Odfjell Se Class A · OSL:ODF
Odfjell Se Class A — Q1 2012 Earnings Presentation
34 slides from Odfjell Se Class A's earnings presentation, May 9, 2012
Slide 1: First Quarter 2012 Results
First Quarter 2012 Results Conference call and webcast - 9 May 2012 1
Slide 2: Agenda
AGENDA • Highlights • Financials 1Q 2012 • Financials per segment • Operational review • Market update and prospects • Summary • Q&A Session 2
Slide 3: Highlights
HIGHLIGHTS • EBITDA first quarter 2012 of USD 41 million reflects improved earnings in the chemical tanker segment • Time charter results up 8% compared with fourth quarter last year • The bunker cost increased further and remains high • Tank terminal earnings remained steady • Completed Bond issue
Slide 4: Agenda
AGENDA • Highlights • Financials 1Q 2012 • Financials per segment • Operational review • Market update and prospects • Summary • Q&A Session 4
Slide 5: First Quarter 2012
FIRST QUARTER 2012 USD mill 1Q12 4Q11 Gross revenue 333 322 Voyage expenses (148) (150) TC expenses (44) (42) Operating expenses (70) (69) General and administrative expenses (30) (31) Operating result before depr. (EBITDA) 41 31 Depreciation (32) (32) Capital gain/loss on fixed assets 1 (0) Operati
Slide 6: Quarterly Gross Revenue
QUARTERLY GROSS REVENUE from continued operation (previous quarters restated) USD mill 350 333 322 309 300 271 260 263 255 268 256 250 200 150 100 50 0 2010 2011 2012 Annual figures 1,048 1,154 1,332 6
Slide 7: EBITDA
EBITDA 350 300 250 200 USD mill 150 100 50 0 20 20 20 20 20 20 20 20 20 20 20 02 03 04 05 06 07 08 09 10 11 12 Tank Terminals Tank Containers Chemical Tankers * All figures reflect actual ownership. 2012 figures are annulised. 7
Slide 8: Quarterly Operating Result (EBIT)
QUARTERLY OPERATING RESULT (EBIT) from continued operation (previous quarters restated) USD mill 15 12 11 10 8 5 2 0 -1 -5 -6 -7 -10 -10 -15 -13 2010 2011 2012 Annual figures (36) 21 44 8
Slide 9: Quarterly Net Finance
QUARTERLY NET FINANCE from continued operation (previous quarters restated) USD mill 15 10 5 11 5 1 2 2 2 0 0 Other financial/currency -7 -8 Net interest -5 -10 -11 -9 -10 -10 -11 -12 -10 -7 -2 -15 2010 2011 2012 -20 Annual figures (30) (35) (48) 9
Slide 10: Quarterly Net Result
QUARTERLY NET RESULT USD mill 300 261 250 200 150 100 50 0 11 5 0 -4 -11 -8 -4 -50 -64 -100 2010 2011 2012 Annual figures (79) 269 (16) 10
Slide 11: Debt Portfolio
DEBT PORTFOLIO Per 31.03.12 1,200 1,000 800 600 400 200 0 2012 2013 2014 2015 2016 Ending balance Repayment 11
Slide 12: Debt Repayments
DEBT REPAYMENTS Per 31.03.12 300 250 200 USD mill 150 100 50 0 2012 2013 2014 2015 2016 Secured loans Balloon Leasing NOK Bond 12
Slide 13: Hedging – Debt
HEDGING – DEBT Per 31.03.12 1,400 1,200 1,000 800 USD Mill 600 400 200 0 2012 2013 2014 2015 2016 Liquidity Swapped to Fixed Rate Floating Rate 13
Slide 14: Balance Sheet
BALANCE SHEET Per 31.03.12 LIABILITIES & EQUITY ASSETS Liquid assets Other liabilities Other fixed and current assets Interest bearing debt Tank terminals Minority interest Ships & newbuildings Equity 14
Slide 15: Capital Expenses
CAPITAL EXPENSES Per 31.03.11 – Odfjell share In USD mill 2012 2013 2014 2015 2016 Daewoo, 1 x 75 000 DWT 13 13 Chuandong, 3 x 9 000 DWT 9 Docking 27 36 36 36 36 Terminals 105 84 30 68 47 Total 154 133 66 104 83 15
Slide 16: Agenda
AGENDA • Highlights • Financials Q4 2011 • Financials per segment • Operational review • Market Update / Prospects • Summary • Q&A Session 16
Slide 17: Gross Revenue, EBITDA and Assets per Segment
GROSS REVENUE, EBITDA AND ASSETS PER SEGMENT 1Q 2012 100% 41 90% 80% 16 872 70% 60% 50% 294 40% 30% 25 1,637 20% 10% 0% Gross Revenue EBITDA Assets Chemical Tankers Tank Terminals 17
Slide 18: Results per Segment
RESULTS PER SEGMENT 1Q12 4Q11 Chemical Tank Chemical Tank USD mill tankers terminals tankers terminals Gross revenue 294 41 283 40 EBITDA 25 16 15 16 EBIT 3 8 (9) 8 Net result (8) 4 (14) 6 EBITDA Tank Terminals by 1Q12 4Q11 geographical segment Europe 1 1 North America 4 4 Asia 8 7 Middle East 4 4 N
