First Quarter 2012 Results
Conference call and webcast - 9 May 2012
1
AGENDA
•
•
•
•
•
•
•
Highlights
Financials 1Q 2012
Financials per segment
Operational review
Market update and prospects
Summary
Q&A Session
2
HIGHLIGHTS
• EBITDA first quarter 2012 of USD 41 million reflects improved
earnings in the chemical tanker segment
• Time charter results up 8% compared with fourth quarter last year
• The bunker cost increased further and remained high
• Tank terminal earnings remain steady
• Completed Bond issue of NOK 600 million
3
AGENDA
•
•
•
•
•
•
•
Highlights
Financials 1Q 2012
Financials per segment
Operational review
Market update and prospects
Summary
Q&A Session
4
FIRST QUARTER 2012
1Q12
4Q11
333
322
Voyage expenses
(148)
(150)
TC expenses
(44)
(42)
Operating expenses
(70)
(69)
General and administrative expenses
(30)
(31)
41
31
(32)
(32)
Capital gain/loss on fixed assets
1
(0)
Operating result (EBIT)
11
(1)
Net finance
(12)
(6)
Taxes
(3)
(1)
Net result
(4)
(8)
USD mill
Gross revenue
Operating result before depr. (EBITDA)
Depreciation
5
QUARTERLY GROSS REVENUE
from continued operation (previous quarters restated)
USD mill
350
309
300
271
260 263 255
256
322
333
268
250
200
150
100
50
0
2010
2011
2012
1,154
1,332
Annual figures
1,048
6
EBITDA
350
300
USD mill
250
200
150
100
50
0
12
20
11
20
10
20
Tank Containers
09
20
08
20
07
20
06
20
05
20
04
20
03
20
02
20
Tank Terminals
Chemical Tankers
* All figures reflect actual ownership. 2012 figures are annulised.
7
QUARTERLY OPERATING RESULT (EBIT)
from continued operation (previous quarters restated)
USD mill
15
12
10
11
8
5
2
0
-1
-5
-6
-7
-10
-10
-15
-13
2010
2011
2012
21
44
Annual figures
(36)
8
QUARTERLY NET FINANCE
from continued operation (previous quarters restated)
USD mill
15
10
11
5
0
-5
-10
2
1
-7 -8
-10 -11
2
5
2
0
-9 -10 -10
-11
Other financial/currency
Net interest
-12
-2
-7
-15
-20
2010
2011
2012
(35)
(48)
Annual figures
(30)
9
QUARTERLY NET RESULT
USD mill
300
261
250
200
150
100
50
0
11
5
0
-50
-100
-4
-8
-11
-4
-64
2010
2011
2012
269
(16)
Annual figures
(79)
10
DEBT PORTFOLIO
Per 31.03.12
1,200
1,000
800
600
400
200
0
2012
2013
Ending balance
2014
2015
2016
Repayment
11
DEBT REPAYMENTS
Per 31.03.12
300
250
USD mill
200
150
100
50
0
2012
2013
Secured loans
2014
Balloon
2015
Leasing
2016
NOK Bond
12
HEDGING – DEBT
Per 31.03.12
1,400
1,200
USD Mill
1,000
800
600
400
200
0
2012
Liquidity
2013
2014
Swapped to Fixed Rate
2015
2016
Floating Rate
13
BALANCE SHEET
Per 31.03.12
LIABILITIES
& EQUITY
ASSETS
Liquid assets
Other liabilities
Other fixed and current assets
Tank terminals
Ships & newbuildings
Interest bearing debt
Minority interest
Equity
14
CAPITAL EXPENSES
Per 31.03.11 – Odfjell share
2012
2013
Daewoo, 1 x 75 000 DWT
13
13
Chuandong, 3 x 9 000 DWT
9
Docking
27
Terminals
Total
In USD mill
2014
2015
2016
36
36
36
36
105
84
30
68
47
154
133
66
104
83
15
AGENDA
•
•
•
•
•
•
•
Highlights
Financials Q4 2011
Financials per segment
Operational review
Market Update / Prospects
Summary
Q&A Session
16
GROSS REVENUE, EBITDA AND ASSETS
PER SEGMENT
1Q 2012
100%
90%
41
80%
16
872
25
1,637
70%
60%
50%
40%
30%
294
20%
10%
0%
Gross Revenue
EBITDA
Assets
Chemical Tankers
Tank Terminals
17
RESULTS PER SEGMENT
1Q12
4Q11
Chemical
tankers
Tank
terminals
Chemical
tankers
Tank
terminals
Gross revenue
294
41
283
40
EBITDA
25
16
15
16
EBIT
3
8
(9)
8
(8)
4
(14)
6
USD mill
Net result
EBITDA Tank Terminals by
1Q12
4Q11
Europe
1
1
North America
4
4
Asia
8
7
Middle East
4
4
Net result
16
16
geographical segment
18
ODFIX
180
160
Index 1990 = 100
140
120
100
80
60
40
20
0
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
19
BUNKERS
Platts 3.5% FOB Rotterdam
USD/mt
800
700
600
500
400
300
200
100
0
12
20
11
20
10
20
09
20
08
20
07
20
20
NET BUNKER COST
USD mill.
