4Q12 - Oslo 140213

8/13/2019 4Q12 - Oslo 140213

1/31

1

Fourth Quarter 2012 ResultsPreliminary full year

Oslo 14 February 2013

8/13/2019 4Q12 - Oslo 140213

2/31

2

Agenda

Highlights

Financials

Operational review

Market update and prospects

Summary

Q&A Session

8/13/2019 4Q12 - Oslo 140213

3/31

3

Highlights

EBITDA of USD 17 million reflects

both a continuing weak chemical

tanker market and still significant

losses at Odfjell Terminals

(Rotterdam)

Slightly stronger time-charter results

as compared to third quarter, but still

unsustainable

0

50

100

150

200

250

300

350

02 03 04 05 06 07 08 09 10 11 12

USD

mill

Annual EBITDA actual ownership

Chemical tankers Tank terminals

Highlights

0

50

100

150

200

02 03 04 05 06 07 08 09 10 11 12 13

Index1990=10

0

ODFIX

8/13/2019 4Q12 - Oslo 140213

4/31

4

Highlights

Two new NOK bond issues raised total

proceeds of USD 124 million

Letter if Intent signed with Lindsay Goldberg

to expand existing partnership to include

essentially all tank terminal assets

Highlights

Stable tank terminal earnings, with the exception of Odfjell Terminals

(Rotterdam). The latter delivered negative EBITDA of USD 9.8 million

compared to a negative EBITDA of USD 20 million in the previous quarter.

The re-commissioning project at Odfjell Terminals (Rotterdam) is slightly

delayed relative to earlier plans

8/13/2019 4Q12 - Oslo 140213

5/31

5

Income statement - Fourth quarter 2012

USD mill4Q12 3Q12

Gross revenue 296 276

Voyage expenses (130) (118)

TC expenses (43) (43)

Operating expenses (72) (75)

General and administrative expenses (35) (33)

Operating result before depr. (EBITDA) 17 8

Depreciation (34) (33)

Capital gain/loss on fixed assets (7) -

Operating result (EBIT) (23) (25)Net finance (19) (15)

Taxes 3 2

Net result (40) (39)

Financials

8/13/2019 4Q12 - Oslo 140213

6/31

6

Quarterly figures - from continued operation (previous quarters restated)USD mill

0

50

100

150

200

250

300

350

2010 2011 2012

USD

mill

Gross Revenue

0

5

1015

20

25

30

35

40

45

2010 2011 2012

USD

mill

EBITDA

Gross revenue reflects a continued weak chemical tanker market and

significant losses at Odfjell Terminals (Rotterdam)

Increase in EBITDA of USD 9 million compared to third quarter

Financials

8/13/2019 4Q12 - Oslo 140213

7/317

Quarterly figures - from continued operation (previous quarters restated)USD mill

-6

12 11

-13

8

-5

-10

2

-25

-7-4

-23

-30

-25-20

-15

-10

-5

0

5

10

15

2010 2011 2012

USD

mill

Operating Result (EBIT)

-4

11

-4

-64

5

-28-11

261

-39

0

-8

-40

-100

-50

0

50

100

150

200

250

300

2010 2011 2012

USD

mill

Net Result

Negative EBIT of USD 23 million of which

OTR counts for USD 10 million

Stable interest costs

Net loss 4Q12 of USD 40 million

-7 -8-10-11

-9 -10 -10-11 -12 -12-13 -13

1

-7

2

11

2 2

-2

5

0

-9-3

-6

-25

-20

-15

-10

-5

0

5

10

15

USD

mill

Net Finance

Net interest Other f inancial/currency

2010 2011 2012

Financials

8/13/2019 4Q12 - Oslo 140213

8/318

Income statement - preliminary 2012

USD mill prelim 2012 FY2011

Gross revenue 1 212 1 154




General and administrative expenses(129) (104)



Compensation - 6

Capital gain/loss on fixed assets (4) 25

Operating result (EBIT) (43) 21

Net finance (68) (35)

