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Odfjell presentasjonsmal

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Odfjell is an industrial shipper with a long term perspective. Stable and ... Rail cars. Trucks. Pipeline. Finished goods producer. Coal. Gas. Crude oil. 12 ... – PowerPoint PPT presentation

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Title: Odfjell presentasjonsmal


1
A PRESENTATION OF ODFJELL
16 February 2005
2
WHAT WE WANT TO CONVEY
  • Odfjell is an industrial shipper with a long term
    perspective
  • Stable and positive cash flow
  • Tank terminal activity stabilizing factor
  • Positive outlook

3
HISTORY
  • Regional Trade since 1997 in Asia
  • Merger with Seachem in 2000
  • Establishment of Odfjell Ahrenkiel Europe in 2004
  • Tank Terminals
  • Developed since the mid 60s
  • Growth in tank terminals late 1990s/early 2000s
  • Tank Containers
  • Joint-venture with Hoyer since 1999, a sold with
    effect from 1 January 2005
  • Corporate
  • Established 1916
  • Company split in 1980
  • Listed on the Oslo Stock Exchange in 1986
  • Fleet Development
  • Pioneered the chemical tanker trade in the 1950s
  • Strong growth through the 1990s
  • Newbuilding programs 1994 2011

4
BUSINESS AREAS
  • Regional Trade
  • Asia/Europe/Brazil/Chile
  • 32 ships
  • Revenue 111 million
  • EBITDA 14 million
  • EBIT 8 million
  • Total assets 94 million
  • Global Trade
  • - Leading global operator
  • 64 ships and 13 nbs on order
  • 6 T/C newbuildings
  • - Revenue 703 million
  • EBITDA 132 million
  • EBIT 71 million
  • Total assets 1.3 billion
  • Tank Containers
  • - 8 176 containers
  • - Revenue 57 million
  • EBITDA 4 million
  • EBIT 2 million
  • Total assets
  • 43 million
  • Tank Terminals
  • 6 owned at strategic locations
  • Projects in Iran, China and Oman
  • - 8 associated terminals
  • Revenue 130 million
  • EBITDA 49 million
  • EBIT 29 million
  • Total assets 352 million

SOLD
5
INTERNATIONAL ORGANISATION
  • Global corporation with head office in Norway
  • International network with offices in 18
    countries
  • 3,300 employees
  • 2,000 international crew members
  • 300 Norwegian officers
  • 800 international onshore employees
  • Common corporate culture
  • Streamlined reporting through common ICT systems
  • International joint-ventures partners

6
CUSTOMERS
7
THE CHEMICAL INDUSTRY
  • About 1 billion metric tons of organic and
    inorganic chemicals, vegetable oils and animal
    fats and other products are produced annually
  • About 2,5 billion metric tons of clean petroleum
    products are produced annually
  • Main products organic chemicals (BTX, EDC,
    Acrylo, Glycols, Metanol, etc.), Sulphuric and
    Phosphoric acids, Veg. oils, MTBE, etc.

8
SOURCES AND PRODUCTS
9
END USES
10
GLOBALISATION, NEW PLANTS TRADE PATTERNS
11
FROM PRODUCER TO CONSUMER
  • Coastal ships
  • Barges
  • Rail cars
  • Trucks
  • Pipeline
  • Coastal ships
  • Barges
  • Rail cars
  • Trucks
  • Pipeline
  • Coal
  • Gas
  • Crude oil

Finished goods producer
12
COMMON DENOMINATOR IN ALL MODES
  • The same customers
  • The same products
  • Our ability to handle complicated cargoes
  • Capital intensive
  • Global aspect

gt SYNERGIES
13
A NICHE IN THE WORLD TANKER MARKET
  • Characteristics
  • Many parcels per voyage
  • Many ports per voyage
  • A margin business

14
A CHEMICAL TANKER VS. A PRODUCT TANKER
15
BUSINESS CHARACTERISTICS
  • Barriers to entry
  • Highly specialised vessels and operation
  • Scale Threshold
  • Systems, organisation and human resources
  • Customer relations Track record
  • Contract coverage
  • Customer expectations
  • Quality Safety Reliability
  • On spec and on time delivery
  • Frequencies - Regularity
  • Many ports for loading and discharging
  • Cost efficiency

gt Few large operators/ many smaller
operators
16
DEMAND DRIVERS
  • Economic growth (industrial production/GDP)
  • Regional trends (influencing ton-mile, cargo
    flows)
  • Production/consumption
  • Imbalances
  • Just-in-time delivery
  • Frequency, reliability
  • A global chemical industry
  • Global production global consumption
  • Capacity changes
  • Additions/deletions
  • Types of tonnage vs. demand

