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2009 INTERIM RESULTS PRESENTATION

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2009 INTERIM RESULTS PRESENTATION. CONTENT. 2. BUSINESS ENVIRONMENT AND CURRENT FOCUS ... Firmer ZAR/USD vs opening compared to weaker ZAR/USD last year caused R96 ... – PowerPoint PPT presentation

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Title: 2009 INTERIM RESULTS PRESENTATION


1
2009 INTERIM RESULTS PRESENTATION
2
CONTENT
3
BUSINESS ENVIRONMENT AND current
focus
4
BUSINESS ENVIRONMENT
5
CURRENT FOCUS
6
Interim results
7
SEGMENTAL CONTRIBUTION
8
HEADLINE EARNINGS
9
DIVIDENDS
10
PROFIT FROM OWNED AND LONG-TERM CHARTERED SHIPS
Bulk carriers Bulk carriers Bulk carriers Tankers Tankers H1 2009 Total H1 2008 Total Growth
Handysize Panamax Capesize Mid-range Chemical H1 2009 Total H1 2008 Total Growth
Average number of owned/long-term chartered ships 18.7 2.0 2.9 7.9 4.0 35.6 38.3 (7)
Average daily revenue (US) 11 500 20 800 30 000 19 100 13 800 15 500 28 700 (46)
Average daily cost (US) 7 700 9 400 20 900 14 800 14 500 11 200 10 900 (3)
Profit (US millions) 12.9 4.1 4.8 6.3 (0.5) 27.6 122.2 (77)
11
INCOME STATEMENT
2009 (H1) 2008 (H1) Growth Comments
(US million)
Shipping
Profit from owned and long-term chartered ships 27.6 122.2 (77) Substantially lower shipping markets
Profit from ship operating activities 18.1 10.6 71 New handymax/tanker/bunker barge businesses
Profit from ship sales 16.4 25.7 (36)
Overheads/other expenses (14.0) (18.9) 26
Foreign exchange (loss)/profit (1.9) 10.5 (118) Stronger ZAR/US exchange rate
Funding costs/taxation (9.7) (14.7) 34
36.5 135.4 (73)
(R million)
Total group
Shipping 337 1 039 (68)
Trading 85 13 561 Acquisitions/operational improvement
Freight Services 89 77 15
Financial Services 18 10 84 Fee income growth
Group costs (45) (34) (33) Includes R21 million IFRS 2 BEE adjustment
Attributable earnings 484 1 105 (56)

12
BALANCE SHEET
2009 (H1) 2008 (H1) Comments
(R million)
Ships 2 991 2 712 Newbuilding progress payments/exchange rate
Other fixed assets/investments 2 493 2 163 Capital expenditure
Current assets 3 510 4 120 Exchange rate/working capital management
Total assets 8 994 8 995
Equity 5 951 4 671 Retained profit/hedging and forex revaluations
Net debt 37 964 Good cash flows
Other liabilities 3 006 3 360
Total equity and liabilities 8 994 8 995
Net debtequity 0.6 21
Market value adjustment in respect of owned and
chartered ships R1,3 billion (not included
above)
13
KEY FINANCIAL RATIOS
14
KEY FINANCIAL RATIOS
15
Divisional overview
16
SHIPPING
Divisional activities

Contract cover protects against lower spot rates
Late delivery/performance issues in respect of newbuilding contracts
Exposure to spot earnings further reduced by selling uncontracted vessels
Operations rationalised to reduce costs/maximise synergies
Implemented new finance/ship operating systems
Firmer ZAR/USD vs opening compared to weaker ZAR/USD last year caused R96 million negative translation effect
Gradual improvement in drybulk volumes
Large order book expected to impact supply going forward
Markets Quarter 1 Quarter 2
Drybulk Weak Stronger
Tanker Stable Weak
Contract cover Contract cover
2009 (H2) 71
2010 55
2011 27
17
FLEET OVERVIEW
Contracted in at 30.06.2009 Contracted in at 30.06.2009 Bulk carriers Bulk carriers Bulk carriers Tankers Tankers Tankers Total
Contracted in at 30.06.2009 Contracted in at 30.06.2009 Handysize Panamax Capesize Mid-range Small Chemical Total
2009 (H2) Number (average) 16.5 2.0 3.0 8.0 2.0 4.0 35.5
2009 (H2) Cost (US/day) 9 400 9 400 21 200 15 000 9 800 14 600 12 300
2010 Number (average) 16.1 2.0 3.0 9.7 4.8 4.0 39.6
2010 Cost (US/day) 9 300 9 400 20 500 15 100 9 800 14 600 12 200
2011 Number (average) 17.3 2.0 3.4 8.1 7.5 4.0 42.3
2011 Cost (US/day) 9 300 9 400 26 400 14 600 10 200 14 600 12 300
2012 Number (average) 18.8 2.0 3.0 7.6 9.5 4.0 44.9
2012 Cost (US/day) 9 400 9 900 27 700 14 800 10 300 14 700 12 200
2013 Number (average) 19.0 2.0 3.0 7.5 9.5 4.0 45.0
2013 Cost (US/day) 9 400 10 200 27 700 14 900 10 400 14 700 12 300
Current fleet Current fleet 18 2 3 8 1.5 4 36.5
Net number of ships to deliver Net number of ships to deliver
2009 (H2) 2009 (H2) (2.5) - - - 1 - (1.5)
2010 2010 1 - - 1 3 - 5
2011 2011 2 - - (2) 3 - 3
2012 2012 0.5 - - (0.5) 1 - 1
2013 2013 - - - - - - -
Fleet at end of 2013 Fleet at end of 2013 19 2 3 6.5 9.5 4 44
( owned fleet 8.5 chartered fleet 28) (
owned fleet 25 chartered fleet 19 but can reduce
by 11 ships if markets justify)
18
CONTRACT COVER
Contracted out at 30.06.2009 Contracted out at 30.06.2009 Bulk carriers Bulk carriers Bulk carriers Tankers Tankers Tankers Total
Contracted out at 30.06.2009 Contracted out at 30.06.2009 Handysize Panamax Capesize Mid-range Small Chemical Total
2009 (H2) Number (average) 10.0 2.0 2.3 7.3 - 2.0 23.6
2009 (H2) Revenue (US/day) 13 500 20 800 31 600 18 700 - 15 000 17 600
2010 Number (average) 7.0 2.0 2.0 7.0 - 1.7 19.7
2010 Revenue (US/day) 10 400 23 400 39 300 18 900 - 18 000 18 300
2011 Number (average) 2.2 2.0 2.1 1.7 - 0.7 8.7
2011 Revenue (US/day) 12 400 24 000 40 500 19 600 - 18 500 23 700
2012 Number (average) 1.5 2.0 2.2 - - - 5.7
2012 Revenue (US/day) 13 700 24 000 38 900 - - - 27 000
2013 Number (average) 0.5 1.4 1.0 - - - 2.9
2013 Revenue (US/day) 20 000 25 300 52 400 - - - 33 700
Contract profits of fleet fixed Charters (USm) Ship sales (USm) Total (USm)
2009 (H2) 71 19.8 11.7 31.5
2010 55 39.8 - 39.8
2011 27 25.7 - 25.7
2012 20 21.4 - 21.4
2013 10 15.4 - 15.4
In addition /- 8 of fleet is fixed in 2014/2015 In addition /- 8 of fleet is fixed in 2014/2015 In addition /- 8 of fleet is fixed in 2014/2015 In addition /- 8 of fleet is fixed in 2014/2015 In addition /- 8 of fleet is fixed in 2014/2015
Note variable volume contracts have been
included at forecast volumes
19
TRADING
Divisional activities

