Rederi AB TransAtlantic. Årsstämma. Annual General Meeting CEO Henning E. Jensen. TransAtlantic Company presentation

Transcription

1 Rederi AB TransAtlantic Årsstämma TransAtlantic Company presentation Annual General Meeting 2013 CEO Henning E. Jensen

2 TransAtlantic in Brief Two business areas Industrial Shipping (IS), HQ Gothenburg Viking Supply Ships (VSS), HQ Copenhagen About 800 employees 51 vessels, 37 within IS and 14 within VSS Listed on the NASDAQ OMX Stockholm, segment Small Cap shareholders (Dec 31, 2012) 2

3 Highlights Viking Supply Ships: Raised NOK 300 million in new unsecured bonds in the Norwegian bond market New and extended contracts Entered into a sale- and leaseback transaction with Norseman Offshore AS Industrial Shipping: Cost reduction program and increased focus on sales Heléne Mellquist appointed Head of Industrial Shipping Acquisition of the Merilinja operations 3

4 Operational profit/loss Group 300 MSEK

5 Operational profit/loss Viking Supply Ships MSEK

6 Operational profit/loss Industrial Shipping MSEK

7 Financial position 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% % 120% 100% 80% 60% 40% 20% 0% Equity ratio (left scale) Net debt ratio (right scale) 7

8 Balance sheet the Group Actuals MSEK Vessels Other fixed assets Current assets Cash and bank & curr. investments Total assets Equity Interest bearing liabilities Other liabilities Total equity and liab Equity asset ratio 37% 40% 8

9 Change in cash balance MSEK 574 Cash balance Operational cash flow

10 Cash flow the Group 12 months Actuals MSEK Profit before tax /. Non cash items -depreciations /. Non cash items - other Tax payed Change in working capital Cash flow from operations Investment activities Financing activities Change in cash Cash opening balance Exchange differences -7 1 Cash closing balance Unutilized credit facilities 0 93 Cash available

11 Share price

12 Key figures 2012 TransAtlantic In total IS VSS Net sales (SEK M) 3,274 2,989 2,212 2,259 1, Operational result before tax Result before tax Result after tax Earnings per share after tax Shareholders equity SEK/share Return on equity, % Return on capital employed, % Equity/asset ratio

13 Viking Supply Ships Head of Viking Supply Ships: Christian W. Berg

14 Highlights 2012 Took delivery of Brage Viking, the last of the four new-builds from Zamakona Finished the process of new vision and values for Viking Supply Ships Vidar Viking commenced a 2,5 year time charter with Sakhalin Energy in Russia - Achieved 100% utilization for the whole year Continued focus on increasing contract back-log Record high activity in ice - Tor Viking in Shell US Alaska campaign - Balder Viking supporting a seismic campaign in North East Greenland - Vidar Viking commenced a 2,5 year charter at Sakhalin Brage Viking performed ice-management offshore Newfoundland during the Summer 14

15 VSS performance compared to market Recent term fixtures (USD)* Mediterranean West Africa VSS receives premium rates compared to all other segments and regions, due to unique competence within ice and harsh environment North Sea Viking Supply Ships USD * Fixtures during of AHTS vessels above bhp. Australia /Brazil not included due to high costs of operation 15

16 Contract coverage VSS AHTS Firm contract Option April May June July August September October November December January February March Tor Viking Spot SMA stand by Balder Viking Spot SMA stand by Vidar Viking Sakhalin Energy, Firm till 1st December x3 months options Odin Viking Spot Loke Viking Spot Njord Viking Eni Norge, Firm till 29th July 2015 Magne Viking Brage Viking Spot Spot Chevron Canada, 180 days firm Frigg Viking Idun Viking SBS Tempest Freya Viking SBS Typhoon SBS Cirrus April May June July August September October November December January February March Spot HMC, 45 d firm+20x1 d options BP UK, Firm till 31st July + 1x2 months + 3x1 month options BP UK, Firm till 31st January x1 month options Centrica, firm till year option RWE 2 Wells firm until mid June + 1 Well options (Each well estimated 90D) Spot Tor Viking is fixed to a non-disclosed client for a 7 months rolling contract for the 2014 and 2015 drilling-season in sub-arctic waters, with options for 2016 and Commencement will be around May 1, each year 16

17 Market expectations 2013 Increasing tender activity in VSS core areas of sub-arctic and harsh-environment areas Lower supply of AHTS vessels in the North Sea At least 10 rigs are scheduled to enter the region over the year Still many new PSVs to be delivered, but we expect a measured recovery over the year, as demand has proved strong so far this year Management will have continued focus on securing more long term contracts Figure: North Sea AHTS fixtures, 3-weeks moving average, latest fixtures star-marked (Source: Company) 2012: Vessels entered the North Sea after the market was anticipated to rally Rigs entering the region were delayed towards the end of the year 2013: Several vessels have departed the region to secure long term commitment Looks like most rigs scheduled to enter will commence work during Q1/Q2 17

18 Contract backlog Focus on increased contract backlog through 2012 Since January 1 st, 2011 the backlog has increased by 90% Current backlog consists of NOK M - Of this NOK 918 M is firm period, while NOK 775 M is optional period VSS aims to significantly increase the contract backlog through the year 18

19 Future market outlook Strong outlooks in core areas - Arctic and harsh environment areas will lead the way in E&P spending over the next few years Greenland will re-enter the stage in 2014, leading to restricted vessel supply in the North Sea The expected North Sea rig-fleet will exceed 100 units during Several rig-owners have ordered or are considering ordering more rigs suitable for harsh environments like the Barents Sea and Greenland Figure: Expected E&P spending in various segments (Source: Rystad Energy, 2012) The global supply/demand balance is improving, which bounds well for the entire segment Figure: North Sea Rig fleet (Source: Company) 19

20 Industrial Shipping Head of Industrial Shipping: Heléne Mellquist

21 Highlights 2012 Launch of cost reduction plan - Reflagging - Bunker savings - Fleet and TC cost adaptation to market levels - Change of crew policy - Consolidation of offices Strengthened sales efforts and customer focus Expanded liner service in the Baltic Sea Acquisition of the Merilinja operations One major customer bankruptcy Strong SEK 21

22 Market space 22

23 Focus 2013 Competitiveness under weaker market conditions Continued cost efficiency Increased commercial focus Preparing for SECA 23

24 Strategy To be the preferred shipping- and logistics partner in the Baltic Sea End to End Efficiency and streamlining Growth Asset light 24

25 Summary Overall corporate Ensure sufficient funding Viking Supply Ships Well positioned Increasing long term contract coverage Competitive cost structure. Industrial Shipping Challenging market Improve competitiveness - Customer/ Market activities - Cost improvements 25

26 Thank you!