17
SUSTAINABLE CHEMICAL MARKET GROWTH
Chemicals and plastics growth has outpaced GDP
growth over the last two decades
Global Growth Index (Index Base Year 1985)
Source CMAI March 2002
18
CHEMICAL TANKER MARKETDeep sea ships ? 13,000 dwt
19
CORE CHEMICAL TANKER MARKETDeep sea ships ?
13,000 dwt, minimum 6 tanks, IMO II, avg tank
size max 3,000 m³
20
FREIGHT RATE DEVELOPMENT (Chemicals)
21
FACTORS INFLUENCING SUPPLY
  • Regulations
  • Marpol Annex II revision reclassification of
    other products (veg. oils., MTBE, etc.)
    approved in Oct. 2004
  • Newbuildings
  • Availability yard and price
  • Vetting
  • Customer approval/CAP test
  • Cost factors
  • Scrapping
  • 240,000 dwt. in 2003
  • 470,000 dwt. in 2004
  • More scrapping anticipated in 200506

22
NEWBUILDING PRICE INDEX
Source Clarkson
23
RECATEGORIZATION OF CARGOES
  • IMO adopted revision of current product pollution
    classification
  • Vegetable oils to require much stricter hull
    protection
  • Also affects products such as methanol, MTBE,
    caustic, etc.
  • Likely to be a significant demand factor for
    chemical tankers
  • Limited set of compromises on stowage
    requirements, to ease potential transportation
    capacity shortages
  • New cargo categorisation regime effective as from
    Jan. 1, 2007

24
Recategorisation of Annex II cargoesTanker
segmentation
Current cargo spectrum
Chemical Tanker Domain
Oil Product Tanker Domain
Unregulated cargoes and poll. cat. D
Clean Petroleum Products
Dirty Petroleum Products
Crude Oil
Oil-like Substances
Non-flammable chemicals
Chemicals
Future cargo spectrum
Chemical Tanker Domain
Oil Product Tanker Domain
Unregulated cargoes (OS)
Clean Petroleum Products
Dirty Petroleum Products
Crude Oil
Vegoils, etc.
Non-flammable chemicals
Chemicals
25
Core Chemical Deep Sea Fleet Changes 1991 -
2008Current order book, outphasing at 30 (Eur)
and 25 (FE) years
26
ORDERBOOKCore fleet ? 13,000 dwt
27
MARINE TERMINALS (Chemical capacity in cbm)
28
ODFJELL TERMINALS
Rotterdam ?
Quebec ?
Dalian ?
? Onsan
? Ningbo
Houston ?
Singapore ?
Callao ?
29
TERMINALS - EUROPE
30
TERMINALS - NORTH AMERICA
31
TERMINALS - ASIA
32
TERMINALS - SOUTH AMERICA
33
FINANCIAL HIGHLIGHTS 2004
  • Gross revenue reached USD 1 billion
  • Daily time-charter earnings in fourth quarter
    2004 were 24 higher than fourth quarter 2003
  • Continued high bunker cost
  • EBIT in 2004 was USD 106 million, up 36 over
    last year
  • Stable results from tank terminal activities
  • Sale of tank container joint-venture
  • Proposed dividend NOK 4 per share

34
GROSS REVENUE
Per Quarter (in USD million)
Accumulated
846 850 907 1 001
35
TIME CHARTER INDEX VS. EBITDA
gt Increased EBITDA Capacity
36
NET RESULT, CASH FLOW AND RETURN
  • Average RoE ROCE
  • 1990-00 11.8 10.2
  • 2002 8.5 5.7
  • 2003 4.1 6.1
  • 2004 15.5 8.0

37
BALANCE SHEET (31 December 2004)
LIABILITIES EQUITY
ASSETS
Liquid assets
ST debt
Other assets
Tank terminals
LT debt
Vessels nbs
Equity
Equity ratio 32
38
LONG TERM DEBT
¹Loan capazity unencumbered assets about usd 400
million
39
LONG TERM DEBT
¹Loan capazity unencumbered assets about usd 400
million
40
LONG TERM DEBT
41
SHARE PRICE DEVELOPMENT



42
SHAREHOLDER STRUCTURE
  • Odfjell family 35
  • Chemlog ApS 24
  • 6 Norwegian Funds 11
  • Others 30

43
SUMMARY
  • World economy continuing strong
  • Helped by Chinas growth
  • Favorable fundamentals
  • Remain a long term industrial shipper
  • Tank terminal increasingly important
  • Strong cash generation
  • Future outlook
  • Anticipate significantly improved operating
    result in 2005

44
BOND
  • New source of funding
  • Optimize debt structure
  • Provide liquidity in the bond issue

45
MISSION STATEMENT
  • Odfjell shall be a leading, preferred and
    profitable global provider of transportation and
    storage of bulk liquid chemicals, acids, edible
    oils and other special products.
  • Odfjell shall be a true logistic service
    provider, capable of combining different modes of
    transportation and storage.
  • Odfjell shall provide its customers with safe,
    reliable and efficient services.
  • In the execution of its services, Odfjell is to
    meet high quality, safety and environmental
    standards.
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