Great Eastern Shipping Co. Ltd. · NSE:GESHIP
Great Eastern Shipping — The Great Eastern Shipping — Investor Presentation (August 2016)
29 slides from Great Eastern Shipping's investor presentation, August 2016
Slide 1: The Great Eastern Shipping Co. Ltd. Business & Financial Review
The Great Eastern Shipping Co. Ltd. Business & Financial Review August 2016
Slide 2: Forward Looking Statements
Forward Looking Statements Except for historical information, the statements made in this presentation constitute forward looking statements. These include statements regarding the intent, belief or current expectations of GE Shipping and its management regarding the Company’s operations, strategic
Slide 3: Corporate Profile
Corporate Profile The Great Eastern Shipping Company Offshore Shipping (Bulk) (Through wholly-owned subsidiary Greatship (India) Limited) Tankers - Crude Bulk Logistics Drilling - Products India’s largest private sector shipping company. Over 68 years of experience 3
Slide 4: Uninterrupted dividend for 30 years
0 2 4 6 8 10 12 14 16 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 Dividend per share (Rs) 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Uninterrupted dividend for 30
Slide 5: Shareholding Pattern
Shareholding Pattern Shareholding Pattern as on June 30, 2016 FII 23% Promoters 30% Govt/FI 19% Public Corporate 21% Bodies 7% 5
Slide 6: Shipping business - owned fleet
Shipping business - owned fleet Sr. No. Vessel Name Type Sr. No. Vessel Name Type 1 Jag Lalit Suezmax 23 Jag Vishnu VLGC 2 Jag Lok Suezmax 24 Jag Vidhi VLGC 3 Jag Lateef Suezmax 2 Gas Carriers; Age - 21 years 4 Jag Lakshita Suezmax 25 Jag Anand Capesize 5 Jag Lyall Aframax 26 Jag Aarati Kamsarmax 6
Slide 7: Vessels on Order & Capital Expenditure
Vessels on Order & Capital Expenditure Committed Capex - $45-50 mn Vessels on Order & Expected Delivery Vessel Yard Expected Delivery 2 Kamsarmax Dry Bulk Jiangsu New Yangzi Q2 FY17 & Q4 FY17 Carriers Shipbuilding Co. Ltd, China 7
Slide 8: Tankers – Asset Prices (5-year old)
Tankers – Asset Prices (5-year old) VLCC Suezmax Aframax VLCC Suezmax Aframax 180 90 USD mn USD mn 160 80 140 70 120 60 100 50 80 40 60 30 40 20 20 10 0 2002-Jul 2012-Jul 2001-Jul 2003-Jul 2004-Jul 2005-Jul 2006-Jul 2007-Jul 2008-Jul 2009-Jul 2010-Jul 2011-Jul 2013-Jul 2014-Jul 2015-Jul 2016-Jul 0 2
Slide 9: Bulkers – Asset Prices (5-year old)
Bulkers – Asset Prices (5-year old) Capesize Panamx Supramax Capesize Panamax Supramax 180 50 USD mn USD mn 160 45 140 40 120 35 100 30 80 25 60 20 40 15 20 10 0 5 2002-Jul 2012-Jul 2001-Jul 2003-Jul 2004-Jul 2005-Jul 2006-Jul 2007-Jul 2008-Jul 2009-Jul 2010-Jul 2011-Jul 2013-Jul 2014-Jul 2015-Jul 2
Slide 10: Lower margins impacted tanker rates
Lower margins impacted tanker rates Baltic Dirty Tanker Index Baltic Clean Tanker Index 1,400 1,000 1,300 900 1,200 1,100 800 1,000 900 700 800 600 700 600 500 500 400 400 Source – Industry Reports 10
Slide 11: Low margins leading to low refinery throughput
Low margins leading to low refinery throughput Supply Demand Refinery Throughput (RHS) 99 81 97 Mn bpd 80 79 95 78 93 77 91 76 75 89 74 87 73 85 72 2012 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 • Crude tankers rates have softened notably due to oversupply
Slide 12: Rising supply, contango led to commercial stocking, SPR filling and forced storage
Rising supply, contango led to commercial stocking, SPR filling and forced storage • Lower crude oil prices - SPR filling and increase in commercial inventory • Forced storage of oil products due to product-specific oversupply and logistical constraints Source – Industry Reports 12
Slide 13: CY2016 has seen higher imports due to low oil price
CY2016 has seen higher imports due to low oil price US Crude Oil Imports (‘000 bpd) China Crude Oil Imports (‘000 bpd) 2013 2014 2015 2016 2013 2014 2015 2016 8500 8,500 7,500 8000 6,500 7500 5,500 7000 4,500 6500 3,500 Source – Industry Reports 13
Slide 14: Baltic Dry Index (Jan 2000 – Jul 2016)
Baltic Dry Index (Jan 2000 – Jul 2016) Dry Bulk freight rates improved during the quarter Baltic Dry Index 12,000 10,000 8,000 6,000 4,000 2,000 0 Despite improvement during the quarter, dry bulk rates remain close to historic lows Source – Industry Reports 14
