PRM 3Q2017 Financial Performance Opportunity Day 4 December 2017 - - PowerPoint PPT Presentation

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PRM 3Q2017 Financial Performance Opportunity Day 4 December 2017 - - PowerPoint PPT Presentation

May 25, 2023 135 likes •408 views

PRM 3Q2017 Financial Performance Opportunity Day 4 December 2017 Disclaimer The information contained in this presentation is strictly confidential and is provided by Prima Marine Public Company Limited (the "Company") to you solely

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PRM

3Q2017 Financial Performance Opportunity Day 4 December 2017
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SLIDE 2 1 The information contained in this presentation is strictly confidential and is provided by Prima Marine Public Company Limited (the "Company") to you solely for your information. Neither this presentation nor any part hereof may be (i) used or relied upon by any other party or for any other purpose; (ii) copied, photocopied, duplicated or otherwise reproduced in any form or by any means; or (iii) redistributed, passed on or otherwise disseminated, to any other person either in your organization or elsewhere, without the prior written consent of the Company and its respective affiliates or advisors. By attending this presentation, participants agree not to remove this document, or any materials provided in connection herewith, from the conference room where such documents are provided without express consent from the Company and its respective affiliates or advisors. Although care has been taken to ensure that the information in this presentation is accurate, and that the opinions expressed are fair and reasonable, no representations or warranties, express or implied, are made as to, and no reliance should be placed on, the accuracy, fairness or completeness of the information presented or contained in this presentation. The information is subject to change without notice, its accuracy is not guaranteed, has not been independently verified and it may not contain all material information concerning the Company and its subsidiaries. None of the Company nor any of its respective affiliates or advisors nor any of its or their respective members, directors, officers, employees or affiliates assumes any responsibility or liability for, the accuracy or completeness of, or any errors or omissions in, any information contained herein. Accordingly, none of the above nor any other person accepts any liability (in negligence, or otherwise) for any loss arising from or in connection with any use of this presentation or its contents. This presentation is for information purposes only and does not constitute or form part of any offer or invitation by or on behalf of the Company for sale or subscription of or solicitation or invitation of any offer to or recommendation to buy or subscribe for any securities of the Company, nor shall it
  • r any part of it form the basis of or be relied on in connection with any contract, commitment or investment decision in relation thereto (“Securities”)
in Thailand or any other jurisdiction. Any recipient considering a purchase of Securities is hereby reminded that any such purchase should be made solely on the basis of the information contained in a final offering document (which may be different from the information contained in this presentation ) and subject to the selling restrictions set out therein. No public offering of the Securities will be made in any other jurisdiction outside
  • f Thailand where such an offering is restricted or prohibited. This presentation should not be construed as legal, tax, investment or other advice. The
information contained herein does not take into consideration the investment objectives, financial situation or particular needs of any particular investor, and should not be treated as giving investment advice. In addition, this presentation contains certain financial information and results of operation, and may also contain certain projections, plans, strategies, and objectives of the Company, that are not statements of historical fact which would be treated as forward looking statements that reflect the Company's current views with respect to future events and financial performance. These views are based on a number of estimates and current assumptions which are subject to business, economic and competitive uncertainties and contingencies as well as various risks which are in many cases beyond the control of the Company, and which may change over time and may cause actual events and the Company's future results to be materially different than expected or indicated by such statements. No assurance can be given that future events will occur, that projections will be achieved, or that the Company's assumptions are correct. Such forward‐looking statements are not guarantees of future performance and accordingly, the actual results, financial condition, performance or achievements of the Company may differ materially from those anticipated by the Company in the forward looking statements. The recipient is cautioned not to place undue reliance on these forward looking statements. In providing this presentation, the Company does not undertake to provide any recipient with access to any additional information or to update the information contained in this presentation or to correct any inaccuracies herein which may become apparent. Disclaimer
