Hello everyone, good morning. Welcome to this presentation of Ocean Yield's Q2 2021 results. My name is Marius Magelie, and I'm Head of Investor Relations. We will start this presentation with our CEO, Lars Solbakken, that will go through the main events for the second quarter. Our CFO, Eirik Eide, will then cover the key financials in more details, and we will then open up for questions from the web. You can submit your questions through the chat function. With that short introduction, I hand the word over to Lars Solbakken. Welcome everyone to the presentation of the second quarter results for Ocean Yield. Slide one, Q2 2021 financial highlights. Net profit for the quarter was $26.2 million, and adjusted net profit was $24.3 million. Both the net profit and adjusted net profit includes $2.1 million in payments to the hybrid capital, and therefore, net profit to common shareholders was $24.1 million, and adjusted net profit to common shareholders was $22.2 million. Earnings per share were $0.138, and adjusted earnings per share were $0.127. Ocean Yield announced dividend of $0.057 per share for Q2 2021. This is an increase of $0.0025 from Q1. The dividend yield based on the announced dividend is about 6.6% per annum. At the end of the quarter, Ocean Yield had a cash position of $101.2 million and available liquidity, including undrawn bank lines of $145 million. Available liquidity has been somewhat reduced during the second quarter due to prepayment of the OCY 04 bond with an outstanding amount of NOK 450 million. The adjusted EBITDA backlog was $2.8 billion at the end of Q2, with an average charter tenure of 8.3 years. The substantial charter backlog should secure reasonable stable earnings in the years ahead. Slide two, business update. With respect to new investments, Box Holdings, which is owned 49.9% by Ocean Yield, has recently entered into an agreement to buy one 15,000 TEU mega container vessel with 18 years bareboat charter to a major European container line. The charter agreement includes a purchase obligation at the end of the charter. This transaction, which was concluded after the end of the quarter, will add about $150 million to the EBITDA charter backlog. Ocean Yield has during the second quarter acquired from Aker Capital 50% equity interest in three Suezmax tankers on long-term bareboat charters to Nordic American Tankers. With respect to sale of vessels, Navig8 Group and Navig8 Chemical Tankers have declared the 5-year purchase options for the vessel Navig8 Constellation and Navig8 Tanzanite. Okeanis Eco Tankers has declared options to sell the vessels Nissos Santorini and Nissos Antiparos to third parties. Delivery of the vessels is expected during the second half of this year. Net proceeds from the sales will be reinvested as equity into new projects. With respect to financing the bond issue, OCY 04 with NOK 450 million outstanding and final maturity in September was prepaid in full during Q2. The joint venture with Quantum Pacific, owning six mega container vessels, is in the process of refinancing the bank debt, which is expected to release a significant cash amount that can be made available for new investments and/or dividends to its owner, Ocean Yield and Quantum Pacific. A bank facility related to four feeder container vessels has been refinanced and will release about $15 million in additional liquidity. With respect to our portfolio of vessels, we have agreed to a change of subcharters for two vessels on long-term charter to Okeanis Eco Tankers. Further, we experienced somewhat improved earnings from our two anchor handling tug supply vessels on variable rate charters to Solstad Offshore. The earnings are, however, still at a very low level. The FPSO Dhirubhai-1 continues to be in warm lay up in Sri Lanka. The net loss for Q2 was $1.2 million. The net loss was reduced compared to previous quarters due to cost reductions. That office personnel in Oslo has been rented out to Aker Energy. Sales discussions with interested parties continues. The sales process for such a unit is very time-consuming, as interested parties need to do extensive technical evaluations. The sale is normally dependent on a final investment decision for development of the field it is intended to be used. For some of the interested parties, financing is also challenging. Slide three, long-term charters secures stable cash flow. Ocean Yield has an adjusted EBITDA backlog of $2.8 billion with an average duration of 8.3 years. On the left-hand side of the slide, we can see that the adjusted EBITDA charter backlog for the second half of 2021 is $411 million. This number includes the sales proceeds from purchase and sales options that has been declared. For