Financial Results Presentation

Transcription

1 Financial Results Presentation Third Quarter October 2012

2 Highlights Financial Performance Business Review Outlook

3 Financial Highlights From 1 January to 30 September 2012 Key highlights: Decline in charter revenue was due mainly to MV Kaethe C. Rickmers contracting a lower net daily rate of US$7,600 in High operational efficiency with 99.5% fleet utilisation in 3Q2012 Gearing improved to 60% after paying down US$38.3 million in bank loans year-to-date Distribution of 0.60 US cents per unit in 3Q2012, payable on 29 November 2012 Page 2 3Q2012 & 9M2012 Results Presentation

4 Highlights Financial Performance Business Review Outlook

5 Income Statement In US$'000 3Q2012 3Q2011 % 9M2012 9M2011 % Charter revenue 36,315 38,243 (5) 108, ,672 (3) Other income 1,815 1, ,186 4,799 8 Other (losses)/gains - net (267) 948 NM 1,423 2,312 (38) Total income 37,863 40,819 (7) 114, ,783 (4) Add/(less): Depreciation (9,387) (9,468) (1) (28,247) (28,305) (0) Write-back of vessel impairment ,850 NM Impairment of goodwill (4,097) NM Amortisation of favourable charter contracts (128) (128) 0 (384) (384) 0 Vessel operating expenses (8,821) (8,376) 5 (26,621) (24,610) 8 Trustee-Manager fee (778) (772) 1 (2,298) (2,267) 1 Other trust expenses (139) (124) 12 (468) (535) (13) Finance expenses (10,381) (10,834) (4) (31,224) (32,436) (4) Profit before income tax 8,229 11,117 (26) 25,378 28,999 (12) Income tax expense 0 (2) NM 4 (3) NM Net profit after tax 8,229 11,115 (26) 25,382 28,996 (12) Net Profit Margin 23% 29% 23% 26% * NM: Not Meaningful Page 4 3Q2012 & 9M2012 Results Presentation

6 Balance Sheet Highlights In US$'000 As at 30 Sep 2012 As at 31 Dec 2011 % Assets Cash and cash equivalents 54,384 55,321 (2) Net book value of vessels 1,010,137 1,035,763 (2) Other current and non-current assets 48,721 49,071 (1) Total assets 1,113,242 1,140,155 (2) Liabilities Secured bank loans 1 582, ,133 (6) Derivative financial instruments 41,697 55,157 (24) Convertible loan 49,496 49,198 1 Other current and non-current liabilities 22,648 28,137 (20) Total liabilities 695, ,625 (8) Total unitholders' funds 417, ,530 8 Net Asset Value (NAV)/Unit (US$) Notes: 1) Total Outstanding Bank Loans above differs slightly from the Total Secured Bank Loans in the Financial Statements (US$583.6 million as at 30 September 2012 and US$621.9 million as at 31 December 2011) due to the accounting treatment for borrowings, which is initially recognised at fair value (net of transaction cost) and subsequently stated at amortised cost 2) Based on total issued units of 423,675,000 Page 5 3Q2012 & 9M2012 Results Presentation

7 Statement of Cash Flows In US$'000 3Q2012 3Q2011 9M2012 9M2011 Cash flow from: Operating activities 27,628 30,259 79,118 83,710 Investing activities (304) (45) (2,572) (1,303) Financing activities (25,775) (25,261) (76,608) (75,351) Net change in cash & cash equivalents 1,549 4,953 (62) 7,056 Cash & cash equivalents at beginning of period 51,931 48,532 53,536 46,423 Effects of exchange rate changes on cash and cash equivalents 11 (23) 17 (17) Cash & cash equivalents at end of period 53,491 53,462 53,491 53,462 Restricted cash 893 1, ,785 Total Cash 54,384 55,247 54,384 55,247 Page 6 3Q2012 & 9M2012 Results Presentation

