Precious Shipping Public Co., Ltd. · SET:PSL
Precious Shipping Public — Q1 2022 Earnings Presentation
42 slides from Precious Shipping Public's earnings presentation, May 9, 2022
Slide 1: Precious Shipping Public Company Limited Analyst Meeting
Precious Shipping Public Company Limited Analyst Meeting 9 May 2022
Slide 2: Consequences of the Russia-Ukraine war
Consequences of the Russia-Ukraine war Precious Shipping PCL 2
Slide 3: Impact of Russia-Ukraine Conflict on the Dry Bulk Market
Impact of Russia-Ukraine Conflict on the Dry Bulk Market Result of upended commodity markets due to Russia & Ukraine supplying almost 15% of global grain, coal & steel Share in global seaborne trade Destinations of Russia & Ukraine exports % of 2021 exports % of 2021 exports 35% Europe 23% 30% China
Slide 4: Lessons from the Russia-Ukraine Conflict
Lessons from the Russia-Ukraine Conflict •Truth is the first casualty of any war. Be skeptical of the mainstream media. •The USA/NATO do not honor their commitments as Ukraine has discovered at their cost. •Inconvenient truths are unearthed during wars. About 30 labs across Ukraine are allegedly inv
Slide 5: Dry Bulk Freight Markets
Dry Bulk Freight Markets Precious Shipping PCL 5
Slide 6: Is China's Import Growth Sustainable?
Is China’s Import Growth Sustainable? Latest available Data points on China in Q1 2022 Vs Q1 2021. China’s Iron Ore imports in Q1 2022 was 268.4 MMT Vs 283.6 MMT Q1 2021 down by 5.4%. China’s Coal imports in Q1 2022 was 51.8 MMT Vs 68.4 MMT Q1 2021 down by 24.3%. China’s Steel production in Q1
Slide 7: Capes, Panamax, Supras, Handy - Top to bottom and back up!
Capes, Panamax, Supras, Handy - Top to bottom and back up! Capesize % Panamax % Supramax % Handysize % Date Date Date Date TC Rate Change TC Rate Change TC Rate Change TC rate Change 07-Oct-21 86,953 25-Oct-21 38,952 21-Oct-21 39,860 25-Oct-21 37,109 26-Jan-22 5,826 -93% 02-Feb-22 15,885 -59% 02-Feb
Slide 8: Y-O-Y Analysis Of The Baltic Dry Index
Y-O-Y Analysis Of The Baltic Dry Index 6000 5000 4000 3000 2000 1000 0 01-Jan 30-Jan 28-Feb 28-Mar 26-Apr 25-May 23-Jun 22-Jul 20-Aug 18-Sep 17-Oct 15-Nov 14-Dec 2020 2021 Mar '2022 Source: Clarksons, 31 Mar 2022 Precious Shipping PCL 8
Slide 9: Q-O-Q Analysis Of The Baltic Dry Index
Q-O-Q Analysis Of The Baltic Dry Index 3,000 2,500 2,000 1,500 1,000 500 0 02-Jan 22-Jan 11-Feb 03-Mar 23-Mar Q1-2020 Q1-2021 Q1-2022 Source: Clarksons, 31 Mar 2022 Precious Shipping PCL 9
Slide 10: 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 2017 2018 2019 2020 2021 2022F 2023F Iron Ore 8,190 8,190 8,021 8408 8,546 8,604 8,659 Coal (includes Lignite) 4,870 5,176 5,089 4,594 4,907 5,137 5,208 Grains (includes Soybeans
Slide 11: 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 2017 2018 2019 2020 2021 2022F 2023F Steel Products 1,905 1,963 1,797 1,705 1,993 2,045 2,073 Forest Products 2,224 2,300 2,358 2,295 2,394 2,476 2,562 Other Minor Bulk 5,8
Slide 12: Commodities Share by Different Dry Bulk Sectors
Commodities Share by Different Dry Bulk Sectors COMMODITIES Capesize Panamax Supramax Handysize Iron Ore 74% 9% 7% 2% Coal 21% 49% 22% 10% Grains 0% 28% 17% 22% Minor Bulk 4% 13% 55% 65% Others 1% 1% - 1% 80% 74% 65% 60% 55% 49% 40% 28% 21% 22% 22% 20% 17% 13% 10% 9% 7% 4% 1% 1% 2% 1% 0% 0% 0% Capes
Slide 13: Dry Bulk Fleet as of start of Q2 2022
Dry Bulk Fleet as of start of Q2 2022 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 4,164 12.82 112.66 27,583 11.90% Supra/Ultramax 40,000 – 69,999 3,913 9.63 220.20 58,058 23.26% Panamax 70,000 – 89,999 2,562 10.92 203.74
Slide 14: Putting Orderbook Figures In Context – The Overall Dry bulk Fleet
