The vessel sold in Q3 17 was delivered to new owners in Q Recognized gain in Q was $2.0 million

Transcription

1 ResultsQ

2 FINANCIALS 2

3 HIGHLIGHTS Q Delivery of a total of three vessels to the Company in Q The vessel sold in Q3 17 was delivered to new owners in Q Recognized gain in Q was $2.0 million Acquisition of one more vessel during Q4 with delivery in January EBITDA was $6.7 million in Q compared to $2.5 million in Q Average time charter equivalent (TCE) in Q was $ per day, compared to $9 069 per day in Q Total time charter equivalent earnings were $12.2 million in Q4 2017, up from $8.1 million in Q Net profit was $3.0 million ($0.085 per share) in Q4 2017, compared to a net loss of $0.7 million ($0.020 per share) in Q TC out days were in Q4 2017, TC out days in Q were 891. Net ship operating expenses (OPEX) in Q were $5 585 per day, compared to $5 178 per day in Q OPEX for the full year 2017 were $5 294 per day Cash break-even per vessel in Q4 2017, calculated on the basis of a fully delivered fleet of 15 vessels, was $7 505 per day. Proposed dividend of $0.10 per share subject to approval by the shareholders. 3

4 PROFIT & LOSS Q in $ thousands Q Q YTD Q (Unaudited) (Unaudited) (Unaudited) Voyage charter revenue Time charter revenue Gain from sale of vessels and other revenue Total operating income Financial performance Other operating income (-expenses) Increase in operating income with $5.8 million in Q compared to Q Gain on sale of vessel in Q $2.0 million TCE from $9 069 per day in Q to $ per day in Q TCE YTD 2017 was $ Operating profit increased by $3.7 million compared to third quarter OPEX from $5 178 per day in Q to $5 585 per day in Q OPEX YTD 2017 was $ Voyage expenses Ship operating expenses General and administrative expenses Depreciation Total operating expenses Operating profit Interest income Interest expenses Other financial income (-expenses) Net financial income (-expenses) Profit (-loss) before taxes Tax expense Net profit (-loss) Total comprehensive income (-loss) Basic and diluted earnings $ per share

5 BALANCE SHEET Q in $ thousands 31 December September 2017 (Unaudited) (Unaudited) Vessels Deposit vessels Vessels held for sale Total non-current assets Financial position Three vessels were added to the fleet during fourth quarter 2017, while one was sold. Inventories Trade receivables Other receivables Cash and cash equivalents Total current assets TOTAL ASSETS Share capital Share premium Other paid-in capital Retained earnings Total equity Interest-bearing debt Financial liabilities at fair value through profit or loss Total non-current liabilities Trade payables Income taxes payable Other liabilities Total current liabilities Total liabilities TOTAL EQUITY AND LIABILITIES

6 OPERATIONS 6

7 EMPLOYMENT OVERVIEW As offebruary2018 # Vessel Type DWT Year Yard 1 Songa Glory Supramax Nantong Cosco * 2 Songa Wave Ultramax Dalian Cosco 9 500/Index** 3 Songa Genesis Kamsarmax STX, South Korea Index 4 Songa Flama Kamsarmax STX, South Korea Songa Hadong Kamsarmax Tsuneishi Shipbuilding Japan 9 975/Index*** 6 Songa Delmar Kamsarmax Hyundai Samho HI Songa Grain Kamsarmax Tsuneishi Shipbuilding Japan Index 8 Songa Devi Kamsarmax Tsuneishi Shipbuilding Japan Songa Maru Kamsarmax Tsuneishi Zhoushan China Songa Moon Kamsarmax Tsuneishi Shipbuilding Japan Songa Hirose Kamsarmax Sanoyas Japan Index 12 Songa Sky Kamsarmax Universal Shipbuilding Japan Songa Mountain Capesize Hyundai HI Korea Pool 14 Songa Opus Capesize STX, South Korea Pool 15 Songa Claudine Capesize STX, South Korea Pool TC rate 2018 USD/d Q1 Q2 Q3 Q4 Available/spot: TC: Pool/index Option: *Songa Glory: new Charter commences beg Mar at usd 11,400 **Songa Wave: new Rate from 10 th April, index linked *** Songa Hadong: new Charter from Apr, index linked 7

8 DAYS OF SAILING Q Rise in number of operating days and TC out days in each quarter due to delivery of new vessels Operating days TC out days Q Q Q Q