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SLIDE 3 I. Business Overview 2 I. II. IV. Business Outlook & Investment Plan III. Consolidated Financial Performance Contents ▪ Trading Business ▪ FSU ▪ Offshore Business ▪ Ship Management Performance by Business Segment
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SLIDE 4
  • I. Business Overview
3
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SLIDE 5 Exploring & Extracting Transporting and Trading Manufacturing 4 PRM’s Four Main Business Segments in Oil & Gas Supply Chain Ship Management Offshore Business FSO AWB FSU Business FSU Oil & Petrochemical Tanker Business <10,000 DWT >10,000 DWT
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SLIDE 6 5 Major Player in Tanker Business Trading Area Company Name
  • No. of Oil
Tankers Vessel Sizes DWT Average Age Small Vessels PRM Group 13 47,333 16.5 B.P.P. Supply Co., Ltd. 20 37,370 39.6 V.L Enterprise Co., Ltd. 13 33,684 18.7 Smooth Sea Co., Ltd. 6 29,344 20.7 Big Sea Co., Ltd. 12 25,630 21.1 C.& P. Co., Ltd. 4 18,012 17.8 Thai Oil Marine Co., Ltd. 3 16,917 13.0 Siam Mongkol Marine Co., Ltd. 3 13,284 22.0 P.I.N.K.Transport &Trading Co.Ltd. 3 9,057 43.0 V.C.C. Inter Marine Service 3 7,340 27.0 TMN Co., Ltd. 1 7,125 8.0 Raum-mitr Marine Oil Co., Ltd. 1 3,481 24.0 Trans Ocean Supply (1992) Co., Ltd 3 3,443 23.0 Impex Marine (Thailand) Co., Ltd. 1 2,100 30.0 Large Vessels PRM Group 2 214,464 15 TMN Co., Ltd. 1 48,676 11.0 Thai Oil Marine Co., Ltd. 1 32,250 21.0 KEY Player of Marine Domestic Transport PRM Transport
  • 67% of PTT marine volume
  • 25% of CHEVRON marine volume
  • 19% of Shell marine volume
  • 25% of ESSO marine volume
Largest Oil Tanker Fleet in Thailand Remark: Data as at 30 September 2017
  • No. of
Charter-in Vessels 13 vessels
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SLIDE 7 Major Player in FSU Business 6
  • International oil trading companies found FSU to be complementary
to its onshore storage and optimize the logistic costs Lower Investment Shorter time to launch Additional location equals better optimization Profit enhancement through blending and heating services ✓ ✓ ✓ ✓ Complementary
  • FSU is a vessel acted as the storage unit in ocean, which has
become an emerging trend as the oil storage solution FSU Complementary Oil and Gas Storage Existing Onshore Oil and Gas Storage Malaysia Transportation route to other ports FSU – Emerging Trend Collaborating with oil major players in expanding FSU business in Thailand
  • Bongkot Star (BKS) is the 1st
VLCC to introduce FSU in Thailand
  • BCP JV with PRM to use BKS
as oil storage next to Sri Chang Island (Unit : Vessels) No.1 & Only One FSU Operator in Thailand
  • No. 1 in storage capacity of FSUs in key port of Malaysia
(Port of Tanjung Pelepas) 1 1 Market Share in Key Port of Malaysia (Tanjung Pelepas) FSU positions next to Singapore, hub of oil trading in Asia Sole Player of FSU Business in Thailand 6
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SLIDE 8 Myanmar Thailand Laos Vietnam Gulf of Thailand Malaysia Offloading Accommodation
  • FSO vessels anchor near the rigs to support oil
and gas exploration as offshore oil offloading unit
  • Provide accommodation, foods and drinks, basic
medical treatment, as well as recreation activities for engineers and staffs working on oil rig
  • No. of vessels
Own Fleet Total 2 192,923 DWT 1 96,168 DWT JV Fleet 1 96,755 DWT Total DWT FSO Offshore Fleet Composition Aframax Aframax
  • No. of vessels
Total capacity Accommodation Work Barge (AWB) Own Fleet 1 300 Passengers PRM’s FSO fleet offers essential supporting services to oil exploration and production including: (As of 30 June 2017) Sriracha Eagle Southern Pearl Navathanee Offshore Business Fleet Location Essential services for oil exploration and production activities
  • No. 1 in number of FSO among Thai service provider in Gulf of Thailand
1 Major Player in Offshore Business 7
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SLIDE 9 Crew Management Technical Management PRM Group provides “Technical Management” and “Crew Management” service for oil & petrochemical tanker, FSU, FSO, AWB, and crew
  • boat. PRM’s Ship Management service ensures that every vessel under management follows rules and standards applied, and supervises
  • perating activities including:
