Pacific Basin Shipping Limited · HKEX:2343
Pacific Basin Shipping — H1 2009 Earnings Presentation
27 slides from Pacific Basin Shipping's earnings presentation, Aug 11, 2009
Slide 1: Pacific Basin
P ifi B Pacific Basin i 11 Aug 2009
Slide 2: Pacific Basin Overview
Dry Bulk · Towage · RoRo Pacific Basin Pacific Basin Overview • World’s leading dry bulk owner/operator of modern handysize vessels and a top 10 handymax operator, principally operating in the Asia Pacific region • Major presence in Towage and RoRo businesses, with supporting Maritime Services • 150
Slide 3: 1H09 Highlights
Dry Bulk · Towage · RoRo Pacific Basin 1H09 Highlights • Profits: US$75m (US$338m) • Basic EPS: HK$0.32 (HK$1.62) ( ) • Underlying profit for the period was US$57m before: • US$15.0m unrealised net derivative income • US$5.5m write-back of onerous contracts for future periods • US$2.5m vessel dispos
Slide 4: Business Direction – Dry Bulk
Dry Bulk · Towage · RoRo Pacific Basin Business Direction – Dry Bulk • Volatile first half of 2009 • Cautious market view for the remainder of 2009 and 2010 • Significantly increased cargo cover level • Short term vessel charters reduce our medium term cost exposure Dry Bulk Fleet: 109 (at 31 July 2
Slide 5: Business Direction – Towage & Infrastructure
Dry Bulk · Towage · RoRo Pacific Basin Business Direction – Towage & Infrastructure PB Towage Fujairah Bulk Shipping Port and Port Services • Operates modern tugs in • FBSL began g land reclamation APMIG Brisbane, Sydney, Melbourne, project for the Municipality of • Focusing on the Nanjing W. Austra
Slide 6: Towage Development
Dry Bulk · Towage · RoRo Pacific Basin Towage Development • US$1.6m 1H09 net profit in towage division (FY2008: US$5.8m loss) • Profitable despite harbour towage operations in Australia being more affected by economic downturn than our offshore business • Strong oil price supporting oil and gas expl
Slide 7: Roll On Roll Off Development
Dry Bulk · Towage · RoRo Pacific Basin Roll On Roll Off Development • 6 RoRo newbuildings on order including 2 chartered in vessels with purchase options • RoRo business expected to generate revenues from mid-Sept 2009 • First RoRo vessel fixed to a blue-chip European counterparty for 3 years • No R
Slide 8: Diversified Cargo
Dry Bulk · Towage · RoRo Pacific Basin Diversified Cargo Total Handysize and Handymax Cargo Volume Mix 1H 2009 Log & Forestry Products 8% Fertilisers 8% Steel & Scrap p 8% 13.5 Other Bulks* 6% Alumina 7% Million Cement & Tonnes Salt 7% Cement Clinker 8% Grains & Coal /Coke 9% Agriculture Products 12
Slide 9: Dry Bulk Market Information
Dry Bulk · Towage · RoRo Pacific Basin Dry Bulk Market Information The Baltic Dry Index (BDI) The Baltic Handysize Index (BHSI) $US/day (net) 12,000 3 Aug 2009 48,000 3 Aug g 2009 10,000 3,251 42,000 US$ 12,107 (net) 36,000 8,000 30,000 6,000 24,000 4,000 18,000 12,000 2,000 6,000 0 0 Jan-04 Jan-05
Slide 10: Major Bulk Import to China
Dry Bulk · Towage · RoRo Pacific Basin Major Bulk Import to China Iron Ore Import Growth in China Coal Import to China Million Tonnes Million Tonnes / month (Annualised) 18.0 900 Thermal Coal June09: 16.0 Metallurgical Coal 16.07mt 800 Imported 14.0 Total China coal Import 700 + 70% Domestic 1H09: +
Slide 11: Dry Bulk Demand
Dry Bulk · Towage · RoRo Pacific Basin Dry Bulk Demand Changes in Tonnage Demand % change YOY Demand in 1H09 down 5.7% compared to 1H08 15 10.7 9.4 10 5.6 Implied demand 5 improvement from 1Q09 to 0 2Q09 supported by reports of significantly increased -5 -2.3 d bulk dry b lk trade t d volumes l -10
Slide 12: Dry Bulk Fleet Changes
Dry Bulk · Towage · RoRo Pacific Basin Dry Bulk Fleet Changes Bulk Carrier Deliveries 2009 Million Dwt Dry Bulk Scrapping versus BDI BDI Million Dwt 80 0 5,000 Actual Delivery 71.1 m 01 0.1 70 Scheduled Orderbook ^ 0.3 0.5 4,000 60 0.5 0.7 50 1.0 3,000 40 34.9 m 1.2 1.2 1.5 2,000 1.5 30 53% delivery
Slide 13: Dry Bulk Orderbook
Dry Bulk · Towage · RoRo Pacific Basin Dry Bulk Orderbook Orderbook as % Average of Existing Fleet Age Orderbook by Year Milli Million Dwt D t Total Dry Bulk >10,000 >10 000 Dwt 66% 120 25% Capesize 96% 11.5 1H09 Panamax 100 Scheduled 50% 12.1 orderbook: d b k Handymax 8.5% 19% (35,000-59,9996 Dwt)
Slide 14: Dry Bulk Orderbook – Sector Analysis
Dry Bulk · Towage · RoRo Pacific Basin Dry Bulk Orderbook – Sector Analysis Dry Bulk Existing Fleet & Orderbook * Existing Fleet Capesize 153 Remaining 2009 147 Orderbook 2010 Orderbook Panamax 117 2011 Orderbook 59 2012+ Orderbook Handymax 105 (35,000-59,999 Dwt) 61 Handysize 37 (25,000-34,999 Dwt)