9 DEVELOPMENT OF DAYRATES Analysis oftce and OPEX Dayrates, $ per day Explanations Time Charter Equivalent (TCE) is calculated by dividing TC equivalent revenue by TC out days during a reporting period. TC out days are calculated on a vessel by vessel basis and represent the net of available days less handover days, drydock and unscheduled repairs Net Ship Operating Expenses per day (OPEX) is calculated by dividing ship operating expenses, less startup cost and tonnage taxes, by operating days during a reporting period. Operating days are calculated on a vessel by vessel basis and represents all days from the Company took delivery of the vessel Q1-17 Q2-17 Q3-17 Q4-17 TCE OPEX 9

10 MARKET 10

11 MACRO FORECASTS TRENDS: SIGNS OF SOME OPTIMISM World GDP forecast tracker, monthly updates 4,6 4,6 4,4 4,4 4,2 4,2 4,0 4,0 GDP growth 3,8 3,6 3, ,8 3,6 3,4 3,2 3,2 3,0 3,0 2,8 2,8 2,6 jan.10 jan.11 jan.12 jan.13 jan.14 jan.15 jan.16 jan.17 jan.18 2,6 11 Source: Clarksons Platou

12 SEABORNETRADE OFDRY BULK COMMODITIES(MAJOR IMPORTERS) IRON ORE, COAL AND GRAINS/SOYBEAN Mill tons OTHER COMMODITIES Mill tons 50,0 45,0 40,0 35,0 30,0 25,0 20,0 15,0 10,0 5, , Iron ore Coal Grain/soybean 12 Bauxite Alumina Fertilizers Cement Other Steel products Nickel ore Source: Clarksons Platou

13 CHINA S DRY BULK IMPORTS Mill tons/m Mill tons/m Bauxite Soybean Fertilizers Iron and steel Nickel ore Mang.ore Woodpulp Grains Logs Woodchips Alumina Pet coke Iron ore Coal 13 Source: Clarksons Platou

14 WORLD SEABORNE TRADE EXPECTED TO INCREASE Mill tons/yr ESTIMATED ANNUAL CHANGES IN % Iron ore 5 % 4 % 4 % 3 % 2 % Coal 4 % 3 % 2 % 1 % 1 % Grain/Soybean 10 % 5 % 4 % 4 % 4 % Other 2 % 3 % 3 % 3 % 2 % Total 4 % 3 % 3 % 3 % 2 % Iron ore Coal Grain/soybean others 14 Source: Clarksons Platou

15 DRY BULK ORDER BOOK HISTORICALLY LOW In % ofexistingfleet Percent of fleet % Source: Clarksons Platou

16 DRY BULK MARKET OUTLOOK FEBRUARY 2018 Fleet Development - Order books and age profile based on nominal order book 16 Source: Fearnleys

17 DRY BULK CARRIER DEMOLITION Mill dwt Handysize Hmax/Supramax Pmax/P.Pmax Capesize 17 Source: Clarksons Platou

18 DRY BULK MARKET OUTLOOK FEBRUARY Valemax capacity build 1 delivered and 17 more Valemaxes due in Aggr. Lifting capa 2018 about 13 mmt. Leaving 17 mmt to Capesize About Capesize equiv. 18 Source: Fearnleys

19 DRY BULK MARKET OUTLOOK FEBRUARY 2018 Fleet development- comments Non-eco Scrap candidates? 111 mdwt 19 Source: Fearnleys

20 DRY BULK MARKET OUTLOOK FEBRUARY 2018 Fleet development cost challenges Owners face a m$-bill in the coming few years. WBTS: $ million DD/SS: $ million Scrubber: $ million, alt. MGO ops: $ million (annually) 20% of the fleet is due for 3 rd 5 th SS in the next four years. Another about 14% of the fleet is due for intermediate survey and DD the next 4 years. This represents about 3,750 ships and 260 mdwt Even in a rising freight market, recycling will be kept relatively high 20 Source: Fearnleys

21 POSSIBLE IMPACT OF HIGHER BUNKER PRICES Capesize Assuming 40 % of change in bunker price take effect TC result optimum speed Effective speed Bunker price Forecast 2018 avg Forecast 2020 avg Forecast 2020 avg adjusted for higher bunker prices knots = 3.2 % ( 70 % at sea) about 2 percentage points on utilization rate 21 Source: Clarksons Platou

22 FREIGHTRATES VSUTILIZATIONRATE CAPESIZE quarterly $ per day Utilization rate 22 Source: Clarksons Platou

23 DRY BULK MARKET OUTLOOK FEBRUARY 2018 Earnings forecast 23 Source: Fearnleys

24 DRY BULK MARKET FUNDAMENTALS Supply, Demand and utilization rate 10,000 dwt + Mill dwt Percent Assumptions: Base case Year Deliveries dwt Removals dwt % change prev yr Tonnage demand base case % chge from prev yr: Fleet utilization rate base case Yearly average in % Supply Demand Utilization rate 24 Source: Clarksons Platou

25 25