All businesses are now 100 owned Strong margin growth and operational improvement Decline in worldwide mineral commodity demand Lower commodity prices Good debtors/counterparty management
20
FREIGHT SERVICES
Ports and Terminals Improved volumes (30) and greater operating efficiencies in Matola Coal Terminal Phase 2 expansion of Coal Terminal completed Maintained volume in Maputo Port, together with improved revenue and lower costs Maputo Port Master Plan completed Completed Richards Bay Bulk Terminal expansion
Seafreight Lower volumes and freight rates but able to maintain profitability through cost and fleet reductions and improved scheduling integrity
Ships Agencies Lower container volumes had significant effect, but partially offset by improved bulk trade (coal)
Rail Concluded BEE JV RRL Grindrod
BEE Grindrod SA achieved level 3 contributor status
Divisional activities

Logistics/Intermodal Significant impact from reduced volumes eg vehicles 25 (June 2009 Y/Y) containers 20 (June 2009 Y/Y)
21
FINANCIAL SERVICES
Divisional activities

Strong growth in attributable profit underpinned by significant fee income
Assets under management and deposits stable
Maintained healthy liquidity surplus
No bad debts
Improved annuity income through new financial products
Capital adequacy at 16.5 comfortably above Basel II requirements
22
Outlook/strategy
23
SHIPPING
  • Outlook
  • Improving commodity demand
  • Large order book expected to impact freight rates
  • Contract cover provides protection
  • Handysize sector well balanced
  • Key factors
  • worldwide recovery
  • supplyside correction
  • Strategy
  • Maintain strong balance sheet and liquidity
  • Maintain high level of contract cover
  • Continued expansion of ship operating activities
  • Take advantage of acquisition opportunities at
    the right time

24
TRADING
  • Outlook
  • Improvement in industrial commodity demand
    expected, but more challenging trading conditions
    anticipated in H2 for Agricultural and Marine
    Fuels
  • Strategy
  • Conservatively extend trading platform
  • Source and invest in new origination businesses
  • Enhance supply chain solutions to customers
  • Continued focus on exposure to counterparty and
    market risks

25
FREIGHT SERVICES
  • Outlook
  • Ports and Terminals expecting increased volumes
    from demand and added capacity
  • Improved trading conditions expected for
    Intermodal and Ships Agencies
  • Benefits expected from increased market
    share/restructuring of Logistics
  • Seafreight volumes expected to remain under
    pressure
  • Strong balance sheet and cash resources to fund
    expansion
  • Strategy
  • Grow ports and terminal capacity
  • Expand related logistical support road/rail
  • Seek new port/terminal opportunities
  • Continue focus on operational efficiency

26
FINANCIAL SERVICES
  • Outlook
  • Macro environment is expected to remain
    challenging for the remainder of the year
    andinto 2010
  • Strategy
  • Grow assets under management and deposits
  • Continue conservative liquidity, credit and asset
    management policies
  • Focus on fee income opportunities/good quality
    lending
  • Pursue organic growth in all business units as
    well as take advantage of expansion opportunities
    that will arise in these markets

27
CONCLUSION
  • Strong balance sheet
  • Good liquidity
  • Low-cost fleet with options to extend/purchase
  • Solid contracts with reliable counterparties
  • Good management team
  • Well established Trading business
  • Valuable strategic assets in Ports and Terminals
  • Financial Services well positioned to grow in
    current market
  • From this base we are positioned for substantial
    growth opportunities, particularly in Shipping,
    Ports and Terminals
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