ASL Marine Corporate Presentation 1H FY2013

Transcription

1 ASL Marine Corporate Presentation 1H FY2013

2 Presentation Outline Group Overview 1H FY2013 Financial Review (6 months ended 31 December 2012) Operations Review Business Outlook 2

3 Group Overview 3

4 Company Profile Core businesses:- - Shipbuilding - Shiprepair and Conversion - Shipchartering - Engineering (VOSTA LMG group) Shipbuilding and Shiprepair & Conversion - 4 shipyards: 1 in Singapore (4 hectare), 2 in Batam, Indonesia (35 and 16 hectare) and 1 in Guangdong, China (8 hectare) - Batam yard: 3 graving dry docks (300,000 dwt, 60,000 dwt and 20,000 dwt) - The big dock is currently one of the largest dry docks in Batam capable of accommodating larger vessels (like Capesize Bulk Carriers, Long Range Product Tankers, Containerships, Heavy-lift Ships, FSO and FPSO) 4

5 Company Profile Shipbuilding and Shiprepair & Conversion (cont.) - Builds a variety of vessels, specialises in building: i) Offshore Support Vessels (Heavy-Lift cum Pipelay Vessel, Subsea Operation Vessel, AHTS, PSV, Offshore Maintenance/Accommodation Vessel, Rescue and Standby Vessel) ii) Construction Vessels and Dredgers (Cutter Suction Dredger and Water Injection Dredger) iii) Tugs (Rotor Tugs and Azimuth Stern Drive Tugs) iv) Barges (Accommodation, Pipe laying and Work) 5

6 Company Profile Shipchartering - Fleet size at 31 December 2012: 202 vessels - Mainly barges, towing tugs, AHT, AHTS and chemical tankers - Vessels on time or bareboat charter to following industries: i) Offshore Oil and Gas ii) Marine Infrastructure iii) Dredging, Land Reclamation and Marine Construction Works iv) Transportation of Cargoes e.g. coal, aggregates, sands, heavy lifts, construction equipment, etc 6

7 Company Profile Shipchartering (cont.) - Out of the 202 vessels in the fleet, 29 vessels are on long-term charters - Of the 202 vessels, 29 vessels are deployed in Singapore, 53 vessels in Indonesia, 44 in Malaysia and 18 in Australia - Details on the fleet and type of vessels are highlighted below: Type of Vessels No. of Vessels Avg. Age of Vessels Barges Towing Tugs 67 7 AHT 5 4 AHTS 3 2 Chemical Tankers 2 3 7

8 Company Profile Shipchartering (cont.) (No. of vessels) Other Vessels Towing Tugs FY08 FY09 FY10 FY11 FY12 1H FY13 Barges As at FY08 FY09 FY10 FY11 FY12 1H FY13 AHT AHTS Chemical Tankers ROV Support Vessel 1 Straight Supply Vessel 1 1 Total of Other Vessels

9 Company Profile Shipchartering (cont.) Vessel Utilisation (%) Overall FY08 FY09 FY10 FY11 FY12 1H FY12 1H FY13 9

10 Company Profile Shipchartering (cont.) Vessel Utilisation (%) Tugs Barges 55 FY08 FY09 FY10 FY11 FY12 1H FY Offshore Support Vessels FY08 FY09 FY10 FY11 FY12 1H FY

11 1H FY2013 Financial Review (6 months ended 31 December 2012) 11

12 Results Snapshot 2Q FY13 (S$ m) 2Q FY12 (S$ m) Chg % 1H FY13 (S$ m) 1H FY12 (S$ m) Chg % Revenue Gross Profit Gross Profit Margin 23.4% 17.3% % 14.3% - Net Profit attributable to Shareholders Net Profit Margin 12.8% 9.8% % 10.0% - EBITDA Basis EPS (cents) Based on weighted average of 419,511,294 shares in issue 12

13 Business Operations Snapshot (Revenue and Gross Profit Margin) Business Segments Revenue (S$ m) 2Q FY13 2Q FY12 1H FY13 1H FY12 GPM (%) Revenue (S$ m) GPM (%) Revenue (S$ m) GPM (%) Revenue (S$ m) GPM (%) Shipbuilding Shiprepair and Conversion Shipchartering Total