8 Cash Flow Available for Distribution In US$'000 (8 months) FY2007 FY2008 FY2009 FY2010 FY2011 9M2012 9M2011 3Q2012 3Q2011 Profit/(Loss) after tax 20,596 34,437 40,741 (28,553) 40,326 25,382 28,996 8,229 11,115 Add/(less): Non-cash adjustments and others 1,451 22,280 36,379 78,566 30,542 23,366 23,812 8,555 7,409 Interest expense - net 2,323 19,900 34,267 42,169 42,636 30,686 32,038 10,219 10,712 EBITDA 24,370 76, ,387 92, ,504 79,434 84,846 27,003 29,236 Non-recurring expenses 4, , Adjusted EBITDA 28,769 77, , , ,504 79,434 84,846 27,003 29,236 Add/(less): Movement in working capital ,384 (2,500) (141) (532) 793 1,046 Dry-dock reserve (550) (1,656) (2,205) (2,033) (3,755) (3,198) (2,856) (407) (236) Cash flow available for distribution before payment to debt capital providers 28,954 75, , , ,249 76,095 81,458 27,389 30,046 Payment to debt capital providers (3,721) (23,774) (43,050) (164,368) (92,266) (69,824) (68,567) (23,233) (22,719) Repayment of bank loans 0 0 (9,804) (104,999) (49,037) (38,282) (35,844) (13,109) (12,001) Interest paid - bank loans, int. rate swaps and conv. loan (3,001) (19,536) (33,246) (41,691) (42,336) (30,649) (31,830) (10,124) (10,718) Loan restructuring fees (2,678) (893) (893) (893) 0 0 Debt arrangement fees (720) (4,238) Cash compensation fee (15,000) Cash flow available for distribution to unitholders 25,233 51,972 67,311 (50,070) 14,983 6,271 12,891 4,156 7,327 Amount to be distributed to unitholders 22,740 37,665 16,566 9,787 ^ 10,168 7,626 ^ 7,626 2,542 2,542 ^ Distribution was partly funded from cash retained in prior periods Page 7 3Q2012 & 9M2012 Results Presentation

9 Distribution to Unitholders Distributions US$' ,000 Cash flow available for distribution before payment to debt capital providers (US$'000) Distribution declared (US$'000) 90,000 60,000 30,000 79% 50% 15% 9% 9% 10% (8 months) M2012 Cash flow available for distribution before payment to debt capital providers (US$'000) 28,954 75, , , ,249 76,095 Distribution declared (US$'000) 22,740 37,665 16,566 9,787 10,168 7,626 DPU (US cents) Weighted average number of units ('000) 389, , , , , ,675 As part of the Trust s financial restructuring, DPU is capped at 0.60 US cents per quarter during the waiver period of the value-to-loan (VTL) covenants Page 8 3Q2012 & 9M2012 Results Presentation

10 Outstanding Bank Loans As at 30 September 2012 Loan Facility Margin above US$ 3-month LIBOR Year of Maturity Face Value US$' million Carrying Amount US$'million VTL Requirement in Loan Facility Security IPO Facility 1.75% % Secured against the initial 10 vessels in the IPO Fleet. Top Up Facility 1.75% % VTL covenant for the IPO Facility is 125% if more than half of the vessels secured against the IPO Facility have remaining charter periods of less than one year. VTL covenant for the IPO Facility is 133% as long as Top Up Facility is outstanding. First Facility 1.75% % Secured against the five Mitsui vessels. Second Facility 1.75% % Secured against the vessel Hanjin Newport. TOTAL ^ ^ Before the deduction of unamortised debt transaction costs of US$1.5 million The Group had obtained a waiver of the value-to-loan covenants for all loan facilities for a three year period, expiring on 15 May If the value-toloan ratios are not met then, the Group may be required to furnish additional security, prepay part of the loans, or negotiate a further waiver to avoid a technical breach. We are currently exploring various options to address the expiry of the waiver next year. Page 9 3Q2012 & 9M2012 Results Presentation

11 Bank Loans Repayment Schedule Actual Estimated Repayment (in US$ million) 9M2012 4Q Scheduled Repayments Excess Cash Repayments Depends on Excess Cash Generated Total Excludes repayment of Convertible Loan US$583.6 million Total bank debt repaid in 9M2012: US$38.3 million Total bank debt remaining: US$583.6 million (at 30 September 2012) Page 10 3Q2012 & 9M2012 Results Presentation

12 Gearing 37% 60% 66% 67% 63% 60% >>> Interest Coverage for 9M2012 at 2.5x Note: Gearing ratio = (external bank loans + convertible loan) / (total unitholders funds + external bank loans + convertible loan) Page 11 3Q2012 & 9M2012 Results Presentation

13 Highlights Financial Performance Business Review Outlook

14 Business Review Fleet Utilisation 3Q2012 3Q2011 9M2012 9M2011 Number of Vessels Vessel Ownership Days 1,472 1,472 4,384 4,368 Off-Hire Days* Fleet Utilisation 99.5% 100.0% 98.6% 100.0% * Excluding positioning and scheduled dry-docking but including 29 days of Kaethe C. Rickmers pending delivery to MSC in 1Q2012 Page 13 3Q2012 & 9M2012 Results Presentation

