Good morning, everyone, and welcome to Ocean Yield's Second Quarter Earnings presentation. As usual, I will start today's presentation with the highlights of the quarter and go through the changes to the portfolio. Then, our CFO, Eirik Eide, will take us through the financials and the financing activity of the quarter. The presentation will be concluded with opening up for questions. If you would like to ask a question, please use the Q&A function. Starting off on page two, Q2 has again been an active quarter for Ocean Yield, and we are reporting another quarter with strong and stable financial performance. We report an EBITDA adjusted for finance lease effects of $101.1 million and a net profit of $22.9 million. We ended the second quarter with $98.7 million in cash, following prepayments of $80 million made in connection with the Geogas closing that took place on July 1st. The balance sheet remained strong, and the equity ratio was 29.1%. At quarter end, the EBITDA backlog was $4.3 billion, and the average remaining contract duration was 9.9 years. Q2 and the following period have also been an active period on the transaction side. We have a greed to amend and extend the lease for three vessels with Nordic American Tankers. We have increased our ownership stake in France LNG Shipping from 34% to 45%, and we have acquired Cape Omega together with funds controlled by KKR. I will come back to this in greater detail. Let us move to page three for a summary of the portfolio at the end of the quarter. Including the 12 LNG vessels in the France LNG fleet, the fleet now counts 65 vessels at quarter end with an average age of 5.2 years. The EBITDA backlog at the end of the quarter was $4.3 billion, and 100% of the fleet remains employed on long-term charters. The investments made into the LNG segments have significantly increased the diversification of the backlog, with LNG and gas carriers now making up 32% of the backlog. Let's move to page four for more details on the Cape Omega transaction. Post-quarter end, Ocean Yield, together with funds controlled by KKR, have agreed to purchase Cape Omega from Partners Group. The funds controlled by KKR will fund the majority of the transaction, and Ocean Yield will own approximately 10% of Cape Omega. Ocean Yield will manage the investment for KKR. Cape Omega owns 50% of the equity and 100% of the preferred equity instruments in 10 LNG vessels with long-term charters to the investment-grade rated counterparties Shell, Engie, and Qatar Gas. The remaining 50% equity in the 10 vessels is owned by Knutsen OAS Shipping. They also manage the ships. Knutsen has 40 LNG ships in their fleet. Seven vessels are delivered, and the remaining three vessels are expected to be delivered during 2025 and 2026 from the shipyard in Korea. The average remaining contract duration is approximately nine years or 16 years if you include the extension options. LNG's infrastructure-like characteristics fit well with our portfolio, and the transaction underpins our long-term strategy of partnering with industry leaders and securing long-term cash flows to strong and reputable counterparties. Ocean Yield's share of the firm backlog equates to approximately $120 million. The transaction is expected to close during the third quarter and will be funded with available liquidity. Also, as part of the transaction and to ensure ample firepower for further growth, KKR will inject $30 million of equity capital into Ocean Yield. This is tangible evidence of KKR's long-term commitment to Ocean Yield's continued growth. Let's move to page five for other changes to the portfolio during the quarter. During the quarter, NORDIC GALAXY and NORDIC MOON were delivered and com menced the bareboat charters to Nordic American Tankers. Following the delivery of MINERAL SUOMI, MINERAL SVERIGE, MINERAL POLSKA, and MINERAL CESKO, the Newcastlemax newbuild program with CMB. TECH has now been concluded. Also, following the delivery of Brave Future in July, the LEG newbuild series with Braskem is concluded. Remaining newbuilds, excluding LNG, are four LR1 newbuilds under construction at GSI in China. These vessels are expected to be delivered during 2026 and will, upon delivery, commence 15-year bareboat leases to Braskem. During and post-quarter end, purchase options for the six VLCCs on charter to International Seaways and the three LR2 tankers to Scorpio Tankers have been declared. With the exception of the STI SYMPHONY which will be delivered in Q1 2026, the remaining vessels will be delivered to their new owners during the fourth quarter. Finally, during the quarter, HAFNIA ARONALDO was delivered to its new owners. I would now like to hand the word over to Eirik, who will take us through the financials and the financing activity of the quarter. Thank you, Andreas. As usual, let me start with taking a look at a financial snapshot of the company as of the second quarter. We have recorded EBITDA of $57.5 million and adjusted EBITDA of $101.1 million. Net profit for the quarter was $22.9 million, and the Board of Directors has not declared a dividend this quarter as we are using cash towards new investments. We had available liquidity of $98.7 million, and the equity ratio stood at 29.1% at the end of the quarter. Let us take a look at the headline figures of the income statement. Overall, we have recorded total revenues of $62.7 million, which is up from $56.6 million in Q1. More specifically, operating lease revenue was $19.4 million compared to $19.2 million in Q1. This was in line with the first quarter. Finance lease revenue, however, was $34.4 million compared to $30.7 million in Q1. The increase here is related to the delivery of two Suezmax vessels and four Newcastlemax newbuildings during the quarter. Income from our joint ventures was $5.9 million compared to $5.7 million in Q1. We had other income of $3.1 million, and this is mainly related to one-off gains on lease modification effects for eight tankers where purchase options have been exercised, and the lease extension of the three Suezmax tankers. That brings us to an operating profit of $51.7 million