asl marine q2 fy2013 results presentation
TRANSCRIPT
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
• 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)
Company Profile
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
0
50
100
150
200
250
FY08 FY09 FY10 FY11 FY12 1H FY13
115 118 111 125 116 125
61 65 5962 62
67
4 67
7 1010
Other Vessels
Towing Tugs
Barges
• Shipchartering (cont.)
Company Profile
(No. of vessels)
8
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
Company Profile
77
7168
66 6765
69
50
55
60
65
70
75
80
FY08 FY09 FY10 FY11 FY12 1H FY12 1H FY13
Overall
Vessel Utilisation (%)
• Shipchartering (cont.)
9
Company Profile
76 75
50
48
79 80
40
50
60
70
80
90
100
FY08 FY09 FY10 FY11 FY12 1H FY13
Offshore Support Vessels
77
74
66
62
68
72
77
70
7069
66 65
55
60
65
70
75
80
FY08 FY09 FY10 FY11 FY12 1H FY13
Tugs
Barges
Vessel Utilisation (%)
• Shipchartering (cont.)
10
1H FY2013
Financial Review (6 months ended 31 December 2012)
11
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
Results Snapshot
1 Based on weighted average of 419,511,294 shares in issue
12
Business Operations Snapshot (Revenue and Gross Profit Margin)
Business
Segments
2Q FY13 2Q FY12 1H FY13 1H FY12
Revenue
(S$’m)
GPM
(%)
Revenue
(S$’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$6.4m and gross profit
margin lifted from 24.8% to 28.7% in 2Q FY13 due to:
- increase in Group’s utilisation rate for tugs from 67% to 72%;
- additional gross profit from an AHTS acquired in 2Q FY13;
partially offset by
- absence of gross profit in 2Q FY13 generated from ROV support vessel as it was
disposed off in September 2012
20
Revenue Trend
400.4435.4
468.4
363.2391.2
160.5 172.0
0.0
100.0
200.0
300.0
400.0
500.0
FY08 FY09 FY10 FY11 FY12 1H FY12 1H FY13
(S$’m)
21
Profit Trend
60.3
71.1
37.331.9 32.3
16.120.4
15.1%
16.3%
8.0%
8.8% 8.3%
10.0%
11.9%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
FY08 FY09 FY10 FY11 FY12 1H FY12 1H FY13
Net Profit (12 months period) Net Profit Margin
1
(S$’m)
1 The Group’s net profit for FY09 of S$71.1 million included a one-off gain of S$12.2 million relating to divestment of ASL Energy Pte Ltd
Net Profit (6 months period)
22
Balance Sheets
31 Dec 12 (S$’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 Share1 (cents) 89.27 84.42
Gearing Ratio 0.98 0.81
Net Gearing Ratio 0.81 0.54
1Based 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
• Total outstanding order book of S$528 million comprising of 34 vessels, including Offshore Support Vessels, AHTS, self-propelled cutter suction dredger, tugs and barges
• Progressive recognition up to second quarter of 2014
693
523
327 310
586528
At 30 Jun 08 At 30 Jun 09 At 30 Jun 10 At 30 Jun 11 At 30 Jun 12 At 31 Dec 12
(S$’m)
26
Shipbuilding Order Book
1 Offtake Support & Supply Vessel, AHTS, Emergency Response & Rescue Vessels
and Platform Supply Vessels
2 Rotor Tugs and Diesel Electric Hybrid ASD Tugs
27
2H FY13 After FY13 Total
Type of Vessels Units S$’m % S$’m % S$’m %
Offshore Support
Vessels1
18
130
25
149
28
279
53
Tugs2 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
Vessel Delivery Schedule
0
3
6
9
12
15
2H FY13 1H FY14 2H FY14
11 1
4
6
3
3 96
Offshore SupportVessels
Barges and othervessels
Tugs
Dredgers
(No. of vessels)
28
13 11 10
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
30 Source: Clarksons, Douglas Westwood, The World Deepwater Market Report Source: IHS Petrodata
Global Offshore Exploration and Production Capex World Rig Total Contracted Utilisation
Business Outlook
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
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
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 up-grading 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
33
GREENFORCE Ball Joint T-Cutter system
Capital Expenditure
• Total capex of S$91 million in 1H FY13 comprised mainly:
Business Outlook
• Shipchartering operations have an outstanding delivery order for 25 new vessels worth approximately S$138 million comprising :
34
S$’m
Vessels 50
Assets under construction for yard infrastructure and vessels 23
Plant and machinery 17
Shipchartering outstanding delivery orders Unit
Barges 12
Tugs 7
AHTS 2
AHT 1
ROV Support Vessel 1
Landing crafts 2
Total 25
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
So
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35
ASL vs Indices S
ou
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: Blo
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be
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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
FSTOG
FSSTI
FSSTI
FSTOG
ASL
ASL Marine
Thank you
37