Preliminary full year/Fourth quarter presentation 2019 February 11, 2020
Agenda Highlights Financials Operational review/Strategy Prospects and Market update
Highlights Highlights 4Q19 Key figures, USD mill (USD mill, 1Q19 2Q19 3Q19 4Q19 4Q18 FY19 FY18 unaudited) Improving results driven by continued recovery in the chemical tanker markets Odfjell Tankers 218.3 223.1 214.2 215.6 221.3 871.3 850.8 Odfjell Terminals 17.6 17.9 16.4 18.0 17.2 69.8 91.0 Revenues* 238.3 243.2 232.7 235.3 241.1 949.5 950.5 EBITDA of USD 58 mill, compared with USD 51 mill 3Q19 Odfjell Tankers 39.7 49.9 44.7 50.1 27.0 184.4 108.7 6.7 6.2 6.0 7.8 4.8 26.7 24.0 Odfjell Terminals 47.2 56.8 51.4 58.0 32.7 213.4 135.3 EBITDA* EBITDA of USD 50 mill from Odfjell Tankers, compared with USD 45 mill 3Q19 EBIT 7.0 14.4 25.9 11.7 (13.0) 59.0 (76.4) Net profit (15.4) (10.1) (1.1) (10.0) (47.6) (36.6) (210.8) EBITDA of USD 8 mill from Odfjell Terminals, compared to USD 6 mill 3Q19 EPS** (0.20) (0.13) (0.01) (0.13) (0.60) (0.47) (2.68) ROE*** (10.5 %) (6.1 %) (7.6 %) (5.6 %) (17.6)% (6.4%) (29.8%) 1.4 % 2.8 % 2.7 % 2.8 % (1.1)% 2.8% (8.1%) ROCE*** Net result of USD -10 mill compared to USD -1 mill last quarter. 1) Historical figures are not adjusted for IFRS16 *Includes figures from Odfjell Gas ** Based on 78.7 million outstanding shares *** Ratios are annualised Adjusted for non-recurring items, net results were USD -7 mill in 4Q19, compared to adjusted net results of USD -15 mill last quarter Spot rates on main tradelanes increased by 12% compared to 3Q19, and our COA “2019 was the year were the chemical tanker market began its recovery and we rate renewals were up 6.5% in 2019 continue to believe in further strengthening based on healthy fundamentals. The start of 4Q19 was negatively impacted by geopolitical tension in the Middle December 2019 was first month with profit from underlying operations since 2017 East, but the quarter ended on a strong note. We have also experienced a successful transition to the use of new compliant fuel in line with new IMO 2020 regulations. We expect further improvements in our results in 1Q20 " Kristian Mørch, CEO Odfjell SE 3
Highlights Highlights FY2019: Chemical tanker markets improved compared to 2018, but the recovery was gradual and still not at sustainable levels FY 2019 Net results was USD -37 mill compared to USD -211 mill in 2018. Adjusted for non-recurring items and IFRS 16 Results effects, net results improved by USD 33 mill compared to 2018 Odfjell Tankers Spot rates improved throughout the year on main tradelanes (up 25%) and COA rates followed suit being up 6.5% for the year Odfjell Terminals Concluded the reorganisation of Odfjell Terminals and sold our terminal in Jiangyin at an attractive price Market Tonne-mile demand surpassed supply growth for the second year in a row – Growth in swing tonnage stagnated development Spot rates improves Spot rates improves Flat spot rates Spot rates improves Quarterly Market turnaround end 4Q-18 Reduced COA coverage COA rates on upward trend Seasonally weaker volumes Low volumes due to Middle Closes down Rotterdam ofice Sale of Jiangyin terminal East tension highlights and 79 gross profit 76 70 68 64 11 11 10 11 development 10 65 68 61 57 54 2019 4Q-18 1Q-19 2Q-19 3Q-19 4Q-19 Odfjell Terminals Odfjell Tankers 4
Agenda Highlights Financials Operational review/Strategy Prospects and Market update
Financials Income statement 1 – Odfjell Group by division USD mill Tankers Terminals Total * Key quarterly deviations: 3Q19 4Q19 3Q19 4Q19 3Q19 4Q19 Gross revenue 214.2 215.6 16.4 18.0 232.7 235.3 Gross revenues higher driven by higher spot rates. Voyage expenses lower due to increased off-hire days Voyage expenses (88.2) (85.9) — — (89.1) (86.7) Pool distribution (13.0) (13.5) — — (13.0) (13.5) Re-delivery of two vessels on timecharter end-3Q reduced TX Timecharter Earnings 113.0 116.2 16.4 18.0 130.6 135.1 expenses for the quarter. This is expected to increase again in 1Q20 TC expenses (10.5) (8.8) — — (10.7) (8.8) Operating expenses (36.3) (34.8) (6.8) (6.8) (43.7) (42.4) USD 2.4 mill impairment related to sale of Bow Andes (built 1995). Drydocking and instalments of ballast water treatment Operating expenses – IFRS 16 adjusted (5.6) (5.6) — — (5.6) (5.6) system could not be economically justified G&A (15.8) (16.9) (3.5) (3.4) (19.4) (20.2) EBITDA 44.7 50.1 6.0 7.8 51.4 58.0 Net interest expenses decreased following repayment of bond that matured in September 2019 Depreciation (23.3) (24.2) (5.2) (5.3) (28.6) (29.9) Depreciation – IFRS 16 adjusted (12.8) (13.0) (0.1) (0.1) (12.9) (13.2) Improved revenues from Odfjell Terminals driven by higher activity at our Houston and Dalian terminal Impairment — (2.4) 0.1 (0.7) 0.1 (3.1) Capital gain/loss — — 15.9 (0.2) 15.9 (0.1) Contribution from Odfjell Gas was reduced by USD 1 mill EBIT 8.7 10.5 16.6 1.4 25.9 11.7 compared to 3Q19 due to drydocking of one vessel Net interest expenses (21.8) (19.9) (1.1) (1.2) (23.2) (22.2) Adjusted for non-recurring items, adjusted EPS for Odfjell was USD -0.08 compared to adjusted EPS of USD -0.17 in the previous Other financial items (1.3) 0.0 (0.4) 0.0 (1.6) (0.1) quarter Net finance (23.0) (19.9) (1.7) (1.2) (24.7) (21.2) Taxes (0.5) (0.1) (1.8) (0.4) (2.3) (0.5) Net results (14.8) (9.4) 13.2 (0.2) (1.1) (10.0) EPS (0.18) (0.12) — — (0.01) (0.12) Voyage days 6,243 6,216 — — 6,243 6,216 1. Proportional consolidation method *Total Includes contribution from Gas Carriers classified as held for sale 6
Financials Balance sheet 31.12.2019 1 - Odfjell Group Assets, USD mill 3Q19 4Q19 Equity and liabilities, USD mill 3Q19 4Q19 Ships and newbuilding contracts 1,379.4 1,403.0 Total equity 554.6 551.2 Rights of use assets 218.3 207.9 Non-current interest bearing debt 893.2 973.5 Investment in associates and JVs 161.2 161.6 Non-current interest bearing debt, right of use assets 177.1 167.3 Other non-current assets/receivables 25.3 22.3 Non-current liabilities and derivatives 37.9 26.8 Total non-current assets 1,783.9 1,795.5 Total non-current liabilities 1,108.2 1,167.6 Cash and cash equivalent 111.5 100.8 Current portion of interest bearing debt 199.3 158.7 Current receivables 79.5 89.2 Current portion of interest bearing debt, right of use assets 45.9 46.3 Other current assets 23.8 32.7 Other current liabilities and derivatives 91.0 94.6 Total current assets 214.8 222.8 Total current liabilities 336.2 299.5 Total assets 1,998.7 2,018.3 Total equity and liabilities 1,998.7 2,018.3 Book value of ships increased following the delivery of one newbuilding during the quarter Increased debt relates to financing of newbuilding delivery 1. Equity method 7
Financials Cash flow – 31.12.2019 – Odfjell Group 1 Cash flow, USD mill 1Q19 2Q19 3Q19 4Q19 FY19 FY18 Improved underlying operating cash flow driven by Net profit (14.9) (9.5) (1.7) (9.8) (35.9) (209.3) stronger rates as improved working capital was the main driver in 3Q19 Adjustments 33.8 35.8 39.0 38.9 147.5 104.6 Change in working capital (5.8) (14.8) 21.8 (8.5) (7.3) (20.6) Final instalment on 2nd newbuilding from Hudong Shipyard (Bow Olympus) Other (1.9) 5.7 21.8 4.2 (5.6) 167.9 Cash flow from operating activities 11.2 17.2 45.5 24.8 98.7 42.6 Sale of ships, property, plant and equipment 2.0 — — — 2.0 — Investments in non-current assets (17.4) (14.3) (57.7) (57.4) (146.8) (193.9) Dividend/ other from investments in Associates and JV's — — 20.7 — — 81.1 Other 0.1 (0.1) 0.8 — (1.0) 14.0 Cash flow from investing activities (15.3) (14.2) (36.2) (57.4) (123.1) (98.8) New interest bearing debt 20.5 (0.6) 268.5 101.5 370.0 301.3 Repayment of interest bearing debt (35.8) (24.8) (238.9) (67.6) (367.1) (267.8) Payment of operational lease debt (9.9) (11.3) (11.7) (12.1) (45.0) Dividends — — — — — (14.6) Other — — — — — (1.2) Cash flow from financing activities (25.2) (36.7) (2.0) 21.8 (42.1) 17.7 Net cash flow* (29.3) (33.6) 7.0 (10.7) (66.6) (39.0) 1. Equity method 2. * After FX effects 8
Financials Bunker expenses – 31.12.2019 – Odfjell Tankers 50 Bunker costs after bunker adjustment clauses was USD 40 mill, in line with previous quarter 45 Bunker adjustment clauses hedged 52% of our total volumes during the quarter 40 Loading of VLSFO commenced in early December on average and consumption commenced late December. FIFO principle used for bunkers means VLSFO not reflected in 4Q19 bunker costs (except 35 USD mill bunker consumption in Santos) We have zero bunker hedges in place for 2020 46.7 30 40.8 40.0 40.1 39.3 25 Average Platts bunker cost by fuel type USD per metric tonne 700 20 639 602 582 564 564 516 558 600 463 455 500 412 410 15 400 350 330 4Q18 1Q19 2Q19 3Q19 4Q19 300 47.0 46.0 Gross bunker cost 55.9 47.4 46.9 200 (0.1) 0.1 Financial hedging - (0.4) (0.6) 100 (1.7) (1.3) Adj. Clauses (4.9) (1.2) (1.8) 0 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 3 rd party vessels (5.1) (4.7) (4.3) (5.1) (5.3) HFO Singapore MGO Rotterdam VLSFO Santos 40.0 40.1 Net bunker cost 46.7 40.8 39.3 9
Recommend
More recommend
