ASL Marine Corporate Presentation 1H FY2013
Presentation Outline Group Overview 1H FY2013 Financial Review (6 months ended 31 December 2012) Operations Review Business Outlook 2
Group Overview 3
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
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
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
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 125 6 Towing Tugs 67 7 AHT 5 4 AHTS 3 2 Chemical Tankers 2 3 7
Company Profile Shipchartering (cont.) (No. of vessels) 250 200 150 4 6 61 65 7 59 62 7 10 62 67 10 Other Vessels Towing Tugs 100 50 0 115 118 111 125 116 125 FY08 FY09 FY10 FY11 FY12 1H FY13 Barges As at FY08 FY09 FY10 FY11 FY12 1H FY13 AHT 4 4 4 3 5 5 AHTS 2 2 3 Chemical Tankers 1 2 2 2 2 ROV Support Vessel 1 Straight Supply Vessel 1 1 Total of Other Vessels 4 6 7 7 10 10 8
Company Profile Shipchartering (cont.) Vessel Utilisation (%) 80 75 70 65 77 71 68 66 Overall 67 65 69 60 55 50 FY08 FY09 FY10 FY11 FY12 1H FY12 1H FY13 9
Company Profile Shipchartering (cont.) Vessel Utilisation (%) 80 77 77 75 70 70 74 70 69 68 72 65 60 66 62 66 65 Tugs Barges 55 FY08 FY09 FY10 FY11 FY12 1H FY13 100 90 80 76 75 79 80 70 Offshore Support Vessels 60 50 40 50 FY08 FY09 FY10 FY11 FY12 1H FY13 48 10
1H FY2013 Financial Review (6 months ended 31 December 2012) 11
Results Snapshot 2Q FY13 (S$ m) 2Q FY12 (S$ m) Chg % 1H FY13 (S$ m) 1H FY12 (S$ m) Chg % Revenue 83.0 77.4 7.3 172.0 160.5 7.2 Gross Profit 19.4 13.4 45.1 41.5 22.9 80.8 Gross Profit Margin 23.4% 17.3% - 24.1% 14.3% - Net Profit attributable to Shareholders 10.6 7.6 39.8 20.4 16.1 27.1 Net Profit Margin 12.8% 9.8% - 11.9% 10.0% - EBITDA 21.9 21.0 4.0 44.4 44.2 0.4 Basis EPS (cents) 1 2.53 1.81 39.8 4.87 3.83 27.2 1 Based on weighted average of 419,511,294 shares in issue 12
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 49.9 17.5 48.4 11.7 93.3 19.3 95.2 9.3 Shiprepair and Conversion 10.8 39.2 9.1 30.1 34.5 28.3 28.4 23.6 Shipchartering 22.3 28.7 19.9 24.8 44.2 31.0 36.9 20.1 Total 83.0 23.4 77.4 17.3 172.0 24.1 160.5 14.3 13
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 8 3 40,841 16,620 145.7 Dredgers - 1-8,887 (100.0) Tugs 4 8 6,048 15,199 (60.2) Barges and others 11 5 3,036 7,599 (60.0) Total 23 17 49,925 48,305 3.4 14
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 8 3 74,278 35,798 107.5 Dredgers - 2-27,717 (100.0) Tugs 4 8 12,324 22,211 (44.5) Barges and others 15 6 6,704 9,470 (29.2) Total 27 19 93,306 95,196 (2.0) 15
Shipbuilding Revenue increased marginally by 3.4% y-o-y to S$49.9 million in 2Q FY13 due to higher revenue recognition from the construction of more vessels during the quarter. The Group worked on 23 vessels in 2Q FY13 as compared to 17 vessels in 2Q FY12, with more focus on Offshore Support Vessels Gross profit margin was boosted to 17.5% in 2Q FY13 (2Q FY12: 11.7%) due to the construction of two units of high value Platform Supply Vessels and reversal of unrequired construction costs provisions 16
Shiprepair and Conversion Breakdown of revenue: 2Q FY13 (S$ 000) 2Q FY12 (S$ 000) Chg % 1H FY13 (S$ 000) 1H FY12 (S$ 000) Chg % Shiprepair 10,123 8,944 13.2 33,059 22,626 46.1 Conversion - - - 586 5,133 (88.6) Other marine related services 605 202 199.5 800 597 34.0 Total 10,728 9,146 17.3 34,445 28,356 21.5 17
Shiprepair and Conversion Revenue increased by 17.3% y-o-y to S$10.7 million in 2Q FY13 due to an increase in larger docking repairs jobs undertaken during 2Q FY13 Gross profit margin benefited from a write-back of sub-contractor costs for prior years completed jobs in 2Q FY13, which surged to 39.2% in 2Q FY13 (2Q FY12: 30.1%). Excluding the write back, gross profit margin would have been 25.2% in 2Q FY13 (2Q FY12: 29.5%) 18
