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Nordisk Tine Fund (Northern Thaw Fund)

Nordisk Tine Fund (Northern Thaw Fund). Portfolio Managers: Damiaan Gallegos, Sofie Hjorth & Gavin Scanlan. Overview. Melting of the Arctic Ocean ¼ of oil reserves Unlocked shipping lanes big opportunities for the Basic Materials sector. Relevant Industries: Oil/Gas Drilling

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Nordisk Tine Fund (Northern Thaw Fund)

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  1. Nordisk Tine Fund(Northern Thaw Fund) Portfolio Managers: DamiaanGallegos, Sofie Hjorth & Gavin Scanlan

  2. Overview • Melting of the Arctic Ocean • ¼ of oil reserves • Unlocked shipping lanes big opportunities for the Basic Materials sector. • Relevant Industries: • Oil/Gas • Drilling • Shipping

  3. Low Probability of Decrease in Oil Prices • US self sufficient due to shale oil/gas Potential threat • Outside the US tight supply • Expected increase the world economy going forward (China, Japan, Europe)  Maintain demand • Saudi Arabia: Adjusts production to maintain prices at a reasonable level • Currentlyproducing at all time high levels • Recently ramped up crude oil export significantly • Oil companies remain profitable • New projects need avg. $100-$110/ Brent barrel

  4. Royal Dutch Shell (RDS.B) • 50 Years of experience in Arctic • Positioned to profit from artic ice melt • Partner in Ormen Lange project in Norway

  5. Ocean Rig (ORIG) International offshore drilling contractor Owns 10 offshore ultra deep-water drilling units 3 year contract with Brazil Analysts estimate 262% earning growth in 2014

  6. Statoil ASA (STL) • Extensive experience finding oil in northern areas • Leading in offshore and exploiting oil in harsh environments. • Stepping up its Arctic activities, view the area of having a significantly high potential  tripling its Arctic technology research budget • Historically cheap (P/B=1.4, Div/Yield=5%)

  7. Seadrill Ltd. (SDRL) • Experts in terms of drilling in rough deep waters • World leading in terms of offshore deep-water drilling and production of oil in northern seas • Order backlog stands at $21 bn stable CF of earnings next 5 yrs • Yields 9%

  8. Global X FTSE Norway 30 ETF Index is meant to reflect broad based equity market performance in Norway Heavily based on the energy sector,44.60% Heavily dependent on oil price

  9. Seaspan Corporation (SSW) • Largest owner of Container ships in the world • Based out of Hong Kong China • Rather lease the ships out rather than run a shipping company • Growth through ship acquisition rather then company acquisition. • Sticks to what they know they are good at.

  10. Guggenheim Investments ETF (SEA) • Consists of only shipping companies • Diversifies the risk throughout the industry • ETF consists of some of the largest and smallest shipping companies. • Well positioned for future growth with new shipping lanes

  11. Final Recommendations “WATCH” recommendation: More relevant as future developments present themselves Current companies are positioned with great growth potential in the Arctic Ocean going forward

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