14 Shipbuilding Breakdown of revenue: 2Q FY13 (No. of vessels) 2Q FY12 (No. of vessels) 2Q FY13 (S$ 000) 2Q FY12 (S$ 000) Chg (%) Offshore Support Vessels ,841 16, Dredgers - 1-8,887 (100.0) Tugs 4 8 6,048 15,199 (60.2) Barges and others ,036 7,599 (60.0) Total ,925 48,

15 Shipbuilding Breakdown of revenue: 1H FY13 (No. of vessels) 1H FY12 (No. of vessels) 1H FY13 (S$ 000) 1H FY12 (S$ 000) Chg (%) Offshore Support Vessels ,278 35, Dredgers ,717 (100.0) Tugs ,324 22,211 (44.5) Barges and others ,704 9,470 (29.2) Total ,306 95,196 (2.0) 15

16 Shipbuilding Revenue increased marginally by 3.4% y-o-y to S$49.9 million in 2Q FY13 due to higher revenue recognition from the construction of more vessels during the quarter. The Group worked on 23 vessels in 2Q FY13 as compared to 17 vessels in 2Q FY12, with more focus on Offshore Support Vessels Gross profit margin was boosted to 17.5% in 2Q FY13 (2Q FY12: 11.7%) due to the construction of two units of high value Platform Supply Vessels and reversal of unrequired construction costs provisions 16

17 Shiprepair and Conversion Breakdown of revenue: 2Q FY13 (S$ 000) 2Q FY12 (S$ 000) Chg % 1H FY13 (S$ 000) 1H FY12 (S$ 000) Chg % Shiprepair 10,123 8, ,059 22, Conversion ,133 (88.6) Other marine related services Total 10,728 9, ,445 28,

18 Shiprepair and Conversion Revenue increased by 17.3% y-o-y to S$10.7 million in 2Q FY13 due to an increase in larger docking repairs jobs undertaken during 2Q FY13 Gross profit margin benefited from a write-back of sub-contractor costs for prior years completed jobs in 2Q FY13, which surged to 39.2% in 2Q FY13 (2Q FY12: 30.1%). Excluding the write back, gross profit margin would have been 25.2% in 2Q FY13 (2Q FY12: 29.5%) 18

19 Shipchartering Breakdown of revenue: 2Q FY13 (S$ 000) 2Q FY12 (S$ 000) Chg % 1H FY13 (S$ 000) 1H FY12 (S$ 000) Chg % Spot charter 15,188 13, ,544 27, Long-term charter 5,616 4, ,472 7, Total charter 20,804 18, ,016 34, Trade sales 1,516 1, ,184 1, Rental income (100.0) (100.0) Total 22,320 19, ,200 36,

20 Shipchartering Revenue for 2Q FY13 rose by 12.1% to S$22.3m due to: - additional charter income from 2 AHT newly acquired in 4Q FY12; - additional charter income from an AHTS acquired in 2Q FY13; - improved utilisation rate from charter of tugs; and - both the AHTS and chemical tankers were fully utilised in 2Q FY13 Gross profit increased by 29.7% y-o-y in 2Q FY13 to S$6.4m and gross profit margin lifted from 24.8% to 28.7% in 2Q FY13 due to: - increase in Group s utilisation rate for tugs from 67% to 72%; - additional gross profit from an AHTS acquired in 2Q FY13; partially offset by - absence of gross profit in 2Q FY13 generated from ROV support vessel as it was disposed off in September

21 Revenue Trend (S$ m) FY08 FY09 FY10 FY11 FY12 1H FY12 1H FY13 21

22 Profit Trend (S$ m) % % 18.0% 16.0% % 8.8% 8.3% 10.0% 11.9% 14.0% 12.0% 10.0% 8.0% % % % FY08 FY09 FY10 FY11 FY12 1H FY12 1H FY13 0.0% Net Profit (12 months period) Net Profit (6 months period) Net Profit Margin 1 The Group s net profit for FY09 of S$71.1 million included a one-off gain of S$12.2 million relating to divestment of ASL Energy Pte Ltd 22

23 Balance Sheets 31 Dec 12 (S$ m) 30 Jun 12 (S$ m) Chg % Non-current Assets Currents Assets Total Assets 1, Current Liabilities Non-current Liabilities Total Liabilities Total Equity Property, Plant and Equipment Bank Balances, Deposits and Cash (33.5) Total Borrowings

