Shipping update. Oslo, November, 2011 Per Augdahl Senior Vice President Shipping, Offshore & Logistics

Transcription

1 Shipping update Oslo, November, 2011 Per Augdahl Senior Vice President Shipping, Offshore & Logistics

2 Which segments do we cover Who are our clients How do we serve our clients 2

3 Norway is a major shipping nation with a unique maritime cluster Yards etc Shipbrokers Finance Legal services Shipowners Education Insurance R&D Class Source: ISL

4 Shipping consists of many segments, with different drivers Crude Oil/Product ULCC, VLCC, Suezmax, Aframax, Panamax, Product (LR1/LR2/MR) Liquid Natural Gas (LNG) Cruise / Passenger vessel Bulk Carrier/Dry Cargo UltraLargeOreCarrier, Cape Size, Panamax, Handymax, Handysize Drilling Rigs Semis, jackups and drillships RoRo / PCTC / PCC Chemical Tankers Reefer vessel Refrigerated cargo Container Vessel Post Panamax, Panamax, Sub Panamax, Handy Feedermax, Feeder

5 We aim to have a diversified portfolio with a good credit quality

6 Which segments do we cover Who are our clients How do we serve our clients 6

7 We are long term and relationship driven Our core client are typically leading integrated shipping companies We prioritize clients where we have a good and close dialogue and who use a broad range of DNB products We have a global approach We will maintain a good credit quality 7

8 Which segments do we cover Who are our clients How do we serve our clients 8

9 We serve our clients through more than 100 maritime & offshore relationship bankers world-wide What? Provide capital to finance shipping companies or assets directly on a long or short term basis To who? For what? Major Norwegian and international shipping companies Mainly prime assets such as tankers, bulkcarriers, cruise vessels, PCC & Ro/Ro, chemical, oil rigs & FPSO s, but have also Oslo Bergen London Athens New York Shanghai Singapore done more specialized vessels such as PSV s, shuttle tankers, DSV, pipe laying vessels and open hatch 9

10 Risk mitigation by the 4 Cs Our core client are typically leading integrated shipping companies We prioritize clients where we have a good and close dialogue and who use a broad range of DNB products We have a global approach We will maintain a good credit quality Risk mitigation by the 4 Cs Cash flow Client Covenants Collateral 10

11 Our internal analysis is based upon low rate estimates Dry bulk (USD/day) Spot rates for dry-bulk capesize vessels last 10 years vs DNB's assumptions Tankers (USD/day) Spot rates for VLCC tanker vessels last 10 years vs DNB's assumptions Spot rates Base Case Risk Case Spot rates Base Case Risk Case Source: Fearnleys

12 We are supporting our core clients and remaining active 12

13 DNB maintains its position as a leading shipping, offshore and logistics bank, delivering strong results each year NOK mill The Shipping division s financial performance, Gross income Operating profit Operating profit after wd including interest on allocated capital 13

14 MillNOK The Shipping Division has managed to minimize write-downs Actual write-downs 2009, 2010 vs DNB s own expectations, communicated externally Actual write-downs past 10 years MNOK Expectations Expected loss Write-downs Net write downs % of drawn portfolio ,00 % 0,90 % 0,80 % 0,70 % 0,60 % 0,50 % 0,40 % 0,30 % 0,20 % 0,10 % 0,00 % -0,10 % -0,20 % -0,30 %

15 So in conclusion DNB is a leading global shipping bank We must continually follow shipping and financial markets We serve the global market through branch offices DNB is long term and relationship driven Clients are served through client teams Credit is assessed by 4 C s High volatility! The unexpected can and will happen 15