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Odfjell Q2 2013 results presentation
Odfjell Q2 2013 results presentation
Odfjell Q2 2013 results presentation
Odfjell Q2 2013 results presentation
Odfjell Q2 2013 results presentation
Odfjell Q2 2013 results presentation
Odfjell Q2 2013 results presentation
Odfjell Q2 2013 results presentation
Odfjell Q2 2013 results presentation
Odfjell Q2 2013 results presentation
Odfjell Q2 2013 results presentation
Odfjell Q2 2013 results presentation
Odfjell Q2 2013 results presentation
Odfjell Q2 2013 results presentation
Odfjell Q2 2013 results presentation
Odfjell Q2 2013 results presentation
Odfjell Q2 2013 results presentation
Odfjell Q2 2013 results presentation
Odfjell Q2 2013 results presentation
Odfjell Q2 2013 results presentation
Odfjell Q2 2013 results presentation
Odfjell Q2 2013 results presentation
Odfjell Q2 2013 results presentation
Odfjell Q2 2013 results presentation
Odfjell Q2 2013 results presentation
Odfjell Q2 2013 results presentation
Odfjell Q2 2013 results presentation
Odfjell Q2 2013 results presentation
Odfjell Q2 2013 results presentation
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Odfjell Q2 2013 results presentation

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  • 1. Second Quarter 2013 Results Oslo – 23 August 2013
  • 2. 2 Agenda • Highlights • Financials • Operational review • Market update and prospects • Summary • Q&A session
  • 3. 3 Highlights • EBITDA of USD 36 million compared to USD 27 million in first quarter • Improvement reflects a better utilization of our chemical tanker fleet and a somewhat better market • Time-charter results up 8% compared with last quarter • Best quarter for chemical tankers since third quarter 2008 • Delivery of Bow Pioneer, the world’s largest chemical tanker 0 50 100 150 200 250 300 350 04 05 06 07 08 09 10 11 12 13 USDmill Annual EBITDA – actual ownership Chemical tankers Tank terminals Highlights 0 50 100 150 200 03 04 05 06 07 08 09 10 11 12 13 Index1990=100 ODFIX
  • 4. 4 Highlights Highlights • Finalization of agreements with Lindsay Goldberg to expand our existing partnership to include substantially all tank terminal assets • New tank terminal projects in China, USA and Europe
  • 5. 5 Income statement - Second quarter 2013 USD mill 2Q13 1Q13 Gross revenue 294 291 Voyage expenses (116) (122) TC expenses (39) (44) Operating expenses (69) (68) General and administrative expenses (34) (32) Operating result before depr. (EBITDA) 36 27 Depreciation (31) (31) Capital gain/loss on fixed assets 3 (1) Operating result (EBIT) 8 (6) Net finance (10) (6) Taxes (0) (2) Net result (2) (13) Financials
  • 6. 6 Quarterly figures - from continued operation USD mill 0 50 100 150 200 250 300 350 2011 2012 2013 USDmill Gross Revenue 0 5 10 15 20 25 30 35 40 45 2011 2012 2013 USDmill EBITDA • Increase in EBITDA of USD 9 million compared to last quarter reflecting better utilization of the chemical tanker fleet Financials
  • 7. 7 Quarterly figures - from continued operation USD mill 12 11 ‐6 8 ‐5 8 2 ‐25 ‐1 ‐23 -30 -25 -20 -15 -10 -5 0 5 10 15 2011 2012 2013 USDmill Operating Result (EBIT) 11 ‐4 ‐13 5 ‐28 ‐2 261 ‐39 ‐8 ‐40 -100 -50 0 50 100 150 200 250 300 2011 2012 2013 USDmill Net Result • Increase in EBIT of USD 14 million compared to last quarter • Stable net interest • Capital gain of USD 5.4 million following the LG transaction this quarter • Capital loss of USD 2.6 million on vessel sale ‐9 ‐10 ‐10 ‐11 ‐12 ‐12 ‐13 ‐13 ‐12 ‐11 2 2 ‐2 5 0 ‐9 ‐3 ‐6 6 1 -25 -20 -15 -10 -5 0 5 10 USDmill Net Finance Net interest Other financial/currency 2011 2012 2013 Financials
  • 8. 8 Balance sheet – 30.06.2013 USD mill - Assets Ships and newbuilding contracts 1 312 Tank terminals and intangible assets 561 Other non-current assets/receivables 171 Total non-current assets 2 044 Available-for-sale investments and cash 235 Other current assets 188. Total current assets 423 Assets held for sale 173 Total assets 2 641 Equity and liabilities Total equity 832 Non-current liabilities and derivatives 138 Non-current interest bearing debt 1 095 Total non-current liabilities 1 233 Current portion of interest bearing debt 244 Other current liabilities and derivatives 162 Total current liabilities 406 Liabilities held for sale 171 Total equity and liabilities 2 641 • Cash balance of USD 235 million + USD 11 million cash in «held for sale assets» • 9.8% of own shares held as treasury shares • Equity ratio 31.5% Financials
