Ocean Yield ASA — Pareto Offshore Conference 2012
22 slides from Ocean Yield ASA's conference presentation, Sep 13, 2012
Slide 1: Ocean Yield AS – Pareto Offshore Conference
OCEAN YIELD AS Pareto Offshore Conference 13 September 2012
Slide 2: Ocean Yield AS
Ocean Yield AS Balance sheet • A new shipping company established in Q1 2012 Q2 2012: $ 1,160M • Portfolio of oil-service assets with long-term charters $ 500M • 100% owned by Aker ASA Total Equity Assets 2
Slide 3: Ocean Yield – strategy for further growth
Ocean Yield – strategy for further growth • Oil Service : Offshore Support, Offshore Construction and Rigs Assets • Industrial Shipping : PCTC, LNG and Container vessels • Modern Assets • Mainly BB charters Chartering • Charter term 5-15 years • Solid counterparties • Bank debt / Export Credit: appr
Slide 4: Success criteria for a company like Ocean Yield
Success criteria for a company like Ocean Yield • Access to attractive transactions – Aker with strong position in oil-service market – Management/ Board with extensive relationships within the shipping and oil- service industries • Access to capital – Bank financing/ Export Credit – Bond market – E
Slide 5: Existing Asset Base
Existing Asset Base Offshore FPSO Seismic Bonds Construction Vessel Vessel 5
Slide 6: Existing assets: Aker Wayfarer
Existing assets: Aker Wayfarer Vessel & Charter: • Vessel: Aker Wayfarer • Type: Subsea construction & installation • Built: 2010 • Charter: Bareboat charter • Charterer: Aker Solutions • Yard: STX Europe, Søviknes (Norway) • Charterer: Aker Solutions ASA (rated BB+) • Charter end: September 2020 Fi
Slide 7: Existing assets: Dhirubhai-1 FPSO
Existing assets: Dhirubhai -1 FPSO Vessel & Charter: • Vessel: Dhirubhai -1 FPSO • Built: Converted in 2008 • Charter: Bareboat Charter & Operating Agreement • Charterer: Reliance Industries Ltd. • Field: MA-D6 (India) • Field Partners: Reliance and BP • Production: 60.000 barrels of oil equivalents
Slide 8: Existing Assets: Geco Triton
Existing Assets: Geco Triton Vessel & Charter: • Vessel type: Seismic • Built: 1998 (converted) • Yard: Jurong Singapore • Charterer: Western Geco (Schlumberger) (rated A1) • Contract type: Bareboat charter • Charter start: 1998 • Charter end: December 2015 Financing: • Debt free 8
Slide 9: Existing assets: AMSC Bonds
Existing assets: AMSC Bonds American Shipping Company: • Owns 10 modern US-built 46,000 dwt, MR product tankers (Jones Act vessels) • All vessels on long term charters to OSG or subsidiaries until Dec. 2019 • Total assets of USD 1,008 million • Total bank debt of $695.3 mill (excl. neg. interest rat
Slide 10: Solid contract backlog with strong charterers
Solid contract backlog with strong charterers Charterer Rating Market Cap USD ~1.18 bn contracted revenues Reliance BBB USD 43.2 bn Aker Solutions BB+ USD 3.5 bn Schlumberger A+ USD 86.0 bn USD 949 mill contracted EBITDA* *EBITDA as reported, incl. mob. fees 10
Slide 11: A solid financial platform
A solid financial platform • Starting Equity of USD 500 million (42% Equity) • Total Assets USD 1,160 million • EBITDA Q2 2012: USD 38 million Enterprise Value as of 30 June 2012 (USDm) Revenues and EBITDA* 2012-2017 (USDm) 1,400.0 646,30 200 698.0 78.4 64.0 178 178 178 180 175 175 1,200.0 1,135.0 1
Slide 12: Financial highlights – Existing contracts only
Financial highlights – Existing contracts only Debt levels 2012-2017 (USDm) Loan-to-Value 2012-2017 (USDm) 600 900 819 527 761 800 500 583 699 179 435 700 541 633 494 561 400 161 340 600 527 443 483 500 435 387 300 348 143 240 324 400 340 274 200 125 141 300 240 197 89 200 236 141 100 107 220 205 11
Slide 13: NOK 600 million raised in the bond market
NOK 600 million raised in the bond market Coupon: 3M NIBOR + 6.50% p.a. Maturity: 5 years (July 2017) Repayment: Bullet Proceeds will be used for new investments in combination with bank financing Expect lower margins over time as company grows and portfolio becomes more diversified 13
Slide 14: Plans to launch IPO in 2013
Plans to launch IPO in 2013 • Plans to grow portfolio of vessels before IPO • Listing of the company on Oslo Stock Exchange • Attractive and stable dividend policy will be established • Liquidity in shares • IPO proceeds will be used for further growth • Aker committed to remain a major shareholder
Slide 15: Summary
Summary Ocean Yield – A vessel owning company with focus on low risk investments in oil service & industrial shipping • Ocean Yield is 100% owned by Aker Strong sponsor • Aker committed to remain a major owner post an IPO Conservative • Focus on diversified investments in oil-service & industrial sh
Slide 16: Q & A Session
Q & A Session
Slide 17: Appendix
Appendix
Slide 18: Board of Directors
Board of Directors Svein Aaser – Chairman (1946) • Previous CEO in DnB NOR, Hafslund Nycomed, Storebrand Skade, NORA Food Products • Previous President in The Confederation of Norwegian Enterprise (NHO) • Chairman of the Board in Telenor, Det norske Oljeselskap. Board seats in several other companie
Slide 19: Experienced management
Experienced management Lars Solbakken – Chief Executive Officer (1957) Employment history: • CEO Norwegian Car Carriers ASA • CEO Ship Finance International Ltd. • General Manager of Fortis Bank (Nederland) N.V., Oslo Branch. • Senior Vice President and Head of Equity Issues and M&A, Christiania Ban
Slide 20: Consolidated Balance Sheet (Q2 2012)
Consolidated Balance Sheet (Q2 2012) Assets USDm USDm Equity and Liabilities Current Assets: Current Liabilities: Cash & Cash Equivalents 78.4 12.1 Trade and other payables Current assets 17.6 69.4 Curr.portion of Long Term Debt Total Current Assets 96.0 81.5 Total Current Liabilities Fixed Assets:
Slide 21: Profit & Loss Q2 2012
Profit & Loss Q2 2012 Income statement – USD Mill Q2 2012 1 H 2012* Operating revenue 45,8 91,1 Cost of goods & services (4,2) (8,8) Wages and other personnel expenses (1,0) (5,1) Other operating expenses (1,7) (3,3) EBITDA 38,8 74,0 Depreciation & amortisation (20,6) (41,4) Impairment charges and n
Slide 22: Aker – a strong shareholder with long-term perspective
Aker – a strong shareholder with long-term perspective • Established in 1841 • Industrial holding company that exercises active ownership with a long term investment horizon. • Ownership interests are concentrated within oil-service,oil & gas, fisheries & marine biotechnology • Largest shareholder i