Taxes 0 (6)

Net result from discontinued operation - 288

Net result (111) 269

Financials

8/13/2019 4Q12 - Oslo 140213

9/319

Balance sheet preliminary 2012

USD mill - AssetsShips and newbuilding contracts 1 293

Tank terminals and intangible assets 558

Other non-current assets/receivables 144

Total non-current assets 1 995

Available-for-sale investments and cash 175

Other current assets 183.Total current assets 358

Assets held for sale 224

Total assets 2 576

Equity and liabilitiesTotal equity 949

Non-current liabilities 113

Non-current interest bearing debt 995

Total non-current liabilities 1 107

Current portion of interest bearing debt 226

Other current liabilities 166Total current liabilities 392

Liabilities held for sale 129

Total equity and liabilities 2 576

Cash balance of USD 175 million + USD 18 million cash in held for sale assets

Equity ratio 36.9%

Available drawing facilities USD 94 million pluss substantial drawing facilities allocated to specific

investments projects in the tank terminal joint ventures

Held for sale assets amounts to USD 224 million and held for sale liabilities amounts to

USD 129 million related the intend to expand the existing joint venture with Lindsay Goldberg

LLC

Financials

8/13/2019 4Q12 - Oslo 140213

10/3110

Debt development

Successfully completed the issuance of a NOK 200 million three-year and a NOK 500 million

six-year senior unsecured bond issue. Total proceeds are swapped to USD 124 million

Oiltanking Odfjell Terminal Singapore entered into a seven year SGD 180 million credit facility in

December for refinancing of existing debt

Available drawing facilities at year end amounts to USD 94 million

In addition we have substantial drawing facilities allocated to specific investment projects

in the tank terminal joint ventures

0

200

400

600

800

1000

1200

2013 2014 2015 2016 2017

USD

mi

ll

Debt Portfolio

Ending balance Repayment

0

50

100

150

200

250

300

2013 2014 2015 2016 2017

USD

mill

Planned Debt Repayments

Secured loans Balloon Leasing

NOK bond 09/13 NOK bond 12/15 NOK bond 12/17

Financials

8/13/2019 4Q12 - Oslo 140213

11/3111

Capital expenditure programmeOdfjell`s share per 31.12.12

In USD mill 2013 2014 2015 2016 2017

Daewoo, 1 x 75,000 DWT 13Chuandong, 1 x 9,000 DWT -3

Hyundai Mipo, 4 x 46,000 DWT 32 110

Docking 27 27 27 27

Terminals1) 160 72 51 24 2

Total 229 209 78 51 2

1)Planned not commited

Launching of the new 75,000 cheimcal tanker at Daewoo

Financials

8/13/2019 4Q12 - Oslo 140213

12/3112

Income statement 4Q12 chemical tankers and LPG/Ethylene

USD mill 4Q12 3Q12

Gross revenue 263 246







Capital gain/loss on fixed assets (7) 0

Operating result (EBIT) (18) (10)

Net finance (21) (12)

Taxes (1) (1)

Net result (40) (24)

Financials

8/13/2019 4Q12 - Oslo 140213

13/3113

Income statement 4Q12 tank terminals

USD mill 4Q12 3Q12

Gross revenue 34 32



Operating result before depr. (EBITDA) 5 (7)


Operating result (EBIT) (5) (16)

Net finance 1 (3)

Taxes 3 3

Net result 0 (16)

Financials

8/13/2019 4Q12 - Oslo 140213

14/3114

Results per segment

4Q12 3Q12

USD mill

Chemical

tankers

Tank

terminals

Chemical

tankers

Tank

terminals

Gross revenue 263 34 246 32

EBITDA 14 5 14 (7)

EBIT (18) (5) (10) (16)

Net result (40) 0 (24) (16)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Gross revenue EBITDA Assets


