J. Lauritzen A/S Investor Update – Annual Report 2013

Transcription

J. Lauritzen A/S
Investor Update – Annual Report 2013
February 2014
www.j-l.com | Oceans of know-how
AGENDA
• 2013 a year of transitions
• Financials
• Business units and market outlook
• Refinancing 2015-2017
• CAPEX commitments
and expected vessel sales
• Key messages on 2014
and our 2014 Outlook
Further information included in Appendix
Please read the disclaimer placed as the
last slide in this presentation. Thank you.
2
2013 Annual Report - Investor Update
A year of significant transitions
- 2013 was a difficult year but also a year of transition
Key messages
•
•
Difficult and challenging 2013
Build cash position:
•
•
•
• “Exit Product Tankers”
Agreement in 2013 Q3 with Hafnia Tankers to sell
fleet (delivery completion Q1 2014)
•
Record low earnings through most of 2013
Counterparty default by STX Pan Ocean
Sizeable impairments
Revised strategy adopted mid-2013
•
•
Key strategy decisions & actions
Secure long term financial strength
Negative net result for 2013 FY as expected
• ”Generate cash from Shuttletankers”
Accepted offer from Knutsen NYK (KNOT) in early
January 2014 to sell shuttle tankers (delivery,
subject to certain approvals, expected 2014 Q2)
Develop growth segments
•
In line with expectations but unsatisfactory
Handysize & Supramax segments in dry bulk
•
Product tankers and shuttle tankers reported as
discontinuing operations
• Renewal of Lauritzen Bulkers (LB)
T/C-fleet and own fleet progressing
2014 outlook:
Considerable improvement expected compared to 2013
•
2013 YE appear to mark an end to five years
of depressed shipping markets
 JL on track
Lauritzen Kosan (LK)
• Consider larger size ETH through reshuffling of
tonnage
• Consolidate our position in the market
ASV business (Axis Offshore)
• Mandate Axis Offshore to exercise of option for
2nd ASV newbuilding for delivery in 2015
3
2013FY EBITDA*) of USD 57.0m, down USD (31.7)m on last year
- EBITDA*) is down by USD (16.6)m on a comparable basis
- Net result down by USD (4.2)m on a comparable basis
Income statement in “presentation format” *)
EBITDA*) in USDm
40
30
20
10
0
(10)
Q1
Q2
Q3
Q4
Q1
Q2
2012
Q3
Q4
2013
Continued operations
Tank/shuttle tank (discont.)
Accom. & Support
Key messages
•
EBITDA*)
•
•
Net profit also in line with expectations
•
•
Sale of assets
Effect of write-downs in 2013 and 2012
Profit on sale of vessels up compared 2012
•
•
Significantly affected by write-downs in 2013 and 2012
Depreciations down compared to 2012
•
•
•
down on 2012; in line with expectations announced by Q2
Q4 turned out more challenging for LK than expected
Sale of capes in 2012 following counterparty defaults
Finance net improved slightly:
•
•
Conversion of subordinated loans to equity and exchange rate gains
Expensed costs related to product tanker and shuttle tanker loans
USDm
EBITDA
Lauritzen Bulkers
Lauritzen Kosan
Lauritzen Tankers
Lauritzen Offshore
Not allocated a.o.
EBITDA
Depreciation
Writedown
Profit on sale of vessels
Operating Result
Income from joint ventures
Finance net
Result before tax
JL's share of the result
Invested capital (average)
Return on invested capital
Average no. of crew
Average no. of staff
Notes:
*) See Appendix for a breakdown & explanation of the income statement
4
2012
Act
2013
Act
4,0
35,7
14,3
40,4
(5,7)
88,7
(101,2)
(148,7)
(102,4)
(263,6)
(26,2)
(59,5)
(349,2)
(349,7)
(10,5)
28,1
21,1
27,0
(8,7)
57,0
(81,2)
(183,3)
(6,2)
(213,7)
(14,1)
(56,4)
(284,2)
(284,6)
2.152,0
(13,5%)
1.155
224
1.798,7
(12,7%)
1.134
220
2012
Comp
(12,6)
35,7
14,2
40,4
(5,7)
72,0
(101,2)
(0,0)
1,8
(27,5)
(8,0)
(59,5)
(94,9)
(95,4)
2013
Comp
(12,1)
28,1
21,1
27,0
(8,7)
55,4
(81,2)
(0,0)
(7,6)
(33,5)
(9,4)
(56,4)
(99,2)
(99,6)
“Comp” (i.e. Comparable): Excluding one-offs items and effect from formation of Axis Offshore J/V
“Act” actual. See Appendix for a breakdown & explanation of the income statement
Key figures for 2009-2013 available in the Appendix.
Total assets amounted to USD 1.9b, down USD 438m (19%) from 2012 YE
- Impairments, sale of vessels and less liquidity contribute to the decrease
- Solvency improved; NIBD/EBITDA challenging
Key messages
Balance sheet
• Fixed assets at USD 1.2bn, down by USD 746m:
• Assets held-for-sale reclassification (USD 451m):
Product tankers
Shuttle tankers, and
Certain bulk carriers
• Write-down of vessels (USD 183m)
• Solvency at 39.4%
• Slightly up from 36.8% 2012 YE
• ROIC unsatisfactory at (12.5)%
• Slightly up compared to 2012 (13.5)%.
• NIBD/EBITDA at 15.8 in 2013
based on EBITDA for continued and discontinued operations
• However NIBD/EBITDA at 70.9 for continued operation only
• Cash and unused credit facilities amounts to USD 154m (down
from USD 268m at 2012 YE):
•
•
•
•
•
Proceeds from delivery of three product tankers approx USD 54m
Repurchase own bonds approx USD (47)m
Release of pledged cash approx USD 19m
Purchase of other securities approx USD (23)m
Cash balance does not include DKK 100m overdraft facilities
• CAPEX commitments nil by 2013 YE
5
USDm
Fixed assets
- Assets in operation
- Prepayments
- Invested in Joint Ventures
Current assets
- Cash
Total assets
JL share of equity
Minority share
Non current liabilities
Current liabilities
Solvency
ROE
NIBD/EBITDA
Investments (vessels only)
Divestments (vessels only)
ROIC
Key figures for 2009-2013 available in the Appendix
2012
Act
1.931
1.762
39
130
384
267
2.315
852
0
1.297
166
36,8%
(34,1%)
10,7
190
79
(13,5%)
Full Year
2013
2
Act
Ne
1.185
1.084
(0)
101
692
154
1.877
740
1
754
382
39,4%
(35,8%) (
15,8
109
116