Putting Orderbook Figures In Context – The Overall Dry bulk Fleet 1000 939 947 100% Drybulk Fleet 907 900 All Figures In M DWT Unless 873 90% Otherwise Indicated (1 Apr 2022) 841 78.14% 814 Total Fleet 946.86 772 790 800 754 80% Total Orderbook to end 2025 62.22 719 700 Orderbook % Fleet 6.57% 677 7
Slide 15: Putting Orderbook Figures In Context – Geared Vessels Only
Putting Orderbook Figures In Context – Geared Vessels Only 80% 80% 60% 60% 40% 40% 19.31% 20% 15.89% 20% 0% 0% 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 Orderbook % of Fleet (Handy) Orderbook % of Fleet (Supras/Ultras) % of Fleet Over 20y (Supras/Ultras) % of Fleet Over 20y (Handy)
Slide 16: Differences between 2003-2009, 2010-2020, 2021, and 2022
Differences between 2003-2009, 2010-2020, 2021, and 2022 Daily average Time Charter rate 2003 – 2009 2010 – 2020 2021 Q1 2022 Capesize 67,101* 14,924*** 33,333** 14,746** Panamax 32,793* 10,965*** 27,898** 23,218** Supramax 28,013^^ 10,765*** 26,768** 25,156** Handysize 18,753^^ 8,789*** 25,702** 24
Slide 17: Confirmed Orders as of Apr 2022 to Dec 2024
Confirmed Orders as of 1 Apr 2022 (MDWT) to 31 Dec 2024 20 Total Confirmed Orders Until 2025 Year MDWT % of Fleet 2022 23.44 2.48% 16 2023 26.99 2.85% 2024 11.07 1.17% 2025 0.72 0.08% Total Orderbook 62.22 6.57% 12 Geared 18.96 5.69% 10.59 Gearless 43.26 7.05% 8.94 8.85 8 7.08 6.01 5.84 4.91 4 3.06
Slide 18: Port Congestion in the Dry Bulk fleet
Port Congestion in the Dry Bulk fleet Total Bulker Port Congestion as % of Bulker Fleet Total Port congestion stood at 4.6% of total bulk carrier fleet 8% 6.6% in 2021. 6% 5.2% 4.2% 4.2% 4.2% 4.6% 3.9% 3.8% 4.1% This data is based on reports 4% 3.1% 2.3% 2.8% of vessels waiting at a 2% selected
Slide 19: Market Segmentation Q1 2022
Market Segmentation Q1 2022 Index PSL Avg Q1 2022 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* 1,338 -15.66% (Ha
Slide 20: PSL's Strategy
PSL’s Strategy Precious Shipping PCL 20
Slide 21: Current and Rolling Year Forward Book
Current and Rolling 4 Year Forward Book Contract Total USD 100.74 m USD 35.71 m USD 28.03 m USD 27.95 m value USD 192.43 m 28,000 100% 23,816 24,000 80% 20,000 17,302 15,316 15,316 60% 16,000 12,000 40% 13,140 13,140 13,176 13,140 8,000 32% 16% 14% 14% 20% 4,000 4,230 2,064 1,830 1,825 0 0% 2022 202
Slide 22: Key Industry Takeaways
Key Industry Takeaways The Good News in 2021/2022 Supply/demand balance was reached in 2021. The BDI reached 5,650 on 7th October, from 1,374 points at the start of 2021! Material improvement in rates took place during 2021. Time charter rates in 2021 are higher than the average of the last
Slide 23: Financials
Financials Precious Shipping PCL 23
Slide 24: 2022 Highlights
2022 Highlights PSL declared an interim dividend (No.3) of 50 Satang which was paid on 11th March 2022. Apart from dividends No.1 to No. 3, PSL declared a final dividend of 25 Satang which was paid on 28th April 2022. The total dividend for the year 2021 is Baht 1.75 per share. In Q1’2022, PSL e
Slide 25: Financial Profile
Financial Profile Q1-2022 2021 2020 2019 2018 2017 Cash & Cash Equivalents $81.3m $73.9m $36.6m $39.2m $56.8m $56.7m Total Assets $708.5m $704.1m $712.3m $831.1m $857.9m $882.3m Gross Debt $232.6m $245.9m $318.3m $391.7m $432.8m $469.4m Net Debt $151.3m $172.0m $281.7m $352.5m $376.0m $412.6m Equity
Slide 26: 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 2021 and Q1’2022 were USD 5,090 and 4,914 respectively. Breakdown of costs: 2021 Q1’2022 Particulars USD % USD % Crew costs 2,322 45.62% 2,367 48.17%
Slide 27: 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 2021 will be published in October 2022 For Years 2016 2017 2018 2019 2020 2021 Particulars Industry PSL Industry PSL Industry PSL Industry PSL Indus
Slide 28: Financial Highlights – Income Statement
