day 105.0 90.0 100.6 100.6 84.1 98.7 98.9 85.0 82.9 82.9 83.1 100.0 82.1 81.2 81.8 82.1 81.8 80.6 80.1 80.2 99.2 80.0 82.4 97.9 78.2 95.0 94.9 94.7 75.0 72.5 93
Slide 20: Large but temporary build-up in floating storage
Large but temporary build-up in floating storage. Crude oil price (Brent, US$ bbl), forward curve1 CPP vs DPP and Crude Oil Floating Storage2 66.0 Million barrels 350 65.0 64.5 325 65.1 63.7 63.8 300 64.0 63.2 275 250 63.0 62.1 225 61.7 200 62.0 61.3 175 60.8 60.5 150 61.0 60.1 59.8 125 60.0 100 75
Slide 21: Longer-term: healthy and resilient demand growth
Longer-term: healthy and resilient demand growth. World seaborne refined products trade1 Billion Tonne-miles 3,500 • Seaborne oil product trade demand has contracted in 2019 3,000 and fell sharply in 2020 before an 2,500 expected sharp rebound in 2021 and 2022; it grew at a CAGR of 3.6% between 2000
Slide 22: Longer-term: large potential upside to asset values
Longer-term: large potential upside to asset values. Historical MR TC and spot rates1 Historical MR asset values1 US$/day US$/m 45,000 40,000 1 YR TC and Spot rates are 60 35,000 respectively ~59% and ~90% 55 NB, 5yr old and 10yr old vessels are below the last cycle peak 50 respectively ~36%, ~49% a
Slide 23: Longer-term: dramatic changes in the refinery landscape
Longer-term: dramatic changes in the refinery landscape. Refinery growth 2020-2024 2% • Global refinery crude distillation capacity should rise by 6.1m b/d 12% in the ‘20-24 period. Most of the expansion in the ‘20-24 period is 27% expected in China (+1.7m b/d) and in the Middle East (+1.7m b/d). 10
Slide 24: Longer-term: All Oceania's refineries at risk of closure
Longer-term: All Oceania’s refineries at risk of closure. Company Refinery Location Capacity (kbpd) Notes Refining NZ New Zealand 45 To operate at reduced capacity in 2021 BP Kwinana (Australia) 146 Converting to import terminal Exxon Mobil Altona (Australia) 90 Converting import terminal Refining N
Slide 25: Slowing fleet growth
Slowing fleet growth. MR & LR1 deliveries and scrapping (m dwt) (lhs), and net Current MR & LR1 fleet age fleet growth (%)1 (rhs) profile1 24% of current fleet Million Dwt 12 11.6%11.9% 12% 11.3% Million Dwt 10 9.7% 10% 35 31.3 9.5% 6% of current fleet 6% of current fleet 8.7% 8 8% 30 6 6% 25 4.6% 4
Slide 26: A pick-up in demolitions expected in 2021
A pick-up in demolitions expected in 2021. MR & LR1 deliveries, 20201 40 35 30 N. Of vessels 25 20 34 15 28 24 23 25 10 18 19 5 12 0 Q1'20 Q2'20 Q3'20 Q4'20 Estimated deliveries Actual deliveries MR & LR1 demolitions, 2018-20201 14 12 N. Of vessels 10 8 6 13 13 13 10 4 7 6 2 5 4 4 2 1 3 0 Q1'18 Q2'1
Slide 27: Limited newbuild orders
Limited newbuild orders. MR Newbuilding parity curve vs MR & LR1 orders second-hand values1 US$ Million N. Of vessels 40.00 35.25 250 35.00 29.02 30.00 27.50 200 25.00 22.79 20.00 18.50 150 16.55 15.00 225 12.00 100 189 10.00 143 135 76 5.00 50 100 97 73 76 49 66 68 0.00 30 0 1 2 3 4 5 6 7 8 9 10 11
Slide 28: Strong long-term fundamentals
Strong long-term fundamentals. Seaborne volume and MR/LR1 fleet growth (lhs)%1 vs 1year MR and LR1 TC rate (rhs) YoY% US$/day 15.00 35,000 31,090 29,185 30,000 10.00 27,006 23,446 23,597 25,000 22,819 5.00 18,866 16,492 17,754 18,127 20,000 16,625 16,629 16,838 - 13,263 12,970 15,000 15,078 14,389 -
Slide 29: Why invest in DIS
Why invest in DIS