(12,5%) (
Vessel values in general increased during 2013 H2; LTV down
- At 2013 YE no cash was pledged to remedy breach of minimum value requirements
- Vessel values on average up 6% on June 2013 and 7% on 2012 YE
- Dry bulk values on average up 12% on June 2013 and 15% on 2012 YE. Gas carriers nearly zero change on average
Average age in years and vessel values 2013 YE in USDm – fully owned fleet excl. MR and SHT
USDm
450
Years
18
17.1
400
385
16
337
350
14
300
12
238
250
10
212
197
200
6.5
125
135
116
113
102
100
3.8
69
68
50
2.5
2.0
40
Average LTV
65% of market
values
8
179
150
167
6
129
5.0
NIBD 62% of
market values
4
67
44
2
-
0
HS
SM
CZ
SR
BULK
Book Value
FP
GAS
Debt
Market Value
Vessel average age (RHS)
Debt, book values (preliminary) and market values are per 2013 YE. Fleet count as per 2013 YE.
Totals may differ due to rounding. Book values (preliminary) excl. dockings, etc.
Note: Above chart does not include
Product tankers (“MR”): 7 vessels. Book value USD 219m. Market value USD 231m. Debt USD 142m. Average age 1.6 years
Shuttletankers (“SHT”): 3 vessels. Book value USD 179m. Market value USD 174m. Debt USD 125m. Average age 5.7 years
6
Average age
6.2 years
ETH
HS = Handysize
SM = Supramax
CZ = Capesize
SR= Semi-refrigerated
FP = Fully-pressurized
ETH = Ethylene
MR = Medium range
SHT = Shuttletankers
J. Lauritzen in perspective
- Established in 1884, active in shipping for 130 years
- Adaptive to structural changes in the world economy and developments in global shipping markets
Key developments in past years
Entry into dry
bulk carriers
(Handysize)
Late
1970’es
Exit from reefer
through sale to NYK of
Launch of
Lauritzen Cool
growth strategy
2004
Entry into
shuttle tankers
2007
Entry into
Previous activities: shipyards, polar vessels, general
cargo vessels, cruise vessels, offshore mobile rigs, ferries ethylene (ETH)
(Mols Linien), container vessels (via part owned Royal
gas carriers
Arctic Line)
“Axis Offshore”
partnership with Norwegian
HitecVision to invest further
in ASV business
2008
2012
Entry into
Accommodation
Support (ASV)
segment
Exit from shuttle tankers
through sale to Knutsen NYK
Offshore Tankers (subject to
charterers’ approval)
2013
2014
Exit from MR product
tankers through sale to
Hafnia Tankers
Invested capital in long-term perspective – distribution by business unit - in USDm
2,500
2,000
1,500
1,000
500
0
2004
2005
2006
Bulk
7
2007
Kosan
2008
2009
Axis Offshore
2010
Shuttletank
2011
Tank
2012
Reefer
2013
2014E
Lauritzen Bulkers
- Major operator of bulk carriers engaged in ocean transportation of dry bulk cargoes worldwide
Rationale &
strategy
Handysize & Supramax (Small bulk)
Cape size (Large bulk)
• Top-5 operator in handysize dry bulk with huge customer base
• Young fleet (avg age 3.3y)
• Highly liquid market. Coverage is decided on the basis of market
outlook and market conditions. LB strategy to ”Play the market”
• Renewal of T/C fleet (from 2014-2016) with focus on optionality
• Tonnage reshuffling of owned Supramax-fleet ongoing
• Vessels originally built against longterm contracts
• 4 owned vessels all on charter,
hereof 2 on 12-year time charter
• ”No cover – no capes”
Activity (ship days)
Fleet at 2013 YE*
Handysize
Supramax
Capesize
Total
New buildings
25000
Total
61
19
6
86
13
20000
Owned
17
4
4
25
0
15000
Part-owned
10
2
0
12
0
10000
B/B in
0
0
0
0
0
T/C in *)
18
13
2
33
12
Joint charters
3
0
0
3
0
Pool, etc.
13
0
0
13
1
45000
40000
35000
30000
Activity,
fleet &
coverage
5000
0
2009
8
Cover **
2010
2011
2012
Handysize
Supramax
Large bulk
Total
2013
Note: * Not including time-charters with a
duration of less than six months
56%
Cape size
83%
17%
Supramax
24%
2014
19%
Handysize
2013
24%
0%
25%
50%
75%
100%
Note: ** At the beginning of the year (end Jan. 2014).
CoAs included in the cover with expected requirement
Dry Bulk: Recovery expected to continue in 2014
- Handysize bulk fleet growth negative in 2013
Robust demand
Handysize fleet -1% in 2013
Seaborne Trade in Dry Bulk 2010-2013 with Projections to 2015
16%
1,400
14%
1,200
12%
Mill Tons
1,000
10%
800
8%
600
6%
400
4%
200
2%
-
Demand Growth %-Y-o-Y (dwt)
Bulk carriers age profile and order book 2013 YE
1,600
0%
2010
2011
2012
Iron Ore (lhs)
Grains (lhs)
Total Demand Growth (dwt)
2013
2014
2015
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Handysize
Coal (lhs)
Minor Bulks (lhs)
25 years or more
Recovery to continue in 2014
Supramax
15-24 years
Capesize
0-14 years
Order book
Values improving
Spot Market Rates USD/day and BDI
25000
2500
20000
2000
15000
1500
10000
1000
5000
500
33
Values - Handysize and Supramax
31
Mill USD
29
27
25
23
21
19
17
0
Jan-11
0
Jul-11
Jan-12
Jul-12
Jan-13
Jul-13
Av. of 6 T/C Routes for Baltic Supramax Index
Av. of 6 T/C Routes for the Baltic Handysize Index
Baltic Exchange Dry Index (RHS)
Source: J. Lauritzen A/S based on data from Clarkson Research Services and MSI
9
15
Jan-14
Handysize 32-35K DWT NB Prices
Handysize 32K 5 Year Old SH Prices
Supramax 56-58K DWT NB Prices
Supramax 56K 5 Year Old SH Prices
Lauritzen Kosan
- Global provider of safe and reliable ocean transport solutions of liquefied gases including petrochemical
gases and energy gases (LPG)
Semi-Refrigerated (S/R)
Rationale &
strategy
Ethylene
• Modern and flexible fleet of fully refrigerated ethylene, semi-refrigerated and pressurized gas carriers
capable of handling a variety of cargoes
• Among world leading operators of gas carriers of 3-10,000 cbm
• Strategic advantageous position based on in-house technical expertise