Slide 19: ODFIX
ODFIX 180 160 140 120 Index 1990 = 100 100 80 60 40 20 0 20 20 20 20 20 20 20 20 20 20 20 02 03 04 05 06 07 08 09 10 11 12 19
Slide 20: Bunkers
BUNKERS Platts 3.5% FOB Rotterdam USD/mt 800 700 600 500 400 300 200 100 0 20 20 20 20 20 20 07 08 09 10 11 12 20
Slide 21: Net Bunker Cost
NET BUNKER COST Per 31.03.12 110 100 90 80.1 75.1 75.9 80 71.8 66.0 70 60 USD mill. 50 78.5 89.3 102.5 40 90.4 94.5 30 20 10 - (6.5) (11.2) (15.5) (15.7) (10) (20.3) (20) (5.9) (3.0) (3.2) (3.0) (2.1) (30) 1Q11 2Q11 3Q11 4Q11 1Q12 Bunker purchase Bunker clauses Bunker hedging Net bunker cost 21
Slide 22: Agenda
AGENDA • Highlights • Financials Q4 2011 • Financials per segment • Operational review • Market Update / Prospects • Summary • Q&A Session 22
Slide 23: Fleet Development 2012
FLEET DEVELOPMENT 2012 Fleet additions DWT Built Tanks Transaction January 2012 Bow Andes 16 020 2000 Purchase January 2012 Southern Ibis 19 905 2009 Stainless 2 year TC Fleet reductions DWT Built Tanks Transaction June 2012 Bow Fertility 45 507 1987 Coated Recycling May 2012 Bow Pride 45 655 1987 C
Slide 24: Tank Terminal Development 2012
TANK TERMINAL DEVELOPMENT 2012 • Oman (OOTO) – 27,300 cbm is expected to be commercially operational by 3Q 2012 • US Charleston (OTC) – 80,000 cbm to be added in 2013, progressing according schedule • Odfjell/LG close to conclusion on the 25% equity share in Noord Natie Terminals in Antwerp • Rotter
Slide 25: Tank Terminal Capacity
TANK TERMINAL CAPACITY Total capacity in CBM Current capacity 4.987.498 Ongoing expansions 391.400 1,800 1,600 1,400 Cubic Metres`000 1,200 1,000 800 600 400 200 0 O O O O N C As O O O Ex Ti in ha TH TK TJ O TR O TD an so ir gb TO TS rle jin -3 -5 ci -5 -5 -5 -5 o st at -2 -5 5% -4 5% -1 1% 0% 1% 0%
Slide 26: Agenda
AGENDA • Highlights • Financials Q4 2011 • Financials per segment • Operational review • Market Update / Prospects • Summary • Q&A Session 26
Slide 27: Market Update – Chemical Tankers
MARKET UPDATE – CHEMICAL TANKERS • Reasonably high activity levels and firm demand during 1Q • Contract rate renewals up by 10% to 40% • Earnings on time charter basis increased by about 8% • Rates for US and European trade were firm, whilst Asian exports came under pressure • Bunker prices increase
Slide 28: Core Chemical Deep-sea Fleet 2003-2014
Core Chemical Deep-sea Fleet 2003-2014 Orderbook and estimated demolition per May 2nd 2012 '000 Dwt % of year-start fleet 2.400 15,0% 2.000 12,5% 1.600 10,0% 1.200 7,5% 800 5,0% 400 2,5% 0 0,0% 03 04 05 06 07 08 09 10 11 12 13 14 -400 -2,5% -800 -5,0% -1.200 -7,5% Deliveries Orderbook Actually demol
Slide 29: Market Update - Tank Terminals
MARKET UPDATE - TANK TERMINALS • Terminals remain at high utilization rates • Strong momentum in the US • Capacity build-up in Korea • Oil industry continued to be slow • Iran conflict keeps oil market in tension Expect stable market going forward 29
Slide 30: Prospects
PROSPECTS • The global economic growth outlook has deteriorated • Hardly any contracting of new sophisticated stainless steel vessels • Activity levels are softening, indicating a possible weaker spot market for chemical freight in second quarter • Tank terminal results expected to remain in line wi
Slide 31: Agenda
AGENDA • Highlights • Financials Q4 2011 • Financials per segment • Operational review • Market Update / Prospects • Summary • Q&A Session 31
Slide 32: Summary
SUMMARY • Stronger 1Q12, EBITDA USD 41 million • 2Q12 chemical tanker activity slower with lower volumes • Bunker cost still a main challenge • Robust balance sheet and solid liquidity position • Stable results Tank Terminals 32
Slide 33: Agenda
AGENDA • Highlights • Financials Q4 2011 • Financials per segment • Operational review • Market Update / Prospects • Summary • Q&A Session 33
Slide 34: Thank you!
Thank you! 34