Clarkson Plc · LSE:CKN
Clarkson — H1 2012 Earnings Presentation
32 slides from Clarkson's earnings presentation, Aug 22, 2012
Slide 1: Clarksons Interim Results Announcement
CLARKSONS Service provider to Global Maritime, Energy & Natural Resources Interim Results Announcement 6 months ended 30 June 2012 22 August 2012 Andi Case & Jeff Woyda
Slide 2: Agenda
Interim Results Announcement Agenda ● Financial Overview – Jeff Woyda, CFO ● The Market – Andi Case, CEO ● Outlook – Andi Case, CEO 2 22 August 2012 www.clarksons.com
Slide 3: Results Summary
Interim Results Announcement Results Summary 30 June 30 June 2012 2011 Revenue £88.0m £88.6m Profit before taxation £11.0m £13.5m Exceptional item £4.5m £0m Acquisition costs £(0.8m) £0m Profit before taxation £14.7m £13.5m EPS before exceptional & acquisition costs 39.8p 52.6p EPS after exceptional
Slide 4: Clarksons
Interim Results Announcement Clarksons 2012 2011 Profit Profit £m £m Broking 12.7 14.6 Financial (4.8) (2.5) Support 2.1 1.1 Research 1.4 0.9 4 22 August 2012 www.clarksons.com
Slide 5: Broking
Interim Results Announcement Broking ● Significant demand/supply imbalance ● Lower asset values ● Very challenging freight rates ● Transaction volumes up in most areas ● Particularly good performance from ● Specialised products ● Tankers ● Gas ● Revenue challenges greater in ● Dry Cargo ● Containers
Slide 6: Financial
Interim Results Announcement Financial ● CSL ● FFA market suffering from lack of volatility ● Perfect storm ● Market volumes down ● Rates down ● 4 major players remain ● Market predominantly hedging based – traders participation down ● CCM ● USA developed with sales operation ● Research coverage ext
Slide 7: Support
Interim Results Announcement Support ● Port & Agency profit £1.5m (2011: £0.5m) ● EnShip & Opex acquisitions met expectations with excellent results in first 6 months ● Integration working well ● New operations in Tyne and Great Yarmouth in the period ● Property services profit £0.68m (2011: £0.75m)
Slide 8: Research
Interim Results Announcement Research ● Martin Stopford retired, remains under consultancy agreement ● Steve Gordon becomes MD, supported by an outstanding board ● Headline revenue growth of 21%, underlying revenue growth 11% ● Major areas of growth ● Digital Income ● Customer Services ● Offshore ●
Slide 9: Profit & Loss
Interim Results Announcement Profit & Loss ● Acquisition costs £0.8m ● Share-based payments ● Amortisation of intangibles ● Taxation – rate 32.0% (2011: 29.1%) ● Profits in high tax jurisdictions ● Unrelieved losses ● Exchange rate ● Average 1st half 2012 £1:$1.5842 (2011: £1:$1.6251) ● Spot at 30 J
Slide 10: Dividend
Interim Results Announcement Dividend 10 22 August 2012 www.clarksons.com
Slide 11: Net Funds
Interim Results Announcement Net Funds 30 June 30 June 2012 2011 £m £m Cash and short-term investments 101.4 101.3 Reserved for bonus (full cost) (25.0) (29.5) Net cash 76.4 71.8 Borrowings - - Net available funds 76.4 71.8 Reserved for Dividend (3.4) (3.4) 11 22 August 2012 www.clarksons.com
Slide 12: Balance Sheet
Interim Results Announcement Balance Sheet 2006 2007 2008 2009 2010 2011 2012 £m £m £m £m £m £m £m Fixed Assets 27.2 25.4 29.1 27.4 21.6 21.3 23.3 Intangibles 42.4 47.2 32.3 32.5 32.7 40.3 39.9 69.6 72.6 61.4 59.9 54.3 61.6 63.2 Investments 14.0 16.4 16.1 14.9 13.2 1.9 1.9 Working Capital (18.0) (25
Slide 13: ClarkSea Index
Interim Results Announcement ClarkSea Index 13 22 August 2012 www.clarksons.com
Slide 14: ClarkSea Index
