Precious Shipping Public Co., Ltd. · SET:PSL
Precious Shipping Public — Q1 2021 Earnings Presentation
43 slides from Precious Shipping Public's earnings presentation, May 2021
Slide 1: Precious Shipping Public Company Limited - PSL Investor Presentation May 2021
Precious Shipping Public Company Limited PSL Investor Presentation May 2021
Slide 2: Evolution Of The Baltic Dry Index Since 2016
Evolution Of The Baltic Dry Index Since 2016 3,500 3,254 – 11th May 2021 5 Year high 2,518 – 4 Sep 2019 3,000 2,500 2,000 1,500 1,000 500 0 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Source: Clarksons, 12 May 2021 Precious Shipping PCL 2
Slide 3: Y-O-Y Analysis Of The Baltic Dry Index
Y-O-Y Analysis Of The Baltic Dry Index 3500 5,000 3,254 – 11 May 2021 3000 4,000 2500 3,000 2000 1500 2,000 1000 1,000 500 00 01-Jan 4-Jan 30-Jan 28-Feb 3-Feb 28-Mar 4-Mar 26-Apr 3-Apr 25-May3-May 23-Jun 22-Jul 2-Jun 20-Aug 18-Sep 1-Aug 2-Jul 17-Oct 15-Nov 31-Aug14-Dec Q1-Q3 20162009 2019 Q1-Q3 2016
Slide 4: Is China's Import Growth Sustainable?
Is China’s Import Growth Sustainable? Latest available Data points on China Q1 2021 Vs Q1 2020. ▪ China’s Iron Ore imports for Q1 2021 was 283 MMT Vs 263 MMT for Q1 2020 up 7.6%. ▪ China’s Coal imports in Q1 2021 was 95.8 MMT Vs 95.9 MMT for Q1 2020. ▪ China’s Steel production in Q1 2021 was 269 MMT
Slide 5: PSL Cargo Exposure: 2016 – 2020
PSL Cargo Exposure: 2016 – 2020 Bulk cargo in the aggregate amount of 12.3 MMT, 11.7 MMT, 12.7 MMT, 13.72 MMT, 12.4MMT was carried on PSL ships in 2016, 2017, 2018, 2019 and 2020 respectively. 3.5 3.0 2.5 MMT 2.0 1.5 1.0 0.5 0.0 Ore / Conc. Salt Scrap Steel Logs Petcoke Limestone Cement Agri Prods C
Slide 6: Historical Growth In Seaborne Drybulk Trade – Billion Tonne-Miles
Historical Growth In Seaborne Drybulk Trade – Billion Tonne-Miles Seaborne Drybulk Trade All Units In Billion Tonne-Miles 2016 2017 2018 2019 2020 2021F 2022F Iron Ore 7,936 8,190 8,195 8,029 8,411 8,577 8,685 Coal (includes Lignite) 4,982 5,252 5,566 5,511 4,995 5,263 5,360 Grains (includes Soybean
Slide 7: Historical Growth In Seaborne Minor Bulk Trade – Billion Tonne-Miles
Historical Growth In Seaborne Minor Bulk Trade – Billion Tonne-Miles Seaborne Minor Bulk Trade All Units In Billion Tonne-Miles 2016 2017 2018 2019 2020 2021F 2022F Steel Products 1,812 1,759 1,817 1,670 1,489 1,582 1,624 Forest Products 2,439 2,492 2,592 2,675 2,638 2,833 2,941 Other Minor Bulk 6,8
Slide 8: Dry bulk Supply Side Improvements
Dry bulk Supply Side Improvements ▪ Most of the recycling in 2020 and 2021 has occurred in the Cape size sector. ▪ In response to decreased scrapping in Q1 2021, scrap prices have begun to trend upward. ▪ Recycling activities in the subcontinent face three issues - start of Ramadan from 14th April;
Slide 9: Confirmed Orders As Of 31 March 2021 (M DWT) – 31 Dec 2023
Confirmed Orders As Of 31 March 2021 (M DWT) – 31 Dec 2023 14 Total Confirmed Orders Until 2023 13.04 Year M DWT % of Fleet 12 2021 28.17 3.08% 2022 19.24 2.1% 2023 3.48 0.38% 10 Total Orderbook 50.89 5.57% 8.65 Geared 15.23 4.71% 8 Gearless 35.66 6.03% 7.24 6 5.43 5.53 4.01 4 2.46 2 1.56 1.04 1.16
Slide 10: Dry bulk Fleet As Of 31 March 2021
Dry bulk Fleet As Of 31 March 2021 Fleet Overview Ship Type DWT Range (MT) Ships Av Age (yrs) Total DWT (m MT) Av DWT (MT) % of DWT Handysize 10,000 – 39,999 4,052 12.41 110.07 27,163 12.04% Supra/Ultramax 40,000 – 69,999 3,794 10.42 213.36 56,236 23.33% Panamax 70,000 – 89,999 2,473 10.33 196.39 79
Slide 11: Putting Orderbook Figures In Context – The Overall Dry bulk Fleet
Putting Orderbook Figures In Context – The Overall Dry bulk Fleet 1000 100% Drybulk Fleet 907 925 900 All Figures In M DWT Unless 873 90% Otherwise Indicated (31 March 2021) 841 814 Total Fleet 914.52 772 790 800 754 80% Total Orderbook 50.89 719 700 Orderbook % Fleet 5.56% 677 70% % Fleet Over 20yr
Slide 12: Putting Orderbook Figures In Context – Geared Vessels Only
Putting Orderbook Figures In Context – Geared Vessels Only 80% 80% 60% 60% 40% 17.87% 40% 14.51% 20% 20% 0% 0% 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 Orderbook % of Fleet (Handy) Orderbook % of Fleet (Supras/Ultras) % of Fleet Over 20y (Supras/Ultras) % of Fleet Over 20y (Handy) % 20
Slide 13: PSL's Strategy
PSL’s Strategy Precious Shipping PCL 13
Slide 14: Current and Rolling Year Forward Book (31 March 2021)
Current and Rolling 4 Year Forward Book (31 March 2021) Contract USD 29.7 m USD 28.0 m USD 26.6 m USD 26.6 m USD 26.6 m value 17,500 100% 14,550 14,550 14,550 14,062 13,577 14,000 80% 13,140 13,140 13,140 13,176 13,140 10,500 60% 7,000 40% 17% 15% 3,500 14% 14% 14% 20% 2,190 1,992 1,825 1,830 1,825
Slide 15: Market Segmentation Q1 2021
Market Segmentation Q1 2021 Index PSL Avg Q1 2021 Market PSL Performance Index PSL Avg PSL Ship Index Speed/Con Speed/Con Average Av. TC Av. TC vs Ship DWT Ship DWT Number (1) (1) Index Rate (2) Rate Benchmark Laden: Laden: 15 Handysize 12K/18T 12K/20T BHSI & USD USD 38,000 30,496* 923 -27.81% (Hand
Slide 16: PSL's Historical Performance Relative To Indices
PSL’s Historical Performance Relative To Indices 40% 31.12% 30% 22.53% 20% 10% 3.95% 3.18% 2.64% 3.36% 0% -1.21% -2.67% -2.93% -10% -5.83% Supramax / Ultramax -20% Handysize -30% -27.81% -25.81% FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Q1-2021 PSL Handy size v/s Index ship PSL Supramax/Ultramax v/s I
Slide 17: PSL's Historical Performance Relative To Indices
PSL’s Historical Performance Relative To Indices 40% 36.0% 30% 21.8% 20% 15.6% 12.5% 10% 2.6% 3.4% 0% -3.4% -10% -6.9% Supramax / Ultramax -10.0% -12.0% -20% Handysize -30% -25.8% -27.8% -40% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1-Q4 2020 Q1 2021 PSL Handy Size Vs Index Ship PSL Supramax/Ultramax Vs Ind
Slide 18: Signs Of A Recovery – This time it is different!
Signs Of A Recovery – This time it is different! Daily average Time Charter rate 2009 2016 2020 Q1, 2021 April’21 Capes 42,656* 7,388** 13,073** 17,126** 29,798 Panamax 19,303* 5,562* 9,923** 18,493** 21,554 Supras 17,338* 6,164** 8,189** 16,633** 21,216 Handy Size 11,342* 5,214* 8,003** 16,610** 19
Slide 19: Average Benchmark Time Charter YOY Change
Average Benchmark Time Charter YOY Change (Q1 2021, April ‘21, 7th May ’21) Q1’21 YOY April ’21 YOY May ‘21 YOY Category In USD Change In USD Change In USD Change Cape size TC Avg Daily (180K) 17,126 275 % 29,798 284 % 43,035 606 % Panamax TC Avg Daily (82K) 18,493 161 % 21,554 205 % 25,732 315 % Su
Slide 20: Average Benchmark Time Charter in Q1 Over Ten-Year Average
Average Benchmark Time Charter in Q1 Over Ten-Year Average Q1 Avg 10 Yr Q1 Q1’21 Vessel type Change in % Avg 10 Yr Apr Apr’21 Change in % In USD In USD Cape size 8,569 17,126 100% 8,278 29,798 260% Panamax (82K) 8,730 18,493 112% 9,010 21,554 139% Supramax (58K) 8,901 16,633 87% 9,041 21,216 171% Ha
Slide 21: No. of Bulk Ship order in Q1 (2019,2020,2021) - Globally
No. of Bulk Ship order in Q1 (2019,2020,2021) - Globally Change Change Change Change BDI Bulk m.Dwt (Q1'21 vs. Q1'20) (Q1'21 vs. Q1'19) (Q1'21 vs. Q1'20) (Q1'21 vs. Q1'19) Q1’2019 798 - - 6.4 - - Q1’2020 592 - - 4.67 - - Q1’2021 1,739 +194% +118% 3.79 -19% -41% 7.5 1,739 2,000 6.0 1,600 6.40 4.5 (0.
Slide 22: Key Takeaways
Key Takeaways ▪ The Covid-19 outbreak has had a major impact on global economic activity in 2020. ▪ The ROW was out of synch with China; the demand recovery in China was offset by demand destruction in ROW till 3rd week of May 2020. ▪ China is ahead of the curve; all data suggests that activity has
Slide 23: COVID-19's Impact
COVID-19’s Impact Precious Shipping PCL 23
Slide 24: Impact On Shipping – Cruise Lines & Car Carriers
Impact On Shipping – Cruise Lines & Car Carriers ▪ Monthly cash burn rates during 2020 among the largest two players remained at very high levels – RCC: USD250m, CCL: USD1.0bn. ▪ Carnival Cruise Lines reported the largest quarterly loss in shipping history of USD4.4bn in Q1. ▪ Carnival racked up $12
Slide 25: Impact On Shipping – Container Line
Impact On Shipping – Container Line ▪ Following good supply side discipline, the Container sector set a record profit for 2020! ▪ FH 2020 profits surged 160% relative to the same period in 2019. ▪ Sea-Intelligence predicted a $23bn loss for container shipping in April 2020. It is now forecasting a $
Slide 26: Impact On Shipping – Drybulk
Impact On Shipping – Drybulk ▪ Drybulk was adversely affected in FH 2020 due to Covid-19. ▪ China’s sudden stop caused a shock to drybulk demand in Jan-Feb 2020. Rates collapsed. ▪ Since the start of April 2020, as the ROW went into lockdown, freight markets came down. ▪ As China stabilized from Cov
Slide 27: Dry Bulk Supply Side Improvements
Dry Bulk Supply Side Improvements Based on 2021 data (annualized), PSL projects net fleet growth for 2021 at 1.97%. Q1‘2021 Net Fleet Growth = 7.53 MDWT, +0.83% FY 2021 Net Fleet Growth = 17.88 MDWT, +1.97% 28.16 914.52 924.87 18.42 projected projected deliveries 906.99 914.52 deliveries Slippage 20
Slide 28: The Recovery – Amazing Policy Response By Governments
The Recovery – Amazing Policy Response By Governments ▪ Countries across the globe have engaged in a Global Stimulus combination of monetary and fiscal stimulus. All Figures In USD bn Countries Stimulus Amount ▪ Policies are aimed at protecting household US 8,584 consumption and ensuring businesses
Slide 29: Financials
Financials Precious Shipping PCL 29
Slide 30: 2020 Highlights - Amendment of two bonds
2020 Highlights - Amendment of two bonds On 19th May 2020 and 30th July 2020, PSL managed to successfully amend both of our outstanding bonds, June bond (PSL206A) and January bond (PSL211A), on the following terms: 1. Both bonds would have maturity dates extended by 18 months. 2. Both bonds would ha
Slide 31: 2020 Highlights - Arbitration with Sainty
2020 Highlights - Arbitration with Sainty The arbitration with Sainty has come to an amicable end. The result of this amicable settlement is as follows: 1. PSL have received net cash payment of USD 40.5 million on 29th July 2020. 2. Against the above sum, USD 67.9 million was shown as an ‘advance to
Slide 32: 2020 Highlights - Another Historic First for PSL
2020 Highlights - Another Historic First for PSL ▪ PSL managed to get prepayment of 1-year worth of charter hire on 5 ships on long-term period charter on 1st October 2020. ▪ The prepayment of gross hire equates to USD 26.55 million. ▪ PSL was able to accomplish this due to an extremely close relati
