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This Presentation (hereinafter collectively referred to as the “Presentation”) has been produced by Epic Gas Ltd. (the “Company”, or “Epic”) for
information purposes only.
This Presentation contains information obtained from third parties. As far as the Company is aware and able to ascertain from the information
published by that third party, no facts have been omitted that would render the reproduced information inaccurate or misleading. To the best of the
knowledge of the Company, the information contained in this Presentation is in all material respects in accordance with the facts as of the date
hereof. However, no independent verifications have been made and no representation or warranty (express or implied) is made as to, and no
reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is
accepted as to any errors, omissions or misstatements contained herein, and, accordingly, none of the Company or any of its parent or subsidiary
undertakings or any such person’s officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document.
This Presentation contains certain forward-looking statements relating to the business, financial performance and results of the Company and/or the
industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical
facts, sometimes identified by the words “believes”, “expects”, “predicts”, “intends”, “projects”, “plans”, “estimates”, “aims”, “foresees”,
“anticipates”, “targets”, and similar expressions. The forward-looking statements contained in this Presentation, including assumptions, opinions and
views of the Company or cited from third party sources are solely opinions and forecasts which are subject to risks, uncertainties and other factors
that may cause actual events to differ materially from any anticipated development. None of the Company or any of its parent or subsidiary
undertakings or any such person’s officers or employees provides any assurance that the assumptions underlying such forward-looking statements
are free from errors nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this Presentation or the
actual occurrence of the forecasted developments. The Company assumes no obligation, except as required by law, to update any forward-looking
statements or to conform these forward-looking statements to our actual results.
2
Disclaimer
Q3 2019 Highlights Strong operational performance & reduced financing costs
3
POST PERIOD END:Completed $201 million refinancing of 20 vessels with further annualized savings in debt service of $2.8 million, giving strong financial base for ongoing development of platform as the leading pressurised LPG carrier.
• Underlying Net Profit of $0.3 million excluding one off charges related to the fleet refinancing.• Net loss of $2.9 million after extraordinary costs of $3.2 million related to the fleet refinancing.• Refinancing of 2 vessels at $30.5 million with annualized savings in debt service of $1.3 million. • Acquired 4 modern 11,000 cbm LPG vessels for $106.5m to increase fleet capacity by 15.9% to 320,900cbm (44 vessels).
Q3 2018 Q3 2019 Q319 vs Q318%
Q2 2019 Q319 vs Q219 %
• Revenue $40.6 m $47.1m +16% $40.6m +16%
Calendar Days 3,567 3,971 +11% 3,482 +14%
TCE/Calendar Day $10,081 $9,965 -1% $9,454 +5%
Fleet operational utilisation 94.9% 95.1% 90.6%
Tonnes loaded 813,870 796,433 -2% 746,366 +7%
Total capacity 259,900 cbm 320,900 cbm +23% 276,900 cbm +16%
Average vessel size 6,839 cbm 7,293 cbm +7% 6,923 cbm +5%
Average vessel age 7.9 years 8.4 years 8.9 years
Cargo operations 703 678 -4% 673 +1%
Different ports visited 134 135 +1% 115 +15%
LTIFR (Lost-Time Injury Frequency Rate) 0.0 0.0 0.0
% CO2 Reduction (basis 2018 base-line) 1.67% 1.33%
• Total Opex per cal/day $4,010 $4,221 +5% $4,293 -2%
• Total G&A per cal/day $1,092 $1,043 -4% $1,155 -10%
• Adjusted EBITDA $13.8m $13.5m -2% $9.8m +38%
Epic Gas at a glance
4
• Epic Gas Ltd., owns and operates a fleet of 44modern, pressurised gas carriers providingseaborne services for the transportation ofliquefied petroleum gas (LPG) andpetrochemicals.
• Our vessels serve as a crucial link in theinternational gas supply chains of leading oilmajors and commodity trading housesthroughout Southeast Asia, Europe, West Africaand the Americas.
• We are headquartered in Singapore withadditional offices in London, Manila and Tokyo.
• Epic Gas has the scale, fleet and operationalresources to serve our customers on a trulyglobal basis. We will continue to leverage our in-house commercial and technical expertise toprovide the safest, most dependable solutions forour customers.
