Goldenport Holdings Inc. 3 rd Annual Invest in International Shipping & Marine Services Forum

Transcription

1 Goldenport Holdings Inc. 3 rd Annual Invest in International Shipping & Marine Services Forum 12 October 2010

2 Forward-Looking Statement Matters discussed in this presentation may constitute forward-looking statements. Forward-looking statements reflect the current views of Goldenport Holdings Inc. ("the Company") with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The forward-looking statements in this presentation are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, the Company cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including changes in charter hire rates and vessel values, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled dry-docking, changes in the Company's operating expenses, including bunker prices, dry-docking and insurance costs, or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists. The Company does not assume, and expressly disclaims, any obligation to update these forward-looking statements. This presentation release is not an offer of securities for sale in the United States. The Company's securities have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States or to a U.S. person absent registration pursuant to, or an applicable exemption from, the registration requirements under U.S. securities laws. 1

3 Company Snapshot Competitive Strengths Experienced management team with significant equity stake, fully aligned with shareholders Diversified fleet and balanced exposure to container and dry-bulk sectors Secure, visible cash flows through medium- and long-term charters with high quality customers Prudent and focused fleet expansion newbuilding program fully financed Significant organic growth with 7 new buildings delivered within the next 3 quarters Majority of new buildings already chartered for three years from delivery Additional equity of c. US$38 million raised in July 2010 to further enhance the fleet size Low leverage with strong access to financing acquisition finance already in place Regular dividend paid throughout the shipping cycle never missed a payment Growth potential 2

4 Company Overview Goldenport owns and operates worldwide a diversified shipping fleet Container vessels transport dry cargoes and finished goods Dry-bulk vessels transport iron ore, coal, grains and minor bulks Total carrying capacity of 0.9 million DWT and 32,000 TEU The Company became public in April 2006 and completed a capital raising in July % owned by founder and Chief Executive Officer, Captain Paris Dragnis with more than 30 years of experience in the shipping industry Listed on LSE part of the FTSE Small Cap and FTSE All Shares indices since 19 June

5 Proven Track Record Strategic fleet renewal & expansion program Secure strong, visible cash flows Status 17 vessels at IPO (8 containers avg. age 26 years and 9 dry-bulk vessels avg. age 19 years on IPO) Disposed all pre-ipo containers and 5 dry-bulk vessels 25 vessels currently 11 containers (avg. age 16.2 yrs*) and 14 dry-bulk vessels (avg. age 8.9yrs*) Fully funded newbuilding program on track with 3 deliveries in 2010 and 4 deliveries in early 2011 Stable cash flow from long-term charters High quality customers including MSC, Kawasaki Line, Glencore, SK and KLC Secured 96%, 66% and 25% of operating days in 2010, 2011 and 2012 respectively The majority of the container fleet opens for re-chartering after January 2012 Renewal of expiring charters at higher rates for the bulk carriers Achieved Maintain a diversified portfolio of assets Balanced and flexible exposure to container and dry-bulk industry Leverage market opportunities in each sector Established strong reputation for performance, reliability and safety in both sectors Safeguard the value created through strategic initiatives even during the downturn Existing commitments in 2009 financed by operational cash flow and existing facilities Swapped employment from fully depreciated vessels to younger vessels ensuring high utilisation of modern tonnage The fully depreciated vessels have been scrapped, strengthening cash flow Reduction to contract price of the vessels on order Switched from a 2,500 TEU container vessel to a Post Panamax bulk carrier with 93,000 DWT at no additional cost * Including newbuildings. 4

6 Proven Track Record (cont d) Status Achieved Paid 39.3 million (55 pence per share) in dividends since IPO Sustain attractive dividend payout Paid consecutive dividends since IPO throughout the shipping cycle 2009 distribution of >100% of earnings before exceptional items to reward shareholders who have been supportive 2010 interim dividend implies 4.6% full year dividend yield Scrip dividend alternative was given to shareholders Align shareholders and management interests Ability to manage a wide range of vessel types Disciplined management of operating expenses enables higher returns to shareholders Significant share ownership by management elected scrip option for dividend payment during 2009 to supporting cash retention Net Debt to Book Capitalization as of 30 June 2010: 41% (31 December 2009: 36%) Newbuilding program fully financed bank debt fully committed No issue with bank covenants Maintain a strong balance sheet Sustained regular dividend payment Well positioned in highly cyclical industry Ability to react quickly to market opportunities Committed debt for additional vessels More than US$ 50 m cash in the balance sheet US$ 10 m held as restricted cash to fund vessel acquisitions 5