Slide 33: Financial Profile
Financial Profile Q1-2021 2020 2019 2018 2017 2016 Cash & Cash Equivalents $36.4m $36.6m $39.2m $56.8m $56.7m $74.7m Total Assets $688.2m $712.3m $831.1m $857.9m $882.3m $901.9m Gross Debt $300.5m $318.3m $391.7m $432.8m $469.4m $482.1m Net Debt $264.1m $281.7m $352.5m $376.0m $412.6m $407.4m Equity
Slide 34: Operating Expenses
Operating Expenses ▪ These are the fixed costs required to run a ship and are evenly spread over 365 days. ▪ Our operating costs per ship per day for 2020 and Q1’2021 were USD 4,705 and 4,933 respectively. Breakdown of costs: 2020 Q1’2021 Particulars USD % USD % Crew costs 2,302 48.93% 2,343 47.50%
Slide 35: Operating Expenses Comparison
Operating Expenses Comparison ▪ OPEX Comparison with Industry compiled by BDO LLP ▪ OPEX excluding dry dock and special survey cost ▪ Industry OPEX for 2020 will be published in October 2021 For Years 2015 2016 2017 2018 2019 2020 Particulars Industry PSL Industry PSL Industry PSL Industry PSL Indus
Slide 36: Average OPEX / TC Rates (1995 – Q1'2021)
Average OPEX / TC Rates (1995 – Q1’2021) Year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q1-21 Avg Age 16.0 16.2 14.2 14.6 15.6 15.6 15.7 15.8 16.6 17.4 19.0 20.0 19.6 20.6 17.1 15.4 14.2 11.4 11.4 10.5 9.8 5.8 6.
Slide 37: Debt & Debt / Equity Ratio (up to Mar 2021)
Debt & Debt / Equity Ratio (up to Mar 2021) 4.0 500 3.8 482 469 433 3.2 400 410 3.0 392 2.9 361 Debt (Million USD) 2.5 2.4 2.4 300 318 300 296 Ratio 283 257 240 227 226 222 1.6 200 211 1.5 185 1.3 1.3 1.2 1.2 163 1.1 1.1 157 1.0 0.9 133 0.9 0.9 128 0.8 0.8 0.9 100 110 106 0.6 0.6 86 0.5 0.3 0.3 21 0
Slide 38: Debt / EBITDA (upto Mar 2021)
Debt / EBITDA (upto Mar 2021) 24 20 20.3 16.9 16 Ratio 12 8 8.3 8.5 8.3 8.4 6.5 6.4 6.2 6.1 6.0 5.9 4.7 4.3 4.8 4 3.6 3.4 3.3 2.5 1.9 1.3 1.0 0 0.4 0.0 0.0 0.0 0.3 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q1-21
Slide 39: Cash Operating Profit / Operating Profit
Cash Operating Profit / Operating Profit 200 196 162 164 150 154 145 149 135 125 110 100 102 Million USD 93 88 50 50 37 36 40 44 43 36 38 27 28 21 26 25 26 24 23 23 27 22 17 16 14 15 13 16 12 3 1 5 5 4 9 0 -4 -2 -2 -5 -9 -10 -13 -13 -38 -37 -50 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Slide 40: Net Profit / Cash Profit
Net Profit / Cash Profit 200 196 160 163 163 154 145 148 135 120 125 110 102 93 88 Million USD 80 49 46 44 40 37 36 42 39 31 36 29 21 19 25 28 18 25 24 27 17 27 23 17 20 14 7 14 12 6 1 7 4 0 0 -3 -3 -2 -4 -6 -7 -15 -40 -41 -69 -80 -76 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Slide 41: Shareholder's returns
Shareholder’s returns Precious Shipping PCL 41
Slide 42: Total Return to Shareholders: 1993 to 12th May 2021
Total Return to Shareholders: 1993 to 12th May 2021 600 75 496 512 520 458 480 450 423.2 60 440 440 440 440440 440 440 351.2 300 45 Baht 239.2 150 149.2 30 72 4 6 9 6 25 6 67 82.2 90 112 35 22 16 16 8 0 0 0 0 0 0 0 51 61 15 -85 -10 -45 -70 -85 -81 -75 -85 -76 -80 -150 0 Inflow/Outflow Net Cash Posit
Slide 43: Thank You !
Thank You ! Precious Shipping Public Company Limited Website: www.preciousshipping.com | E-mail: psl@preciousshipping.com, ir@preciousshipping.com
Precious Shipping Public Company — Q1 2021 Earnings Presentation on 6ix