99,500
320,900
4,523
7,293
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
Dec 2012 Current
Fle
et
Cap
acit
y (c
bm
)
3s 5s 7s 9s 11s Avg. Size
Strong Operating Model Focused on the largest pressure vessels
Steady Revenue & EBITDA Growth
0
10
20
30
40
50
0
50
100
150
200
2014 2015 2016 2017 2018 YTD 2019
Nb
r o
f Sh
ips
US$
m
Revenues EBITDA No. of ships (EoP)
Investment Case
5
1. Growth company in dynamic market driven by supply
2. Competitive positioning and high barriers to entry
3. Strong sales momentum and positive outlook
4. Robust financial profile
6. Ownership Synergy
• Critical part of growing global seaborne LPG market infrastructure • Easily transportable, high calorie, low emission – a critical transition fuel for
developing markets away from environmentally damaging coal, biomass or wood• LPG is already meeting fuel needs of several billion people (Source: WLPGA)
• Company has been building scale to become the market leader of global ‘last-mile’ trade with a current fleet of 44 ships
• Nimble business model differentiated by flexible ships – allowing access to a far higher number of ports and trades worldwide
• Complex multiple stop logistics afford client flexibility and deliver more defensible revenues
• 16% revenue growth in Q3 2019• Positive outlook driven by growing commodity supply driving demand • Sustained forecast growth in LPG seaborne trade
5. Differentiating ESG credentials
• Efficient financial management, as evidenced by recent refinancing • Strengthening cashflow post equity raising • Controlled debt profile with 54% net leverage • Continued investment in high quality fleet with optimal mix of vessel size and age
• LPG ensures high energy production with low emissions• LPG marine transport has low environmental risk profile • Epic Gas has the most modern, efficient fleet afloat – high seafarer standards,
ethical scrappage policy, IMO 2020 on track, working to reduce emissions.
• Stable ownership profile through BW Group and other shareholder investment • Operational synergy and knowledge in the shipping and gas sectors• Financial synergy in areas such as financing and insurance
Low Newbuild Vessel Supply
6
Smaller LPG Vessels Order Book Remains LowSource: Clarksons Register, Company Data
• 2/8/7 newbuild pressure vessels to be delivered in 2019/2020/2021 representing a 1.3%/2.4%/1.8% increase in existing fleetcapacity.
• A 30-year-old 3,300cbm pressure vessel was scrapped in Q3 2019.• 1/2 newbuild small-sized semi-ref (non-Ethylene) vessels to be delivered in 2019/2020 representing a -2.4%/3.4% increase in
existing fleet capacity, accounting for the 26,000cbm scrapped YTD 2019. Also, 2 small-sized Eth vessels to be delivered in 2020.• A scrapping pool of 20 pressure and 11 semi-ref (non-Ethylene) vessels aged 28 years and over.
Pressure Vessel Global Fleet DevelopmentSource: Clarksons Register, Company Data
332
211
121
415
17
5
5
47
0
100
200
300
400
500
3k - 13k 3k - 13k >13k - 25k >25k
PR SR (incl Eth) FR & SR (incl Eth) FR & SR (incl Eth)
Nu
mb
er
of
Ve
sse
ls
On Water On Order
5%
11%
4%
2%
-20%
0%
20%
40%
60%
80%
-35,000
-10,000
15,000
40,000
65,000
90,000
115,000
140,000
19
84
19
86
19
88
19
90
19
92
19
94
19
96
19
98
20
00
20
02
20
04
20
06
20
08
20
10
20
12
20
14
20
16
20
18
20
20
3,000 - 4,999cbm 5,000 - 6,999cbm 7,000 - 8,999cbm
9,000 - 13,000cbm Scrapping Expected Scrapping
YoY growth (right axis)
Growing Demand for LPG
7
Global LPG Seaborne Trade Strong Demand Growth 5% 2020
Source: Drewry
Q3’19 US Total LPG Exports +2% qoq, +17% yoy. Butane +27% yoy
Source: IHS Markit
Big Volumes China & India Remain Key Demand Drivers Source: FGE
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
0
50
100
150
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
