First Quarter 2015 Results 6 May 2015 2 Market update and - PowerPoint PPT Presentation

First Quarter 2015 Results 6 May 2015

2 Market update and prospects Operational review Project Felix Financials Highlights Agenda • • • • •

Highlights Highlights • Chemical Tankers EBITDA was USD 26 million, which adjusted for non-recurring items was USD 4 million higher than last quarter. EBITDA includes negative effects from bunker derivatives of USD 15 million. • Odfjell chemical freight index (ODFIX) and time charter result down 3% compared with the previous quarter. ODFIX Annulised EBITDA¹ 200 350 300 Index 1990=100 150 250 200 USD mill 100 150 100 50 50 0 0 06 07 08 09 10 11 12 13 14 15 09 10 11 12 13 14 15 -50 Chemical tankers Tank terminals LPG/Ethylene ¹ Proportional consolidation method according to actual historical ownership share 3

Highlights Highlights • The cost-cutting and efficiency programme is progressing as planned. • Strengthened results from Odfjell Terminals, EBITDA of USD 9 million compared with USD 2 million in fourth quarter. • Appointment of new President/CEO, Mr Kristian V. Mørch starting latest 1 November, 2015. 4

Financials Income statement¹ - First quarter 2015 1Q15 4Q14 USD mill Gross revenue 260 276 Voyage expenses (106) (118) TC expenses (40) (42) Operating expenses (53) (58) General and administrative expenses (26) (32) Operating result before depr. (EBITDA) 35 34 Depreciation (30) (29) Operating result (EBIT) 5 5 Net finance (37) (26) Taxes (0) 4 Net result (32) (17) hallo ¹ Proportional consolidation method 5

Financials Quarterly figures¹ USD mill EBITDA Gross Revenue 40 350 35 300 30 250 25 USD mill USD mill 200 20 150 15 100 10 50 5 0 0 2013 2014 2015 2013 2014 2015 • • Slightly reduction in revenue. Slightly reduction in revenue. • • EBITDA improvement continues ,USD 35 million in first quarter compared to USD 34 million last EBITDA improvement continues ,USD 35 million in first quarter compared to USD 34 million last quarter. quarter. haallooo oooooo oooo ¹ Proportional consolidation method 6

Financials Quarterly figures USD mill Operating Result (EBIT )¹ 40 • • EBIT 4Q14 includes reversal of impairment of USD EBIT 4Q14 includes reversal of impairment of USD 23 20 8 5 5 5 5 million . 5 million . 0 ‐ 6 -20 • • Unrealized negative value on derivatives Unrealized negative value on derivatives USD mill ‐ 15 ‐ 15 -40 USD 21.2 million posted other financial items . USD 21.2 million posted other financial items . -60 • • Stable interest. Stable interest. -80 -100 ‐ 99 -120 2013 2014 2015 Net Finance² Net Result 10 30 5 7 9 1 0 0 10 ‐ 7 ‐ 7 ‐ 9 ‐ 9 ‐ 9 ‐ 9 ‐ 9 ‐ 11 -5 ‐ 10 -10 USD mill ‐ 2 ‐ 1 ‐ 9 -10 ‐ 13 USD mill ‐ 5 ‐ 17 ‐ 6 -30 ‐ 22 ‐ 15 ‐ 26 -15 ‐ 10 ‐ 32 -50 -20 ‐ 20 haallooo -70 -25 -30 -90 oooooo Net interest Other financial/currency 2013 2015 2014 -110 ‐ 102 oooo 2013 2014 2015 ¹ Proportional consolidation method ² Equity method 7

Financials Results per segment¹ 1Q15 Annualised EBITDA¹ 100% 350 90% 300 80% 250 70% 60% 200 USD mill 50% 150 40% 100 30% 50 20% 10% 0 06 07 08 09 10 11 12 13 14 15 0% -50 Gross revenue EBITDA Assets Chemical tankers Tank terminals LPG/Ethylene Chemical tankers Tank terminals LPG/Ethylene 1Q15 4Q14 LPG/ LPG/ Chemical Tank Chemical Tank USD mill tankers terminals Ethylene tankers terminals Ethylene Gross revenue 229 27 4 247 24 4 EBITDA 26 9 1 30 2 1 EBIT 4 1 1 5 (1) 1 ¹ Proportional consolidation method 8

Financials Income statement¹ – 1Q15 chemical tankers 1Q15 4Q14 USD mill Gross revenue 229 247 Voyage expenses (104) (117) TC expenses (38) (41) Operating expenses (39) (40) General and administrative expenses 2 (22) (18) Operating result before depr. (EBITDA) 26 30 Depreciation (22) (21) Impairment - (4) Operating result (EBIT) 4 5 • • Bunker adjustment clauses impacted the gross revenue negatively with USD 10 million in 1Q15 Bunker adjustment clauses impacted the gross revenue negatively with USD 10 million in 1Q15 (USD 2.7 million in 4Q14) , EBITDA also includes negative effects from bunker derivatives of (USD 2.7 million in 4Q14) , EBITDA also includes negative effects from bunker derivatives of USD 15 million (USD 16.6 million in 4Q14). USD 15 million (USD 16.6 million in 4Q14). • • EBITDA includes provisions of USD 2 million for redundancy packages vs. a gain of USD 6 EBITDA includes provisions of USD 2 million for redundancy packages vs. a gain of USD 6 hhhhhh million in 4Q14. million in 4Q14. hhhhhh h ¹ Proportional consolidation method h 2 Including corporate functions 9