Financial Highlights – Income Statement Particulars Q1-2022 Q4-2021* Q1-2021 Total Revenues - USD Million 68.88 84.47 44.51 Gross Profit - USD Million 54.65 69.19 24.63 Net Profit (loss) - USD Million 39.03 53.01 12.32 Gain (loss) on derivatives - USD Million (0.02) 0.03 (0.14) Exchange gain (loss)
Slide 29: Financial Highlights – Financial Position
Financial Highlights – Financial Position Particulars 31-Mar-2022 31-Dec-2021 Cash & Cash Equivalents - USD Million 81.32 73.85 Total Current Assets - USD Million 92.07 84.07 Ships Net - USD Million 597.53 605.04 Fixed Assets Net - USD Million 599.64 606.97 Total Assets - USD Million 708.55 704.09 T
Slide 30: Average OPEX / TC Rates
Average OPEX / TC Rates Q1’ 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 2021 2022 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 6.3 7.3 8.3
Slide 31: Debt and Debt / Equity Ratio
Ratio 0.0 0.8 1.6 2.4 3.2 4.0 1995 226 2.5 1996 227 2.4 1997 257 3.8 1998 211 1999 185 2.9 3.0 2000 133 1.5 2001 110 1.3 2002 106 1.2 2003 86 0.9 2004 240 1.1 Debt & Debt / Equity Ratio 2005 157 0.3 2006 44 Debt (Million USD) 2007 0 2008 21 0.0 0.0 0.1 Year 2009 128 2010 163 0.3 0.3 2011 222 0.5 Pre
Slide 32: Debt / EBITDA
Debt / EBITDA 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 5.9 4.7 4.3 4.8 4 3.6 3.4 3.3 2.5 1.5 1.9 1.3 1.0 1.2 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 2021 Q1'2022 Year
Slide 33: Net Profit / Cash Profit
Net Profit / Cash Profit 200 196 167 160 163 163 154 145 148 137 135 120 125 110 102 93 88 Million USD 80 49 46 44 47 40 37 36 42 39 31 36 25 28 25 24 27 29 27 23 17 39 21 19 18 17 14 14 7 6 7 0 1 0 4 -6 -3 -3 -2 -4 -7 -15 -40 -41 -69 -80 -76 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 20
Slide 34: Dividends
Dividends 2.1 2.0 420% 1.8 360% 350% 1.6 1.5 1.5 Dividends as % of EPS 1.5 300% 286% 1.2 Dividends Baht 1.2 240% 1.0 0.9 0.8 0.8 0.8 0.8 0.8 180% 0.6 0.7 0.6 0.5 0.4 120% 0.4 70% 80% 80% 0.3 0.3 78% 0.3 0.3 56% 59% 61% 0.2 0.2 0.2 61% 60% 42% 0.1 0.1 28% 25% 0.0 0% 2007* 2003 2004 2005 2006 2008 200
Slide 35: PSL and ESG
PSL and ESG Precious Shipping PCL 35
Slide 36: PSL's ESG Footprint
PSL’s ESG Footprint Environment: PSL is always reducing its environmental impact via new technologies and innovations. We replaced older and less fuel-efficient vessels between 2013 and 2017 with “eco-vessels” resulting in reduction of CO2 emissions. The PSL fleet's average gm CO2/ton*nm has reduc
Slide 37: Investor Relations & Awards
Investor Relations & Awards Precious Shipping PCL 37
Slide 38: Investor Relations Activities – Q1/2022
Investor Relations Activities – Q1/2022 The Company has joined many events for press/analyst briefings, which are attended personally by the Managing Director, the Executive Directors and/or IR team. Some of the major events in which the Company participated in Q1/2022 are enumerated herein as under
Slide 39: Shareholder's returns
Shareholder’s returns Precious Shipping PCL 39
Slide 40: Total Return to Shareholders: 1993 to May 2022
Total Return to Shareholders: 1993 to 6 May 2022 600 545 75 496 512 520 500 458 480 450 423.2 60 440440 440 440440 440 351.2 300 239.2 45 Baht 150 149.2 30 67 72 60 45 4 6 9 6 25 6 82.2 90 112 35 22 16 16 8 61 0 0 0 0 0 0 51 15 -85 -10 -45 -70 -85 -81 -75 -85 -76 -80 -150 0 Inflow/Outflow Net Cash P
Slide 41: Final Food For Thought
Final Food For Thought As described in the Industry section – Demand is growing faster than Supply growth, and this should be good for the next couple of years. Minor bulks, cargoes that PSL carries, are growing faster than other cargoes and certainly faster than supply growth in the geared sector
Slide 42: Thank You !
Thank You ! Precious Shipping Public Company Limited Website: www.preciousshipping.com | E-mail: psl@preciousshipping.com, ir@preciousshipping.com
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