E
20
20
E
20
21
E
20
22
E
20
23
E
20
24
E
An
nu
al %
Gro
wth
Seab
orn
e LP
G (
mill
ion
to
nn
es)
LPG Seaborne Trade (million tonnes) % growth (Seaborne Trade)
% growth (Tonne-Mile demand)
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
Q1 14 Q4 14 Q3 15 Q2 16 Q1 17 Q4 17 Q3 18 Q2 19
ton
nes
Ethane Propane Butane IsoButane
Strong US LPG exports, stable Chinese Propylene imports
Growing demand drives import Growth Source: FGE
USA pressurised and small sized Semi-Ref (SR) Exports: 4xlong haul West Africa pressure cargoes Source: IHS Markit
China Propylene Imports hold up as Polypropylene production drives Propylene demand and balances increased PDH capacity, with developing Imports from other Asian countries Source: Argus
8
2,6413,048
2,7712,903
3,099
2,844
8,000
12,000
16,000
20,000
24,000
28,000
0
2,000
4,000
6,000
8,000
10,000
2013 2014 2015 2016 2017 2018 2019E 2020E
Year End PDH Capacity ('000 tonnes) Chinese Propylene Imports ('000 tonnes)
Chinese Polypropylene Prod ('000 tonnes) (right-axis)
0%
4%
8%
12%
16%
-
1,000,000
2,000,000
3,000,000
2013 2014 2015 2016 2017 2018 2019E 2020E
(Mill
ion
To
nn
es)
China Derivative Demand Creates Propylene Deficit
Production Defecit Derivative Demand % Growth
Pressure (million tonnes) 2018 2019 2020 2025 CAGR
Indonesia 5.5 5.6 5.9 7.2 3.9%
Philippines 1.3 1.4 1.5 2.2 7.8%
Vietnam 1.5 1.5 1.6 4.1 15.4%
Thailand 0.7 0.8 1.0 2.0 16.2%
West Africa 0.7 0.7 1.1 1.3 9.2%
South Africa 0.2 0.5 0.5 0.7 19.6%
Morocco 3.1 3.1 3.1 3.2 0.5%
0
20,000
40,000
60,000
80,000
100,000
Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19
Ton
ne
s Ex
po
rted
ex
USA
(Sm
all-
ship
)
Carib Cargo Qty Cen/S. Amer Cargo Qty
Med Cargo Qty WAF Cargo Qty
Semi-Ref
Rebalancing between Supply & Demand12 Month Time Charter Market (USD/day)
9
Q3 2019 – step up from Q2 2019 but weaker rates on smaller vessels Year on Year due to European refinery maintenance• 3,500cbm, 5,000cbm, 7,500cbm & 11,000cbm market daily rates averaged $8,295, $9,185, $11,014 and $13,364, respectively.• Average rates down 3-4% for 3,500cbm, down 5-6% for 5,000cbm, up 5-6% for 7,500cbm, and level for 11,000cbm, compared to Q3’18.
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
Jan
-12
…
Jul-
12
Jan
-13
…
Jul-
13
Jan
-14
…
Jul-
14
Jan
-15
Jul-
15
Jan
-16
Jul-
16
Jan
-17
Jul-
17
Jan
-18
Jul-
18
Jan
-19
Jul-
19
3,500cbm-Steem 1960 5,000cbm-Steem 1960 7,500cbm-Grieg, Gibson, BRS 11,000cbm-Epic
Geographical and Commodity Diversity Provides optionality and earnings stability
10
✓ Loaded 796,433 tonnes, +7% qoq✓ 678 cargo operations✓ 135 different ports✓ LPG (80%), 640,794 mt✓ Petchems (20%), 155,638 mt
Diversified Geographical Location of Fleet(as of 01 Nov 2019)
Cargo Operations Summary, Q3 2019
Benefits of Commodity & Geography
0
1
2
3
4
5
-50
50
150
250
350
450
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2014 2015 2016 2017 2018 2019
Tota
l No
. of
Load
Op
erat
ion
s
AFRICA ASIA EUROPE
MIDDLE EAST OCEANIA THE AMERICAS
Loads per Day (right-axis)
Diversified Geographical Trade Route OptionsHigher in the Middle East & Europe
✓ Optionality on choice of business✓ Diversified earnings, Risk mitigation✓ Maximising seasonal demand and weather impact✓ Ability to flex between LPG and Petchem markets✓ Providing us with gainful experience in serving
customers in niche markets and trades✓ Exposure to new customers, developing markets,
increasing trades and new trade routes.✓ Maximising operational efficiencies
LPG break bulk trade has grown in recent yearsAn Integral Part of the Global Seaborne LPG Supply Chain for all vessel sizes
11
Epic Gas STS Operations Heat MapA part of the Global Supply Chain for LPG
✓ Strong Global Demand✓ 77 STS operations in Q3’19 ✓ Increased operations off