• Coverage is decided on the basis of market outlook and market conditions;
• Repeating customers: Contracts are typically renewed (renegotiated) annually
Activity (ship days)
14000
6000
12000
5000
10000
4000
8000
3000
6000
2000
4000
1000
2000
0
2009
2010
2011
2012
2013
Semi-refrigerated
Ethylene
Fully-pressurized
Total (RHS)
Total
Owned
Part-owned
B/B in
T/C in *)
Pool, etc.
18
7
0
5
0
6
11
6
3
0
0
2
13
10
0
0
3
0
42
23
3
5
3
8
New buildings
7000
Cover **
2014
Total
16000
Fully-pressurized
18000
8000
Ethylene
9000
0
10
Fleet at 2013 YE*
Semi-refrigerated
Activity,
fleet &
coverage
Fully-pressurized (F/P)
25%
Ethylene
47%
S/R
Note: * Not including time-charters with a
duration of less than six months
0
0
0
0
0
0
2013
25%
58%
75%
F/P
79%
0%
25%
50%
75%
100%
Note: ** At the beginning of the year (end Jan. 2014).
CoAs included in the cover with expected requirement
Small Gas Carriers: Low volatility
- Slight improvement expected in 2014
Solid Demand outlook
Orderbook increased
Small gas carriers age profile and order book 2013 YE
Past and projected demand developments for small gas
carriers
10%
140,000
100,000
6%
80,000
4%
60,000
40,000
2%
'000 cbm miles
120,000
8%
20,000
0%
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Semi-Refrigerated
0
2010
2011
Petchem (rhs)
2012
2013
LPG (rhs)
2014
Fully-pressurised
2015
Ammonia (rhs)
25 years or more
Total growth
15-24 years
0-14 years
Order book
Values slightly up – low S&P volumes
Spot markets expected slightly up 2014
Values small gas carriers in USDm
Spot Market Rates USD/month
700
40
600
35
500
30
400
25
300
20
200
15
100
0
jan-11
jul-11
jan-12
jul-12
jan-13
jul-13
10
Jan-11
Jan-12
Jul-12
Jan-13
Jul-13
West (S/R) coaster
ETH 8,000 cbm NB price
ETH 8,000 cbm SH 3 yrs
6500 S/R
10000 ETH
FP 3,500 cbm NB price
FP 3,500 cbm SH 3 yrs
Sources: J. Lauritzen A/S based on data from Clarkson Research Services, Viamar AS and Fearnley’s
11
Jul-11
East (F/P) coaster
Other business activities
- Lauritzen Tankers and Lauritzen Shuttletankers – discontinuing activities
- Investment in the Accommodation and Support Vessel segment via Axis Offshore Pte. Ltd.
Lauritzen Offshore
Lauritzen Tankers
• In Oct. 2013, JL accepted an offer to sell its
fleet of MR product tankers to Hafnia
Tankers
• Early 2014, JL accepted an offer to
sell its fleet of shuttle tankers to
Knutsen NYK Offshore Tankers
• JL cash increase effect approx USD 125m
• Sale subject to charterers’ approval
• Approx USD 54m received in 2013
• Delivery completed during 2014 Q1
• JL cash increase effect
approx USD 65m
• Delivery during 2014 H1
Tanker fleet
8
6
8
6
0
0
New buildings
0
0
Total
21
7
ASV
21
7
Shuttletankers
New buildings
12
Total
T/C in
Pool, etc.
MR product tankers
Total
Owned
Offshore fleet
Total
3
1
4
2
Owned
3
0
3
0
Part-owned
0
1
1
2
T/C in
0
0
0
0
•
Axis Offshore: J/V between HitechVision and JL
•
Focus on developing business in ASV segment
•
One unit in operation (Dan Swift)
•
Two new units for delivery 2015
(one additional ordered in 2013)
•
JL investment commitment (contingent liability)
maximum USD 66m (Up from USD 47m)
•
Offset by sale of 16% of the shares in Axis
Offshore (ownership down to 34% from 50%)
•
Voting rights (50%), unchanged
JL’s refinancing in perspective
- No refinancing required until 2015
- Existing lenders have confirmed willingness to participate in refinancing of maturing facilities
Repayment profile (forecast) - Existing Facilities – USD m
PROJECTED refinancing in USD m
After prepayment of debt relating to MR fleet and shuttletankers
350
USD m
300
250
76
200
260
150
199
50
55
49
0
2015
2016
17
17
2017
2018
Repayment
Bullit bank loans
Bullit bonds
Prepayment of MR and SHT debt
Further details available in the Appendix
Note: Actual data as per end-December 2013. Numbers may change subsequently, e.g.
in case of sale of a vessel, prepayment, reduction in use of revolving facilities, etc. Totals
may differ due to rounding. Bond debt at hedged value less JL’s holding of own bonds.
13
2016
2017
2018
-130
-199
-63
-
Existing bond debt (bullet)
-
-76
-
-87
-
New bank debt LTV 65%
-
117
286
85
-
New bond debt
-
-
-
87
-
Net change in debt
-
-89
87
22
-
Value of financed vessels (exp.)
-
179
440
131
-
Projection conclusions:
63
2014
2015
-
87
130
100
64
2014
Existing bank debt (bullet)
•
Change in liquidity (i.e. new debt, net): USD 20m
•
Bank debt, net USD 96m
•
Bonds, net USD (76)m
Sensitivity of net debt
•
Vessel values +/- 10%: USD +/- 49m
•
Refinancing bank debt at LTV 60%: USD 37m lower
Applied assumptions for the purpose of this projection:
Vessel values: Broker valuations at 2013YE for vessels financed in maturing facilities.
Refinancing assumed to be 65% LTV in maturity year of existing facility
Other: Projection includes all vessels fully owned at 2013YE. Any additional vessel sales
will impact bank debt bullet and new bank debt amounts
CAPEX commitments and expected vessel sales
- Four orders for Supramax (dry bulk) vessels for delivery in 2016 and 2017 placed early 2014
- Part of ongoing tonnage reshuffling which also includes sales of vessels
CAPEX
Payments on newbuildings
Committed financing
Deliveries (fully owned newbuildings)
Supramax (dry bulk)
Disposals (fully owned vessels)
Supramax (dry bulk)
Capes (dry bulk) - (if no cover)
Product tankers
Shuttletankers (expected)
USD m
USD m
2015
2016
2017
Total
24
0
7
0
45
0
44
0
120
0
2
#
#
#
#
#
Note: There was nil CAPEX commitment at year end 2013
14
2014
2
2
7
3
2
Outlook – JL on track to go “back to black”
- During 2013, JL progressed through significant transitions