  • 9. 9 Debt development • Secured refinancing of three second hand vessels in the total amount of USD 75 million • Refinancing of loan balloons expected to be finalized in third quarter • Financing of newbuilding program in Korea expected to be completed in third quarter • Evaluating refinancing of bond maturing in December, NOK 350 million 0 200 400 600 800 1,000 1,200 1,400 2Q13 2014 2015 2016 2017 USDmill Debt Portfolio Ending balance Repayment 0 50 100 150 200 250 300 2Q13 2014 2015 2016 2017 USDmill Planned Debt Repayments Secured loans Balloon Leasing NOK bond 09/13 NOK bond 12/15 NOK bond 12/17 Financials
  • 10. 10 Capital expenditure programme – Odfjell’s share In USD mill Per 2Q13 2014 2015 2016 2017 Hyundai Mipo, 4 x 46,000 DWT 8 110 Docking 14 27 27 27 27 Terminals1) 78 51 39 20 20 Total 100 188 66 47 47 1) Planned not commited – Odfjell’s share post Lindsay Goldberg global partnership agreement Keel laying of two of the newbuildings at Hyundai Mipo Financials
  • 11. 11 Income statement – 2Q13 chemical tankers and LPG/Ethylene USD mill 2Q13 1Q13 Gross revenue 258 257 Voyage expenses (116) (122) TC expenses (39) (44) Operating expenses (48) (49) General and administrative expenses (26) (25) Operating result before depr. (EBITDA) 29 18 Depreciation (23) (22) Capital gain/loss on fixed assets (3) (1) Operating result (EBIT) 4 (5) Net finance (16) (7) Taxes (1) (3) Net result (13) (16) Financials
  • 12. 12 Income statement – 2Q13 tank terminals USD mill 2Q13 1Q13 Gross revenue 36 35 Operating expenses (21) (19) General and administrative expenses (9) (7) Operating result before depr. (EBITDA) 7 9 Depreciation (8) (9) Capital gain/(loss) 5 - Operating result (EBIT) 3 (1) Net finance 7 2 Taxes 1 2 Net result 10 3 Financials
  • 13. 13 Results per segment 2Q13 1Q13 USD mill Chemical tankers/LPG Tank terminals Chemical tankers/LPG Tank terminals Gross revenue 258 36 257 35 EBITDA 29 7 18 9 EBIT 4 3 (5) (1) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Gross revenue EBITDA Assets Chemical tankers Tank terminals Financials 0 50 100 150 200 250 300 350 04 05 06 07 08 09 10 11 12 13 USDmill Annual EBITDA – actual ownership Chemical tankers Tank terminals
  • 14. 14 Tank terminals EBITDA – by geographical segment ‐17 7 14 11 -20 -15 -10 -5 0 5 10 15 20 Europe North America Asia Middle East USDmill EBITDA YTD 2013 EBITDA Tank Terminals by 2Q13 1Q13 geographical segment* Europe (9) (8) North America 3 4 Asia 7 8 Middle East 5 5 Total EBITDA 7 9 • Recovery of Rotterdam terminal behind schedule, negative EBITDA 2Q13 USD 8.4 million • Minor seasonal variances on the other terminals Financials *Figures includes tank terminal overhead cost. Pre Lindsay Goldberg transaction.
  • 15. 15 Bunker development 95.7 83.4 84.0 82.7 81.0 (15.7) (9.8) (8.5) (8.5) (5.9) (2.8) (5.8) (1.9) (2.0) (1.0) 77.2 67.8 73.5 72.2 74.1 (30) (20) (10) - 10 20 30 40 50 60 70 80 90 100 110 2Q12 3Q12 4Q12 1Q13 2Q13 USDmill Net Bunker Cost Bunker purchase Bunker clauses Bunker hedging Net bunker cost • Net bunker cost per tonne in the second quarter was USD 542 • About 30% of the remaining bunker exposure in 2013 and about 20% of the 2014 exposure is hedged • Bunker clauses in CoAs cover about 50% of the exposure0 100 200 300 400 500 600 700 800 08 09 10 11 12 13 USD/mt Platts 3.5% FOB Rotterdam Operational review
  • 16. 16 Fleet development - last 12 months Fleet additions DWT Built Tanks Transaction July 2013 Celsius Mayfair 20,000 2007 Stainless 2 year TC June 2013 Bow Pioneer 75,000 2013 Coated New delivery May 2013 Bow Engineer 30,086 2006 Coated Purchase March 2013 UACC Messila 45,352 2012 Coated 1 year TC March 2013 Bow Nangang 9,000 2013 Stainless New delivery March 2013 Chembulk Sydney 14,271 2005 Stainless 1-2 years TC January 2013 Chembulk Wellington 14,312 2004 Stainless 1-2 years TC November 2012 Bow Dalian 9,000 2012 Stainless New delivery October 2012 Chemroad Hope 33,552 2011 Stainless 1 year TC September 2012 UACC Masafi 45,352 2012 Coated 1 year TC September 2012 Bow Guardian 9,000CBM 2008 LPG Purchase August 2012 Bow Gallant 9,000CBM 2008 LPG Purchase Operational review
  • 17. 17 Fleet development – last 12 months Fleet disposals, owned DWT Built Tanks Transaction May 2013 Bow Cheetah 40,257 1988 Coated Recycling January 2013 Bow Leopard 39,512 1988 Coated Recycling November Bow Fraternity 45,507 1987 Coated Recycling October 2012 Bow Lion 39,423 1988 Coated Recycling Operational review