Financials Vessel operating expenses - chemical tankers 12,000 10,000 8,000 USD 6,000 4,000 2,000 0 06 07 08 09 10 11 12 13 14 15 USD / day, total USD/day, crew 10

Financials Bunker development Net Bunker Cost 80 67.7 71.6 70 63.0 61.3 64.5 16.6 60 14.7 2.7 50 10.0 USD mill 40 66.4 65.9 72.3 30 52.3 20 39.9 10 - (3.2) (4.2) (3.9) (0.4) (10) (0.2) (0.7) (20) 1Q14 2Q14 3Q14 4Q14 1Q15 Bunker purchase Bunker clauses Bunker hedging Net bunker cost Platts 3.5% FOB Rotterdam 800 • Net bunker cost in 1Q15 was USD 475 per tonne • Net bunker cost in 1Q15 was USD 475 per tonne 700 600 before hedging vs. USD 565 last quarter. before hedging vs. USD 565 last quarter. 500 USD/mt 400 • About 50% of the 2015 exposure is hedged at • About 50% of the 2015 exposure is hedged at 300 hallooooo 200 an average of USD 525 per tonne. an average of USD 525 per tonne. 100 oooooooo 0 • Bunker clauses in CoAs cover about 50% of the • Bunker clauses in CoAs cover about 50% of the 10 11 12 13 14 15 oooooo exposure. exposure. 11

Financials Income statement¹ – 1Q15 tank terminals 1Q15 4Q14 USD mill Gross revenue 27 24 Operating expenses (14) (17) General and administrative expenses (4) (5) Operating result before depr. (EBITDA) 9 2 Depreciation (8) (9) Impairment (reversal) - 5 Capital gain/(loss) - 0 Operating result (EBIT) 1 (1) • • The tank terminal segment shows improvements and delivers a positive operating result. The tank terminal segment shows improvements and delivers a positive operating result. • • The gross occupancy rate improved to 91% versus 87% last quarter . The gross occupancy rate improved to 91% versus 87% last quarter . ¹ Proportional consolidation method 12

Financials Tank terminals EBITDA – by geographical segment YTD 2015 6 5 5 4 4 • • The tank terminal group delivered an EBITDA of USD The tank terminal group delivered an EBITDA of USD 3 2 USD mill 9 million in 1Q15. 9 million in 1Q15. 2 1 • • Strengthened results in most areas. Strengthened results in most areas. 0 -1 -2 ‐ 2 -3 Europe North Asia Middle East America EBITDA Tank Terminals by 1Q15 4Q14 geographical segment Europe (2) (7) North America 5 3 Asia 4 3 Middle East 2 2 Total EBITDA 9 2 13

Financials Balance sheet¹ – 31.03.2015 USD mill - Assets Equity and liabilities Ships and newbuilding contracts Total equity 1 294 604 Other non-current assets/receivables Non-current liabilities and derivatives 76 47 Investment in associates and JV’s Non-current interest bearing debt 376 879 Total non-current assets Total non-current liabilities 1 745 926 Available-for-sale investments and cash Current portion of interest bearing debt 112 296 Other current assets Other current liabilities and derivatives 122. 152 Total current assets Total current liabilities 234 449 Total assets Total equity and liabilities 1 980 1 980 • • Cash balance of USD 112 million - excluding JV’s cash. Cash balance of USD 112 million - excluding JV’s cash. • • Net investment in tank terminals JV’s USD 313 million. Net investment in tank terminals JV’s USD 313 million. • • Unrealised negative value on hedging derivatives with negative equity effect of USD 49.3 Unrealised negative value on hedging derivatives with negative equity effect of USD 49.3 million. million. • • Equity ratio 30.5%. Equity ratio 30.5%. ¹ Equity method 14

Financials Debt development – 31.03.2015 • We are on track with the refinancing of mortgage loans maturing in 2015. • New loan facility drawn in 1Q15 in connection with delivery of Bow Triumph. • Anticipate to have completed all refinancing of mortgage loans within 2Q15. • Expect to raise additional liquidity when refinancing mortgage loans. • NOK 600 million bond matures in December 2015. Debt Portfolio Debt Repayments 1,400 350 1,200 300 1,000 250 USD mill USD mill 800 200 600 150 400 100 200 50 0 0 1Q15 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Ending balance Repayment Secured loans Balloon Leasing NOK bond 12/15 NOK bond 12/17 NOK Bond 12/18 15

Financials Capital expenditure programme Remaining 2016 2017 2018 2019 In USD mill – per 31.03.2015 2015 Chemical Tankers, Odfjell share Docking 15 18 17 17 17 Other investments 5 4 Odfjell Gas, 100% 1) Sinopacific, 4 x 17,000 cbm 18 131 Sinopacific, 4 x 22,000 cbm 5 30 144 Tank Terminals, 100% Planned capex 56 54 32 7 5 1) Odfjell SE (50% owner) is committed to inject up to USD 50 million in equity in 2015 - 2017 16