Download - 4Q12 - Oslo 140213
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Fourth Quarter 2012 ResultsPreliminary full year
Oslo 14 February 2013
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Agenda
Highlights
Financials
Operational review
Market update and prospects
Summary
Q&A Session
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Highlights
EBITDA of USD 17 million reflects
both a continuing weak chemical
tanker market and still significant
losses at Odfjell Terminals
(Rotterdam)
Slightly stronger time-charter results
as compared to third quarter, but still
unsustainable
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100
150
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250
300
350
02 03 04 05 06 07 08 09 10 11 12
USD
mill
Annual EBITDA actual ownership
Chemical tankers Tank terminals
Highlights
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100
150
200
02 03 04 05 06 07 08 09 10 11 12 13
Index1990=10
0
ODFIX
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Highlights
Two new NOK bond issues raised total
proceeds of USD 124 million
Letter if Intent signed with Lindsay Goldberg
to expand existing partnership to include
essentially all tank terminal assets
Highlights
Stable tank terminal earnings, with the exception of Odfjell Terminals
(Rotterdam). The latter delivered negative EBITDA of USD 9.8 million
compared to a negative EBITDA of USD 20 million in the previous quarter.
The re-commissioning project at Odfjell Terminals (Rotterdam) is slightly
delayed relative to earlier plans
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Income statement - Fourth quarter 2012
USD mill4Q12 3Q12
Gross revenue 296 276
Voyage expenses (130) (118)
TC expenses (43) (43)
Operating expenses (72) (75)
General and administrative expenses (35) (33)
Operating result before depr. (EBITDA) 17 8
Depreciation (34) (33)
Capital gain/loss on fixed assets (7) -
Operating result (EBIT) (23) (25)Net finance (19) (15)
Taxes 3 2
Net result (40) (39)
Financials
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Quarterly figures - from continued operation (previous quarters restated)USD mill
0
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100
150
200
250
300
350
2010 2011 2012
USD
mill
Gross Revenue
0
5
1015
20
25
30
35
40
45
2010 2011 2012
USD
mill
EBITDA
Gross revenue reflects a continued weak chemical tanker market and
significant losses at Odfjell Terminals (Rotterdam)
Increase in EBITDA of USD 9 million compared to third quarter
Financials
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Quarterly figures - from continued operation (previous quarters restated)USD mill
-6
12 11
-13
8
-5
-10
2
-25
-7-4
-23
-30
-25-20
-15
-10
-5
0
5
10
15
2010 2011 2012
USD
mill
Operating Result (EBIT)
-4
11
-4
-64
5
-28-11
261
-39
0
-8
-40
-100
-50
0
50
100
150
200
250
300
2010 2011 2012
USD
mill
Net Result
Negative EBIT of USD 23 million of which
OTR counts for USD 10 million
Stable interest costs
Net loss 4Q12 of USD 40 million
-7 -8-10-11
-9 -10 -10-11 -12 -12-13 -13
1
-7
2
11
2 2
-2
5
0
-9-3
-6
-25
-20
-15
-10
-5
0
5
10
15
USD
mill
Net Finance
Net interest Other f inancial/currency
2010 2011 2012
Financials
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Income statement - preliminary 2012
USD mill prelim 2012 FY2011
Gross revenue 1 212 1 154
Voyage expenses (532) (532)
TC expenses (173) (168)
Operating expenses (285) (238)
General and administrative expenses(129) (104)
Operating result before depr. (EBITDA) 93 113
Depreciation (132) (122)
Compensation - 6
Capital gain/loss on fixed assets (4) 25
Operating result (EBIT) (43) 21
Net finance (68) (35)
Taxes 0 (6)
Net result from discontinued operation - 288
Net result (111) 269
Financials
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Balance sheet preliminary 2012
USD mill - AssetsShips and newbuilding contracts 1 293
Tank terminals and intangible assets 558
Other non-current assets/receivables 144
Total non-current assets 1 995
Available-for-sale investments and cash 175
Other current assets 183.Total current assets 358
Assets held for sale 224
Total assets 2 576
Equity and liabilitiesTotal equity 949
Non-current liabilities 113
Non-current interest bearing debt 995
Total non-current liabilities 1 107
Current portion of interest bearing debt 226
Other current liabilities 166Total current liabilities 392
Liabilities held for sale 129
Total equity and liabilities 2 576
Cash balance of USD 175 million + USD 18 million cash in held for sale assets
Equity ratio 36.9%
Available drawing facilities USD 94 million pluss substantial drawing facilities allocated to specific
investments projects in the tank terminal joint ventures
Held for sale assets amounts to USD 224 million and held for sale liabilities amounts to
USD 129 million related the intend to expand the existing joint venture with Lindsay Goldberg
LLC
Financials
