Dampskibsselskabet Norden A/s · OMXCOP:DNORD
Dampskibsselskabet Norden A/s — Norden — Q1 2015 Earnings Presentation
28 slides from Dampskibsselskabet Norden A/s's earnings presentation, May 12, 2015
Slide 1: NORDEN Results First quarter of 2015
NORDEN RESULTS First quarter of 2015 Hellerup, Denmark 12 May 2015 NORDEN – First quarter of 2015 results | 1 Our business is global tramp shipping
Slide 2: Agenda
AGENDA Group highlights Financials Dry Cargo Tankers 2015 expectations Q & A NORDEN – First quarter of 2015 results | 2 Our business is global tramp shipping
Slide 3: Q1 Highlights
Q1 HIGHLIGHTS EBIT Key messages 50 30 Solid start to the year. EBIT USD 30 0 million -50 -23 -27 -28 USD million -100 Benefiting from large spot position in a -150 strong tanker market -200 -250 -258 Value from coverage in a historically -300 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 poor dry ca
Slide 4: Strong start to 2015 in spite of poor dry cargo market
FINANCIALS STRONG START TO 2015 INSPITE OF POOR DRY CARGO MARKET Group EBIT of USD 30 million EBIT Dry Cargo Tankers Dry Cargo EBIT of USD 4 million 40 30 28 4 25 Tanker EBIT of USD 28 million -10 -23 -18 -22 20 17 -60 Million USD Million USD 15 -110 10 -160 4 5 Dry Cargo -210 0 -260 -5 -2
Slide 5: Improvement in cash flow from operations
FINANCIALS IMPROVEMENT IN CASH FLOW FROM OPERATIONS Cash flow from operations USD 44 million – before prepayment (USD 47 million) for TC contracts Partly driven by improving working capital Combined undrawn credit facilities, cash and securities at USD 706 million Cover for yard payments per
Slide 6: Continued downward pressure on asset values in Dry Cargo
FINANCIALS CONTINUED DOWNWARD PRESSURE ON ASSET VALUES IN DRY CARGO Asset values for Dry Cargo vessels have continued to fall in Q1 Market value of NORDEN’s fleet below book values by USD 148 million Owned tanker vessels represent just below half of current NORDEN asset value and tanker values
Slide 7: Dry Cargo: Very weak rates in all segments
DRY CARGO VERY WEAK RATES IN ALL SEGMENTS Record low freight rates due to Capesize Panamax falling Chinese coal imports 45.000 18.000 40.000 16.000 35.000 14.000 Growth in India coal imports 30.000 12.000 USD/day USD/day and Chinese iron ore imports 25.000 20.000 10.000 have not been enough to 8
Slide 8: Dry Cargo: Limited fleet growth
DRY CARGO LIMITED FLEET GROWTH There has been no supply growth in recent months Scrapping rate at 5.8% annualised Slippage in deliveries running at close to 40% At current activity levels full year 2015 fleet growth would be ~2% The outlook for trade remains poor and despite the current lo
Slide 9: Tanker rates are still holding up
TANKERS TANKER RATES ARE STILL HOLDING UP The rates have remained strong throughout the first quarter of 2015 Both East- and Westbound CPP trade in the Atlantic have been supported by high refinery utilisation rates and exports Strong crude market supporting earnings for product tankers West C
Slide 10: Increasing oil demand
TANKERS INCREASING OIL DEMAND Low oil prices leading to increased oil demand Strong ramp up in refinery throughput expected in Middle East and US Refinery utilisation in Europe should come under pressure leading to higher exports of diesel but also lower exports of gasoline Strong supply gro
Slide 11: 2015 Full Year Guidance
2015 FULL YEAR GUIDANCE Outlook Comments USDm Dry Cargo Tankers Total Full year EBIT guidance is maintained at USD -40 to 40 EBIT -60 to 0 35 to 65 -40 to 40 million Profit from 7 vessel sales Expectations for Tankers raised to CAPEX 20-40 USD 35 to 65 million. (Previously USD 5 to 45 million)
Slide 12: Forward looking statements
This presentation contains certain forward-looking statements reflecting the management’s present judgment of future events and financial results. Statements relating to the remainder of 2015 and subsequent years are subject to uncertainty, and NORDEN’s actual results may therefore differ from the p
Slide 13: Thank you for your attention
Thank you for your attention http://www.linkedin.com/company/ds-norden/ http://twitter.com/DS_NORDEN http://www.facebook.com/shippingtrainee.com http://www.facebook.com/dampskibsselskabetnorden Dampskibsselskabet NORDEN A/S 52, Strandvejen DK-2900 Hellerup Denmark Phone: +45 3315 0451 www.ds-norden.
