Third Quarter 2015 Results 12 November 2015 2 Market update and - PowerPoint PPT Presentation

Third Quarter 2015 Results 12 November 2015

2 Market update and prospects Operational review Project Felix Financials Highlights Agenda Q&A • • • • • •

Highlights Highlights • Continued improved operational performance, net result of USD 7 mill • Chemical Tankers EBITDA was USD 46 mill compared with USD 42 mill in 2Q15. EBITDA includes negative effects from bunker derivatives of USD 17 mill • Odfjell chemical freight index (ODFIX) result up 1% compared with previous quarter ODFIX Annualised EBITDA¹ 200 350 300 180 Index 1990=100 250 160 200 USD mill 140 Quartely 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 • Cost-cutting and efficiency programme is on schedule • Stable and slightly improved results from Odfjell Terminals • Harald Fotland appointed new Head of Odfjell Tankers First Poland vessel Bow Summer during upgrading with new propulsion concept 4

Financials Income statement¹ - Third quarter 2015 Odfjell Group 3Q15 2Q15 USD mill Gross revenue 276 279 Voyage expenses (106) (104) TC expenses (42) (45) Operating expenses (48) (50) General and administrative expenses (23) (27) Operating result before depr. (EBITDA) 57 53 Depreciation (30) (31) Impairment (0) (10) Operating result (EBIT) 26 12 Net finance (18) (5) Taxes (1) (0) Net result 7 7 hallo ¹ Proportional consolidation method 5

Financials EBITDA variance¹ - Odfjell Group USD mill. 6.5 60 56.7 3Q14 vs 3Q15: 3Q14 vs 3Q15: 11.3 50 EBITDA increased by 81% EBITDA increased by 81% 5.2 40 18.9 OPEX down 19% OPEX down 19% 31.2 30 G&A down 22% G&A down 22% 20 (16.4) 10 0 USD mill. 60 4.3 56.7 2.1 52.6 2Q15 vs 3Q15: 2Q15 vs 3Q15: 2.8 50 (3.4) EBITDA increased by 8% EBITDA increased by 8% (1.7) 40 OPEX down 4% OPEX down 4% 30 G&A down 16% G&A down 16% 20 10 0 6 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 • • Increased EBITDA in five consecutive quarters Increased EBITDA in five consecutive quarters • • EBITDA has increased by 81% compared with 3Q14 EBITDA has increased by 81% compared with 3Q14 ¹ Proportional consolidation method 7

Financials Quarterly figures Operating Result (EBIT )¹ 40 26 23 • • EBIT 3Q includes negative effect of EBIT 3Q includes negative effect of 12 20 8 5 5 5 bunkers hedging USD 17.0 mill bunkers hedging USD 17.0 mill 0 • • Unrealized value on derivatives negative Unrealized value on derivatives negative -6 -20 USD 3.8 mill in 3Q, compared with gain USD 3.8 mill in 3Q, compared with gain USD mill -15 -15 USD 11.3 mill in 2Q USD 11.3 mill in 2Q -40 • • Restructruring of financial lease gave USD Restructruring of financial lease gave USD -60 4.2 mill in interest income in 3Q 4.2 mill in interest income in 3Q -80 -100 -99 -120 2013 2014 2015 Net Finance² Net Result 15 30 10 9 7 7 10 5 9 7 0 1 0 -10 -2 USD mill -7 -7 -7 -9 -5 -9 -9 -9 -9 -9 -11 -10 -12 -13 USD mill -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 2013 2014 2015 2014 2015 oooo ¹ Proportional consolidation method ² Equity method 8

Financials Results per segment¹ 3Q15 Annualised EBITDA¹ 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 3Q15 2Q15 LPG/ LPG/ Chemical Tank Chemical Tank USD mill tankers terminals Ethylene tankers terminals Ethylene Gross revenue 244 28 4 247 28 5 EBITDA 46 10 1 42 10 1 EBIT 24 2 0 10 2 1 ¹ Proportional consolidation method 9