- Changes to continue through out 2014 - key figures to improve significantly; but still a way to go
2014 key messages
Activity
• World economy and markets in general
moving slowly in the right direction
Business
• LB to significantly improve
1. Markets balance to improve,
2. Redelivery of expensive vessels to
accelerate towards 2015,
3. Spot trading to increase
• LK stable and in line with 2013
Expectations for 2014
• EBITDA in 2014 from continuing
operations USD 55m-75m
• Net Result in 2014 from continuing
operations USD (20)m-(40)m
• Net Result in 2014 at USD (5)m-(25)m
including discontinuing operations
• Sensitivity of +/- USD 16m based on
+/- USD 1.000/day for LB and
+/- USD 500/day for LK, respectively
15
The outcome
Long-term financial strength secured
• Leverage reduced
• Significant increase in cash balance
• JL able to redeem 2015-maturing bond
without re-issuing bond debt and without
calling for additional equity
• Lenders’ willingness to refinance 20152017 maturing debt confirmed
Prepared for new growth
• LB with primary focus on the handysize &
supramax segments
• LK with primary focus on F/P and ETH
business
• Opportunistic investment in ASV business
via part-ownership in AXIS Offshore
Appendix
•
”How to read the 2013 Income Statement”
•
JL in a five year perspective 2009-2013: Selected key figures
•
Management
•
Existing financing
•
Corporate bonds issued by J. Lauritzen A/S
•
Charter commitments and charter obligations
•
Ownership
•
Lauritzen Fonden
•
Contact details
•
Glossary
•
Disclaimer
16
”How to read the 2013 Income Statement”
Effect of reclassification from continuing
operations to discontinuing operations
"IFRS format"
2012
2013
USDm
EBITDA
Lauritzen Bulkers
Lauritzen Kosan
Lauritzen Tankers
Lauritzen Offshore
Not allocated a.o.
EBITDA
Depreciation
Writedown
Profit on sale of vessels
Operating Result
Income from joint ventures
Finance net
Tax
Result from continuing operations
Result from discontinuing operations
Minority shareholders share of result
JL's share of the result
4.0
35.7
0.0
0.0
(5.7)
34.0
(74.7)
(103.2)
(94.8)
(238.7)
(25.1)
(41.0)
(0.4)
(305.3)
(43.2)
(1.3)
(349.7)
(10.5)
28.1
0.0
0.0
(8.7)
8.9
(63.4)
(133.0)
(7.6)
(195.1)
(10.7)
(30.7)
0.1
(236.5)
(47.8)
(0.3)
(284.6)
Note: Above breakdown only presented for explanatory purposes.
See also table 6 (page 56) and note 2 (page 72) of the 2013 Annual Report
17
LT (discontinuing)
2012
2013
14.3
14.3
(9.8)
(45.5)
0.0
(40.9)
(1.1)
(7.6)
0.3
(49.3)
49.3
LO (discontinuing) "Presentation format"
2012
2013
2012
2013
21.1
21.1
(7.2)
(22.1)
1.4
(6.8)
0.0
(16.3)
0.3
(22.8)
22.8
40.4
27.0
40.4
(16.8)
0.0
(7.5)
16.1
0.0
(10.8)
0.9
6.1
(6.1)
27.0
(10.6)
(28.2)
1.9
(9.9)
0.0
(12.7)
(0.5)
(25.1)
25.1
4.0
35.7
14.3
40.4
(5.7)
88.7
(101.2)
(148.7)
(102.4)
(263.6)
(26.2)
(59.5)
0.8
(348.4)
(10.5)
28.1
21.1
27.0
(8.7)
57.0
(81.2)
(183.3)
(6.2)
(213.7)
(10.7)
(59.8)
(0.1)
(284.3)
(1.3)
(349.7)
(0.3)
(284.6)
JL in a five year perspective 2009-2013
- Selected key figures
Revenues – in USDm
Selected P/L key figures – in USDm
800
300
200
600
100
0
400
-100
200
-200
2009
2010
2011
2012
2013
-300
0
2009
2010
Lauritzen Bulkers
Lauritzen Tankers
2011
Lauritzen Kosan
Other
2012
2013
-400
Lauritzen Offshore
EBIT
Result for the year
One-off items
Capital structure – in USDm
Cash flow from operations and Cash – in USDm
300
3,000
250
2,500
200
2,000
150
1,500
100
EBITDA
1,000
50
500
0
-50
0
2009
2010
2011
Cash flow from operating activities
18
2012
2013
Cash and securities
2009
2010
Total equity
2011
Non-current liab.
2012
2013
Current liab.
Management and Board of Directors of J. Lauritzen A/S
- Experienced, independent and professional team
Executive Management
Jan Kastrup-Nielsen
 President & CEO, J. Lauritzen A/S
since February 2013
 External board membership: Danish Ship Owners
Association
 With JL from 1987-1993, 2000-today, executive
management since 2009, COO since 2011, CEO
since February 2013
Birgit Aagaard-Svendsen
 Executive Vice President & CFO, J. Lauritzen A/S
 External board memberships: DSEB (chairman),
Metroselskabet I/S, Otto Mønsted A/S, The West of
England Ship Owners Mutual Insurance Association,
Chairman of the Committee on Corporate Governance
in Denmark
 JL’s CFO since 1998 (MoB 1992-1998 in JL-Fondet)
Board of Directors
N
Bent Østergaard, Chairman (Member of BoD since 2003)
 President of Lauritzen Fonden & LF Investment Aps
 Chairman of the BoD (selected): DFDS A/S, Kayxo A/S, NanoNord A/S,
Cantion A/S
 Membership of BoD (selected): Royal Arctic Line A/S
Ingar Skaug, Deputy Chairman (Member of BoD since 1998)
 Former CEO of Wilh. Wilhelmsen ASA
 Selected board membership: DFDS A/S
A
N
A N
Niels T. Heering (Member of BoD since 2001)
 Partner & chairman of the BoD in Gorrissen Federspiel (law firm)
 Chairman of the BoD (selected): Jeudan A/S, NTR Holding A/S
Peter Poul Lauritzen Bay (Member of BoD since 2003)
 Management Consultant at Accenture
 Descendant of the founder of Lauritzen Group
 Other board membership: None
Marianne Wiinholt (Member of BoD since 2011)
 Executive Vice President & CFO, DONG Energy A/S
 Other board membership: None
A
Supporting Committees:
 Audit committee (members are marked with A )
 Nomination and Remuneration Committee (members are marked with
Employee elected members of the Board of Directors:
• Søren Berg, Ulrik Danstrøm and Jan Lystlund Sørensen
19
N)
Existing financing
- No refinancing required until 2015
- Existing lenders have confirmed willingness to participate in refinancing of maturing facilities
Outstanding Debt (forecast) – Existing Facilities – USD m
Key features

