Saudi Fransi Capital ANNUAL SAUDI EQUITIES DAY. 28 th November 2013

Transcription

1 Saudi Fransi Capital ANNUAL SAUDI EQUITIES DAY 28 th November 2013

2 Disclaimer This presentation, its enclosures and appendices have been prepared by The National Shipping Company of Saudi Arabia (Bahri) for information purposes only. It is subject to change without further notice and may not contain all material information concerning Bahri. This presentation has not been reviewed or registered with any public authority or stock exchange. This presentation is intended to be for information purposes only and doesn t contain enough information about the marine shipping industry and its different market segments to help investor or analyst make a decision for an investment in Bahri stocks 2

3 Table of Content Crude Oil Shipping Markets Overview Company Overview Oil & Gas Chemical Transport General Cargo Dry Bulk Ship Management Financial Overview Awards & Competitive Advantages 3

4 Mn bbls/day Crude Oil Demand & VLCCs Fleet OECD vs. non-oecd Oil Demand E 2014 E 2015 E OECD Non-OECD Total Demand Source: IEA,2013 4

5 Crude Oil Seaborne Trade Cargo Volume by Import Region 2012(Mn t) Cargo Volume by Export Region 2012(Mn t) Other Areas 7% Others 11% N. Europe & Baltic 3% Indian Subcontinent 13% S.E. Asia & Oceania 11% S. America Atlantic 6% Others 1% Caribbean 1% North Sea 1% S. America Pacific 1% West Africa 10% Asia Far East 55% Middle East 81% Crude oil seaborne traded by: VLCC Suezmax Aframax Panamax VLCCs carry approximately 40% of the crude oil volume transported by sea, primarily deployed on long-haul routes. 5

6 Number of VLCC VLCC Market VLCC FLEET AGE PROFILE Operational VLCC fleet stands at 637 VLCCs compared to 520 VLCCs in Sep 2008 representing an increase of approximately 23% The newly delivered VLCCs over the past five years reduced the average age of the fleet to 8 years Scrapping of older VLCCs has increased since 2010 and last year saw the highest number of VLCC depletion since 2003 The average scrapping age has decreased to 20 years VLCCs New Building Year VLCCs Contracted Avg NB Price ($ million) Source: Clarksons November

7 Bahri Overview

8 Vision Connecting Economies, Sharing Prosperity and Driving Excellence in Global Logistics Services. Planning & Business Development 8

9 Overview Shareholder Structure Diversified Operations 72% Strong Balance Sheet 28% Public Investment Fund Free Float Multi-ocean shipping activities 1. Crude Oil 2. LPG 3. Liquid Chemical 4. General Cargo 5. Dry Bulk 6. In-house Ship Management Sustainable Profitability Total Assets (SAR Billions) Total Assets ($ billion) Sep Net Income (SAR Millions) Sep

10 Bahri Organization Organized in Five Strategic Business Units (SBUs) Chemical Oil & Gas General Cargo Dry Bulk Ship Management 10

11 Vela Acquisition Highlights Transaction Timeline Event Long-term Agreements with Aramco Date MoU Signing 27/6/2012 Definitive Transaction Agreements Signing 4/11/2012 Expected EGM Approval* Q Expected First Ship Transfer* Q Expected Last Ship Transfer* Q *Timeline is subject to obtaining all required regulatory approval Transaction Value Total transaction value SAR billion: Cash payment of SAR billion Issuance million new shares at an agreed price of SAR22.25 per share Aramco will own 20% of Bahri post transaction Fourth Largest VLCC Owner Globally Long-term shipping contract Exclusive VLCC crude oil shipping provider to Aramco for crude sold on a delivered basis The contract include a TCE floor and threshold NIOC Mitsui O.S.K. Lines Fredriksen Group Bahri 28 Nippon Yusen Kaisha Source: Clarksons November

12 Crude Oil Transport

13 Oil & Gas SBU Oil Owns 17 VLCC Average Age: 9 years 15 Spot Market 2 Time Charter to Hanjin (expires in 2014) Gas Owns 30.3% in Petredec Limited- Liquefied Petroleum Gas trader and ship owner Among the world's largest LPG trading and shipping companies Operates 52 LPG tankers in 5,000-85,000 cbm Owns 19 LPG tankers Delivered more than 10 million tons per year to customers across 5 continents 13