Interim Results Announcement ClarkSea Index 55.0 Maximum 50.0 Minimum 45.0 Average 40.0 35.0 33.0 33.0 30.8 $000’s per day 30.0 27.8 24.7 25.0 Average 19.0 down 20.0 16.8 15.7 15.4 70% 11.7 12.9 15.0 11.3 10.6 9.8 10.2 10.0 5.0 - 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Slide 15: Baltic Dry Index
Interim Results Announcement Baltic Dry Index 15 22 August 2012 www.clarksons.com
Slide 16: Baltic Dry Index
Interim Results Announcement Baltic Dry Index Average down 85% 16 22 August 2012 www.clarksons.com
Slide 17: Dry Bulk Timecharter Rates
Interim Results Announcement Dry Bulk Timecharter Rates Data Source: Clarksons 17 22 August 2012 www.clarksons.com
Slide 18: Tanker Spot Earnings
Interim Results Announcement Tanker Spot Earnings Crude Product Data Source: Clarksons 18 22 August 2012 www.clarksons.com
Slide 19: Containership 6-12m Timecharter Rates
Interim Results Announcement Containership 6-12m Timecharter Rates Data Source: Clarksons 19 22 August 2012 www.clarksons.com
Slide 20: LPG Earnings – 82k m3
Interim Results Announcement LPG Earnings – 82k m3 Data Source: Clarksons 20 22 August 2012 www.clarksons.com
Slide 21: LPG Timecharter Rates
Interim Results Announcement LPG Timecharter Rates Data Source: Clarksons 21 22 August 2012 www.clarksons.com
Slide 22: LNG Charter Rates
Interim Results Announcement LNG Charter Rates LNG Charter Rates basis a modern conventional DFDE LNG carrier Data Source: Clarksons 22 22 August 2012 www.clarksons.com
Slide 23: Specialised Products
Interim Results Announcement Specialised Products Data Source: Clarksons 23 Index Re-based to 100 as of 04/01/2008 22 August 2012 www.clarksons.com
Slide 24: Offshore Freight Rates North Sea
Interim Results Announcement Offshore Freight Rates North Sea AHTS Spot Rates PSV Spot Earnings 13-16k BHP 18k BHP+ < 600m2 600-800m2 110,000 25,000 100,000 90,000 20,000 80,000 70,000 15,000 60,000 £/day £/day 50,000 10,000 40,000 30,000 20,000 5,000 10,000 0 0 May-11 May-12 Nov-10 Feb-11 Nov-11 Fe
Slide 25: 5yr old Secondhand Prices
Interim Results Announcement 5yr old Secondhand Prices Data Source: Clarksons 25 22 August 2012 www.clarksons.com
Slide 26: Dry Bulk 15yr old vs. Scrap Price Differential
Interim Results Announcement Dry Bulk 15yr old vs. Scrap Price Differential Capesize Panamax Handysize Current 26 Data Source: Clarksons 22 August 2012 www.clarksons.com
Slide 27: Fleet Age Profile
Interim Results Announcement Fleet Age Profile Data Source: Clarksons 27 22 August 2012 www.clarksons.com
Slide 28: All Types Orderbook Development
Interim Results Announcement All Types* Orderbook Development (>999GT) *excludes offshore, passenger/cruise, government vessels Data source: Clarksons 28 22 August 2012 www.clarksons.com
Slide 29: Global Vessel Contracting
Interim Results Announcement Global Vessel Contracting Source: Clarksons 29 22 August 2012 www.clarksons.com
Slide 30: World Seaborne Trade
Interim Results Announcement World Seaborne Trade Source : Clarkson Research Services 30 22 August 2012 www.clarksons.com
Slide 31: Outlook
Interim Results Announcement Outlook • Very challenging markets highlights importance of: • Global reach • Product diversity • Quality research and analysis • Being best in class • Clarkson Capital Management ● Strong balance sheet ● Enables investment in teams ● Optimises ability to take advantage
Slide 32: Disclaimer
Interim Results Announcement Disclaimer THIS PRESENTATION IS CONFIDENTIAL AND IS SOLELY FOR THE USE OF THE RECIPIENT. NEITHER THE WHOLE NOR ANY PART OF THE INFORMATION CONTAINED IN THE PRESENTATION MAY BE DISCLOSED TO, OR USED OR RELIED UPON BY, ANY OTHER PERSON OR USED FOR ANY OTHER PURPOSE WITHOUT