  • 18. 18 Bow Pioneer – the world’s largest chemical tanker Operational review • 75,000 dwt • 30 tanks with a total cargo capacity of 86,000 cbm • Entering pool in November – with sister vessel owned by NCC
  • 19. 19 Finalizing transaction with Lindsay Goldberg • The previous announced transaction has now been closed • Lindsay Goldberg aquires 49% interest in Odfjell Terminals AS (OTAS), the holding company for substantially all of Odfjell’s tank terminal activities • Capital increase of USD 219 million in OTAS • All tank terminal assets will be owned by OTAS • Odfjell will realize a total gain of USD 27 million of which USD 5.4 million has been booked in second quarter • Our tank terminal division is now poised for a strong growth in the years to come Operational review
  • 20. 20 New joint venture agreement in China • Odfjell Terminals has signed an agreement to enter into a joint venture with the Founder Group • Will acquire a 50% equity share in the existing Fujian Fangtong Terminals Co Ltd., including the land and an existing jetty at a price of USD 21 million Operational review • The new terminal is to be located in the Quangang Industrial Zone at the mainland side of the Taiwan Strait • The future Odfjell Terminals Fujian (Quanzhou) Co. Ltd has 14.8 hectares of available land, making possible the construction of 184,000 cbm of total storage capacity, supported by two jetties • The planned total investment in the terminal is USD 137 million
  • 21. 21 Entered into a letter of intent to purchase Chem- Marine Corporation Operational review • Odfjell Terminals has entered into a Letter of Intent to purchase Chem-Marine Corporation of South Carolina • Located adjacent to Odfjell’s tank terminal in North Charleston, South Carolina, USA • This acquisition has an estimated value below USD 10 million
  • 22. 22 Tank terminal capacity 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 Cubic Metres`000 Mineral oil storage Chemical storage Ongoing expansions Current capacity 5,310,291 Ongoing expansions 489,291 Total capacity in CBM (incl. related parties): Operational review * Odfjell’s ownership share in the respective tank terminals is shown in percentage
  • 23. 23 Market update - chemical tankers • Chemical tanker market improved • Contract coverage increased to 56% • Time charter results up by 8% compared with quarter • Improved spot rates • Vessel demand is expected to outgrow vessel supply Market update and prospects
  • 24. 24 Core Chemical Deep-sea Fleet 2003-2016 - Orderbook and estimated demolition per August 16th, 2013 * Outphasing 30 years (Europe built) and 25 years (Asian built)Source: Odfjell FLEETBASE Market update and prospects - 8 0 0 - 4 0 0 04 0 0 8 0 0 1 , 2 0 0 1 , 6 0 0 2 , 0 0 0 03 04 05 06 07 08 09 10 11 12 13 14 15 16 ' 0 0 0 D w t - 6 . 0 % - 3 . 0 % 0 . 0 % 3 . 0 % 6 . 0 % 9 . 0 % 1 2 . 0 % 1 5 . 0 % D e l i v e r i e s O r d e r b o o k A c t u a l l y d e m o l i s h e d E s t i m . v e s s e l o u t p h a s i n g N e t f l e e t g r o w t h % o f y e a r - s t a r t f l e e t Average annual net growth: 2003-2012: 8.0% 2013-2016: 1.1%
  • 25. 25 Chemical Tanker Demand 2007 - 2016 25 27 29 31 33 35 37 39 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Mill. Dwt Average annual growth: 2007 – 2012: -1.2 % 2013 – 2016: 3.1 % Source: Drewry Shipping Consultants, 2013Q1 Market update and prospects
  • 26. 26 Prospects • World economy remains uncertain • Freight markets remain in line with second quarter • No material changes in the supply/demand balance – still favourable outlook • Fluctuations in bunker prices have a major impact on our results • Expecting second half to be moderately better than first half of 2013 Market update and prospects
  • 27. 27 Summary • Slightly better chemical tanker market and stable terminal earnings • Final agreement signed with Lindsay Goldberg • Positioned for growth in both the tanker and tank terminal sector Summary
  • 28. 28 Company representatives Terje Iversen – CFO, Odfjell SE Email: Terje.Iversen@odfjell.com Phone: +47 932 40 359 IR – contact: Tom A. Haugen – VP Finance, Odfjell SE Email: Tom.Haugen@odfjell.com Phone: +47 905 96 944 Jan A. Hammer – CEO, Odfjell SE Email: Jan.Hammer@odfjell.com Phone: +47 908 39 719 Summary
  • 29. 29 Thank you For more information please visit our webpage at www.odfjell.com Q&A session

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