Pacific Basin Shipping Limited · HKEX:2343
Pacific Basin Shipping — Q3 2017 Earnings Presentation
16 slides from Pacific Basin Shipping's earnings presentation, Oct 12, 2017
Slide 1: 3Q17 Trading Update
Pacific Basin 3017 Trading Update , ow 12 Oct 2017.
Slide 2: Market Rates Development YTD 2017
Market Rates Development YTD 2017 Handysize Market Spot Rates in 2016-2017 Supramax Market Spot Rates in 2016-2017 US$/day net* 10 Oct 2017 US$/day net* 10 Oct 2017 $8,650 $12,000 $10,570 $9,000 2016 $8,000 $10,000 2016 $7,000 $8,000 $6,000 $5,000 $6,000 $4,000 $3,000 $4,000 $2,000 $2,000 $1,000 $0
Slide 3: Key Demand Drivers for 2017
Key Demand Drivers for 2017 1H17 actual dry bulk effective demand growth about 4.5% Clarksons estimate full year 2017 dry bulk effective demand growth will exceed 5% (compared to +1.9% in 2016 and -0.9% in 2015) Strong American grain exports, including record high 3Q volumes from Brazil SE A
Slide 4: Our Performance in 3Q17
Our Performance in 3Q17 As at 10 Oct 2017 US$/day Handysize Supramax PB daily TCE 3Q17 $8,130 (+15% YOY) $9,350 (+27% YOY) 3Q Market Index Rate $7,000 $9,070 PB daily TCE YTD 1 $8,010 (+25%YOY) $9,060 (+41% YOY) 1Q- 3Q17 Market Index Rate YTD $6,730 $8,370 PB Outperformance YTD 19% 8% 1 Excluding sh
Slide 5: Forward cover for 4Q17 and 2018
Forward cover for 4Q17 and 2018 As at 10 Oct 2017 US$/day Handysize Supramax PB TCE Cover Rate for 4Q17 $8,890 $10,600 4Q % of Contracted Days Covered 70% 79% PB TCE Cover Rate for 2018 $7,690 $9,640 2018 % of Contracted Days Covered 14% 32% 3Q17 Trading Update 4
Slide 6: 2017 Third Quarter Trading Update
2017 Third Quarter Trading Update Market improvement since last year benefits our owned and long term chartered ships which have mainly fixed costs Market rates increased at end of 3Q but, due to lag between fixing and earning and 4Q is already mostly covered, these stronger rates will have marg
Slide 7: Vessel Values Increased YOY
Vessel Values Increased YOY Handysize Vessel Values US$ Million 60 50 40 30 Newbuilding (35,000 dwt): US$21m 20 10 5 years (32,000 dwt): US$14m 0 04 05 06 07 08 09 10 11 12 13 14 15 16 17 Improved freight market conditions supported increased vessel values Newbuilding and secondhand prices have
Slide 8: Orderbook Continues to Shrink
Orderbook Continues to Shrink Handysize Orderbook New Vessel Ordering is Down 149 vessels (5.5 million dwt) 50% Mil Dwt Historically low 7.0 40% levels of ordering 7.6% 6.0 30% 51% 5.0 Shortfall 20% 4.0 3.7% H’max: 0.8% 3.5% 3.0 6.0m 10% H’size: 0.9% 2.0 1.9% 1.6% 0% 2.9m 2000 2005 2010 2015 2017 1.
Slide 9: Dry Bulk Supply & Demand
Dry Bulk Supply & Demand % YOY Change 10 Demand is recovering and outpacing supply so far in 2017 8 5.9% For full year 2017: 6 Clarksons estimate effective demand growth to exceed 5% 4 2.2% PB estimate net supply growth around 3.5% 2 3.5% (5.0% deliveries – about 1.5% scrapping) 1.7% 0 Pro
Slide 10: 1H17 Daily Vessel Costs – Handysize
1H17 Daily Vessel Costs – Handysize Finance cost Charter-hire : Short-term (ST) / Long-term (LT) As at 30 June 2017 Depreciation Charter-hire : Index-linked Opex Owned Chartered Inward Charter Commitments US$/day Days & rates Blended US$7,550 (FY2016: US$7,320) 2017-2018 10,000 Vessel Days 7,840 7,6
Slide 11: 1H17 Daily Vessel Costs – Supramax
1H17 Daily Vessel Costs – Supramax Finance cost Charter-hire : Short-term (ST) / Long-term (LT) Depreciation Charter-hire : Index-linked As at 30 June 2017 Opex Owned Chartered Inward Charter Commitments US$/day Days & Rates Blended US$8,360 (FY2016: US$6,830) 2017-2018 Vessel Days 10,000 8,590 8,40
Slide 12: Our Ability to Outperform
Our Ability to Outperform Our TCE Outperformance Compared to Market Our business model has been refined over many years. We are Baltic Handysize Index - net rate able to generate a TCE earnings premium over market rates PB Handysize Performance because of our high laden percentage (minimum ballast l
Slide 13: Our Outlook and Strategy
Our Outlook and Strategy Dry Bulk Outlook Pacific Basin Benefits: Market conditions have improved since last year and we believe the worst of Fully Handysize & Supramax the current Dry Bulk market cycle is behind us focused Demand has recovered and benefit from growing grain consumption for anim
Slide 14: Disclaimer
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 unknown risks,
Slide 15: Appendix: Earnings Cover in 2017
Appendix: Earnings Cover in 2017 Handysize Supramax Contracted Revenue Days 51,350 Days 45,630 Days 32,360 Days 4Q 70% 11,170 26,980 Days 4Q 4Q $8,890 79% 74% Days 36,600 Days 5,750 $10,600 10,910 $7,960 4Q 75% days days 4,950 days $7,460 FY17 FY17 34,720 FY16 40,180 94% 94% days FY16 96% days $8,15
Slide 16: Appendix: Large Fleet of Modern Versatile Ships
Appendix: Large Fleet of Modern Versatile Ships Pacific Basin Dry Bulk Fleet: 264 www.pacificbasin.com Average age of core fleet: 7.3 years old Customers > Our Fleet Owned 1 Chartered 2 Total Handysize 80 85 165 Supramax 25 72 97 Post-Panamax 1 1 2 Total 106 158 264 1 Two recent acquisitions (one se
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