the years 2022 to 2026, the adjusted EBITDA charter backlog remains stable at about $275 million per year. In the middle of the slide, the adjusted EBITDA charter backlog has been split between the different segments. As can be seen from the slide, Tankers are by far the largest segment, with 43% of adjusted EBITDA charter backlog, followed by container vessels with 23%. The Oil Service segment has been reduced to only 10% of the charter backlog and consists of two PSVs on charter to Aker BP and one vessel on charter to Akastor and Aker Solutions, with sub-charter to Petrobras. The chart at the right-hand side of the slide shows that based on book values, 93% of Ocean Yield vessels are on long-term charters, 4% on charters with variable charter rates, and the FPSO without charter only makes up 3% of the book values. Our Finance Director, Eirik Eide, will take you through the financials. Thank you, Lars. Moving on to slide five, showing a financial snapshot of the company as of the second quarter. The graph on the left shows the adjusted net profit being $24.3 million compared to $19.7 million in Q1. $2.1 million of this is allocated to dividends on hybrid capital and $22.2 million is allocated to common shares. Adjusted earnings per share $0.127 and $0.057 per share will, as mentioned, be paid out to shareholders as dividends. Available liquidity at the end of the second quarter was $145.6 million and the equity ratio 31.3%. If we move on to the income statement, a couple of comments. The operating revenues, here we have recorded $17.2 million compared to $16.1 million in the first quarter. The increase here is mainly explained by higher revenues on the vessels Far Senator and the Normand Statesman compared to the first quarter. Finance lease revenues $21.3 million in Q1 compared to $22.3 million in Q2. The decrease here is mainly due to the sale of dry bulk vessels. Income from investments in associates, which is related to the 50% ownership in seven tankers and 49.9% ownership in six container vessels was $5.9 million compared to $5.8 million in the first quarter. We have other revenues of $3 million, and this is a profit related to the sale of the dry bulk vessels and also some minor amendments to the finance lease on one VLCC. In total, that gives us total revenues for the quarter of $47.3 million compared to $45.7 million last quarter. Vessel operating expenses were $0.2 million compared to $0.7 million last quarter. This figure is related to final payments on the ship management contract for the cable installation vessel Connector, which was sold in Q4. We have operating profit $37.9 million compared to $35 million in Q1. Financial expenses are slightly down, $12.9 million compared to $14.1 million last quarter, and the reduction here is mainly related to lower interest-bearing debt as a result of vessel sales and also prepayment of the bonds. We have foreign exchange movements and mark-to-market of financial instruments. They were in total positive with $1.9 million. That gives us net profit before tax of $27.7 million compared to $24.2 million in the first quarter. Net profit from continuing operations, $27.4 million, and net loss from discontinued operations was $1.2 million compared to $1.8 million in Q1. These are, as you know, expenses related to the FPSO, which is in layup. In total, the net profit for the period including discontinued operations was $26.2 million. Moving on to looking at the adjusted EBITDA and the adjusted net profit in more detail. EBITDA adjusted for finance lease effects was $64.8 million, which includes the repayment of finance lease elements, which was $19.6 million. The adjusted net profit $24.3 million, and adjusted net profit from continuing operations was $25.5 million. The adjustments we have made is related to FX and change in fair value of financial instruments, plus change in deferred tax and the loss from discontinued operations. Moving on to the balance sheet. On the left-hand side, finance lease receivables, including the short-term portion, was $1,247.5 million compared to $1,322 million last quarter, and the decrease is mainly related to the sale of vessels and ordinary repayments of finance leases. Cash and cash equivalents $101.2 million compared to $127.1 last quarter. In addition, we had undrawn credit lines of about $44.1 million available, which gives total available liquidity of $145.6. On the right-hand side, total interest-bearing debt $1,101.7 million this quarter compared to $1.189.2 billion last quarter. The reduction is mainly a result of vessel sales, ordinary debt repayments, and also prepayment of bonds. Finally, book equity $668.1 million versus total assets of $2.132 billion. That gives