7 Continued fleet renewal and expansion Profitable vessel disposal On 12 February 2010, the company agreed the sale of the 962 TEU, 1978-built vessel MSC Mekong at a gross consideration of US $2 m in cash. The gain resulting from the sale of the vessel was US$0.9 m Vessel Acquisitions On 6 May 2010, the company took delivery of the 2,986 TEU container vessel Grand Vision built in The vessel was acquired for US$6.75 m On 11 May 2010, the company took delivery of the 48,140 DWT handymax bulk carrier Golden Trader (ex-name Arctic Trader), built in The vessel was acquired for US$ m Expected vessel deliveries During Q the company expects to take delivery of 3 vessels, 2 of the 57,000 DWT COSCO new building Supramaxes and the 59,000 DWT SPP Supramax. During Q1-Q the company expects to take delivery of 4 vessels, 2 of the 57,000 DWT COSCO new Building Supramaxes, the 93,000 DWT Post panamax bulk carrier and the 2,500 TEU geared container vessel Contracted organic growth to boost significantly the revenue and profitability 6

8 Development since IPO - Diversified Fleet with Extended Age Profile Containers IPO fleet: Eight vessels with 10,880 TEU capacity Current Container fleet: 11 Vessels with 32,010 TEU capacity Includes 1 new build geared vessel with 2,500 TEU capacity, to be delivered in 2011 After the sale of all the pre-ipo container vessels in 2008/2009/2010 Bulk Carriers IPO fleet: Nine vessels with 605,625 DWT capacity Current Bulk Carriers fleet: 14 Vessels with 896,948 DWT capacity Includes 1 new build Post Panamax and 5 new build Supramaxes with deliveries in 2010 & 2011 After the sale of 5 vessels since IPO Future revenue capacity stronger due to mix of sizes and younger tonnage The tables assume operational life of 30 years (5 years more than accounting life). 7

9 Fleet Deployment: Visible Cash Flows with Upside Potential Attractive mix of medium and long-term time charters Period charters provide revenue stability Reduced earnings volatility Potential upside as several charters expire and new charters for several vessels are entered into Forward coverage in detail as of 30 th August: Solid fixed revenue base from operational fleet 4 of the 5 New Build Supramaxes have already been chartered for three years from delivery 3 New Build Supramaxes to be delivered in Q4, new buildings to be delivered in Q1-Q2, 2011 expanding significantly the revenue and profit generation capacity 2010 (1)(2) Total fleet: 96% (94%) Containers: 99% (99%) Bulk-Carriers: 92% (87%) 2011 (1)(2) Total fleet: 66% (66%) Containers: 89% (89%) Bulk-Carriers: 35% (35%) 2012 (1)(2) Total fleet: 25% (25%) Containers: 45% (45%) Bulk-Carriers: 1% (1%) Goldenport s cash flows are visible and predictable backed by medium to long-term charters Notes: (1)Info as of 30 th August. Percentages as of 3 rd August Trading update are included in brackets (2)The coverage does not include 7 new-build vessels, that will be delivered in a future day (3 in 2010 and 4 in 2011) 8

10 High Quality Customers Container Established container-line operators Dry-bulk Premier mining and agricultural companies, and major commodity traders High quality charterers increase visibility of cash flows and minimize risk of default 50/50 JV with Glencore in two 2009 built Supramaxes Note: Customers shown are customers with whom vessels have been contracted in the last 5 years. Not all of the customers are charterers of the Company s vessels at present. 9

11 Container Overview Charter rates (1 year time charter, US$ per day) 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5, Handy 1000 TEU Sub-P'max 2000 TEU Feeder 350 TEU Freight rates and volumes in 2010 improved vastly on the back of the rebound in global economy The increase in demand for container vessels has been encouraging after a period of prolonged de-stocking The liners spent a considerable part of 2009 restructuring their organisations and repairing their balance sheets which helped them overcome the depressed rates and benefit more from the recovery Liners have taken a more disciplined approach to the way they operate their controlled fleet with slow steaming vessels which reduces fuel consumption and allows for more vessels to be used in different loops At the start of 2010 it was estimated that 12% of the total containerised fleet capacity was in lay-up and has since comedown to less than 2% on the back of increased demand The positive recovery in the freight rates has filtered through to newbuild and secondhand values Charter rates improved by 120% HRCI in October stands at 735 units in comparison to 334 units at 30 December 2009 Supply remains a threat, but less than before as the orderbook as a percentage of the fleet has dropped from a peak of 60% to 25% Existing newbuilding orders are delayed and until Q2 in 2010 there were no further newbuild orders placed since New orders are being placed now with delivery by 2014 Newbuilding order-book for feeders is considerably lower than that for larger vessels with the growth of feeder fleet over the next three years expected to be 2% per year 10