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Debt development
Successfully completed the issuance of a NOK 200 million three-year and a NOK 500 million
six-year senior unsecured bond issue. Total proceeds are swapped to USD 124 million
Oiltanking Odfjell Terminal Singapore entered into a seven year SGD 180 million credit facility in
December for refinancing of existing debt
Available drawing facilities at year end amounts to USD 94 million
In addition we have substantial drawing facilities allocated to specific investment projects
in the tank terminal joint ventures
0
200
400
600
800
1000
1200
2013 2014 2015 2016 2017
USD
mi
ll
Debt Portfolio
Ending balance Repayment
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300
2013 2014 2015 2016 2017
USD
mill
Planned Debt Repayments
Secured loans Balloon Leasing
NOK bond 09/13 NOK bond 12/15 NOK bond 12/17
Financials
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Capital expenditure programmeOdfjell`s share per 31.12.12
In USD mill 2013 2014 2015 2016 2017
Daewoo, 1 x 75,000 DWT 13Chuandong, 1 x 9,000 DWT -3
Hyundai Mipo, 4 x 46,000 DWT 32 110
Docking 27 27 27 27
Terminals1) 160 72 51 24 2
Total 229 209 78 51 2
1)Planned not commited
Launching of the new 75,000 cheimcal tanker at Daewoo
Financials
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Income statement 4Q12 chemical tankers and LPG/Ethylene
USD mill 4Q12 3Q12
Gross revenue 263 246
Voyage expenses (130) (118)
TC expenses (43) (43)
Operating expenses (51) (49)
General and administrative expenses (26) (23)
Operating result before depr. (EBITDA) 14 14
Depreciation (25) (24)
Capital gain/loss on fixed assets (7) 0
Operating result (EBIT) (18) (10)
Net finance (21) (12)
Taxes (1) (1)
Net result (40) (24)
Financials
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Income statement 4Q12 tank terminals
USD mill 4Q12 3Q12
Gross revenue 34 32
Operating expenses (21) (27)
General and administrative expenses (9) (11)
Operating result before depr. (EBITDA) 5 (7)
Depreciation (9) (9)
Operating result (EBIT) (5) (16)
Net finance 1 (3)
Taxes 3 3
Net result 0 (16)
Financials
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Results per segment
4Q12 3Q12
USD mill
Chemical
tankers
Tank
terminals
Chemical
tankers
Tank
terminals
Gross revenue 263 34 246 32
EBITDA 14 5 14 (7)
EBIT (18) (5) (10) (16)
Net result (40) 0 (24) (16)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Gross revenue EBITDA Assets
Chemical tankers Tank terminals
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350
02 03 04 05 06 07 08 09 10 11 12
USD
mill
Annual EBITDA
actual ownership
Chemical tankers Tank terminals
Financials
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Tank terminals EBITDA by geographical segment
-32
14
27
18
-40
-30
-20
-10
0
10
20
30
Europe NorthAmerica
Asia Middle East
USD
mill
EBITDA YTD 2012
EBITDA Tank Terminals by4Q12 3Q12
geographical segment
Europe (11) (21)
North America 3 4
Asia 6 7
Middle East 6 4
Total EBITDA 5 (7)
In Europe EBITDA came in negative onUSD 11 million due to reduced capacity and
high costs at OTR
The remaining geographical segments
deliver stable results
Financials
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Bunker development
94.5102.5
95.783.4 84.0
(15.7) (20.3) (15.7) (9.8) (8.5)
(3.0) (2.1)(2.8)
(5.8)(1.9)
75.980.1 77.2
67.8 73.5
(30)
(20)
(10)-
10
20
30
40
50
60
70
80
90100
110
4Q11 1Q12 2Q12 3Q12 4Q12
USD
mill
Net Bunker Cost
Bunker purchase Bunker clauses Bunker hedging Net bunker cost
Volatile bunker prices is effecting voyage expenses
December ended at an average of USD 574 per
tonne and has further increased in 2013
About 20% of the bunker exposure in 2013 is hedged
In addition, bunker clauses in CoAs cover about 50%
of the exposure0100
200
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500
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700
800
07 08 09 10 11 12 13
USD/mt
Platts 3.5% FOB Rotterdam
Operational review
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Fleet development 2012
Fleet additions DWT Built Tanks Transaction
January 2013 Chembulk Wellington 14,312 2004 Stainless 1-2 years TC
December 201 NCC Sama 45,564 2012 Coated Pool
November 2012 Bow Dalian 9,000 2012 Stainless Newbuild
October 2012 Chemroad Hope 33,552 2011 Stainless 1 year TC
September 2012 UACC Masafi 45,352 2012 Coated 1 year TCSeptember 2012 NCC Reem 45,544 2012 Coated Pool
September 2012 Bow Guardian 9,000CBM 2008 LPG Purchase
August 2012 Bow Gallant 9,000CBM 2008 LPG Purchase
August 2012 NCC Najem 45,499 2012 Coated Pool
June 2012 Bow Fuling 9,000 2012 Stainless Newbuild
May 2012 NCC Shams 45,660 2012 Coated Pool
January 2012 Bow Andes 16,020 2000 Stainless Purchase
January 2012 Southern Ibis 19,905 2009 Stainless 2 year TC
Operational review
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Fleet development 2012
Fleet disposals, owned DWT Built Tanks Transaction