the East Coast of India and off East Africa
✓ Last tonne-mile delivery, shallow waters, restricted berths
✓ Complementary to LPG supply chain and delivery by VLGCs
Epic Gas Ship to Ship (STS) Operations by Regionqoq - higher off E. India and E. Africa
24
108
198
413
358
0
50
100
150
200
250
300
350
400
450
2014 2015 2016 2017 2018
0
25
50
75
100
125
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2016 2017 2018 2019
STS Off Singapore Off Male Middle East W. Africa E. Africa E. India S. America Carib Others
Key financials: Operating Metrics
12
Voyage Days
Highlights• Rising number of vessels and fleet capacity responding to demand driven LPG market• Growth in fleet calendar days following incremental 4x11,000cbm vessels purchased and delivered during July 2019, with all vessels are
trading, two under a two year charter to a leading global LPG trader.• Higher fleet utilisation and increased average vessel size leading to improved earnings per calendar / voyage day • Epic Gas has a loyal, consistent client base and focuses on meeting customer needs, with flexibility between charter and spot contracts • Maintenance is conducted as efficiently as possible, with minimal idle days
3,2733,385 3,362 3,295
3,432 3,495
3,763 3,7383,548 3,459 3,515 3,458 3,428 3,482
3,909
23% 24%29%
25%
20%
26% 25%
31% 32%
25% 25% 23% 25%
35%38%
0%
20%
40%
60%
80%
100%
-
1,000
2,000
3,000
4,000
5,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
FY2016 FY2017 FY2018 FY2019
% V
oy
Day
s in
Sp
ot
Mar
ket
Vo
y D
ays
TC Days Spot Days COA Days (relets excluded) % Spot
Fleet Performance – Days & Earnings
13
Calendar Days *Voyage Days
*Calendar days net of off-hire days associated with major repairs, dry dockings or special or intermediate surveys.
Q3 2019
YTD Sep 2019
Availability98.4%
Offhire1.6%
$9,965per
Calendar Day
Availability97.7%
Offhire2.3%
$9,721per
Calendar Day
$9,950per
*Voyage Day
Waiting 4.4%
Time Charter67.1%
Spot28.5%
$10,124per
*Voyage Day
Waiting 3.3%
Time Charter62.2%
Spot34.5%
Key financials: Income Statement and Cash Flow Q3 2019
14
Time Charter Equivalent (“TCE”) Revenue and Opex
EBITDA/Calendar Day
Highlights• 16% revenue sales growth.• 7% increase in YTD operating income.• Loss of $2.9m in Q3, related to $3.2m IRS termination/write-
off of deferred finance charges related to our post-quarter refinancing.
• Completed refinancing lead to $4.1m reduction in annual debt service costs, optimising cost of capital.
$28.8 $28.4$25.9
$28.2$30.1 $29.9 $30.7
$32.0 $32.1 $32.3
$36.1 $34.9 $34.0 $34.1
$39.6
$8,639
$8,183
$7,384
$8,206 $8,424
$8,022 $7,960
$8,449
$8,881 $9,102
$10,132 $9,971 $9,718
$9,454
$9,965
$4,449 $4,040 $4,120
$4,335 $4,082 $4,170 $4,274 $4,171 $4,276 $4,127 $4,010 $4,071
$4,400 $4,293 $4,221
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
$10,000
$11,000
$-
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
FY2016 FY2017 FY2018 FY2019
TCE
Rev
enu
e a
nd
Op
ex p
er C
alen
dar
Day
TCE
Rev
enu
e ($
mill
ion
s)
TCE Revenue TCE per Calendar Day Vessel Opex/Cal Day (TC-In excluded)
Key financialsBalance Sheet 30 September 2019
15
• Conservative accountingBook value of $587 million below latest broker FMV estimates
• Reduced cost of financingRefinancing of 2 vessels completed, leading to annual savings of $1.3 million
• Investment in fleet to drive further growth Acquisition of four 11,000cbm vessels for a total of $106.5 million, financed with combination of debt of $63.9 million and equity of $42.6 million
• Subsequent eventsRefinancing of 20 vessels leading to release of cash of $20 million and annual cost savings of $2.8 million. No further loan expiries until 2023. Scope to invest in future growth with $10 million unused loan tranche.
