Fourth Quarter / Preliminary 2015 Results 10 February 2016
2 Market update and prospects Operational review Project Felix Financials Highlights Agenda Q&A • • • • • •
Highlights Highlights – Full year 2015 • Significant improvement in underlying performance. Net result of negative USD 36 mill, including negative effect from bunker derivatives of USD 64 mill, compared with net result of negative USD 75 mill in 2014 • Improved full year EBITDA to USD 190 mill from USD 96 mill last year • OPEX reduced by USD 53 mill compared with 2014 • Project Felix (cost-cutting and efficiency programme) successfully completed, ahead of target of more than USD 100 mill in annual savings • Fuel efficiency initiatives continue to be implemented. Average fuel savings for converted ships is above 20% ODFIX EBITDA¹ 200 350 300 180 Index 1990=100 250 160 200 USD mill 140 Quarterly average 2006-2015 150 120 100 100 50 0 80 06 07 08 09 10 11 12 13 14 15 06 07 08 09 10 11 12 13 14 15 -50 Chemical tankers Tank terminals LPG/Ethylene ¹ Proportional consolidation method according to actual historical ownership share 3
Highlights Highlights – 4Q 2015 • Stable underlying operational performance in fourth quarter, but softer markets towards the end of quarter • Quarterly net result of negative USD 18 mill on one-offs and negative results from bunker hedging • Chemical Tankers EBITDA in fourth quarter was USD 33 mill compared with USD 46 mill in third quarter. EBITDA includes negative effects from bunker derivatives of USD 20.5 mill • Odfjell chemical freight index (ODFIX) down 4.4% compared with previous quarter • Stable results from Odfjell Terminals in fourth quarter, but USD 2.5 mill write-off of greenfield project in China • Odfjell Terminals (Rotterdam) has commitments for new contracts that will ramp up during the first half of 2016 and utilise the majority of the distillation (PID) capacity for 2016 4
Financials Income statement¹ - Fourth quarter 2015 Odfjell Group 4Q15 3Q15 USD mill Gross revenue 253 276 Voyage expenses (95) (106) TC expenses (40) (42) Operating expenses (47) (48) General and administrative expenses (25) (23) Operating result before depr. (EBITDA) 45 57 Depreciation (32) (30) Impairment (13) (0) Operating result (EBIT) (0) 26 Net finance (15) (18) Taxes (2) (1) Net result (17) 7 hallo ¹ Proportional consolidation method 5
Financials Income statement¹ - Preliminary full year 2015 Odfjell Group 2015 2014 USD mill Gross revenue 1 068 1 160 Voyage expenses (409) (501) TC expenses (167) (192) Operating expenses (200) (253) General and administrative expenses (102) (118) Operating result before depr. (EBITDA) 190 96 Depreciation (124) (124) Impairment (24) 0 Capital gain/loss on fixed assets (0) 7 Operating result (EBIT) 43 (20) Net finance (74) (71) Taxes (4) 16 Net result (36) (75) hallo ¹ Proportional consolidation method 6
Financials EBITDA variance¹ - Odfjell Group USD mill. 60 4Q15 vs 4Q14: 4Q15 vs 4Q14: 50 10,5 * 45,3 EBITDA increased by 35% EBITDA increased by 35% (1,7) 40 2,1 23,6 33,5 OPEX down 18% OPEX down 18% 30 * Net income of USD 5.8 mill in * Net income of USD 5.8 mill in 20 4Q14 related to Project Felix 4Q14 related to Project Felix 10 (22,6) 0 USD mill. 60 56,7 4Q15 vs 3Q15: 4Q15 vs 3Q15: 50 2,0 1,1 45,3 10,8 EBITDA decreased by 20% EBITDA decreased by 20% (2,5) 40 OPEX down 2% OPEX down 2% (22,8) 30 20 10 0 7 ¹ Proportional consolidation method
Financials Quarterly figures¹ - Odfjell Group EBITDA Gross Revenue 60 350 300 50 250 40 USD mill USD mill 200 30 150 20 100 10 50 0 0 2013 2014 2015 2013 2014 2015 • • Reduced revenue due to bunker surcharge clauses Reduced revenue due to bunker surcharge clauses • • Strong increase in 2015 EBITDA despite negative effect from bunker derivatives Strong increase in 2015 EBITDA despite negative effect from bunker derivatives ¹ Proportional consolidation method 8
Financials Quarterly figures – Odfjell Group Operating Result (EBIT )¹ 40 26 23 • • EBIT 4Q includes negative effect of EBIT 4Q includes negative effect of 12 20 8 5 5 5 bunkers hedging USD 20.5 mill and bunkers hedging USD 20.5 mill and 0 0 impairment of USD 13 mill impairment of USD 13 mill -6 -20 USD mill -15 -15 -40 -60 -80 -100 -99 -120 2013 2014 2015 Net Finance² Net Result 15 30 10 9 7 7 5 10 9 7 0 1 1 0 -10 -2 USD mill -7 -7 -7 -5 -9 -9 -9 -9 -9 -11 -9 -10 -12 -12 -13 USD mill -17 -17 -30 -22 -10 -26 -7 -5 -6 -32 -15 -15 -50 -10 -20 -20 -70 haallooo -25 -90 -30 oooooo Net interest Other financial/currency -110 -102 2013 2014 2015 2013 2014 2015 oooo ¹ Proportional consolidation method ² Equity method 9