Term loans and revolving facilities: Maturity 2016–2018 (balloon at
maturity)

ECA backed term loans: Maturity in 2021-2022 (fully amortized)

Unsecured bonds: Maturity May 2015 and October 2017
900
800
163
163
700
600
 Covenants related to mortgaged vessels relevant to ordinary
214
conduct of business
208
500
87
400
156
139
300
 In all loans:
 Loan to value (LTV) at disbursement:
76
< 60% - 85%
122
285
200
244
87
208
100
0
2013
Term loans
2014

2015
Term loans ECA backed
25
105
38
88
71
2016
2017
2018
Revolving
Bonds unsecured
Minimum value clause (MVC) testing
> 100% - 130% of outstanding debt, net
 Financial covenants applying for some of the loans and partly for
the corporate bonds:



Equity (solvency) ratio > 30%
Minimum liquidity USD 50m
Working capital ratio > 1:1
(current assets : current liabilities)
Note: Actual data as of 2013 YE. Numbers may change subsequently, e.g. in case of sale of a vessel, prepayment, reduction in use of revolving facilities, etc.
Totals may differ due to rounding. Bond debt at hedged value less JL’s holding of own bonds.
20
Corporate bonds issued by JL
JLA 01: NOK 700m JL 10.5% 2010/2015
JLA 02: NOK 500m JL FRN 2012/2017

Issuer: J. Lauritzen A/S

Issuer: J. Lauritzen A/S

ISIN: NO 001 0572381

ISIN: NO 001 0661846

Type: Senior Unsecured Bond

Type: Senior Unsecured Bond

Coupon p.a.: Fixed 10.5%

Coupon p.a.: Floating rate 8.25% + NIBOR 3 mths

Issue date: 05 May 2010

Issue date: 24 October 2012

Maturity date: 05 May 2015

Maturity date: 24 October 2017

Amount: NOK 700m *)