14 Ranks 8 th Largest VLCC Owner Number of DH VLCCs Owned Source: Clarkson November

15 Chemical Transport

16 Chemical Transport SBU Operated through National Chemical Carrier (NCC) (80% owned by Bahri and 20% by SABIC) Fleet: 3 tankers (37,500) MT 10 Chemical tankers (46,200) MT 10 tankers (45,000) MT Average Age 5 years Type of Chartering Arrangement: 3 on Bareboat Charter to Odfjell (Capital Lease) 9 on Time Charter (8 to SABIC & 1 to SIPCHEM) 11 in the spot market One large tanker (75,000 DWT) under construction at Daewoo shipyard (to be Chartered to SABIC) 16

17 Ranks 3 rd Largest Owner 1,400 1,200 1,177 1,125 Chemical Tankers in 000 DWT 1,027 1, Tokyo Marine Co. Ltd A. P. Moller NCC Odfjell ASA MISC Torm, Dampskibss Capital Maritime Eitzen Group Stolt-Nielsen Ltd. Iino Kaiun Kaisha Source: Clarkson November

18 General Cargo

19 General Cargo Highlights Owns 4 Multipurpose ships operational and 2 ships under construction Operate as a liner between the US/Canada west cost ports and Indian Subcontinent ports passing by Red Sea & Arabian Gulf Exclusive full logistics provider to Ministry of Defense 19

20 General Cargo New RoCon Ships An investment of more than SAR1.5 Billion in building 6 new RoCons. Ship 2013 Bahri ABHA 5 th Feb Bahri HOFUF 30 th April Bahri TABUK 2 nd July Bahri JAZAN 29 th October Ship 2014 Bahri JEDDAH 1 st Half Bahri YANBU 1 st Half 20

21 Dry Bulk

22 Dry Bulk SBU Formed as a JV between Bahri (60%) and ARASCO (40%) with a capital of SAR 200 million Started operations early Now time chartered five bulkers to carry grain import into KSA Signed contract to build 5 Eco Kamsarmax ships with a total investment of SAR 656 million which will be delivered in late 2013 and early 2014 Total Investment expected to reach SAR 1.3 billion in the next few years BARLEY CORN SOYBEAN WHEAT 22

23 Ship Management

24 Ship Management SBU Mideast Ship Management is the technical manager for all Bahri fleets based in Dubai, UAE. Highly qualified shipping professionals to ensure that the vessels are operated to the high industry standards. Has an excellent track record for Safety. Quality & efficient technical management are key focus. 24

25 Financial Overview

26 Financial Highlights In SAR "000 except per share Annual (Audited) Revenues 2,464,628 1,991,084 2,049,830 1,672,016 2,594,530 Net Profit 503, , , , ,968 EPS (SAR) EBITDA 1,030, , , ,322 1,242,923 Dividends per share(sar) Current Assets 1,117,187 1,042,280 1,578,464 1,226,804 1,579,185 Current Liabilities 1,007, , , , ,726 Total Assets 11,063,609 10,623,211 9,966,279 10,338,583 9,819,426 Shareholders' Equity 5,410,914 5,062,623 5,089,691 4,987,519 5,090,796 Cash Flow From Operations 672, , , ,621 1,142,291 26

27 Ratios Dividends Payout Ratio (%) Net Profit Margin (%) EBITDA Margin (%) Return On Assets (%) Return On Equity (%) Equity/Assets (x) Current Ratio (x) Debt/Equity (x)

28 Profitability & Dividends Dividends Payment Bahri has been paying dividends since % Bahri average payout ratio for the past five years was 68% Dividends Yield Bahri has maintained higher dividends yield compared to TASI Net Income & Dividends (SAR million) Dividends Yield % Total Assets ($ billion) Dividends Net Income Bahri Dividends Yield TASI Dividends Yield Source: Bloomberg 28

29 Awards & Competitive Advantage

30 Awards Won The Most Transparent Saudi Public Company Award 2010 One of the top 50 Arab companies that made the S&P HAWKAMAH ESG Pan Arab index is composed in 2011 Euromoney Award for the Best Managed Company in the Middle East in the Transport and Shipping sector in

31 Awards Bahri achieves International recognition by receiving the Seatrade 2013 Global Performer award in London on May 10 th 2013 Bahri achieves International recognition by receiving the Seatrade 2013 The Energy:Oil & Gas Award in Dubai on November 10 th

32 Competitive Advantages Young and growing fleet In-house commercial and technical expertise Financially well positioned to support growth plans Competitively lower operating cost Well positioned to take advantage of shipping rates rebound 32

33 Thank You! For more info, please visit: