CEO Jon Christian Syvertsen CFO Fredrik Platou

Transcription

1 Q2 CEO Jon Christian Syvertsen CFO Fredrik Platou Shippingklubben

2 Corporate & management structure Frontline Management Commercial man. agreement Songa Julie, Saga Chelsea Saga Unity Saga Tankers ASA Techn. man. Agreement Julie, Agnes, Unity & Chelsea Songa Ship Management Accounting Rental Offices Arne Blystad AS Saga Chelsea AS Saga Agnes AS Saga Julie AS Saga Unity AS = Third party companies = Blystad affiliate Saga Tankers ASA Frontline Management AS Songa Shipmanagement Ltd Shippingklubben 2

3 Agenda 2Q 2010 Highlights Financial review Market update Drydocking update Outlook Q&A 3

4 Q2 Highlights Completion of private placement of 59.2 million shares at NOK 12 per share raising gross proceeds of NOK million and subsequent listing on the Oslo Stock Exchange on 18 June Successful delivery of all vessels to the company earnings from day one Songa Julie (TBN Saga Julie) Saga Agnes Saga Chelsea Saga Unity TC-equivalent of USD 45,200 p.d. on spot trading vessels Setting up the company, systems and agreements. Planning of dry dockings. 4

5 Financial Highlights USD Q 2010 Gross freight revenue Operating (TC) revenue Operating profit before depreciation (EBITDA) Operating profit (EBIT) Net profit/-loss Basic and diluted earnings per share (USD) 0.04 Cash and cash equivalents

6 Income statement USD Q Q 2010 YTD 2010 Gross freight revenues Voyage related expenses Operating TC revenues Operating expenses vessels Employee benefit expenses Administrative expenses Depreciation Operating expenses Operating profit Interest income Interest expense Other financial items Net financial items Q2 main figures Weighted avg. TCE p.d. USD 42,800 Weighted avg TCE p.d. spot vessels USD 45,200 Weighted avg. OPEX pd USD 12,100 Profit/-loss before tax Taxes Net profit/-loss Other comprehensive income Total comprehensive income Basic and diluted earnings per share (USD) 0.04 Average number of shares in the period Number of shares outstanding at period end

7 Balance sheet USD Q Q 2010 ASSETS Non-current assets Vessels and other assets Total non-current assets Current assets Other Current assets Cash and cash equivalents Total Current assets TOTAL ASSETS EQUITY AND LIABILITIES Equity Share capital Share premium Retained earnings Total equity Non-current liabilities Long-term interest-bearing debt Net pension liabilities 77 - Total non-current liabilities Current liabilities Current portion of long-term debt Other current liabilities and accruals Total current libilities TOTAL EQUITY AND LIABILITIES

8 Voyages in the quarter ( 3 spot vessels ) Julie Chelsea Unity 8

9 Market : Short term pain Seasonal downturn Presently trading at WS50 / $ / day in TC FFA : WS 58 ( sept ) Contango oil price curve should support storage Scrapping 2010 : of 60 remaining SH vessels only 30 are sailing. Assume no trading after end 2010 VLCC market dependent on US imports Source: Fearnleys 9

10 Long term prospects seem sound Long haul demand drivers still intact Dependent on healthy United States & China imports in order to consume vessels deliveries in 2011 and China crude oil imports still strong US crude imports continue its recovery to pre-financial crisis levels US crude input to refineries (mb/d) trending back to 5 yrs average Monthly import, million tonnes Source: Bloomberg Source: Barclays Capital 10

11 Drydockings / periodic surveys Saga Chelsea (China) Saga Unity (Dubai ) Songa Julie (Singapore) Saga Agnes (Singapore) $ 1.8m d Dep Aug 20 $ 1.4m 13 d Dep Aug d (E) Dep Sept d (E) Dep Sept 8 11

12 Strategy for growth Purchase secondhand VLCC`s built 2003 and younger. Finance (incl WC) : 50% new equity + 50% bank financing Protect dividend flow from existing fleet Charter out one more vessel at $40k / day + No significant hedging of interest rates, bunkers or freight Important factor for future growth: Equity market for accretive capital increases 12

13 Q&A 13