Financials Results per segment¹ EBITDA¹ 4Q15 100 % 350 90 % 300 80 % 250 70 % 200 60 % USD mill 50 % 150 40 % 100 30 % 50 20 % 0 10 % 06 07 08 09 10 11 12 13 14 15 0 % -50 Gross revenue EBITDA Assets Chemical tankers Tank terminals LPG/Ethylene Chemical tankers Tank terminals LPG/Ethylene 4Q15 3Q15 LPG/ LPG/ Chemical Tank Chemical Tank USD mill tankers terminals Ethylene tankers terminals Ethylene Gross revenue 219 29 5 244 28 4 EBITDA 33 11 1 46 10 1 EBIT 0 (1) 1 24 2 0 ¹ Proportional consolidation method 10
Financials Income statement¹ – 4Q15 chemical tankers 4Q15 3Q15 USD mill Gross revenue 219 244 Voyage expenses (93) (104) TC expenses (39) (41) Operating expenses (33) (34) General and administrative expenses 2 (21) (19) Operating result before depr. (EBITDA) 33 46 Depreciation (23) (22) Impairment (11) (0) Operating result (EBIT) (0) 24 • • Bunker adjustment clauses impacted the gross revenue negatively USD 12.5 mill Bunker adjustment clauses impacted the gross revenue negatively USD 12.5 mill (USD 9.9 mill in 3Q) (USD 9.9 mill in 3Q) • • EBITDA includes negative effects from bunker hedging derivatives USD 20.5 mill EBITDA includes negative effects from bunker hedging derivatives USD 20.5 mill (USD 17.0 mill in 3Q) (USD 17.0 mill in 3Q) hhhhhh • • G&A includes USD 1.9 mill in one off items related to bonus awarded for Project Felix results G&A includes USD 1.9 mill in one off items related to bonus awarded for Project Felix results hhhhhh h ¹ Proportional consolidation method h 2 Including corporate functions 11
Financials Quarterly figures - Chemical tankers EBITDA adjusted for non-recurring items Operational EBITDA USD mill (adjusted for provisions and derivatives) 80 70 60 50 40 30 20 10 0 -10 -20 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 EBITDA Bunker derivatives Provisions • • In total USD 64.3 mill booked as voyage cost related to bunker derivatives in 2015, compared In total USD 64.3 mill booked as voyage cost related to bunker derivatives in 2015, compared hallooooo to USD 15.2 mill in 2014 to USD 15.2 mill in 2014 oooooooo • • EBITDA includes BACs with an effect of negative USD 39.2 mill in 2015 and USD 8.6 mill in 2014 EBITDA includes BACs with an effect of negative USD 39.2 mill in 2015 and USD 8.6 mill in 2014 oooooo • • Total provisions/one-offs of USD 5.5 mill in 2015 Total provisions/one-offs of USD 5.5 mill in 2015 12
Financials EBITDA variance – Chemical tankers USD mill. 50 4Q15 vs 4Q14: 4Q15 vs 4Q14: 40 7,4 33,1 EBITDA increased by 9% EBITDA increased by 9% 2,0 30,4 27,9 (3,0) 30 OPEX down 18% OPEX down 18% 20 (9,8) 10 (17,9) 0 (3,9) -10 USD mill. 50 46,0 4Q15 vs 3Q15: 4Q15 vs 3Q15: (2,6) 40 1,4 EBITDA decreased by 28% EBITDA decreased by 28% 2,0 33,1 14,6 (2,7) OPEX down 4% OPEX down 4% 30 20 (22,1) (3,5) 10 0 13
Financials Vessel operating expenses – Chemical tankers Quarterly USD / day Development USD / day per year 12 000 12 000 10 000 10 000 8 000 8 000 6 000 6 000 4 000 4 000 2 000 2 000 0 0 06 07 08 09 10 11 12 13 14 YTD15 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Total Crew Total Crew • • Project Felix initiatives give significant positive results Project Felix initiatives give significant positive results • • OPEX (USD / day) reduced by 19% in 2015 compared to 2014 OPEX (USD / day) reduced by 19% in 2015 compared to 2014 • • Expect OPEX at stable levels going forward Expect OPEX at stable levels going forward 14
Financials Bunker development Net Bunker Cost 80 71,6 70 64,5 63,7 16,6 57,9 59,5 60 14.68 17,02 2,7 50 12,06 20,53 USD mill 9,96 6,85 9,89 40 12,49 30 52,3 20 39,90 38,94 36,83 26,44 10 - (10) (20) 4Q14 1Q15 2Q15 3Q15 4Q15 Bunker purchase Bunker clauses Bunker hedging Net bunker cost Platts 3.5% FOB Rotterdam • Net bunker cost in 4Q USD 371 per tonne before • Net bunker cost in 4Q USD 371 per tonne before 800 hedging vs. USD 445 in 3Q hedging vs. USD 445 in 3Q 700 • Bunker clauses in CoAs cover about 50% of the • Bunker clauses in CoAs cover about 50% of the 600 500 exposure exposure USD/mt 400 • 7% of 2016 exposure is hedged at average USD • 7% of 2016 exposure is hedged at average USD hallooooo 300 255 per tonne 255 per tonne 200 100 oooooooo 0 11 12 13 14 15 16 oooooo 15
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