  • Crew recruitment
  • Crew salary and other benefits
  • Crew training
  • Crew Performance assessment
Oil Tank
  • Ship cargo operation
  • Strictly carry PMS/drydock per
approved plan
  • Prepare vessels for ship
inspection and survey
  • Prepare documents and licenses
related to vessel operation
  • Follow International Safety
Management Standard Ship Management Service Activities MARPOL POL MLC MLC STC STCW SOL SOLAS SIRE Po Port rt State State Contr trol Technical Management 1 Crew Management 2 Premium Ship Management Services 8 Management for Safety 3
  • Operating to comply with international rules and regulations
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SLIDE 10 Revenue 1/ Vessel/ Service As crucial support function to other core business Services provided include:
  • technical management,
  • crew management,
  • safety management,
  • regulations and
compliance Small Vessel Large Vessel FSU Floating Storage and Offloading Unit (“FSO”) Accommodation Work Barge (“AWB”) Oil & Petrochemical Tanker Business Offshore Business Floating Storage Unit Business (“FSU”) Ship Management Business Remark: 1/ As of 3Q2017 with total revenue of THB 3,421.28 MM 2/ Data as at 30 September 2017 3/ International vessel class (Aframax) for the vessel size of 80,000-120,000 DWT 4/ Very Large Crude Carrier (“VLCC”) : International vessel class for the vessel size of 160,000-320,000 DWT 37.46% 44.42% 11.26% 6.87% 1 2 3 4 9 Size Small Vessels Aframax 3/ VLCC 4/ Aframax AWB Number of Vessels 13 2 7 2 1 Capacity (DWT) 47,333 214,464 2,102,920 192,923 300 Passengers Total 2/ 250,084 2,102,920 192,923 300 Passengers Business Segments Ship to Ship Transfer Operation
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SLIDE 11
  • II. Performance by Business Segment
10 10
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SLIDE 12 11 Performance : Trading Business PRM Trading Trading Performance 13,500 15,500 27,750 3,039
  • 10,000
20,000 30,000 40,000 50,000 2015 2016 Q1 '17 Q2 '17 Jul '17 Aug '17 Sep '17 Oct '17 USD/Day Time Charter Market MR Aframax VLCC AHTS Q2/17 Q3/17 Q3/16 YTD17 YTD16 <20,000 DWT No of vessels 12 13 11 13 11 Capacity (DWT) 44,333 47,333 32,334 47,333 32,334 Utilization (%) 86% 85% 85% 88% 89% >20,000 DWT No of Vessels 2 2 2 2 1 Capacity (DWT) 214,464 214,464 214,464 214,464 214,464 Utilization (%) 75% 72% 87% 79% 93% Trading Business:
  • A new small vessel (3,000 DWT) was
added in Q3/2017 for hired by PTT
  • All small vessels services were based on
term contracts with a minimum volume
  • f 80% of capacity commitment.
  • Current PRM’s market share of each
customer (<20,000 DWT):
  • 67% of PTT marine vol.
  • 25% of Chevron marine vol.
  • 19% of Shell marine vol.
  • 25% of Esso marine vol.
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SLIDE 13 12 Performance : Trading Business Revenue Gross Profit Unit: Million Baht Unit: Million Baht Trading Performance Trading Business:
  • The new vessel added in Q3 was
attributable to the higher revenue for this group
  • GP of two large vessels (100,000 DWT
each) was suffered from very low spot rate in Q3/2017
  • Financial performance of the two vessels
is expected to improve significantly as they were time chartered to BCP 6 months and UNIPEC (from China) 1 year in November 2017 596.7 574.3 535.3 2Q2017 3Q2017 3Q2016 34.5 7.4 71.3 2Q2017 3Q2017 3Q2016 1,724.4 1,381.2 YTD2017 YTD2016 88.1 228.1 YTD2017 YTD2016
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SLIDE 14 13 Performance : FSU FSU Business:
  • One additional VLCC (300,000 DWT) was
  • n hired to BCP started in Mid-June 2017
brought total FSU to 7 with total capacity
  • f 2,102,920 DWT
  • Total utilization of FSU in Q3/17 was about
89% which is the same of Q2/17
  • Low GP from Q3/17 was due to lower
utilization of the 2 vessels while their fixed running cost was remained
  • The company is under discussion with a
new customer to take this excess capacity shortly 1,032.9 1,002.3 888.2 2Q2017 3Q2017 3Q2016 Unit: Million Baht Revenue Gross Profit 219.2 206.8 288.5 2Q2017 3Q2017 3Q2016 3,140.7 2,724.2 YTD2017 YTD2016 706.5 899.2 YTD2017 YTD2016 FSU Performance Unit: Million Baht
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SLIDE 15 14 Performance : Offshore Business Unit: Million Baht Revenue Gross Profit Offshore Business Performance Unit: Million Baht 153.5 107.9 150.7 2Q2017 3Q2017 3Q2016 38.1 9.7 37.1 2Q2017 3Q2017 3Q2016 385.2 424.2 YTD2017 YTD2016 65.5 85.5 YTD2017 YTD2016 Offshore Business:
  • Offshore business consisted of 2 floating storage
and offloading (FSO) vessels and 1 Accommodation Work Barge (AWB)
  • Utilization of the two FSO vessels remains constant
in Q3/17 as they were charter out to Coastal Energy Corporation (CEC) until 2020
  • The contract of AWB with PTTEP was expired since
mid July 2017. The customer is expected to rehire the vessel early next year.