Amount: NOK 500m

Interest payment: Annual

Interest payment: Quarterly

Listing: Oslo Stock Exchange

Listing: Oslo Stock Exchange
1,500
106
1,300
104
900
104
850
102
102
1,100
100
98
900
96
700
94
2010/2015 - spread (rhs)
92
500
2010/2015 - price (lhs)
90
Jan-12
300
Jul-12
Jan-13
*)
Jul-13
Jan-14
On 19 Dec. 2013, JL announced that we had bought back NOK 261m
(subsequently reduced to NOK 259m) in the “10.5% JL 5 May 2015” bond
Source: Oslo Stock Exchange, Bloomberg
21
106
100
800
98
750
96
94
2012/2017 - price
92
2012/2017 - spread (rhs)
90
22-jan-13
22-apr-13
700
650
22-jul-13
22-okt-13
22-jan-14
Charter obligations and committed charter income
- Expensive (vis-a-vis current market) time charter commitments in dry bulk tailing of in 2014
Operational lease liabilities (time charter and bare boat contracts) at 2013 YE
Bulkers
< 1 Year
1 - 2 Year
2 - 3 Year
3 - 4 Year
4 - 5 Year
> 5 Year
Total
USDm
147.8
104.2
96.8
73.2
66.6
186.4
675.0
No. of vessels
(full year equiv.)
30.4
22.4
21.8
17.5
16.0
49.3
-
Kosan
USDm
14.3
9.6
7.1
4.0
35.0
No. of vessels
(full year equiv.)
7.6
5.0
4.1
2.3
-
Total
(continuing operations only)
USDm
162.1
113.8
103.9
77.2
66.6
186.4
710.0
No. of vessels
(full year equiv.)
38.0
27.4
25.8
19.8
16.0
49.3
-
Contractual committed charter income (time charter and bare boat contracts) at 2013 YE
Bulkers
< 1 Year
1 - 2 Year
2 - 3 Year
3 - 4 Year
4 - 5 Year
> 5 Year
Total
USDm
41.1
34.0
32.2
31.2
28.0
172.9
339.4
No. of vessels
(full year equiv.)
4.6
3.0
3.0
3.0
2.4
14.6
-
Kosan
USDm
29.8
3.4
3.3
3.3
0.1
39.9
No. of vessels
(full year equiv.)
7.8
1.0
1.0
1.0
0.0
-
Note: Above does not include income from committed contracts of affreightment (COAs).
See also note 19 (page 86) of the 2013 Annual Report
22
Total
(continuing operations only)
No. of vessels
USDm
(full year equiv.)
70.9
12.4
37.4
4.0
35.5
4.0
34.5
4.0
28.1
2.5
172.9
14.6
379.3
-
J. Lauritzen A/S is 100% owned by the Lauritzen Foundation (Lauritzen Fonden)
- Lauritzen Fonden: An experienced owner, focused on shipping secures long-term sustainability
(Formerly JL-Fondet)
LF Investment Aps
J. Lauritzen A/S
100%
DFDS A/S
42.8%
(formerly Vesterhavet A/S)
100%
Lauritzen Bulkers
A/S
100%
Lauritzen
Kosan A/S
100%
Lauritzen
Tankers A/S
100% *)
Lauritzen
Offshore Services
100% **)
The Lauritzen Foundation is a commercial foundation and as such a self-governing institution in Danish Law
The Lauritzen Foundation is regulated by the Danish Act on Commercial Foundations
The Foundation is under supervision by the Danish Ministry of Justice and the Danish Ministry of Business and Growth
Notes:
*) Discontinuing
**) Lauritzen Shuttetankers discontinuing
23
 Lauritzen Fonden was established in 1945 by the brothers Ivar and Knud Lauritzen and their sister Anna Lønbjerg-Holm. It was established in
connection with the 50 years anniversary of Dampskibsselskabet “Vesterhavet”. Vesterhavet was founded by their father Ditlev Lauritzen in
1895.
 Chairman Board of Directors; Jens Ditlev Lauritzen (great grandchild of the founder of J. Lauritzen)
 The objectives of the Foundation are (e.g.):
 To work for the prestige of Denmark by promoting and developing Danish shipping, especially international shipping, and Danish
enterprises in general
 To support studies and projects of a technical, commercial or other nature in shipping, trade and industry, agriculture and other
sectors
 To support the education/training of young people in Denmark and abroad
 To work towards vessels, workshops and other workplaces, offices and housing operated by the companies, especially those associated
with the Foundation, being healthy, bright and well-maintained and that they should be organised so as best to promote job
satisfaction, and to provide support for the personnel and institutions working for such purposes, especially in the shipping sector
 To provide support for institutions, associations and people who, all in all, look after the interests of the shipping sector and
people employed therein, especially such institutions and associations set up by those in the Lauritzen Group or its companies, or
have supported, have an interest in or been associated with, and possibly seek to associate them to other humanitarian institutions that
are not self-supporting, and also to set up and operate humanitarian institutions that operate in line with the above
 To provide support for institutions, associations and people who are working to encourage awareness and esteem of Danish cultural
activities, especially including corporate culture, education/training, self-improvement and character training of the young, studies into
disease prevention, especially prophylaxis
 To provide support for institutions, associations and people who are working to promote Nordic and international relations, also of a
purely humanitarian nature
 To provide support for institutions, companies, associations and people whose aims and work the Board feels it is proper to
support
 To provide support for people who have done service in one of the Foundation’s or the Lauritzen Group companies and to such
people’s successors
Read more about Lauritzen Fonden at http://www.lauritzenfonden.com
24
Contact details
Investor relations
Jacob Winthereik
Financial Investor Relationship Manager, Group Treasury
E-mail: [email protected]
Phone: +45 3396 8384
Web: http://www.j-l.com
Press & Media
Jens Søndergaard