Shipchartering Breakdown of revenue: 2Q FY13 (S$ 000) 2Q FY12 (S$ 000) Chg % 1H FY13 (S$ 000) 1H FY12 (S$ 000) Chg % Spot charter 15,188 13,919 9.1 29,544 27,366 8.0 Long-term charter 5,616 4,702 19.4 12,472 7,189 73.5 Total charter 20,804 18,621 11.7 42,016 34,555 21.6 Trade sales 1,516 1,038 46.1 2,184 1,864 17.2 Rental income - 244 (100.0) - 492 (100.0) Total 22,320 19,903 12.1 44,200 36,911 19.7 19
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$6.4m and gross profit margin lifted from 24.8% to 28.7% in 2Q FY13 due to: - increase in Group s utilisation rate for tugs from 67% to 72%; - additional gross profit from an AHTS acquired in 2Q FY13; partially offset by - absence of gross profit in 2Q FY13 generated from ROV support vessel as it was disposed off in September 2012 20
Revenue Trend (S$ m) 500.0 400.0 300.0 200.0 400.4 435.4 468.4 363.2 391.2 100.0 160.5 172.0 0.0 FY08 FY09 FY10 FY11 FY12 1H FY12 1H FY13 21
Profit Trend (S$ m) 80.0 16.3% 70.0 15.1% 18.0% 16.0% 60.0 50.0 40.0 71.1 8.0% 8.8% 8.3% 10.0% 11.9% 14.0% 12.0% 10.0% 8.0% 30.0 60.3 6.0% 20.0 37.3 31.9 32.3 4.0% 10.0 16.1 20.4 2.0% 0.0 1 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$12.2 million relating to divestment of ASL Energy Pte Ltd 22
Balance Sheets 31 Dec 12 (S$ m) 30 Jun 12 (S$ m) Chg % Non-current Assets 573.7 514.2 11.6 Currents Assets 430.8 339.9 26.7 Total Assets 1,004.5 854.2 17.6 Current Liabilities 426.2 308.2 38.3 Non-current Liabilities 195.7 182.6 7.1 Total Liabilities 621.9 490.8 26.7 Total Equity 382.6 363.4 5.3 Property, Plant and Equipment 547.7 509.0 7.6 Bank Balances, Deposits and Cash 63.4 95.5 (33.5) Total Borrowings 368.2 285.2 29.7 23
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 12 30 Jun 12 Net Asset Value per Share 1 (cents) 89.27 84.42 Gearing Ratio 0.98 0.81 Net Gearing Ratio 0.81 0.54 1 Based on total number of issued shares of 419,511,294 as at 31 December 2012 and 30 June 2012 24
Operations Review 25
Shipbuilding Order Book (S$ m) 693 523 586 528 327 310 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$528 million comprising of 34 vessels, including Offshore Support Vessels, AHTS, self-propelled cutter suction dredger, tugs and barges Progressive recognition up to second quarter of 2014 26
Shipbuilding Order Book 2H FY13 After FY13 Total Type of Vessels Units S$ m % S$ m % S$ m % Offshore Support Vessels 1 18 130 25 149 28 279 53 Tugs 2 6 19 4 68 12 87 16 Dredgers and Barges 10 26 5 136 26 162 31 Total 34 175 34 353 66 528 100 1 Offtake Support & Supply Vessel, AHTS, Emergency Response & Rescue Vessels and Platform Supply Vessels 2 Rotor Tugs and Diesel Electric Hybrid ASD Tugs 27
Vessel Delivery Schedule (No. of vessels) 15 10 13 11 Offshore Support Vessels 12 Barges and other vessels 9 6 3 3 9 6 3 6 4 Tugs Dredgers 0 1 1 2H FY13 1H FY14 2H FY14 1 28
Business Outlook 29
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
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
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
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
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$138 million comprising : Shipchartering outstanding delivery orders Barges 12 Tugs 7 AHTS 2 AHT 1 ROV Support Vessel 1 Landing crafts 2 Total 25 Unit 34
Share Price Information As at 4 Feb 13 8 Feb 12 Share Price (S$) 0.74 0.57 Price Earnings Ratio 7.60 7.44 Price / Net Asset Value per Share 0.83 0.71 Market Capitalization (S$ m) 310.4 239.1 Source: Bloomberg 35
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
ASL Marine Thank you 37