American Shipping Company ASA Presentation of Q4 2017 14 February 2018
Important information Nothing herein shall create any implication that there has been no change in the affairs of American Shipping Company ASA ("AMSC" or the "Company") as of the date of this Company Presentation. This Company Presentation contains forward-looking statements relating to the Company's business, the Company's prospects, potential future performance and demand for the Company's assets, the Jones Act tanker market and other forward-looking statements. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements contained in this Company Presentation, including assumptions, opinions and views of the Company or cited from third party sources, are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development.
Fourth Quarter 2017 Highlights Adjusted net profit of USD 4.0 million* Normalized EBITDA** of USD 22.1 million • No profit share • DPO of USD 0.9 million Declared Q4 dividend of USD 0.08 per share, consistent with prior guidance • Ex-dividend date of 20 February 2018 with payment on or about 1 st March 2018 • Classified as a return of paid in capital Improved market conditions for Jones Act tankers • Increasing demand for transportation of both crude oil and clean products • Limited supply growth going forward • TCE rates for short term fixtures reportedly above USD 50,000 per day * Net profit after tax, adjusted for non-recurring items, currency fluctuations, mark-to-market of derivatives and changes to deferred tax ** Includes DPO, reported EBITDA for Q4 17 is USD 21.2 million 3
Stable, Predictable EBITDA Normalized EBITDA* (USD millions) Normalized EBITDA* per quarter (USD millions) 26 100 3 6 1 11 10 24 4 4 3 3 90 2 4 4 1 1 1 3 22 1 1 1 1 1 1 1 1 1 1 1 80 20 70 18 16 60 14 50 12 85 85 85 85 22 40 21 21 21 21 21 21 21 21 21 21 21 10 30 8 20 6 4 10 2 0 0 2014 2015 2016 2017 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Profit Share DPO Reported EBITDA Profit Share DPO Reported EBITDA • Normalized EBITDA* of USD 22.1 million in Q4 17 (USD 24.3 million in Q4 16) • No profit share in Q4 17 (USD 1.8 million in Q4 16) • DPO of USD 0.9 in Q4 17 (USD 1.0 million in Q4 16) * Including Profit Share (except 2017 when profit share was zero) and DPO. Reported EBITDA for Q4 17 is USD 21.2 million 4
Fleet Deployment Overview Long-term fixed rate bareboat charters to OSG secures cash flow Vessel 2017-19 2019 - beyond End users Anacortes BBC BBC Options • AMSC’s fleet is on firm BB Charters to OSG until Boston BBC BBC Options December 2019* plus evergreen extension Houston BBC BBC Options options Long Beach BBC BBC Options • AMSC receives fixed annual bareboat revenue of Los Angeles BBC BBC Options USD 88 million + ~50% of the profits generated by Martinez BBC BBC Options OSG under the time charter contracts BBC New York BBC Options • OSG time charters the vessels to oil majors for BBC BBC Options Nikiski U.S domestic trade BBC BBC Options Texas City BBC* BBC Opt. Tampa * All vessels excluding Overseas Tampa which is contracted to June 2025 5
A Critical Part of Oil Majors’ Transportation Logistics Jones Act crude oil & products primary trade routes BAKKEN 3 2 Patoka, IL 5 PERMIAN EAGLE FORD Key US Oilfields 4 Corpus Christi 1 Key Pipeline / rail 6 Barges 1 US GULF Jones Act Tanker Routes: 1 5 Gulf Coast refineries to Florida and East Coast (Clean) Delaware Bay Lightening (Crude) 2 6 Mid-Atlantic to New England (Clean) Shuttle tankers from deep water U.S. Gulf to Gulf Coast Refineries (Crude) 3 Alaska and Intra-west coast movements (Clean/Dirty) 7 Crude from Corpus Christi, TX to LOOP (not shown) 4 Cross-Gulf movements (Dirty) 6
Majority of Fleet carry Clean Products, but Swing Demand Derived from Shale Transportation Jones Act tanker fleet deployment by main trades (Tankers and ATBs) 2 % 4 % 7 % 22 % Idle MSC 16 % Chemicals West Coast Clean USG Crude Oil 49 % 7 Source: Navigistics’ Wilson Gillette Report, Dec 2017 and AMSC analysis