Loan profile:
314.4353.7
319.6285.1
250.4217.6
175.4
16.1
95.0
0.0
100.0
200.0
300.0
400.0
Sep-19 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24
Loan outstanding Balloon
Summary and Outlook
16
✓ Young and growing fleet
✓ Improving utilisation and operational performance
✓ Sequential fall in operating expenses
✓ Good visibility to end of year
✓ Strengthened balance sheet, robust financial structure
Q3 2019 Summary
✓ Utilisation & Freight levels for the larger sizes improving as
market recovery gains traction, small orderbook, ongoing growth
in commodity supply and demand growth for LPG shipping.
✓ Ongoing & potential scrapping in both pressurised and semi-ref.
✓ Limited order book for the sector – 17 pressure and 5 semi-ref
(including 2 ethylene carriers).
✓ Positioned for IMO 2020, turning to IMO 2030 and IMO 2050
Outlook
The Epic Gas Investor Proposition
17
1. Growth Company with access to a dynamic, sustainable energy market driven by commodity supply growth
2. Leading competitive positioning with high barriers to entry
3. Strong revenue momentum with a positive outlook
4. Robust Financial Profile
5. Differentiating ESG Credentials
6. Ownership Synergy
The Epic Gas Fleet (as of 29th October 2019)
18
Vessel: 11,000 cbm cbm Delivery Yard Vessel: 7,200-7,500 cbm Built Yard
Kahyasi 11,000 2015 Sasaki Epic Borkum 7,200 2000 Murakami Hide
Kris Kin 11,000 2015 Sasaki Epic Barbados 7,200 2001 Murakami Hide
Epic Sicily* 11,000 2015 Sasaki Epic Bermuda 7,200 2001 Murakami Hide
Kisber 11,000 2015 Kyokuyo Epic Barnes 7,200 2002 Murakami Hide
Kingcraft 11,000 2015 Kyokuyo Epic Bali 7,200 2010 Kyokuyo
Epic Samos 11,000 2016 Kyokuyo Epic Borneo 7,200 2010 Kyokuyo
Epic Sentosa 11,000 2016 Kyokuyo Epic Bell* 7,200 2014 Kyokuyo
Epic Shikoku 11,000 2016 Kyokuyo Epic Bird* 7,200 2014 Kyokuyo
Epic Sardinia* 11,000 2017 Kyokuyo Epic Bolivar 7,500 2002 Shin Kurushima
Epic Salina 11,000 2017 Kyokuyo Epic Burano 7,500 2002 Watanabe
Sub Total 10 Vessels 110,000 cbm Epic Boracay 7,500 2009 Murakami Hide
Emmanuel** 7,500 2011 Murakami Hide
Vessel: 9,500 cbm cbm Built Yard Epic Borinquen 7,500 2016 Sasaki
Epic Madeira 9,500 2006 Miura Epic Bonaire 7,500 2016 Sasaki
Epic Manhattan 9,500 2007 Miura Epic Baluan 7,500 2017 Sasaki
Westminster** 9,500 2011 Miura
Sub Total 3 Vessels 28,500 cbm Sub Total 15 Vessels 110,100 cbm
Vessel: 5,000-6,300 cbm cbm Built Yard Vessel: 3,500 cbm cbm Built Yard
Epic St. George 5,000 2007 Shitanoe Epic Catalina 3,500 2007 Kanrei
Epic St. Kitts 5,000 2008 Kanrei Epic Cobrador* 3,500 2009 Kanrei
Epic St. Martin 5,000 2008 Kanrei Epic Cordova* 3,500 2009 Kanrei
Epic St. Lucia 5,000 2008 Sasaki Epic Corsica 3,500 2009 Kanrei
Epic St. Vincent 5,000 2008 Sasaki Epic Caledonia 3,500 2014 Kitanihon
Epic St. Croix 5,000 2014 Sasaki Epic Curacao 3,500 2014 Kitanihon
Epic St. Thomas 5,000 2014 Sasaki Sub Total 6 Vessels 21,000 cbm
Epic St. Agnes 5,000 2015 Kitanihon
Epic St. Ivan 5,000 2015 Kitanihon
Epic Balta 6,300 2000 Higaki
Sub Total 10 Vessels 51,300 cbm
*Bareboat **TC-in and 320,900 cbmOverall Total of 44 Vessels,