Slide 30: Historical NAV evolution
Historical NAV evolution. DIS’ Historical NAV evolution1 US$/m US$/share 1000 0.94 1.00 0.89 0.90 900 0.90 800 0.76 0.80 0.72 700 0.65 0.70 600 0.56 0.60 0.53 500 0.42 0.50 0.40 400 0.35 0.34 0.36 0.40 0.31 296 314 313 285 266 300 374 0.23 0.24 0.25 0.25 0.30 334 230 0.22 302 0.20 200 0.14 0.16 0.20
Slide 31: Why invest in DIS today
Why invest in DIS today. • Young-fleet, most of which acquired at historically attractive prices and at top-tier yards. Furthermore, vessels are mostly eco-design (75% of owned and bareboat ships following delivery of all DIS’ newbuildings) and IMO classed (77.5% of owned and bareboat ships followin
Slide 32: DIS' ESG
BA INTERNATIONAL SHI Vy “3
Slide 33: DIS' core values
DIS’ CORE VALUES. Long term vision Guided by the values of family tradition, we build our success on long term planning and turning our promises into actions. Focus onthe environment and safety We do not compromise when it comes to environmental concerns. Care and attention, prudence and respect for
Slide 34: DIS' ESG at a glance
DIS’ ESG at a glance. DIS’ Key facts and DIS Industry DIS’ Key facts and DIS figures: Figures Average figures: Figures ✓ IMO Classed Fleet (%) 1 77.5% 39% ✓ Lost Time Injury Frequency (LTIF YTD) 2,7 0 ✓ Owned and bareboat fleet Age (Years) 1,3 6.4 11.8 Percentage of female ✓ colleagues onshore 2 43.
Slide 35: DIS' ESG - Corporate Governance
DIS’ ESG – Corporate Governance DIS is listed on the most demanding segment of the Milan stock exchange (the Star), and has therefore adopted a first-class corporate governance framework: • Listed on the Star segment of the Milan Stock Exchange since 2007; • High standards of corporate governance: •
Slide 36: DIS' ESG - Social responsibility
DIS’ ESG – Social responsibility DIS seeks a diverse and inclusive work environment, where team work is highly valued. The high levels of employee satisfaction result in high retention rates. • 24 onshore personnel as at 31 December 2020; • 600 seagoing personnel as at 31 December 2020; • 74% retent
Slide 37: DIS' ESG - Environment and Safety
DIS’ ESG – Environment and Safety DIS seeks to be an industry leader on environmental and safety issues: • Among the first fleets worldwide compliant with Monitoring Reporting and Verification criteria for CO2 emissions. • Since 2011 DIS has a fleet performance monitoring department to optimize vess
Slide 38: UN's Sustainable Development Goals
UN’s SUSTAINABLE DEVELOPMENT GOALS. DIS’ Sustainable DIS’ Sustainable DIS’ Sustainable Sustainability Development Sustainability Development Sustainability Development Topics Goals Topics Goals Topics Goals Vessel energy Integrated Ship recycling efficiency management system for ongoing improvement
Slide 39: UN's Sustainable Development Goals
UN’s SUSTAINABLE DEVELOPMENT GOALS. DIS’ Sustainable Activity performed by DIS Sustainability Topics Development Goals Vessel energy efficiency • Renewal of the fleet with “Eco” vessels, in line with IMO directives, thanks to the implementation of innovative technologies. Innovation: • Projects aime
Slide 40: UN's Sustainable Development Goals
UN’s SUSTAINABLE DEVELOPMENT GOALS. DIS’ Sustainable Activity performed by DIS Sustainability Topics Development Goals Integrated management • Transparent statement of policies governing operations on board managed ships - in system for ongoing order to ensure safety and efficiency - and of the meth
