ASL Marine Q2 FY2013 results presentation

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 (%)


9

Company Profile

76 75

50

48

79 80

40

50

60

70

80

90

100


Offshore Support Vessels

77

74

66

62

68

72

77

70

7069

66 65

55

60

65

70

75

80


Tugs

Barges

Vessel Utilisation (%)


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


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


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


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


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


(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


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


• 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

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mb

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35

ASL vs Indices S

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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

Documents

ASL Marine Q2 FY2013 results presentation