Slide 15: China's iron ore import growth picked up
China’s iron ore import growth picked up Steel Production fell during the quarter World Steel China Steel % Growth World % Growth China 2000 15% 1500 10% 1000 5% 500 0% 0 -5% 2013 2014 2015 1H2015 1H2016 China’s iron ore import grew 4% in Q1 2017 Australia Brazil Others 1200 932 954 1000 819 800 746
Slide 16: Coal imports by top importers shows signs of recovery
Coal imports by top importers shows signs of recovery China coal imports change (Y-O-Y) India coal imports change (Y-O-Y) 10 10 mt mt 5 5 0 0 -5 -5 -10 -10 -15 -20 -15 Source – Industry Reports 16
Slide 17: World Fleet Growth
World Fleet Growth Fleet 1000 800 Dry Bulk Crude Product mn dwt 600 400 200 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Fleet Gross Fleet Addition (on CY2016 CY2017 CY2018+ current fleet) July 16 (in mn dwt) Crude tankers 341 7% 8% 5% Product tankers 144 7% 6% 2% Dry bulk
Slide 18: Accelerated scrapping in Dry Bulk
Accelerated scrapping in Dry Bulk Scrapping as % of world fleet (year-wise) Vessel Fleet as on Scrapping Category July 16 2016 YTD 2015 2014 2013 (in mn dwt) (% of beginning fleet) Crude 341 0.14% 0.23% 1.60% 2.40% Product 144 0.40% 0.61% 1.19% 1.69% Dry Bulk 783 2.94% 4.03% 2.25% 3.36% Source – Ind
Slide 19: Greatship (India) Limited Business Review August 2016
Greatship (India) Limited (a 100% subsidiary) Business Review August 2016
Slide 20: Offshore business- Fleet Profile
Offshore business- Fleet Profile The Greatship Group Current Owned Fleet High Fleet Utilization • 4 Jack Up Rigs (350ft) Extent of coverage of • 5 Platform Supply Vessels (PSV) fleet's operating days Category (per cent) (FY17) • 8 Anchor Handling Tug cum Supply Vessels (AHTSV) PSV 48 ROVSV 69 • 2
Slide 21: Greatship's Modern & Technologically Advanced Fleet & High Visibility
Greatship’s Modern & Technologically Advanced Fleet & High Visibility Young Fleet Young jack-up fleet with an average age of approx. 4.5 years - Customer stickiness Demand shifting to modern vessels, Revenue - Higher visibility especially as safety becomes a major Efficiencies concern for oil co
Slide 22: Double-digit decline in capex spending in 2016
Double-digit decline in capex spending in 2016 2 years of continuous decline in capex spending (last occurred in ‘80s) Absolute capex down to levels last seen in 2006 Source – Industry Reports 22
Slide 23: Steep decline in global offshore spending since 2013
Steep decline in global offshore spending since 2013 Offshore spending has halved over last 3 years Source – Industry Reports 23
Slide 24: Global Fleet Supply – Offshore
Global Fleet Supply – Offshore Fleet & Orderbook (Nos) Jackup Rigs AHTSVs PSV Current Fleet 455 1975 1467 Orderbook 112 183 223 % of O/B to current fleet 25% 9% 15% • YTD actual deliveries have been far lower than scheduled. Due to bleak employment scenario owners have refrained from taking delivery
Slide 25: Financial Highlights Q1 FY 2016-17
FINANCIAL HIGHLIGHTS Q1 FY 2016-17
Slide 26: Q1 FY 2016-17 Financial Highlights
Q1 FY 2016-17 Financial Highlights Standalone Key Figures Consolidated Q1FY'17 Q1FY'16 (Amount in Rs. crs) Q1FY'17 Q1FY'16 Income Statement 496.10 491.63 Revenue (including other income) 892.89 999.65 249.64 238.22 EBITDA (including other income) 526.47 571.23 103.56 122.79 Net Profit 233.62 310.83
Slide 27: Q1 FY 2016-17 Financial Highlights
Q1 FY 2016-17 Financial Highlights Standalone Key Figures Consolidated Q1FY'17 Q1FY'16 (Amount in Rs. crs) Q1FY'17 Q1FY'16 Key financial figures 50.32% 48.46% EBITDA Margin (%) 58.96% 57.14% 8.88% 11.13% Return on Equity (ROE) (%) 11.99% 17.75% 7.99% 8.96% Return on Capital Employed (ROCE) (%) 9.02%
Slide 28: Q1 FY 2016-17 Performance Highlights
Q1 FY 2016-17 Performance Highlights Breakup of revenue days Revenue Days Q1’FY17 Q1’FY16 Owned Tonnage 2,794 2,574 Inchartered Tonnage 121 68 Total Revenue Days 2,915 2,642 Total Owned Tonnage (mn.dwt)* 2.49 2.36 * As on 30th June Mix of Spot & Time Days (in %) Q1’FY17 Q1’FY16 Average TCY Details D
Slide 29: Thank You
THANK YOU visit us at www.greatship.com
The Great Eastern Shipping — Investor Presentation (August 2016) on 6ix