Increasing Clean Product Volumes Seaborne products transport from Gulf Coast to East Coast is very consistent (Mbbls per month) 25 20 Mbbl 15 10 East Coast (PADD 1) Receipts by Tanker and Barge from Gulf Coast (PADD 3) of Total Petroleum Products 8 Sources: EIA
Crude Shipping Volumes Stabilizing Intra Gulf whilst Returning to Peak Levels on East Coast Intra PADD 3 Crude Oil Moves by Area of Loading, PADD 3 to PADD 1 Crude Oil Moves by Tanker and Barge (KBD’s) (Mbbls per month) 6 5 4 Mbbl 3 2 1 0 jan ‐ 2013 mar ‐ 2013 mai ‐ 2013 jul ‐ 2013 sep ‐ 2013 nov ‐ 2013 jan ‐ 2014 mar ‐ 2014 mai ‐ 2014 jul ‐ 2014 sep ‐ 2014 nov ‐ 2014 jan ‐ 2015 mar ‐ 2015 mai ‐ 2015 jul ‐ 2015 sep ‐ 2015 nov ‐ 2015 jan ‐ 2016 mar ‐ 2016 mai ‐ 2016 jul ‐ 2016 sep ‐ 2016 nov ‐ 2016 jan ‐ 2017 mar ‐ 2017 mai ‐ 2017 jul ‐ 2017 sep ‐ 2017 nov ‐ 2017 jan ‐ 2018 PADD 3 to PADD 1 Crude Oil Moves JA USG loading of 650m bbls per day utilizes Volumes in East Coast trade is back to ~5 ~11 vessels for USG crude trade (assuming 5 tankers, up from ~1 tanker days roundtrip) Volumes driven by spread in pricing of US oil vs Volumes poised to recover international alternatives - Argus Houston vs. Bonny Light 9 Source: ClipperData December 2017, EIA, Marine Traffic and AMSC analysis
Oil Price Spread - Key Driver for Increase in PADD 3 to PADD 1 Crude Shipping Volumes PADD 3 to PADD 1 Crude Oil Moves by Number of Crude Oil Price Spread - Argus Houston vs. Bonny Light Tanker Liftings 9 3 8 2,5 7 2 6 1,5 5 1 4 0,5 3 0 2 ‐ 0,5 1 ‐ 1 feb. 16 mar. 16 apr. 16 mai. 16 jun. 16 jul. 16 aug. 16 sep. 16 okt. 16 nov. 16 des. 16 jan. 17 feb. 17 mar. 17 apr. 17 mai. 17 jun. 17 jul. 17 aug. 17 sep. 17 okt. 17 nov. 17 des. 17 0 ‐ 1,5 aug.17 sep.17 okt.17 nov.17 des.17 jan.18 YTD feb.18 ‐ 2 Steady cargo growth in Q4 2017 Crude loaded in Houston vs. West Africa needs to be minimum $1.50 cheaper to be competitive ~ 5 tankers in shuttle activity from U.S. Gulf up for U.S. East Coast Refiners to North East refineries Spread has been sufficiently wide since YTD 10x cargoes delivered or in transit Aug/Sept 2017 10 Source: Bloomberg, Pareto
Limited Remaining Fleet Growth and Scrapping Continues Fleet profile by vessel age Considerable fleet growth over the last 3 years, but scrapping likely to bring fleet back to 2015 levels # vessels Scrap/lay up AMSC Kbbls Capacity Projected Actual ATBs 11 30000 Tankers 10 9 25000 8 2015 levels 20000 7 Candidates for 6 scrapping 15000 5 4 10000 3 2 5000 1 0 0 50 45 40 35 30 25 20 15 10 5 1 2012 2013 2014 2015 2016 2017 2018 2019 Fleet Scrapping 11 Source: Navigistics’ Wilson Gillette Report Dec 2017, broker reports and AMSC analysis
Income Statement (unaudited) Figures in USD million (except share and per share information) Q4 2017 Q4 2016 Operating revenues 22.1 22.1 Operating expenses (0.9) (0.6) Operating profit before depreciation - EBITDA 21.2 21.5 Depreciation (8.3) (8.7) Operating profit - EBIT 12.9 12.8 Gain on investments (0.5) 2.2 Net interest expense (10.2) (9.2) Unrealized gain/(loss) on interest swaps 1.8 6.3 Net foreign exchange gain/(loss) 0.0 0.0 Profit/(loss) before income tax 4.0 12.1 Income tax expense (2.3) 0.0 Non-cash income tax expense 4.7 (4.6) Net profit for the period * 6.4 7.5 Average number of common shares 60,616,505 60,616,505 Earnings/(loss) per share (USD) 0.11 0.12 *Applicable to common stockholders of the parent company 12
Balance Sheet (unaudited) Figures in USD millions 31.12.2017 31.12.2016 Vessels 745.6 779.5 Interest-bearing long term receivables (DPO) 28.7 30.6 Other non current assets 16.6 27.6 Derivative financial assets 1.7 0.0 Trade and other receivables 0.2 0.3 Cash held for specified uses 2.3 2.3 Cash and cash equivalents 52.0 49.1 TOTAL ASSETS 847.1 889.4 Total equity 183.3 195.7 Deferred tax liabilities 15.2 17.4 Interest-bearing long term debt 600.1 636.1 Derivative financial liabilities 0.0 0.1 Interest-bearing short term debt 28.3 28.3 Deferred revenues and other payables 20.2 11.8 TOTAL EQUITY AND LIABILITIES 847.1 889.4 13
Cash position increased during the quarter CASH DEVELOPMENT IN 4Q 17 (USD millions) 4.3 7.3 21.2 0.8 54.3 4.8 48.7 OB Cash EBITDA Interest Amortization Dividends Other CB Cash 14
Recommend
More recommend