0

50

100

150

200

250

300

350

02 03 04 05 06 07 08 09 10 11 12

USD

mill

Annual EBITDA

actual ownership


Financials

8/13/2019 4Q12 - Oslo 140213

15/3115

Tank terminals EBITDA by geographical segment

-32

14

27

18

-40

-30

-20

-10

0

10

20

30

Europe NorthAmerica

Asia Middle East

USD

mill

EBITDA YTD 2012

EBITDA Tank Terminals by4Q12 3Q12

geographical segment

Europe (11) (21)

North America 3 4

Asia 6 7

Middle East 6 4

Total EBITDA 5 (7)

In Europe EBITDA came in negative onUSD 11 million due to reduced capacity and

high costs at OTR

The remaining geographical segments

deliver stable results

Financials

8/13/2019 4Q12 - Oslo 140213

16/3116

Bunker development

94.5102.5

95.783.4 84.0

(15.7) (20.3) (15.7) (9.8) (8.5)

(3.0) (2.1)(2.8)

(5.8)(1.9)

75.980.1 77.2

67.8 73.5

(30)

(20)

(10)-

10

20

30

40

50

60

70

80

90100

110

4Q11 1Q12 2Q12 3Q12 4Q12

USD

mill

Net Bunker Cost

Bunker purchase Bunker clauses Bunker hedging Net bunker cost

Volatile bunker prices is effecting voyage expenses

December ended at an average of USD 574 per

tonne and has further increased in 2013

About 20% of the bunker exposure in 2013 is hedged

In addition, bunker clauses in CoAs cover about 50%

of the exposure0100

200

300

400

500

600

700

800

07 08 09 10 11 12 13

USD/mt

Platts 3.5% FOB Rotterdam

Operational review

8/13/2019 4Q12 - Oslo 140213

17/3117

Fleet development 2012

Fleet additions DWT Built Tanks Transaction

January 2013 Chembulk Wellington 14,312 2004 Stainless 1-2 years TC

December 201 NCC Sama 45,564 2012 Coated Pool

November 2012 Bow Dalian 9,000 2012 Stainless Newbuild

October 2012 Chemroad Hope 33,552 2011 Stainless 1 year TC

September 2012 UACC Masafi 45,352 2012 Coated 1 year TCSeptember 2012 NCC Reem 45,544 2012 Coated Pool

September 2012 Bow Guardian 9,000CBM 2008 LPG Purchase

August 2012 Bow Gallant 9,000CBM 2008 LPG Purchase

August 2012 NCC Najem 45,499 2012 Coated Pool

June 2012 Bow Fuling 9,000 2012 Stainless Newbuild

May 2012 NCC Shams 45,660 2012 Coated Pool

January 2012 Bow Andes 16,020 2000 Stainless Purchase

January 2012 Southern Ibis 19,905 2009 Stainless 2 year TC

Operational review

8/13/2019 4Q12 - Oslo 140213

18/3118

Fleet development 2012

Fleet disposals, owned DWT Built Tanks Transaction

January 2013 Bow Leopard 39,512 1988 Coated Recycling

November Bow Fraternity 45,507 1987 Coated Recycling

October 2012 Bow Lion 39,423 1988 Coated Recycling

June 2012 Bow Viking 33,644 1981 Stainless Sale

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

Operational review

Seven older vessels sold for recycling in 2012. All vessels has Green Passport and buyers

undertake that the recycling yard shall submit a working plan corresponding to IMO guidelines for

ship recycling. The above sales have contributed USD 50 million in cash in 2012

8/13/2019 4Q12 - Oslo 140213

19/3119

Tank terminal development

In November Grand Port Maritime du Havre selected Odfjell Terminals to

evaluate the development of a new bulk liquids terminal facility in the industrial

zone of Le Havre Port, France

Noord Natie Odfjell Terminals in Antwerp has signed a contract to extend

storage capacity by 50,000 cbm

Odfjell Terminals Houston is going to develop a new bay of 30,000 cbm x 10

tanks at a cost of USD 37 million

The Charleston Terminal project is on course to become operational in Q4 2013

The construction of the terminal and the marine facility in Nangang in China isunder way, the overall project is 30% completed, and is expected to be