  • Currently the AWB vessel was laid-up at Sattahip
which will reduce the running cost from 1.5 MTHB to 0.2 MTHB per month.
  • Requirement for AWB is expected to measure
significantly following the upcoming new E&P licensing and Bongkot & Erawan is effective which will increase activities for new exploration and production as well as decommissioning of the unused offshore rigs.
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SLIDE 16 15 Performance : Ship Management Ship Management Business:
  • Increase in Ship management revenue derived
from serviced product to new third party’s one FSU in Singapore at one container vessel in Thailand
  • Total number of vessels under management
included Own vessels:
  • AWB
1
  • FSO
2
  • Small Tanker
15
  • Large Tanker
2
  • FSU
7 TOTAL 26 Third Party vessels:
  • Container
1
  • FSU
1 TOTAL 2
  • Ship management contract for another third party
container vessels was signed for commencement in Q4/17 Unit: Million Baht Revenue Gross Profit Ship Management Performance Unit: Million Baht 87.9 130.9 85.4 2Q2017 3Q2017 3Q2016 22.4 36.9 9.8 2Q2017 3Q2017 3Q2016 299.2 277.6 YTD2017 YTD2016 71.0 36.2 YTD2017 YTD2016
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SLIDE 17
  • III. Consolidated Financial Performance
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SLIDE 18 Consolidated Revenue 17 Unit: Million Baht QOQ & YTD Revenue YTD2017 YTD2016 7% 30% 56% 7% 10% 23% 60% 7% 439.1 438.5 393.6 528.0 485.7 473.1 153.5 107.9 150.7 27.9 117.0 61.4 2Q2017 3Q2017 3Q2016 1,149 1,079 Revenue by Price Structure Revenue & Revenue Structure: ▪ Consolidated revenue for Q3/17 increased in all business except for
  • ffshore which was to temporary
withhold of new exploration during monsoon season. ▪ Only revenue from large trading vessels (Aframax at 100,000 DWT was linked in international freight rate which is subject to high volatility. ▪ The price risk has been mitigated as the two vessels were time charter at fixed price starting November 2017. PRM Performance 1,148 1.281.4 1,067.9 1,519.1 1,470.6 385.2 424.2 234.9 213.6 YTD2017 YTD2016 3,177 3,420
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SLIDE 19 20.52 3.15 (18.42) 227.89 183.43 315.19 39.05 13.04 31.08 23.80 62.14 79.02 2Q2017 3Q2017 3Q2016 Trading FSU Offshore Ship Management 50.3 90.9 639.9 878.9 70.2 80.6 171.5 198.7 YTD2017 YTD2016 Consolidated Gross Profit 18 Unit: Million Baht Gross Profit by Business Segment Gross Profit: ▪ Decline in gross profit for Q3/17 as against Q3/16 and YTD/17 as against YTD/16 was due to lower utilization of vessels following to increase in number of vessels during the year which their fixed cost of services were not proportioned according to their utilization. ▪ Depreciation for the vessels was also increased as a result of downward adjustment of scrap value of the vessels using scrap price as at December 31, 2016 which lower than December 31, 2015. ▪ The scrap value is expected to increase in 2017 and the depreciation will be adjusted accordingly. Gross Profit Country Tanker Prices as of November 2017 Tanker Prices as of Year Ended 2016 Pakistan USD 405/LT USD 310/LT India USD 395/LT USD 300/LT Bangladesh USD 390/LT USD 320/LT PRM Performance 311 262 407 932 1,249 5% 69% 8% 18% Trading FSU Offshore Ship Management YTD2017 1% 70% 5% 24% 3Q2017
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SLIDE 20 204.8 189.6 85.4 61.9 4.7 39.5 653.7 1,003.5 YTD2017 YTD2016 931.9 1,249.0 16.7 45.4 YTD2017 YTD2016 YTD2017 YTD2016 Consolidated Net Profit 19 Unit: Million Baht QOQ Net Profit Net Profit for Q3/17 dropped compared to Q2/17 by 25.6 MTHB or a decrease of 13% ▪ Selling and admin expense for Q3/17 increased from Q3/16 by 17 MTHB. to 82 MTHB. which corresponded to higher revenue. ▪ Financing cost for Q3/16 increased by 11 MTHB. following higher borrowing to finance new vessels. ▪ FX gain for Q3/17 was 30.4 MTHB, higher than Q3/16 by 12.5 MTHB. ▪ As the result, net profit of Q3/17 declined by 145 MTHB. or a decrease of 35% compared to 3Q/16; net profit for YTD/17 was lower than YTD/16 by 350 MTHB. or 35% YTD Net Profit PRM Performance Unit: Million Baht 50.0 51.0 30.0 31.4 21.8 10.5 164.7 323.0 3Q2016 261.8 406.9 4.7 9.0 3Q2017 3Q2016 3Q2017