Slide 15: Handysize Vessel Values
Dry Bulk · Towage · RoRo Pacific Basin Handysize Vessel Values Sales and purchase activity 5 Year Old 28,000 Dwt Values continues to be relatively y US$m US$ 54m stagnant 55 50 Slight g strengthening g g in 45 sentiment in half year 40 since January 35 Oct08: US$44m, US$44 30 Last published by Clark
Slide 16: 2009 Financial Highlights
Dry Bulk · Towage · RoRo Pacific Basin 2009 Financial Highlights 1H09 1H08 Revenue (US$m) 425.9 909.9 Net Profit (US$m) 74.8 337.6 Basic EPS (HK¢) 32 162 Return on average shareholders’ equity 12% 68% Dividends (HK¢ per share) 8.0 76.0 S Segment t Net N tPProfit fit versus Net N tAAssets t (US$ (US$
Slide 17: Segment Result – Handysize
Dry Bulk · Towage · RoRo Pacific Basin Segment Result – Handysize 1H09 1H08 % Change 2008 Revenue days (days) 12,460 12,480 - 24,890 TCE earnings (US$/day) 13,610 32,580 -58% 58% 29,600 Owned + chartered cost (US$/day) 9,380 14,470 -35% 14,960 S Segment t nett profits fit (US$m) (US$ ) 52 1 52.1 225
Slide 18: Segment Result – Handymax
Dry Bulk · Towage · RoRo Pacific Basin Segment Result – Handymax 1H09 1H08 % Change 2008 Revenue days (days) 5,150 5,210 -1% 11,050 TCE earnings (US$/day) 19,840 49,150 -60% 60% 44,610 Owned + chartered cost (US$/day) 17,580 41,980 -58% 40,070 S Segment t nett profits fit (US$m) (US$ ) 11 5 11.5 36
Slide 19: Daily Vessel Costs - Handysize
Dry Bulk · Towage · RoRo Pacific Basin Daily Vessel Costs - Handysize Owned Chartered Charter-hire days & rates 2009-2010 US$/day Blended US$9,380 US$9 380 (FY2008: US$14,960) US$14 960) 13 100 d 13,100 days Opex $19,420 US$9,798 US$9,900 Depreciation 530 2H09 US$9,300 Finance cost 6,600 days Direct
Slide 20: Impact of Financial Instruments
Dry Bulk · Towage · RoRo Pacific Basin Impact of Financial Instruments Period ended 30 June US$ m Realised Unrealised 2009 2008 Net Gains / (Losses) Interest rate swap contracts (1.5) 2.9 1.4 (0.6) Bunker swap contracts (10.4) 43.4 33.0 54.9 Forward freight agreements 19.0 (31.3) (12.3) (11.7) 7.1 1
Slide 21: Balance Sheet
Dry Bulk · Towage · RoRo Pacific Basin Balance Sheet US$m Dry bulk Towage RoRo Treasury 30 Jun 09 31 Dec 08 Vessels & other fixed assets 594 121 181 - 912 861 Total assets 744 156 222 1,097 2,406 2,331 Long term borrowings 207 39 - 581 827 848 Total liabilities 324 50 - 586 983 1,112 Net assets 420
Slide 22: Borrowings and Capex
Dry Bulk · Towage · RoRo Pacific Basin Borrowings and Capex US$ m 350 Funded from 314 US$1 141 million cash, US$1,141 cash 300 new loans, and 253 future operating cashflows 250 200 150 114 92 100 72 52 69 17 34 44 44 50 34 31 18 16 20 26 15 17 7 0 2H09 2010 2011 2012 2013 2014 2015 2016-2018 Vessel
Slide 23: Capex and Combined Value by Vessel Types
Dry Bulk · Towage · RoRo Pacific Basin Capex and Combined Value by Vessel Types A Combined View of Vessels Commitments Vessel Carrying Values and Commitments US$ m Total US$439m US$ m Total US$1,345m 350 750 681 300 76 600 62 250 253 496 15 200 450 150 543 315 114 216 300 100 33 72 168 150 48 50 49
Slide 24: Cashflow
Dry Bulk · Towage · RoRo Pacific Basin Cashflow US$ m 1H09 1H08 Operating cash inflows 61 284 Investing cash in / (out) flows 13 (218) - Vessels & other fixed assets related payments (171) (201) - Sales of vessels 105 81 - Jointly controlled entities related payments and receipts 40 (17) - Purchase
Slide 25: Earnings Coverage
Dry Bulk · Towage · RoRo Pacific Basin Earnings Coverage Earnings coverage as at 27 July 2009 Revenue Day Handysize Handymax 25 000 25,000 23 560 days 23,560 22,770 days Covered Uncovered 20,000 18,860 days 15,000 10,000 8,660 days^ US$29 250 US$29,250 US$14 280 US$14,280 5 690 days 5,690 5,000 US$4
Slide 26: Outlook
Dry Bulk · Towage · RoRo Pacific Basin Outlook • Focus on three core segments: Dry Bulk Towage RoRo • Robust balance sheet as at 30 June 2009 : US$1.1 billion cash, h and d shareholders’ h h ld ’ equity it off US$1.4 US$1 4 billion billi • 89% of 2009 handysize days covered at US$14,280 per day. 200
Slide 27: Disclaimer
Pacific Basin Disclaimer This presentation contains certain forward looking statements with respect to the financial condition, results of operations and business of Pacific Basin and certain plans and objectives of the management of Pacific Basin. Such forward looking statements involve known and u
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