Slide 1: Results Presentation
Results Presentation 30 June 2024 Andi Case & Jeff Woyda 5 August 2024
Slide 2: Financial Results
Financial Results Jeff Woyda Chief Financial Officer & Chief Operating Officer The profile of revenue recognition within the FOB means 2024 second half weighted New business transacted in broking higher y-o-y FOB developing well 22nd year of progressive dividend
Slide 3: Results summary
Results summary To 30 June 2024 2023 £m £m Revenue 310.1 321.1 (3.4%) Underlying profit before taxation 51.5 53.1 (3.0%) (Before acquisition-related costs) Acquisition-related costs (1.4) (0.9) Profit before taxation 50.1 52.2 (4.0%) (after acquisition-related costs) Underlying earnings per share 12
Slide 4: Segmental performance
Segmental performance Revenue, profit and margin Revenue Revenue Profit Profit Margin Margin 2024 2023 2024 2023 2024 2023 £m £m £m £m Broking 247.7 257.2 53.4 58.2 21.6% 22.6% Financial 18.3 26.5 1.2 5.0 6.6% 18.9% Support 32.3 27.2 4.0 3.4 12.4% 12.5% Research 11.8 10.2 4.6 3.7 39.0% 36.3% 30 June
Slide 5: USD v GBP Exchange Rate
USD v GBP Exchange Rate GBP 1 is worth the following in USD June June 2024 2023 Arithmetic average for the period January to June 1.2644 1.2379 Spot rate as at 30 June 1.2637 1.2648 December 1.3000 2023 1.2800 Half Average Arithmetic average for the period June to December 1.2539 1.2600 Half Average
Slide 6: The intelligent marketplace for fixing freight
The intelligent marketplace for fixing freight Key areas of progress H1 2024 28 new customers Joined Sea in H1, 2024 Charterparty volumes annualized > 50,000 - 10% increase in 6 months 700 Broking entities active on the platform Compliance Manager launched within workflow Trade 2.0 released with fir
Slide 7: Balance sheet
Balance sheet At 30 June (comparatives are at December year-end) Dec Dec Dec Dec Jun 2020 2021 2022 2023 2024 £m £m £m £m £m Tangible fixed assets 28.6 24.7 29.1 33.9 31.2 Intangible fixed assets (software only) 15.6 17.1 15.1 14.9 14.2 Investments (relating to convertible bonds) 5.5 0.7 0.4 0.2 0.2
Slide 8: Net available funds and free cash resources
Net available funds and free cash resources 30 June 31 December 30 June 2024 2023 2023 £m £m £m Cash and cash equivalents 276.3 398.9 275.7 Interest-bearing loans and borrowing - - - Current investment deposits 45.3 39.9 9.9 Net cash equivalents 321.6 438.8 285.6 Reserved for bonus (full cost) (120.
Slide 9: Movement in free cash resources
Movement in free cash resources 1 January 2024 to 30 June 2024 30 June 2024 | Results Presentation 9 Andi Case & Jeff Woyda | 5 August 2024
Slide 10: Dividend history
Dividend history 22 years of progressive dividend 102 75 72 50 64 57 53 54 50 51 40 43 39 37 32 33 25 30 26 27 26 24 22 16 30 32 11 25 25 27 29 9 21 22 22 23 24 16 16 17 18 18 19 10 12 14 6 7 9 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2
Slide 11: Our markets
Our markets Andi Case Chief Executive Officer
Slide 12: Key Market Dynamics
Key Market Dynamics a half year of robust cross-market strength Rates & Activity • Strong day rates across all major shipping sectors including tankers, gas, bulkers, container and offshore • Strong S&P activity continues, good flow of newbuild orders particularly in tankers and gas Seaborne Trade •
Slide 13: ClarkSea Index: Remains Elevated
ClarkSea Index: Remains Elevated Cross sector day rate index +6% y-o-y in 1H 2024 and +43% on the 10-year trend … Half Yearly Averages, $/day 45,000 39,129 40,000 38,884 36,388 35,743 35,000 30,000 26,191 25,498 24,119 25,000 23,140 20,717 20,000 16,761 18,404 14,655 16,373 14,269 14,164 15,000 12,6
Slide 14: Vessel Earnings Trends By Sector