in the quarter compared to $45.6 million in Q1. Net financial items were - $28.3 million compared to $26.9 million in Q1. The increase here is mainly driven by higher interest rate expenses as a result of vessel deliveries. The quarter ended overall with a net profit of $22.9 million compared to $18.3 million in Q1. Let us move on and take a look at the historical adjusted EBITDA. This is the cash EBITDA that we receive under our lease agreements. This was $101.1 million in Q2 compared to $91.6 million in Q1. Very pleased to see that we are above the $100 million mark on adjusted EBITDA. As we have mentioned in previous quarters, in order to fully reflect the investment in Geogas LNG, we have included also interest on shareholder loans in that investment in this figure, since this is partly invested as equity and partly as shareholder loans. As you can see here on this slide, this is how the development has been on adjusted EBITDA back to 2022. If we turn to the balance sheet, we had total assets at the end of Q2 of $2.7 billion, which is up from $2.4 billion in Q1. This is mainly due to the delivery of vessels and drawdown on debt related to these during the quarter. Available liquidity was $98.7 million or $99 million, as we have rounded it off here, compared to $201 million last quarter. The reduction in cash is due to the fact that we had prepositioned about $80 million in cash in preparation for the closing of the Geogas LNG transaction, which means that the real cash position was about $177 million at the end of the quarter. This amount is now reflected on the trade and other current assets on the balance sheet since the closing took place on July 1st. Book equity was $789.2 million compared to $771 million in Q1. Overall, we ended the quarter with an equity ratio of 29.1% compared to 31.7% in Q1. We move on to financing initiatives. This quarter and post-quarter end, we have signed loan agreements for the refinancing of the final LR1 product tankers on charter to Braskem. We are pleased to see the completion of this financing project, and all newbuilds are now fully financed on attractive terms. Further, we also put in place long-term financing for the three Suezmax vessels on charter to NAT, where we have amended and upsized the existing financing agreements and extended the maturity until 2030. As a general comment, we continue to see attractive terms in the market with continued downward pressure on margins. As a final comment on the funding side, in connection with the announced LNG transaction, KKR is expected to inject about $30 million of additional equity into Ocean Yield in order to facilitate further growth going forward. We expect that this will happen during the third quarter. As you may have seen also this morning, we will conduct some investor meetings this week to see if we can complete a new bond issue to also facilitate further growth. In connection with this, we expect to buy back the bond OCY08, which has maturity in 2027. That completes my part of the presentation, and I give the word back to you, Andreas. Thank you, Eirik. Let me summarize the quarter on page 10. The start of the year has been active, and as we continue to grow and diversify the Ocean Yield portfolio through M&A, I'm very pleased with our collaboration and partnerships with industry leading shipowners in their respective segments, and we remain optimistic to growing on these further. The portfolio of long-term leases to leading counterparties continues to perform well. As Eirik mentioned, we continue to maintain a strong balance sheet with ample available liquidity and room for further growth. Our access to capital in both the bond and banking markets remains strong, increasing our competitive position. I would like to thank you all for watching the Ocean Yield Q2 Earnings presentation, and I would now like to open up for questions. If you would like to ask a question, please use the Q&A function. Andreas, we have received a couple of questions also this morning. The first is on LNG. You are increasing your exposure to the LNG segment. Are you concerned about the big order book in this segment? Let me start off by saying that we're always concerned about the order book, but I think in this case, it's important to mention that we're not in the spot market. All our vessels are on long-term charters to investment-grade rated companies. In addition to that, we also see a couple of factors that give us comfort. I think, one, we do see an increasing amount of vessels being scrapped, particularly the older vessels. Secondly, we do see that there is increasing demand. Demand is definitely growing, so there's more volume flowing. I think that, to underpin that, we do see a higher degree of tendering activity at the moment where energy majors are actually out looking for long-term charters. Thank you. The second question is, you are guiding for a $30 million equity issue from KKR. The question is, can you elaborate on KKR's rationale for this and how the owner is managing the Ocean Yield balance sheet? I think when it comes to capital allocation, there are a couple of important factors to bear in mind. For us, we always start with maintaining a strong balance sheet. Following that, we look at acquisitive growth. Thirdly, we look at paying a dividend if the two other criteria are sort of successfully met. Those are sort of the way that we run the balance sheet. Thank you. The last question is related to the bond issue that we sent a press release on this morning. What is the use of proceeds for this bond? Is it growth or dividends, et cetera? I think maybe I can start answering that. Definitely, the proceeds will be used, first of all, to buy back OCY08, which is a bond that we have outstanding today, which has maturity in 2027. Following that, it will be to facilitate further growth and new investments. That seems to be all the questions we have received this morning. Okay. I think if there are no further questions, that concludes today's presentation. With that, I'd say thank you all for watching the Ocean Yield Q2 Earnings presentation.
Loading workspace