Slide 41: UN's Sustainable Development Goals
UN’s SUSTAINABLE DEVELOPMENT GOALS. DIS’ Sustainable Activity performed by DIS Sustainability Topics Development Goals Ship recycling • Preparation of hazardous material inventories on all new buildings and on the existing fleet. Stakeholder engagement • Stakeholder mapping and detection of needs an
Slide 42: Appendix
INTERNATIONAL SHIPPING SA
Slide 43: DIS' Shareholdings Structure
DIS’ Shareholdings Structure. Key Information on DIS’ shares 3 d'Amico International SA 65.65% Others 32.87% d'Amico International Shipping SA 1.48% 100.00% 2 1 Listing market Borsa Italiana, STAR No. of shares 1,241,053,006 Market capitalisation1 €127.2 million Shares repurchased / % of share capit
Slide 44: d'Amico Group Structure
d’Amico Group Structure. 100% d’Amico Società di Navigazione Spa d’Amico International S.A. 100% 100% d’Amico Shipping Ishima Pte Ltd Italia SpA 51% 85% Mida Maritime Rudder S.A.M. Company d.a.c 76.9% 100% Sirius Ship d’Amico Dry d.a.c. Management S.r.l. 65.65% d’Amico International Shipping S.A. 33
Slide 45: Financial results. Consolidated Income Statement
Financial results. Consolidated Income Statement US$ Thousand 2020 2019 Revenue 316,314 353,534 Voyage costs (58,538) (95,202) Time charter equivalent earnings* 257,776 258,332 Time charter hire costs (13,961) (31,750) Other direct operating costs (102,387) (108,325) General and administrative costs
Slide 46: Financial results. Consolidated Balance Sheet
Financial results. Consolidated Balance Sheet As at As at US$ Thousand 31 December 2020 31 December 2019 ASSETS Property, plant and equipment (PPE) and Right-of-use assets (RoU) 901,765 958,312 Investments in jointly controlled entities 4,312 4,382 Other non-current financial assets 12,110 17,348 To
Slide 47: Financial results. Consolidated Statement of Cash Flow
Financial results. Consolidated Statement of Cash Flow US$ Thousand 2020 2019 Profit (Loss) for the period 16,556 (27,527) Depreciation and amortisation of PPE and RoU 69,522 73,666 Impairment 2,223 15,535 Current and deferred income tax 267 584 Net finance lease cost 19,870 21,408 Other financial c
Slide 48: DIS' current fleet overview. LR1 & MR Fleet
DIS’CURRENT FLEET OVERVIEW. LR1 & MR Fleet Owned - LR1 Tonnage (dwt) Year Built Builder, Country Interest1 IMO Classified Cielo di Londra 75,000 2019 Hyundai MIPO, South Korea (Vinashin) 100% - Cielo di Cagliari 75,000 2018 Hyundai MIPO, South Korea (Vinashin) 100% - Cielo Rosso 75,000 2018 Hyundai
Slide 49: DIS' current fleet overview. MR Fleet
DIS’CURRENT FLEET OVERVIEW. MR Fleet TC - IN Long Term with purchase option Tonnage (dwt) Year Built Builder, Country Interest1 IMO Classified High Leader 50,000 2018 Japan Marine United Co., Japan 100% IMO II/IMO III High Navigator 50,000 2018 Japan Marine United Co., Japan 100% IMO II/IMO III High
Slide 50: DIS' current fleet overview. Handy Fleet
DIS’CURRENT FLEET OVERVIEW. Handy Fleet Owned Tonnage (dwt) Year Built Builder, Country Interest1 IMO Classified Cielo di Salerno 39,043 2016 Hyundai MIPO, South Korea (Vinashin) 100% IMO II/IMO III Cielo di Hanoi 39,043 2016 Hyundai MIPO, South Korea (Vinashin) 100% IMO II/IMO III Cielo di Capri 39
Slide 51: Thank you!
Thank you!
d'Amico International Shipping — FY 2020 Earnings Presentation on 6ix