Senior Vice President,
Strategic Planning & Executive Communications
E-mail: [email protected]
Phone: +45 3396 8401
Web: http://www.j-l.com
25
Glossary
Aframax: Crude oil tanker or product tanker too large to pass through the Panama Canal and
below 120,000 dwt.
Bulk vessel: Vessels transporting large cargo quantities, e.g. coal, iron ore, steel, grain, gravel, oil,
etc.
Bunker: Fuel for vessels.
LR1, product tanker: Long Range 1. Product tanker with the maximum dimensions for passing
through the Panama Canal (width of 32.21 meters and length of 289.5 meters) of
approximately 50,000—80,000 dwt.
LR2, product tanker: Long Range 2. Product tanker too large to pass through the Panama Canal
of approximately 80,000 dwt.
Capesize: Dry bulk carrier of more than approximately 80,000 dwt; too large to pass through the
Panama Canal.
Medium Range, tanker (MR): Product tanker of between 25,000 and 50,000 dwt.
Cbm: Cubic meter.
Offshore vessel: Vessel serving the offshore oil industry.
Clean products: Refers to light, refined oil products such as jet fuel, gasoline, diesel oil and
naphtha.
OPEC: Organization of Petroleum Exporting Countries.
CoA: Contract of Affreightment. Contract between shipping company and charterer concerning
the freight of a predetermined volume of goods within a given period of time and/or at given
intervals.
Coating: The internal coatings applied to the tanks of a product or chemical tanker. Coated tanks
enable the ship to transport corrosive refined oil products or chemicals and it facilitates extensive
cleaning of the tanks, which may be required in the transportation of certain cargoes.
Dirty products: Heavy oils such as crude oil or refined oil products such as fuel oil or bunker oil.
DP: Dynamic Positioning. Special equipment on board that in conjunction with bow thrusters and
main propellers enable the ship to position itself in a fixed position in relation to the seabed.
Dwt: Dead Weight Tons. International unit of measurement that indicates the loading capabilities
in metric tonnes of the particular vessel, including the weight of crew, passengers, stores, bunkers
etc.
F(P)SO: Floating (Production) Storage Offloading Unit. Crude oil tanker used as substitute for a
conventional oil platform at oil fields that are either too deep in the ground or too small to justify
the use of a conventional oil platform. If the ship is an FPSO the ship has oil (or gas) processing
capabilities on board.
Nautical Mile: Distance unit measure of 1,852 meters.
Panamax, tanker: Crude oil tanker or product tanker with the maximum dimensions for
passing through the Panama Canal (width of 32.21 metres and length of 289.5 metres) of
approximately 50,000—80,000 dwt.
Panamax, dry cargo: Dry bulk vessel with the maximum dimensions for passing through the
Panama Canal (width of 32.21 metres and length of 289.5 metres) of approximately 60,000—
80,000 dwt.
Petrochemical gases: Industrial processed gases such as ethylene, propylene, butadiene and
VCM.
Product tanker: Tanker vessel with coated tanks used to transport refined oil products.
Suezmax: Crude oil tanker with the maximum dimensions for passing through the Suez Canal
(approximately 120,000—200,000 dwt.).
Time Charter (TC): Under time charters, vessels are chartered to customers for fixed periods of
time at rates that are generally fixed. The charterer pays all voyage costs. The owner is
responsible for payment of all vessel operating expenses (manning, maintenance, repair,
docking) and capital costs of the vessel.
Time Charter Equivalent (TCE): Gross freight income less voyage-related costs (bunkers, harbor
fees, etc.)
Handy, tank: Crude oil tanker, product tanker or chemical tanker of between 10,000 and 25,000
dwt
Ton-nautical mile: Unit of measurement indicating the volume of cargo and how far it has
been transported.
Supramax (incl. Handymax), dry cargo: Dry bulk carrier of between approximately 40,000 and
65,000 dwt.
VLCC: Very Large Crude Carrier. Crude oil tanker of between approximately 200,000 and
320,000 dwt.
Handysize, dry cargo: Dry bulk carrier of between approximately 10,000 and 40,000 dwt.
VLGC: Very Large Gas Carrier. LPG ship with capacity above 60,000 cbm.
IMO: International Maritime Organization A maritime organization under the UN, www.imo.org .
LPG vessels: Liquefied Petroleum Gas. Vessels used to transport ammonia and liquid gases
(ethane, ethylene, propane, propylene, butane, butylenes, isobutene and isobutylene).The gases
are transported under pressure and/or refrigerated.
26
Disclaimer
•
This presentation contains forward-looking statements concerning J. Lauritzen A/S (“J. Lauritzen”, “JL” or the “Group”) and its financial condition, results of
operations and business. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking
statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown
risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements.
•
Forward-looking statements include, among other things, statements concerning J. Lauritzen’s potential exposure to market risks and statements expressing
management’s expectations, beliefs, estimates, forecasts, projections and assumptions. There are numerous factors that could affect J. Lauritzen A/S’ future
operations and could cause J. Lauritzen A/S’ results to differ materially from those expressed in the forward-looking statements included in this presentation.
•