12 Dry-bulk Overview Charter rates (1 year time charter, US$ per day) 160, , , ,000 80,000 60,000 40,000 20, Handymax Panamax Capesize 2009 was expected to be a challenging year for the sector but China's voracious appetite for the steelmaking raw materials of iron ore and coking coal supported the market throughout the year and into 2010 Still 2009 was stronger than originally expected In the first half of 2010 there was a disconnection between the cape market and panamax and sub-panamax markets with the smaller segments performing better BDI volatility is largely attributable to cape market, which accounts for a large portion of the index Whilst there has been a traditional summer lull in the dry market recently we have seen an increase in demand for dry bulk transportation in recent weeks due to China's continuing demand for ore and coal The increase in demand for dry bulk vessel has filtered through from freight rates to ship values and has seen in the past 12 months values increase by c.20% for secondhand and newbuild values The orderbook remains a concern considering the increase in orders especially in the larger segments given the relatively young average age of the fleet Furthermore, the increase in demand for dry bulk in the past 12 months has increased the number of new orders seen in the sector Outlook for the dry bulk market has to be evaluated separately for the large sizes versus the smaller sizes The big sizes, will continue to be dependent on how the Chinese thirst for steel raw materials lasts for and how much of the planned order book really gets delivered The outlook for smaller sizes seems to be brighter as it is not only Chinese driven but depends on the emerging markets growth in total, with trades other than the iron ore and coal that apply for the big sizes. The age profile of the fleet is another factor that adds to the optimism 11

13 Regular Dividend Policy Interim Dividend Details Interim dividend for 2010 Interim dividend 1.8 pence per share or 1.6 million in total (2009: 0.7 pence per share or 0.5 million in total) with scrip alternative 9 th dividend payment (total dividends paid since IPO 55 pence or 39.3 million in total) 1/3 to be paid as interim and 2/3 to be paid as final for 2010 Implied dividend yield for 2010 of 4.6% The Company s dividend policy is to maintain a conservative payout ratio while rewarding shareholders for their continued support Goldenport has not missed a single dividend payment since IPO, irrespective of market conditions Goldenport s dividend policy is to maintain an attractive dividend to shareholders throughout the shipping cycle 12

14 Investment Highlights Experienced management team with significant equity stake, fully aligned with shareholders Diversified fleet and balanced exposure to container and dry-bulk sectors Secure, visible cash flows through medium- and long-term charters with high quality customers Prudent and focused fleet expansion newbuilding program fully financed Significant organic growth with 7 new buildings delivered within the next 3 quarters Majority of new buildings already chartered for three years from delivery Additional equity of c. US$36 million raised in July to further enhance the fleet size Low leverage with strong access to financing Regular dividend paid throughout the shipping cycle never missed a payment Growth potential 13

15 Financial Calendar & Investor Relations Financial Calendar Ex-dividend date: 8 September 2010 Record date: 10 September 2010 Calculation period for scrip dividend: 8-14 September 2010 Despatch Scrip Election Documentation: 21 September 2010 Last day of elections for the scrip dividend: 12 October 2010 Payment date: 2 November 2010 Next Trading update: November 2010 Analyst coverage Panmure Gordon HSBC Charles Stanley Clarksons Jefferies Cheuvreux Proactive Investor Relations approach: Investor and analyst meetings at interim and final results Quarterly announcement of forward contract coverage and TC rates by vessel Analyst briefings from management prior to close period and ad-hoc one-on-one briefings Management constantly On Call especially after major announcements Dedicated IR website ( or 14

16 Goldenport Holdings Fleet Details 15

17 High Quality, Diversified Fleet Containers Name Type TEU Built On-the-water MSC Fortunate Post Panamax 5, MSC Socotra (1) Post Panamax 4, Bosporus Bridge Sub Panamax 3, MSC Finland Sub Panamax 3, MSC Scotland Sub Panamax 3, Grand Vision Sub Panamax 2, MSC Anafi Geared Sub Panamax 2, MSC Accra Geared Sub Panamax 1, Sister Ships Gitte Geared Handy Brilliant Geared Handy Subtotal / Average (2) : 29, Years New-building YZJ Geared Sub Panamax 2, Total / Average (2) : 32, Years (1) The previous name of the vessel was Procyon. (2) The average is weighted by size. 16

18 High Quality, Diversified Fleet Dry bulk Name Type DWT Built On-the-water Vasos Capesize 152, Sister Ships Sister Ships Sister Ships Marie-Paule (1) Geared Supramax 53, Alpine Trader (1) Geared Supramax 53, Alex D Geared Supramax 52, Limnos Geared Supramax 52, Lindos Geared Supramax 52, Tilos Geared Supramax 52, Golden-Trader Geared Handymax 48, Subtotal / Average (3) : 516, Years New-buildings YJZ (2) Post Panamax 93, SPP Geared Supramax 59, COSCO Geared Supramax 57, COSCO Geared Supramax 57, COSCO Geared Supramax 57, COSCO Geared Supramax 57, Subtotal: 380,000 Total / Average (3) : 896, Years (1) Vessel owned under a 50:50 joint venture with Glencore International AG. (2) Converted from container in April 2010 at no additional cost. (3) The average is weighted by size. 17

19 Contacts Goldenport: Christos Varsos, Chief Financial Officer John Dragnis, Commercial Director Investor Relations Co-ordinators Capital Link - New York / Nicolas Bornozis Capital Link London / Annie Evangeli +44 (0) Address: goldenport@capitallink.com or Goldenport Stability & Prudent Growth 18