15 Diversified Portfolio of Charterers 9M2012 US$ million 9M2011 US$ million CSAV 1% Hanjin 6% MSC 1% Hanjin 6% CSAV 5% Italia Marittima 20% Italia Marittima 18% MOL 34% CMA CGM 38% MOL 33% CMA CGM 38% Charter revenue remained stable on the back of long-term charters with reputable counterparties Revenue decline mainly due to lower contribution from Kaethe C. Rickmers Page 14 3Q2012 & 9M2012 Results Presentation

16 Container Time Charter Market Rickmers Maritime s Average Daily Charter Rate for 2012: ~US$25,000 US$27,328 (4,400 TEU 10-year average) Source: Clarkson Research Services Page 15 3Q2012 & 9M2012 Results Presentation

17 Staggered Remaining Charter Periods Name TEU Charterparty Net Daily Charter Hire Kaethe C. Rickmers 5,060 MSC US$7,600 US$23,750 Ital Fastosa 3,450 Italia Marittima US$25,870 Ital Festosa 3,450 Italia Marittima US$25,870 ANL Warringa 4,250 CMA CGM US$25,000 ANL Windarra 4,250 CMA CGM US$25,000 Ital Fiducia 3,450 Italia Marittima US$25,870 CMA CGM Azure 4,250 CMA CGM US$25,000 ANL Warrain 4,250 CMA CGM US$25,000 CMA CGM Jade 4,250 CMA CGM US$27,000 CMA CGM Onyx 4,250 CMA CGM US$27,000 Hanjin Newport 4,250 Hanjin US$25,950 US$27,950 MOL Dominance 4,250 MOL US$26,850 MOL Dedication 4,250 MOL US$26,850 MOL Delight 4,250 MOL US$26,850 MOL Destiny 4,250 MOL US$26,850 MOL Devotion 4,250 MOL US$26,850 Firm Time Charter Period Expiration Period Optional T/C Period At 30 September 2012: Average age of vessels: 5.0 years Average remaining charter period: 3.4 years Remaining committed revenue: US$511.5 million Page 16 3Q2012 & 9M2012 Results Presentation

18 Highlights Financial Performance Business Review Outlook

19 Outlook Future Scheduled Dry-dockings 4Q No. of vessels scheduled for dry-docking Estimated off-hire days Dry-docking of merchant vessels is a regulatory requirement and is carried out in 5 year intervals in order to allow maintenance of the vessels underwater areas By end of 2014, all of Rickmers Maritime s vessels would have undergone their first scheduled dry-docking After completing their first dry-docking, all of the 16 vessels are participating in an extended dry-dock trial program in which the next scheduled dry-docking for vessel maintenance is extended from 5 years to 7.5 years Page 18 3Q2012 & 9M2012 Results Presentation

20 Outlook Continued supply of new vessel capacity resulted in renewed downward pressure on freight rates during 3Q2012, with high bunker price having a continuing negative effect on the liner operators earnings. No material increase in time charter rates and vessel values is expected in the short term. For 2012, containership capacity growth is estimated at 6.6%* while expected trade growth to reach 4.9%*. Trade growth is subject to risks from global economic developments, with downside risks being high oil prices, sovereign credit risk, and continued uncertainty in the global economy. Our fleet of modern container vessels, except for one vessel, Kaethe C. Rickmers, is fully employed until early Kaethe C. Rickmers is fixed to MSC until March 2013, with the charterer having an option to extend for a further 12 months at a fixed net daily charter hire of US$23,750. Barring any unforeseen circumstances, we believe these existing long-term leases will continue to generate ongoing cash flow for the Trust. * Clarkson Research Services, September 2012 Page 19 3Q2012 & 9M2012 Results Presentation

21 Disclaimer This presentation should be read in conjunction with Rickmers Maritime s Financial Statements for the period ended 30 September 2012, released via the SGXNET. This presentation may contain forward-looking statements that involve risks and uncertainties. Such forwardlooking statements and financial information involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements and financial information. Such forward-looking statements and financial information are based on numerous assumptions regarding our present and future business strategies and the environment in which we will operate in the future. As these statements and financial information reflect our current views concerning future events, these statements and financial information necessarily involve risks, uncertainties and assumptions. Actual future performance could differ materially from these forward-looking statements and financial information. You are cautioned not to place undue reliance on these forward looking statements, which are based on the Trustee- Manager s current view of future events. Page 20 3Q2012 & 9M2012 Results Presentation

22 THANK YOU For more information, please visit Note: The picture of MV ANL Warrain on the cover and on this page was taken by Angela Wylie / Fairfax Syndication