Financials Income statement¹ – 3Q15 chemical tankers 3Q15 2Q15 USD mill Gross revenue 244 247 Voyage expenses (104) (102) TC expenses (41) (44) Operating expenses (34) (36) General and administrative expenses 2 (19) (23) Operating result before depr. (EBITDA) 46 42 Depreciation (22) (23) Impairment (0) (10) Operating result (EBIT) 24 10 • • Bunker adjustment clauses impacted the gross revenue negatively USD 9.9 mill Bunker adjustment clauses impacted the gross revenue negatively USD 9.9 mill (USD 6.9 mill in 2Q) (USD 6.9 mill in 2Q) • • EBITDA includes negative effects from bunker hedging derivatives USD 17.0 mill EBITDA includes negative effects from bunker hedging derivatives USD 17.0 mill hhhhhh (USD 12.1 mill in 2Q) (USD 12.1 mill in 2Q) hhhhhh h ¹ Proportional consolidation method h 2 Including corporate functions 10

Financials EBITDA variance – chemical tankers USD mill. 50 46.0 6.4 3Q14 vs 3Q15: 3Q14 vs 3Q15: 9.5 40 EBITDA increased by 74% EBITDA increased by 74% 4.1 30 26.4 35.5 20 10 (13.1) (5.6) 0 -10 (17.2) USD mill. 50 46.0 4.1 2Q15 vs 3Q15: 2Q15 vs 3Q15: 1.9 41.9 0.3 2.8 40 3.0 EBITDA increased by 10% EBITDA increased by 10% (3.0) (5.0) 30 20 10 0 11

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 Total Crew Total Crew • • Project Felix initiatives give significant positive results Project Felix initiatives give significant positive results • • Operating expenses (USD / day) reduced by 18% YTD compared to FY2014 Operating expenses (USD / day) reduced by 18% YTD compared to FY2014 • • Expect stabilizing opex at competitive levels Expect stabilizing opex at competitive levels 12

Financials Bunker development Net Bunker Cost 80 71.6 70 63.0 64.5 63.7 16.6 60 57.9 14.7 17.0 2.7 50 12.1 USD mill 10.0 6.9 9.9 40 30 66.4 52.3 20 39.9 38.9 36.8 10 - (3.2) (0.2) (10) (20) 3Q14 4Q14 1Q15 2Q15 3Q15 Bunker purchase Bunker clauses Bunker hedging Net bunker cost Platts 3.5% FOB Rotterdam • Net bunker cost in 3Q USD 445 per tonne before • Net bunker cost in 3Q USD 445 per tonne before 800 hedging vs. USD 436 in 2Q hedging vs. USD 436 in 2Q 700 • 50% of the remaining 2015 exposure is hedged at • 50% of the remaining 2015 exposure is hedged at 600 500 average USD 527 per tonne average USD 527 per tonne USD/mt 400 • Bunker clauses in CoAs cover about 50% of the • Bunker clauses in CoAs cover about 50% of the hallooooo 300 exposure exposure 200 • 7% of 2016 exposure is hedged at average USD • 7% of 2016 exposure is hedged at average USD 100 oooooooo 255 per tonne 255 per tonne 0 10 11 12 13 14 15 oooooo 13

Financials Income statement¹ – 3Q15 tank terminals 3Q15 2Q15 USD mill Gross revenue 28 28 Operating expenses (13) (14) General and administrative expenses (5) (5) Operating result before depr. (EBITDA) 10 10 Depreciation (8) (8) Operating result (EBIT) 2 2 • • The tank terminal result is stable but at unsatisfactory levels The tank terminal result is stable but at unsatisfactory levels • • The occupancy rate at 94% The occupancy rate at 94% ¹ Proportional consolidation method 14

Financials Tank terminals EBITDA – by geographical segment YTD 2015 20 15 • • Stable results in all areas Stable results in all areas 15 11 • • Slightly positive EBITDA at OTR in September Slightly positive EBITDA at OTR in September USD mill 10 6 • • Additional available capacity contributed to a Additional available capacity contributed to a 5 slight increase in the EBITDA at our terminals in slight increase in the EBITDA at our terminals in 0 North America North America -5 ‐ 4 Europe North Asia Middle East America EBITDA Tank Terminals by 3Q15 2Q15 geographical segment Europe (0) (1) North America 5 5 Asia 3 4 Middle East 2 2 Total EBITDA 10 10 15