operational in Q4 2013/Q1 2014

Operational review

8/13/2019 4Q12 - Oslo 140213

20/31

20Odfjell Terminals (Charleston) under construction

8/13/2019 4Q12 - Oslo 140213

21/31

21Illustration of Nangang Industrial Zone

8/13/2019 4Q12 - Oslo 140213

22/31

22

New jetty under construction in Nangang

8/13/2019 4Q12 - Oslo 140213

23/31

23

Tank terminal capacity

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

CubicMetres`000

Chemical storage Mineral oil storage Ongoing expansions

Current capacity 5,310,459

Ongoing expansions 416,491

Total capacity in CBM (incl. related parties):

Operational review

* Odfjells ownership share in the respective tank terminals is show in percentage

8/13/2019 4Q12 - Oslo 140213

24/31

8/13/2019 4Q12 - Oslo 140213

25/31

25

Odfjell Terminals (Rotterdam) update

Odfjell Terminals (Rotterdam) has reached agreements in principle with the

Unions and the Works Counsil regarding downsizing and reorganisation

Have together created a foundation to secure more than 250 jobs at the terminal

The re-commissioning project at Odfjell Terminals (Rotterdam) is slightly

delayed relative to earlier plans

717 000 cbm is approved for usage per end of January

The remaining capacity will gradually be broght back into services and about 1.2

million cbm will be ready by end of 2Q 2013

Expects slightly negative EBITDA for the full 2013

Operational review

8/13/2019 4Q12 - Oslo 140213

26/31

26

Market update - chemical tankers Chemical tanker market improved towards year end

Regional activities, except in South America, remained disappointing in 2012

Contracts are renewed at higher rates

Time charter earnings up by 7.8% compared to third quarter


M k t d t d t

8/13/2019 4Q12 - Oslo 140213

27/31

27

Core Chemical Deep-sea Fleet 1997-2016Orderbook and estimated demolition per 08 February 2013

* Outphasing 30 years (Europe built) and 25 years (Asian built)Source: Odfjell FLEETBASE

-800

-400

0

400

800

1,200

1,600

2,000

97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

'000 Dwt

-5.0%

-2.5%

0.0%

2.5%

5.0%

7.5%

10.0%

12.5%

Deliveries Orderbook

Actually demolished Estim. vessel outphasing*

Net Fleet Growth (%)

% of year-start fleet


M k t d t d t

8/13/2019 4Q12 - Oslo 140213

28/31

28

Prospects

US and China economic development has improved during 2012

Supply/demand picture continues to move in our favour. The supply overhang

may be prolonged

Challenging markets and high fuel costs are also main concerns in 2013

Improved tank terminal activities and inquiries for storage

Expect improved earnings in the tank terminal division in the first quarter of 2013


S

8/13/2019 4Q12 - Oslo 140213

29/31

29

Summary

Poor 2012 results on a weak chemical tanker market and significant losses at

Odfjell Terminal (Rotterdam)

Letter of Intent signed with Lindsay Goldberg

Solid balance sheet and strong liquidty position

We see improved markets in 2013

Summary

8/13/2019 4Q12 - Oslo 140213

30/31

30

Company representatives

Jan A. HammerCEO, Odfjell SE

Email: [email protected]

Phone: +47 908 39 719

IRcontact:

Tom A. HaugenVP Finance, Odfjell SE


Phone: +47 905 96 944

Terje IversenCFO, Odfjell SE


Phone: +47 932 40 359

Q&A session

8/13/2019 4Q12 - Oslo 140213

31/31

Thank you

For more information please visit our webpage at www.odfjell.com

Q&A session

4Q12 - Oslo 140213

Documents

Transcript of 4Q12 - Oslo 140213