us an equity ratio of 31.3% at the end of the quarter. With that, I give the word back to Lars to summarize. Okay, we come to the last slide, outlook. With respect to the shipping market, Ocean Yield expects continued strong markets for container vessels and dry bulk carriers and an improved market for tankers towards the end of the year. Yard prices and secondhand values are expected to remain relatively firm. A strong shipping market is reducing the portfolio risk for Ocean Yield and increases the bank debt capacity. With respect to new investments, sale of vessels and retained earnings have increased the investment capacity for Ocean Yield. We are actively looking for new investments in modern fuel-efficient vessels with long-term charters, with a particular focus on investments in tankers, dry bulk carriers, and container vessels. The dividend for Q2 is increased to $0.057, which gives a dividend yield of 6.6% annual. Ocean Yield is currently has a conservative dividend level relative to expected future earnings, and it is the intention to continue to increase the dividend going forward. We can open up for questions. We have received a few questions from the web. I can start with one question from Jon Moberg. You bought back 50% equity interest in three tankers from Aker. Are there more ships in the Aker deal, and could you buy back them also? We decided now to buy back the three Suezmaxes. We do not have any specific plans at the moment to buy more vessels. That may be considered later. We have one question from Pål Dahl at SpareBank 1. On new investments, how do you implement ESG, including segment and propulsion system into new investments? We are of course spending quite a lot of time on looking at new propulsion systems and the latest investments in the 15,000 TEU container vessel is a dual fuel LNG vessel. We expect that also for later investments, dual fuel vessels is high on the agenda. What do you think about shipping cycles in terms of new investments? I think that when we consider new investments, of course, we look at the leverage level. When vessel values are high, we need to reduce the leverage that we are actually financing. If we in a typical average market is doing 90% leverage, we may consider to reduce that level if we have particular high values. A couple questions from Anders Karlsen from Danske Bank. Are there particular segments that you will be focusing on in terms of new investments? Yeah. As I just mentioned, our main focus on the marketing side is on tankers, dry bulk, and container vessels. We are also looking at projects in other segments. Those three segments are the main focus. Do you have the approximately scrap value of the Dhirubhai-1? The scrap value as is, if we sell it as is in Sri Lanka, is about $19 million. Have you set any deadline in terms of when decision could be made? There is no firm deadline, but we will of course try to reach a conclusion as soon as possible here and hopefully not in too distant future. A question from Carl Fredrik at ABG. The personnel on hire on the FPSO, do they work under buy one suitability or more generally FPSO projects? Yeah. They are employed by Aker Energy, and of course, is working mostly related to the FPSO in Ghana. One question from Bendik at Danske Bank. Good morning, and congratulations with another solid quarterly result. Tomorrow, the European Commission is expected to present a new draft of its Emissions Trading System, where we expect the shipping industry to be incorporated. The regulation may result in higher carbon taxes in the shipping industry. How is Ocean Yield positioned to withstand higher carbon tax in the industry? In our bareboat charters, basically, this kind of cost will be covered by our counterparties. For the vessels we have on long-term charters, which is 93% of the book value of the portfolio, I think we are covered through the bareboat charters. One question from Jonas at Swedbank. How do you assess the competition in the current market environment vis-a-vis banks and other lease counterparts? I think that there's been lower volume of deals both for banks and leasing providers so far in 2021. We see the Chinese are very competitive on the large container vessels. We have seen lower volume, not only for leasing providers, but also for banks so far this year. We expect that the market will return to more normal volumes going forward. That's all the questions we have received today. This presentation will be available on our webpage. If you have any follow-up questions, feel free to contact us afterwards. We would like to thank everybody that has listened in, and have a great summer, everyone.
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