24 Financial Ratios 1H FY13 1H FY12 Return on Equity (annualised) 10.7% 9.2% Return on Total Assets (annualised) 4.1% 3.7% As at 31 Dec Jun 12 Net Asset Value per Share 1 (cents) Gearing Ratio Net Gearing Ratio Based on total number of issued shares of 419,511,294 as at 31 December 2012 and 30 June

25 Operations Review 25

26 Shipbuilding Order Book (S$ m) At 30 Jun 08 At 30 Jun 09 At 30 Jun 10 At 30 Jun 11 At 30 Jun 12 At 31 Dec 12 Total outstanding order book of S$528 million comprising of 34 vessels, including Offshore Support Vessels, AHTS, self-propelled cutter suction dredger, tugs and barges Progressive recognition up to second quarter of

27 Shipbuilding Order Book 2H FY13 After FY13 Total Type of Vessels Units S$ m % S$ m % S$ m % Offshore Support Vessels Tugs Dredgers and Barges Total Offtake Support & Supply Vessel, AHTS, Emergency Response & Rescue Vessels and Platform Supply Vessels 2 Rotor Tugs and Diesel Electric Hybrid ASD Tugs 27

28 Vessel Delivery Schedule (No. of vessels) Offshore Support Vessels 12 Barges and other vessels Tugs Dredgers H FY13 1H FY14 2H FY

29 Business Outlook 29

30 Business Outlook Overall The outlook of offshore and marine industry for 2013 is expected to be good with the sustained high oil price which is one of the key drivers for oil companies to continue focusing on E&P activities Utilisation and charter rates for both AHTS and PSVs have generally improved and enquiry levels for offshore construction vessel and AHTS remained positive Weak bulk and containers shipping markets have led many shipyards moving into the offshore segment thereby leading to stronger competition and thinner margins Global Offshore Exploration and Production Capex World Rig Total Contracted Utilisation Source: Clarksons, Douglas Westwood, The World Deepwater Market Report Source: IHS Petrodata 30

31 Business Outlook Shipbuilding Continue to focus on offshore oil and gas industry Focus on building OSV such as AHTS, PSV, DSV & offshore construction vessels (such as crane barge, accommodation vessel, pipe-lay barge, etc.) To focus on product mix, project selection and project management to optimise margins Outstanding order book of S$528 million provides earnings visibility until 4Q FY14 Shiprepair and Conversion To target more of higher value offshore oil and gas related projects such as conversion, major repair and refurbishment of FSO, FPSO and oil rigs Developing the capability in offshore fabrication works Improving competitiveness, customer service and turnaround time will continue to be a key focal point 31

32 Business Outlook Shipchartering To increase proportion of vessels on long term charter thus improving utilisation rate Maximising deployment, enhancing and renewing its fleet to better meet customers needs Giving our attention to terminal operation, marine transportation and offshore support Areas of operations current areas include Singapore, Indonesia, Malaysia, Australia and other Asian countries and expanding to Persian Gulf, East and West Africa As at 31 December 2012, the Group had an outstanding order book of approximately $83 million with respect to long-term shipchartering contracts 32

33 Business Outlook Engineering The latest development in dredging, land reclamation and mining industries will have a continued positive effect on the business of VOSTA LMG group Dredging companies will need to continuously invest in maintaining and upgrading their equipment This development will also require new and adjusted technology for the development and supply of which the VOSTA LMG group is well positioned GREENFORCE Ball Joint T-Cutter system 33

34 Business Outlook Capital Expenditure Total capex of S$91 million in 1H FY13 comprised mainly: S$ m Vessels 50 Assets under construction for yard infrastructure and vessels 23 Plant and machinery 17 Shipchartering operations have an outstanding delivery order for 25 new vessels worth approximately S$138 million comprising : Shipchartering outstanding delivery orders Barges 12 Tugs 7 AHTS 2 AHT 1 ROV Support Vessel 1 Landing crafts 2 Total 25 Unit 34

35 Share Price Information As at 4 Feb 13 8 Feb 12 Share Price (S$) Price Earnings Ratio Price / Net Asset Value per Share Market Capitalization (S$ m) Source: Bloomberg 35

36 ASL vs Indices FSTOG ASL Source: Bloomberg FSSTI FSSTI FSTOG ASL s share price versus STI and FTSE Straits Times Oil and Gas Index (FSTOG) (for 1 Feb 12 to 4 Feb 13 normalised graph based on %) 36

37 ASL Marine Thank you 37