Slide 14: Back up
BACK UP NORDEN – First quarter of 2015 results | 14 Our business is global tramp shipping
Slide 15: A leading global tramp operator
A LEADING GLOBAL TRAMP OPERATOR Dry Cargo Capesize Post-Panamax Panamax Supramax Handysize 250 200 150 100 50 0 Dry cargo Tankers NORDEN vessels Pool vessels Tankers MR Handysize Modern fleet Global network of offices and port captains Pools in Dry cargo (Handysize & Post-Panamax) and Tankers
Slide 16: Asset light business model
ASSET LIGHT BUSINESS MODEL… Active fleet can quickly be adjusted to demand and market conditions Fleet employment based on portfolio view Significant asset upside through purchase options Flexible fleet Coverage and customer focus Capacity Employment Sale and purchase Customer relations Co
Slide 17: Enabling value creation based on the cycle and throughout the cycle
…ENABLING VALUE CREATION BASED ON THE CYCLE AND THROUGHOUT THE CYCLE Exploiting the cycle Creating value throughout the cycle Taking a view on the fundamental market and Creating value above industry level irrespective of adjusting our exposure market conditions Levers: Levers: Commercial operations
Slide 18: Overall results
OVERALL RESULTS USDm Q1 2014 Q4 2014 Q1 2015 EBITDA - Dry Cargo -15 -257 15 EBITDA - Tankers -10 25 34 Unallocated -3 -4 -2 EBITDA - Group -8 -236 47 Depreciation -15 -18 -17 EBIT Group -23 -258 30 Net profit -27 -302 39 Cash from operations 2,7 -29 -3 Net Cash flow -13 95 -19 Cash and securities 44
Slide 19: Last 5 years performance
LAST 5 YEARS PERFORMANCE Earnings per share (USD) Return on equity 5,8 12,9% 2,1 4,4% -2,9% -1,2 -15,1% -6,8 -10,3 -30,3% 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Cash flows, operations and investments (USDm) Dividend yield 4,0% 7 298 3,0% 120 122 -9 66 -62 -46 -380 -355 1,8% 1,8% 2010 2011
Slide 20: Dry Cargo: 12 month rolling average rates
USD/day USD/day - - 10.000 15.000 20.000 25.000 10.000 15.000 25.000 30.000 35.000 40.000 45.000 50.000 5.000 5.000 20.000 Jan-10 Jan-10 Apr-10 Apr-10 Capesize Supramax Jul-10 Jul-10 Oct-10 Oct-10 DRY CARGO Jan-11 Jan-11 Apr-11 Apr-11 Jul-11 Jul-11 Oct-11 Oct-11 Jan-12 Jan-12 Apr-12 Apr-12 NORDEN –
Slide 21: Dry Cargo: Regional rates
DRY CARGO REGIONAL RATES Handysize Supramax Panamax 7 14 10 USD 1,000/day USD 1,000/day USD 1,000/day 6 12 8 5 10 6 4 8 4 3 6 2 2 4 0 1 2 -2 0 -1 0 -4 -2 -2 -6 -3 -4 -8 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Slide 22: Financial strength
FINANCIAL STRENGTH Strong capital structure Net committed cash Strong focus on cash flow USDm Q1 2015 Q4 2014 generation Adjusted net interest bearing -8 -6 assets* Cash in low-risk deposit T/C obligations** -1,398 -1,542 accounts and securities Newbuilding instalments less -309 -355 proceeds fr
Slide 23: Fleet values
FLEET VALUES NORDEN – First quarter of 2015 results | 23 Our business is global tramp shipping
Slide 24: Dry Cargo fleet overview
DRY CARGO FLEET OVERVIEW NORDEN – First quarter of 2015 results | 24 Our business is global tramp shipping
Slide 25: Product Tanker fleet overview
PRODUCT TANKER FLEET OVERVIEW NORDEN – First quarter of 2015 results | 25 Our business is global tramp shipping
Slide 26: Dry Cargo
DRY CARGO NORDEN – First quarter of 2015 results | 26 Our business is global tramp shipping
Slide 27: Product Tankers
PRODUCT TANKERS NORDEN – First quarter of 2015 results | 27 Our business is global tramp shipping
Slide 28: The share (DNORD)
THE SHARE (DNORD) Master data Composition of shareholders 15,892 registered shareholders Shareholder capital DKK 42,200,000 owning 90.6% Number of shares and 42,200,000 shares of Approx. 36% international denomination DKK 1 ownership Classes of shares 1 Voting and ownership restrictions None NAS