Per 31.03.12
110
100
90
80
70
60
50
40
30
20
10
(10)
(20)
(30)
75.1
66.0
78.5
89.3
(6.5)
(11.2)
(5.9)
(3.0)
1Q11
Bunker purchase
2Q11
Bunker clauses
75.9
71.8
80.1
90.4
94.5
102.5
(15.5)
(15.7)
(20.3)
(3.2)
(3.0)
3Q11
4Q11
Bunker hedging
(2.1)
1Q12
Net bunker cost
21
AGENDA
•
•
•
•
•
•
•
Highlights
Financials Q4 2011
Financials per segment
Operational review
Market Update / Prospects
Summary
Q&A Session
22
FLEET DEVELOPMENT 2012
Fleet additions
DWT
Built
Tanks
Transaction
January 2012
Bow Andes
16 020
2000
January 2012
Southern Ibis
19 905
2009
Stainless
2 year TC
DWT
Built
Tanks
Transaction
Fleet reductions
Purchase
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
23
TANK TERMINAL DEVELOPMENT 2012
• Oman (OOTO) – 27,300 cbm is expected to be commercially
operational by 3Q 2012
• US Charleston (OTC) – 80,000 cbm to be added in 2013,
progressing according schedule
• Odfjell/LG close to conclusion on the 25% equity share in Noord
Natie Terminals in Antwerpen
• Rotterdam has a number of tanks out for maintenance and
regulatory upgrading
• Evaluating various existing terminals and green field projects
24
TANK TERMINAL CAPACITY
Total capacity in CBM
Current capacity
Ongoing expansions
4.987.498
391.400
1,800
1,600
Cubic Metres`000
1,400
1,200
1,000
800
600
400
200
0
5%
-5
0%
-5
TO
O
TJ
TD
ed
at
ci
so
As
9%
-4
ji n
an
1%
Ti
-5
on
st
rl e
ha
C
5%
2.
-1
o
gb
in
N
5%
-3
ir
%
Ex
75
9.
-2
O
O
O
0%
0%
-5
-5
1%
-5
1%
-5
TS
O
TK
TR
TH
O
O
O
O
Current capacity
Ongoing expansions
25
AGENDA
•
•
•
•
•
•
•
Highlights
Financials Q4 2011
Financials per segment
Operational review
Market Update / Prospects
Summary
Q&A Session
26
MARKET UPDATE – CHEMICAL TANKERS
• Reasonably high activity levels and firm demand during 1Q
• Contract rate renewals up by 10% to 40%
• Earnings on time charter basis increased by about 8%
• Rates for US and European trade were firm, whilst Asian
exports came under pressure
• Bunker prices increased further during the quarter, together with
piracy, this remain major concerns
• In second quarter so far, the activity has been slower with less
volume in many areas
27
Core Chemical Deep-sea Fleet 2003-2014
Orderbook and estimated demolition per May 2nd 2012
% of year-start fleet
'000 Dwt
2,400
15.0%
2,000
12.5%
1,600
10.0%
1,200
7.5%
800
5.0%
400
2.5%
0
0.0%
-400
03
04
05
06
07
08
09
10
11
12
13
14
-2.5%
-800
-5.0%
-1,200
-7.5%
Deliveries
Actually demolished
Net Fleet Growth (%)
Source: Odfjell
Orderbook
Estim. vessel outphasing
* Outphasing 30 years (Europe built) and 25 years (Asian built)
28
MARKET UPDATE - TANK TERMINALS
• Terminals remain at high utilization rates
• Strong momentum in the US
• Capacity build-up in Korea
• Oil industry continued to be slow
• Iran conflict keeps oil market in tension
Expect stable market going forward
29
PROSPECTS
• The global economic growth outlook has deteriorated
• Hardly any contracting of new sophisticated stainless steel
vessels
• Activity levels are softening, indicating a possible weaker spot
market for chemical freight in second quarter
• Tank terminal results expected to remain in line with the first
quarter
• Expecting somewhat weaker operating results in second quarter
30
AGENDA
•
•
•
•
•
•
•
Highlights
Financials Q4 2011
Financials per segment
Operational review
Market Update / Prospects
Summary
Q&A Session
31
SUMMARY
• Stronger 1Q12, EBITDA USD 41 million
• 2Q12 chemical tanker activity slower with lower volumes
• Bunker cost still a main challenge
• Robust balance sheet and solid liquidity position
• Stable results Tank Terminals
32
AGENDA
•
•
•
•
•
•
•
Highlights
Financials Q4 2011
Financials per segment
Operational review
Market Update / Prospects
Summary
Q&A Session
33
Thank you!
34