Vessel Earnings Trends By Sector All key sectors performing well in 2024; tankers still firm, bulkcarriers & containers much improved this year… Strong markets continuing into 2024 Markets strengthening in 1H 2024 Gas Carriers: LPG “healthy”, LNG softer Containerships: surging upwards Tankers: still
Slide 15: Seaborne Trade: Growth, Complexity & Disruption
Seaborne Trade: Growth, Complexity & Disruption volume growth of 2.3% projected in 2024, tonne-miles firmer at 5.1% given longer trade distances… Global Seaborne Trade, bn. tonnes 13 1.8 Thousands 12 Dry Bulk Oil Containers Gas Others Trade per Capita (RHS) 1.6 11 10 1.4 9 1.2 8 7 1.0 6 0.8 5 0.6 4
Slide 16: Chinese Economy: Strong Imports
Chinese Economy: Strong Imports 2023 & 1H 2024 Chinese commodity import growth firm in 2023 &1H 2024, inventories of some commodities now elevated … Seaborne imports hit a record 3 billion tonnes in 2023; on track to increase slightly further in 2024 despite Imports of iron ore, coal and crude oil h
Slide 17: Disruption: Red Sea Rerouting Increasing Vessel Demand
Disruption: Red Sea Rerouting Increasing Vessel Demand increasing tonne miles; re-routing impact greatest in containership and product tankers, duration uncertain Vessels passing through the Red Sea fell Tankers & bulkers down more modestly than gas & liner shipping… Impacts on vessel demand have va
Slide 18: Disruption: Red Sea Freight Market Impacts
Disruption: Red Sea Freight Market Impacts Rerouting of capacity via Cape impacting freight rate; container markets tightening dramatically Container freight rates have jumped to the Chemical parcel freight rates have also jumped on routes through the region highest levels since post-Covid disruptio
Slide 19: Disruption: Panama Canal Transits Starting To Normalise
Disruption: Panama Canal Transits Starting To Normalise Transits in June reached the highest levels since October, returning towards ‘normal’ levels as restrictions ease Panama Canal transits remain below Containership transits now back above Panama Canal Transits Restrictions: Set to ‘normal’ level
Slide 20: Disruption: Russia-Ukraine Impacts Ongoing
Disruption: Russia-Ukraine Impacts Ongoing flow shifts increase tanker tonne-miles; Ukrainian grain exports disrupted but improving, pipeline replaced by LNG Russian Crude Exports: Significant swing Other trade impacts; Ukraine grain exports from European to Asian destinations Russian Products Expor
Slide 21: Energy Security: Offshore Oil & Gas Still 16% Of Global Energy Supply
Energy Security: Offshore Oil & Gas Still 16% Of Global Energy Supply Offshore Dayrates have made a strong recovery across the last three years, exceeding previous highs Clarksons Offshore Dayrate Index (AHTS, PSV, jack-ups, floaters and subsea MSVs) Offshore Oil & Gas Investment 130 $US billion Off
Slide 22: Energy Transition and Energy Security: Offshore Wind Growing
Energy Transition and Energy Security: Offshore Wind Growing & Will Play Vital Role Long-term outlook positive despite recent inflationary pressures; ~240 GW projected by 2030 (68 GW today) The Growth Of Offshore Wind Offshore Wind In The Energy Transition GW No. Of Farms GW 300 800 350 No. Of Farms
Slide 23: Supply side constraints: Shipyards & Orders
Supply side constraints: Shipyards & Orders Some shipyard capacity reactivation but capacity still “tight”; lead times ~3.4 years vs. ~ 2.4 years in 2020 No. Of Active Yards No. Of Global Newbuilding Orders 350 2009: 3,500 Rest of World 323 yards China - Japan - Korea 300 3,000 2,933 250 2,500 2024:
Slide 24: Fleet Renewal: Ageing Fleets & Supply Side Constraints
Fleet Renewal: Ageing Fleets & Supply Side Constraints Average fleet age increasing, around a third of fleet capacity is now over 15 years old Fleet Age Profile, m GT Global Fleet Avg. Age (GT Weighted) Proportion Of Fleet >15 Years Old 120 14 Other PCC 49% Eco 100 13 Cruise 42% 80 Tankers 39% 12 To