All forward-looking statements contained in this presentation are expressly qualified by the cautionary statements contained or referenced to in this statement.
Undue reliance should not be placed on forward-looking statements.
•
Each forward-looking statement speaks only as of the date of this presentation. J. Lauritzen does not undertake any obligation to publicly update or revise
any forward-looking statement as a result of new information or future events other than required by applicable law. In light of these risks, results could differ
materially from those stated, implied or inferred from the forward-looking statements contained in this presentation.
•
Some of the statistical and graphical information contained in the presentation is supplied from the Clarkson Research Services Limited (“CRSL”) database
and other sources. CRSL has advised that (i) some information in CRSL’s database is derived from estimates or subjective judgments, (ii) the information in
the databases of other maritime data collection agencies may differ from the information in CRSL’s database, (iii) whilst CRSL has taken reasonable care in
the compilation of the statistical and graphical information and believes it to be accurate and correct, data compilation is subject to limited audit and validation
procedures and may accordingly contain errors, (iv) CRSL, its agents, officers and employees cannot accept liability for any loss suffered in consequence of
reliance on such information or in any other manner, and (v) the provision of such information does not obviate any need to make appropriate further
enquiries. Any use of such data and graphical information appear with reference to Clarkson Research Services Limited
•
While the information in the presentation is believed to be accurate, no representation or warranty, express or implied, is or will be made in relation to the
accuracy or completeness of this presentation or any other written or oral information transmitted or made available to any person or its advisors in connection
with any investigation of the Group and no responsibility or liability is or will be accepted by the Group or any of their respective affiliates and representatives.
In particular, no representation or warranty, express or implied, is or will be given as to the achievement or reasonableness of any statements, estimates and
projections with respect to the anticipated future performance of the Group and the market for the Group’s products and services.
27
JL FULLY OWNED VESSELS
Built
Vessel name
31 December 2013
Vessel type
GAS
Size
Owner
Victoria Kosan
Leonora Kosan
Lizzie Kosan
Brit Kosan
Helle Kosan
Monica Kosan
Inge Kosan
Linda Kosan
Isabella Kosan
Helena Kosan
Henrietta Kosan
Alexandra Kosan
Anette Kosan
Charlotte Kosan
Tracey Kosan
Emily Kosan
Berceo
Cervantes
Tessa Kosan
Tenna Kosan
Tilda Kosan
Tanja Kosan
Telma Kosan
ETH
ETH
F/P
F/P
F/P
F/P
F/P
F/P
ETH
ETH
ETH
ETH
F/P
F/P
F/P
F/P
S/R
S/R
S/R
S/R
S/R
S/R
S/R
Cbm.
8,046
LKS
8,046
LKS
4,014
LKS
3,513
LKS
3,678
LKS
3,678
LKS
3,678
LKS
3,678
LKS
8,046
LK
8,046
LK
8,046
LK
8,046
LK
3,516
LK
3,518
LK
3,678
LK
3,678
LK
4,102
LK
4,302
LK
5,895
LK
5,897
LK
6,387
LK
6,391
LK
5,638 Gasnaval
BULK
2009
2011
2011
2011
2003
2007
2007
2010
2010
2010
2010
2011
2011
2012
2012
2012
2011
2011
2011
2011
2005
2008
2008
2010
2010
Camilla Bulker
Corona Bulker
Cassiopeia Bulker
Churchill Bulker
Lilja Bulker
Sofie Bulker
Amine Bulker
Emilie Bulker
Signe Bulker
Louise Bulker
Emma Bulker
Elvira Bulker
Hedvig Bulker
Nicoline Bulker
Anne Mette Bulker
Eva Bulker
Thunderbird Bulker
Tanager Bulker
Tess Bulker
Toucan Bulker
Tenna Bulker
Maren Bulker
Laura Bulker
Sentosa Bulker
Orchard Bulker
Capesize
Capesize
Capesize
Capesize
Handysize
Handysize
Handysize
Handysize
Handysize
Handysize
Handysize
Handysize
Handysize
Handysize
Handysize
Handysize
Supramax
Supramax
Supramax
Supramax
Handysize
Handysize
Handysize
Handysize
Handysize
Dwt.
180,000
180,000
180,000
180,000
28,481
28,300
28,700
32,500
32,500
32,500
32,500
31,858
31,800
38,000
38,000
38,000
57,991
57,991
57,991
58,000
28,000
31,945
31,800
32,755
32,500
LB
LB
LB
LB
LB
LB
LB
LB
LB
LB SO II
LB SO II
LB SO II
LB SO II
LB SO II
LB
LB
LB
LB
LB
LB
JLS
JLS
JLS
JLS
JLS
TANK
2010
2010
2011
2011
2012
2013
2013
Freja Pegasus
Freja Nordica
Freja Taurus
Freja Andromeda
Freja Crux
Freja Phoenix
Freja Libra
MR
MR
MR
MR
MR
MR
MR
Dwt
50,326
53,000
50,500
50,000
50,500
50,500
50,500
LT
LT
LT
LT
LT
LT
LT
OFFSHORE
1999
2011
2012
Dan Eagle
Dan Cisne
Dan Sabiá
Shuttletanker
Shuttletanker
Shuttletanker
46,200
59,000
59,000
LSS
LSS
LSS
2009
2009
1996
1999
2010
2011
2011
2011
2007
2007
2008
2008
2001
2003
2011
2012
1991
1992
1998
1998
1999
1999
1994
JL PART-OWNED VESSELS
31 December 2013
Built
Size
Vessel name
JL owner
share
GAS
2008
2008
2008
Stella Kosan
Stina Kosan
Sophia Kosan
Cbm.
9,108
9,108
9,108
50.0%
50.0%
50.0%
BULK
2005
2012
1995
1996
1997
2001
2004
2004
2008
2009
2012
2013
Durban Bulker
Milau Bulker
Idas Bulker
Arctic ID
Baltic ID
Bianco Bulker
Bianco Dan
Bianco Venture
Idship Bulker
Danship Bulker
Bianco Victoria Bulker
Bianco Olivia Bulker
Dwt.
32,544
37,800
27,321
28,251
28,450
52,193
55,628
33,773
28,050
28,000
32,500
32,500
50.0%
50.0%
20.0%
27.1%
27.1%
43.5%
40.0%
35.0%
18.0%
14.0%
50.0%
50.0%
6,000
34.0%
OFFSHORE
2009
Dan Swift

J. Lauritzen A/S Investor Update – Annual Report 2013

Transcription

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