Maybulk Bhd · MYX:MAYBULK
Maybulk Bhd — Malaysian Bulk Carriers Berhad — Shareholder Meeting (May 2016)
20 slides from Maybulk Bhd's shareholder meeting presentation, May 24, 2016
Slide 1: Malaysian Bulk Carriers Berhad 27th Annual General Meeting
Malaysian Bulk Carriers Berhad 27th Annual General Meeting 24th May 2016 Kuala Lumpur Golf & Country Club MALAYSIAN BULK CARRIERS BERHAD (Company No:175953-W)
Slide 2: Disclaimer
Disclaimer The information contained in this presentation is for information purposes only, and does not constitute or form part of any offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for, or any offer to underwrite or otherwise acquire any securiti
Slide 3: Agenda
AGENDA 1. Year in Review 2. Financial Highlights 3. Business Outlook MALAYSIAN BULK CARRIERS BERHAD (Company No:175953-W)
Slide 4: Year in Review 2015
Year in Review 2015 Steady revenue performance despite most challenging year on record - Baltic Dry Index reached historic lows of 471 on 16 Dec 2015 on continued oversupply, weak demand - Group reported first annual loss (RM1.2 billion) comprising of operating losses (RM108.5 million) and the balan
Slide 5: Better performance vs industry average in most segments: TCE rates achieved
Better performance vs industry average in most segments TCE rates achieved Post Panamax Supramax USD/day MBC-Post-panamax USD/day MBC-Supramax 12,000 12,000 11,540 BPI-average rate BSI-average rate 10,275 10,549 10,000 10,000 9,457 9,818 9,472 9,184 8,000 8,000 7,718 6,966 6,641 6,838 6,000 6,000 5,
Slide 6: Better performance vs industry average in most segments: TCE rates achieved
Better performance vs industry average in most segments TCE rates achieved Handysize USD/day MBC-Handysize 10,000 BHSI-average rate 8,179 8,089 8,000 7,885 7,681 5,790 6,000 5,381 4,000 2013 2014 2015 MALAYSIAN BULK CARRIERS BERHAD (Company No:175953-W)
Slide 7: Tanker segment - stable long term contract
Tanker segment - stable long term contract MR Tankers USD/day 30,000 MBC-Avg 25,000 Clean "MR" earning 20,000 15,000 10,000 5,000 - MALAYSIAN BULK CARRIERS BERHAD (Company No:175953-W)
Slide 8: Financial Highlights
FINANCIAL HIGHLIGHTS MALAYSIAN BULK CARRIERS BERHAD (Company No:175953-W)
Slide 9: Steady revenue, bottomline affected by industry headwinds
Steady revenue, bottomline affected by industry headwinds 2015 GROUP FINANCIAL HIGHLIGHTS 2015 2014 Change Revenue RM241.5m RM255.7m (RM14.2m) EBITDA* (RM56.2m) RM21.0m (RM77.2m) (Loss)/profit before tax (RM1.2b) RM18.3m (RM1.2b) Impairment loss on vessels (RM295.2m) N.A. (RM295.2m) Onerous contract
Slide 10: Bottomline hit by unprecedented industry-wide challenges
Bottomline hit by unprecedented industry-wide challenges 2015 GROUP FINANCIAL HIGHLIGHTS For financial prudence, the Group made 3 significant provisions in 2015:- 1) Impairment on associate (POSH) RM495.8 million Accounting 2) Impairment on vessels (incl JVs) RM368.1 million treatment with no cash i
Slide 11: Working to strengthen financial position
Working to strengthen financial position BALANCE SHEET 2015 2014 Borrowings RM607.6m RM415.6m Net Debt RM467.1m RM264.1m Shareholders’ Equity RM1,179.6m RM1,952.5m Net Debt/Shareholders’ Equity 40% 14% MALAYSIAN BULK CARRIERS BERHAD (Company No:175953-W)
Slide 12: Business Outlook
BUSINESS OUTLOOK MALAYSIAN BULK CARRIERS BERHAD (Company No:175953-W)
Slide 13: Challenging Market Outlook: Unfavourable macro conditions
Challenging Market Outlook : Unfavourable macro conditions Macroeconomic and industry weakness likely to persist - Baseline 2016 world economic growth projection at modest 3.2%, strengthening expected from 2017 from emerging markets - 2016 outlook continued to be weighed on by: Slowdown in China and
Slide 14: Navigating stormy seas ahead
Navigating stormy seas ahead - 2016 to remain challenging but higher scrapping rates, reduced order books and more layups should eventually ease overcapacity situation - Focus on immediate challenges by: • Selectively monetising assets to improve liquidity • Arranging long term banking facilities •
Slide 15: Deliveries & Orderbook as of 1st May 2016
Deliveries & Orderbook as of 1st May 2016 Deadweight (Mn) 50.0 Deliveries Orderbook 40.0 Handysize 30.0 Supramax Panamax Post-Panamax 20.0 10.0 0.0 2014 2015 2016e 2017e 2018e 2019e 2020e Source: Howe Robinson Partners MALAYSIAN BULK CARRIERS BERHAD (Company No:175953-W)
Slide 16: Challenging Market Outlook: Demand and supply rebalancing?
Challenging Market Outlook : Demand and supply rebalancing? Dry bulk: - If subdued new-buildings ordering, increased scrapping and layups continue, then easing of oversupply situation will result in better rates Dwt (million) 40 33m-43m dwt Dry Bulk Deletions as at 1st May 2016 30 Scrapped Sold for
Slide 17: Steady progress made
Steady progress made • Secured 15-years long-term CVC contract with TNB Fuels for coal transportation starting Sept 2016 • Deferred portion of charter-in costs for our long-term chartered fleet • Delayed deliveries of newbuilds to avoid delivery into a weak market • Selective divestments of older ve
Slide 18: Modern diversified fleet offers competitive advantage
Modern diversified fleet offers competitive advantage • Modern, versatile fleet of sister vessels that deliver operational efficiencies • Good mix across Post-Panamax, Supramax and Handysize segments serving the varying needs of our clients Post-Panamax/Panamax Supramax Handysize MR Tanker Existing
Slide 19: Key Takeaways: Short term challenges, long-term prospects
Key Takeaways: Short term challenges, long-term prospects Group positioning itself for eventual up cycle • Careful cash management, • Delayed newbuilding deliveries, • Diversified asset class, • Stringent cost rationalisation, strong track record and experienced management will help us to come throu
Slide 20: Thank you
Thank you MALAYSIAN BULK CARRIERS BERHAD (Company No:175953-W)
Malaysian Bulk Carriers Berhad — Shareholder Meeting (May 2016) on 6ix