Slide 25: Supply side constraints remain in key markets
Supply side constraints remain in key markets total orderbook remains limited by historical standards at ~12% of fleet but uneven by sector Global Fleet Development, m dwt Orderbook As A Percentage Of Fleet Capacity Fleet growth peaked 3,000 Fleet, end year at c. 9% in 2010 10% Fleet Growth % LNG Ca
Slide 26: Orderbook as % of Fleet
Orderbook as % of Fleet 100% 20% 90% 18% Orderbook as % of fleet for individual sectors 80% 16% Orderbook as % of Global Fleet 70% 14% 60% 12% 50% 10% 40% 8% 30% 6% 20% 4% 10% 2% 0% 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Jul-24 Dry Bulk
Slide 27: Asset Markets: Strong Transactional Volumes, Prices Elevated
Asset Markets: Strong Transactional Volumes, Prices Elevated Strong S&P volumes, good flow of newbuild orders especially tankers and gas; scrap volumes low Secondhand Prices Newbuilding Price Index Indian Scrap Price $m $/ldt 140 150 Index, Jan-20=100 800 VLCC 5yr Old 4,500 TEU Boxship 10yr Old 120
Slide 28: Shipping Is Hugely Capital Intensive
Shipping Is Hugely Capital Intensive Fleet & orderbook valued at ~$2.0 trillion, finance needed for fleet renewal / green ships, capital markets slow in 1H Shipping capital markets quieter in 2023 Continuing complexities in ship finance Total world fleet and orderbook value but strong year for offsh
Slide 29: Decarbonisation Scenarios - Shipping's Emissions In Context
Decarbonisation Scenarios - Shipping’s Emissions In Context emissions <2008 but increasing in 2024 ; ~2% of global ‘well-to-wake’ GHG; very efficient vs. other transport modes Global CO2 Emissions By Sector (2022), tonnes CO2 1300 Other, 1% Global CO2 = Power Generation, c.37.9bn t in 2023 1200 40%
Slide 30: Fleet Renewal… Accelerating Regulatory timetable
Fleet Renewal… Accelerating Regulatory timetable Regulatory Timeline Accelerating Deep Sea Cargo Fleet By Operational 2023 CII Rating^ % vessel capacity 100% 90% 80% E 70% D 60% C 50% B A 40% 30% 20% 10% 0% Tankers Bulkers Containers Gas PCC Source: Clarksons Research. Data as of March 2024. ^Rating
Slide 31: Accelerating Regulation: EU ETS & FuelEU Maritime
Accelerating Regulation: EU Emissions Trading System (ETS) & FuelEU Maritime Shipping included in EU ETS from start 2024; Fuel EU Maritime will limit GHG fuel intensity on EU voyages from 2025 Price of EU emissions allowances (EUAs) … adding costs for shipping, though ETS liability is being phased i
Slide 32: Alternative Fuels: Current Uptake By Sector
Alternative Fuels: Current Uptake By Sector LNG fuel gaining traction again but uncertainty over longer-term ‘solution’ Fleet (100+ GT) Using Alt. Fuels (~7% Of Fleet GT), No. 300 400 c.570 LNG c.140 methanol capable LNG (1,132) c.360 LNG capable LNG (907) capable 275 LNG carriers LPG (126) LNG carr
Slide 33: Alternative Fuels: Investment Continuing
Alternative Fuels: Investment Continuing Alternative fuel vessels account for >40% of GT ordered this year, down slightly on 2022 Alternative Fuel Capable Ordering, m GT Alternative Fuel Capable Ordering By Fuel, m GT % GT 50 60% 50 LNG Carriers Alt. Fuel Type No. Orders LNG 45 45 LPG/Ethane Alt. Fu
Slide 34: Outlook
Outlook Andi Case Chief Executive Officer
Slide 35: Outlook: Tailwinds vs Headwinds
Outlook Tailwinds vs Headwinds Headwinds / global factors Sentiment Geopolitical Exchange rate Global GDP Conflicts – USD vs contraction? how long and GBP,NOK… how deep? Headwind? Inflation? Elections Tailwinds Markets Company Supply side Regulation & Renewables & Forward order Financial Position ch
Slide 36: Thank you
CLARKSON PLC — r+ i e > Oo > x i= 5 <= =