TANKERSKA NEXT GENERATION DD

Marine
October 27, 2017

Key figures Q3 17 Q3 16 Change Cum 17 Cum 16 Change TTM 2016FY

Revenues (HRK mn) 69,5 64,8 7,1% 214,6 191,3 12,2% 273,2 272,1
EBITDA (HRK mn) 27,5 29,5 -6,7% 85,7 97,7 -12,3% 105,3 127,9
EBITDA margin (%) 39,6% 45,5% -12,9% 39,9% 51,1% -21,9% 38,5% 47,0%
EBIT (HRK mn) 15,5 16,8 -8,0% 47,9 58,9 -18,7% 55,5 72,4
EBIT margin (%) 22,3% 25,9% -14,1% 22,3% 30,8% -27,6% 20,3% 26,6%
Net income (HRK mn) 6,8 9,6 -29,5% 25,7 36,5 -29,6% 26,9 40,6
Net margin (%) 9,7% 14,8% -34,2% 12,0% 19,1% -37,3% 9,9% 14,9%
EPS (HRK) 0,8 1,1 -29,5% 2,9 4,2 -29,6% 3,1 4,6

Relative price and volume

20 1 3Q 2017 results
15 0
10 0
5 0 Croatian shipping company Tankerska Next Generation (TPNGRA CZ) reported 3Q
0 0
2017 results in line with our expectations showing increase in top line but
-5 0
-10 0 deterioration in bottom line. (Neutral)
-15 0
-20 0 In Jan-Sep 2017, TNG improved revenues by 11.7% yoy to the amount of HRK
-25 0 212.2 mln, while in 3Q revenues grew by 7% yoy to HRK 69.1 mln. This positive
-30 0
Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 trend is the result of a greater presence of the TNG fleet in the spot market. During
Turn. (RHS, HRK mn) TPNG CRO Index
3Q, average daily TCE of the fleet increased from the level recorded in 2Q to USD
Share data 15,205 due to the higher number of revenue days. A combination of voyage charter
Market cap (HRK bn) 533 and time charter employment mitigated the volatility of the hire rates in the market.
52 week range (HRK) 56 / 84,89
Shares o/s (mn) 8,733345 In the first nine months, total operating expenses significantly increased by 37.8% yoy
Avg. turnover (HRK) 16.349 to HRK 128.9 mln due to transfer of m/t Vinjerac, Velebit and Pag to the spot market
Free float 48,99% where the voyage-related costs are paid by the ship owner.
Bloomberg ticker TPNGRA ZA
In Jan-Sep, EBITDA declined by 12.3% yoy to HRK 85.7 mln due to increased costs,
Exchange Zagreb
ISIN HRTPNGRA0000 which is a result of higher exposure on the spot market, one-off costs associated to the
Website www.tng.hr regular five-year drydocking of Vinjerac ship, correction of the spot hire rates, a
slightly lower level of fleet utilization of 95.9% due to vessel repositioning in 2Q and
Analysis
Aleksandra Križanec appreciation of the kuna against the US dollar. TNG net profit decreased by 29.6%
Email: akrizanec@fima.com yoy to the amount of HRK 25.7 mln.
Tel: +385 42 660 975
Currently TNG's fleet consists of six MR tankers in operation. On September 30 2017,
Sales and trading desk contact the average age of the vessel in TNG fleet was 3.46 years.
Darko Horvat
Email: dhorvat@fima.com
Tel: +385 42 660 962
Vlatko Kesegić
Email: vkesegic@fima.com
Tel: +385 31 636 510
Martina Vidaček
Email: mvidacek@fima.com
Tel: +385 42 660 963
Important: Please see disclaimer and disclosures at the end of the document 1
 TANKERSKA NEXT GENERATION DD

Valuation multiples TTM FY 2016 FY 2015 FY 2014 FY 2013 FY 2012 FY 2011

P/E 19,8 16,1 16,8 - - -
P/Book 0,9 1,0 1,0 - - - -
P/Sales 1,9 2,4 4,2 - - - -
EV/EBITDA 11,2 11,1 23,7 - - - -
EV/Sales - 5,2 10,5 - - - -

P&L (HRK mn) Q3 17 Q3 16 FY 2016 FY 2015 FY 2014 FY 2013 FY 2012

Revenues 69,9 65,1 272,1 136,8 9,5 - -
-sales revenue 69,5 64,8 269,5 133,1 9,5 - -
-other operating revenue 0,4 0,3 2,6 3,7 0,0 - -
Operating expense 166,7 48,0 199,7 103,2 4,8 - -
-invenotory change 0,0 0,0 0,0 0,0 0,0 - -
-material costs 26,1 18,7 67,6 33,5 0,2 - -
-staff costs 12,0 128,1 57,8 31,8 0,0 - -
-depreciation 12,1 12,7 55,5 26,9 3,6 - -
-other expenses 12,5 3,8 18,8 11,0 1,0 - -
Financial income 0,0 0,0 0,5 12,9 8,8 - -
Financial expense 8,7 7,3 32,2 11,9 1,6 - -
Associated companies result 0,0 0,0 0,0 0,0 0,0 - -
Extraorinary revenues 0,0 0,0 0,0 0,0 0,0 - -
Extraordinary expenses 0,0 0,0 0,0 0,0 0,0 - -
Profit / loss before tax 6,8 9,6 40,6 34,5 11,9 - -
Tax 0,0 0,0 0,0 0,0 0,0 - -
Net profit / loss 6,8 9,6 40,6 34,5 11,9 - -

Balance sheet (HRK mn) Q3 17 FY 2016 FY 2015 FY 2014 FY 2013 FY 2012 FY 2011
Non-current assets 1.232,1 1.428,1 1.442,4 460,1 - - -
-intangible assets 0,0 0,0 0,0 0,0 - - -
-PPE 1.232,1 1.428,1 1.442,4 460,1 - - -
-non-current financial assets 0,0 0,0 0,0 0,0 - - -
-receivales 0,0 0,0 0,0 0,0 - - -
-deffered tax assets 0,0 0,0 0,0 0,0 - - -
Current assets 46,1 63,3 76,6 27,1 - - -
-inventories 8,4 10,8 4,9 0,0 - - -
-receivales 4,1 8,6 0,2 3,8 - - -
Analysis 6,4 7,2 0,0 0,0 - - -
-cash 27,3 36,7 71,5 23,3 - - -
Prepayements and Acruals 15,6 6,9 5,7 1,3 - - -
TOTAL ASSETS 1.293,9 1.498,3 1.524,6 488,5 - - -
Off balance sheet 0,0 0,0 0,0 0,0 - - -

Equity and reserves 604,6 666,5 645,8 277,3 - - -

Provisions 0,0 0,0 0,0 0,0 - - -
Non-current liabilities 660,4 737,9 785,3 190,0 - - -
Current liabilities 24,5 88,5 89,8 20,4 - - -
Accruals and deffered income 4,4 5,4 3,7 0,9 - - -
TOTAL EQUITY AND LIABILITIES 1.293,9 1.498,3 1.524,6 488,5 - - -
Off balance sheet 0,0 0,0 0,0 0,0 - - -

Important: Please see disclaimer and disclosures at the end of the document 2
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