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
June 2012 Bow Viking 33,644 1981 Stainless Sale
June 2012 Bow Fertility 45,507 1987 Coated Recycling
May 2012 Bow Pride 45,655 1987 Coated Recycling
May 2012 Bow Peace 45,655 1987 Coated Recycling
February 2012 Bow Pacifico 18,657 1982 Stainless Sale
January 2012 Bow Prosper 45,655 1987 Coated Recycling
Operational review
Seven older vessels sold for recycling in 2012. All vessels has Green Passport and buyers
undertake that the recycling yard shall submit a working plan corresponding to IMO guidelines for
ship recycling. The above sales have contributed USD 50 million in cash in 2012
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Tank terminal development
In November Grand Port Maritime du Havre selected Odfjell Terminals to
evaluate the development of a new bulk liquids terminal facility in the industrial
zone of Le Havre Port, France
Noord Natie Odfjell Terminals in Antwerp has signed a contract to extend
storage capacity by 50,000 cbm
Odfjell Terminals Houston is going to develop a new bay of 30,000 cbm x 10
tanks at a cost of USD 37 million
The Charleston Terminal project is on course to become operational in Q4 2013
The construction of the terminal and the marine facility in Nangang in China isunder way, the overall project is 30% completed, and is expected to be
operational in Q4 2013/Q1 2014
Operational review
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20Odfjell Terminals (Charleston) under construction
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21Illustration of Nangang Industrial Zone
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New jetty under construction in Nangang
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Tank terminal capacity
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
CubicMetres`000
Chemical storage Mineral oil storage Ongoing expansions
Current capacity 5,310,459
Ongoing expansions 416,491
Total capacity in CBM (incl. related parties):
Operational review
* Odfjells ownership share in the respective tank terminals is show in percentage
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Odfjell Terminals (Rotterdam) update
Odfjell Terminals (Rotterdam) has reached agreements in principle with the
Unions and the Works Counsil regarding downsizing and reorganisation
Have together created a foundation to secure more than 250 jobs at the terminal
The re-commissioning project at Odfjell Terminals (Rotterdam) is slightly
delayed relative to earlier plans
717 000 cbm is approved for usage per end of January
The remaining capacity will gradually be broght back into services and about 1.2
million cbm will be ready by end of 2Q 2013
Expects slightly negative EBITDA for the full 2013
Operational review
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Market update - chemical tankers Chemical tanker market improved towards year end
Regional activities, except in South America, remained disappointing in 2012
Contracts are renewed at higher rates
Time charter earnings up by 7.8% compared to third quarter
Market update and prospects
M k t d t d t
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Core Chemical Deep-sea Fleet 1997-2016Orderbook and estimated demolition per 08 February 2013
* Outphasing 30 years (Europe built) and 25 years (Asian built)Source: Odfjell FLEETBASE
-800
-400
0
400
800
1,200
1,600
2,000
97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
'000 Dwt
-5.0%
-2.5%
0.0%
2.5%
5.0%
7.5%
10.0%
12.5%
Deliveries Orderbook
Actually demolished Estim. vessel outphasing*
Net Fleet Growth (%)
% of year-start fleet
Market update and prospects
M k t d t d t
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Prospects
US and China economic development has improved during 2012
Supply/demand picture continues to move in our favour. The supply overhang
may be prolonged
Challenging markets and high fuel costs are also main concerns in 2013
Improved tank terminal activities and inquiries for storage
Expect improved earnings in the tank terminal division in the first quarter of 2013
Market update and prospects
S
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Summary
Poor 2012 results on a weak chemical tanker market and significant losses at
Odfjell Terminal (Rotterdam)
Letter of Intent signed with Lindsay Goldberg
Solid balance sheet and strong liquidty position
We see improved markets in 2013
Summary
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Company representatives
Jan A. HammerCEO, Odfjell SE
Email: [email protected]
Phone: +47 908 39 719
IRcontact:
Tom A. HaugenVP Finance, Odfjell SE
Email: [email protected]
Phone: +47 905 96 944
Terje IversenCFO, Odfjell SE
Email: [email protected]
Phone: +47 932 40 359
Q&A session
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Thank you
For more information please visit our webpage at www.odfjell.com
Q&A session