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SLIDE 21 Total Assets, Liabilities, Equity and D/E ratio 20 ASSET ▪ Current assets increased by 2,979 Million Baht mainly from the increase in-cash and cash at bank generated from IPO ▪ Non-current assets decreased by 195 Million Baht from accumulated depreciation. LIABILITY ▪ Current liabilities decreased by 402 Million Baht from the repayment of O/D and short-term loans. ▪ Non-current liabilities decreased by 336.61 Million Baht derived from repayments of long- term loans from financial institution. SHAREHOLDER’S EQUITY ▪ Shareholder’s equity increased by 3,523 Million Baht from IPO and increased in net profit affect by dividend payouts. D/E RATIO ▪ D/E ratio decreased to 0.8x after listed in SET; and targeted D/E ratio as of 1.5x Statement of Financial Position Updated Note: YTD Data as at 30 Sep 2017 Unit: Million Baht 3,795 816 7,372 7,567 30-Sep-17 YTD2016 Current Asset Non Current Asset 1,729 2,131 3,256 3,592 6,182 2,660 30-Sep-17 YTD2016 Current Liabilities Non Current Liabilities Shareholders' Equity 11,167 8,383 Year Ended 2016 As at 30 Sep 2017
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SLIDE 22
  • IV. Business Outlook & Investment Plan
21 21
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SLIDE 23 Business Expansion Plan Oil & Petrochemical Tanker Business 1 ▪ Key drivers for the oil & petrochemical tanker business are
  • Domestic oil product demand which will be continuously supported by demand growth
  • Penetration of EV technology which is expected to be moderate
  • Transportation of oil product to Southern part of Thailand by tankers which is the most
efficient and economical
  • Improvement of tanker quality and average age which will be instrumental to achieve
higher volume as customers place more emphasize on safety environmental protection FSU Business 2 ▪ The FSU business will continuously be supported by
  • Limited onshore land available to build tank farm for physical trading in Singapore
  • Fuel’s specification change
  • Increase in global oil demand and supply
Offshore Business 3 ▪ The offshore business will be supported by
  • Stable crude oil price
  • Thai government regulation on Thai flag vessel (Cabotage Law) will enhance PRM’s
  • pportunity in offshore business
  • Petroleum Concession Act expected to become effective
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SLIDE 24 23 Existing Vessels/1 3-Year Investment Schedule/2 Key Supporting Factors of Future Projects ▪ Growing demand of domestic oil consumption, backed by growing Thai Tourism industry ▪ Expansion domestic major oil companies’ terminal tank, especially the southern part of Thailand FSO Fleets
  • Penetrate in regional market to capture growing oil demand
  • Petrochemical Transportation
11 2016
  • 2
2017 2018 2019 +3 +1 +3 +1
  • +2
+6 +3
  • +2
  • ▪ Increase in demand for blending activity of FSU due to Sulphur
emission regulation (IMO) by 2020 ▪ Rising need on FSU service due to oil reserve count issues ▪ Opportunity to capture upside from rebounding of oil price at historically low ▪ Potential increase in domestic and southeast Asia Offshore business activity ▪ Petroleum Concession Act Note : Data as at 30 September 2017 Trading (Small) Trading (Large) Oil and Chemical Tankers Trading (Small) Trading (Large) DOMESTIC INTERNATIONAL FSU Fleets FSU Offshore 6 +1 +1 +3 3 Future Projects Large Trading Vessels Spot Charter changed to Time Charter ▪ Northern Star : Time charter with UNIPEC for 1 Years ++ (Effective as of 1 Nov 2017 onwards) ▪ Radiant Star : Time charter with BCP for 6 Months + 3 Months (Effective as of 15 Nov 2017 onwards) Current Movement
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