Pacific Basin Shipping Limited · HKEX:2343
Pacific Basin Shipping — Credit Suisse Asian Investment Conference 2010
37 slides from Pacific Basin Shipping's conference presentation, Mar 16, 2010
Slide 1: Annual Results
Pacific Basin Credit Suisse Asian Investment Conference 2010 Mar2010, Hong Kong Pacific Basin 16 Mar 2010 Annual Results 1
Slide 2: Pacific Basin Overview
Dry Bulk · Energy & Infrastructure Services · RoRo Pacific Basin Pacific Basin Overview One of the world’s leading dry bulk owners/operators of modern handysize and handymax vessels Flexible Pacific Basin dry bulk business model Large scale fleet of uniform, interchangeable modern vessels Mi
Slide 3: 2009 Group Highlights & 2010 Goals
Dry Bulk · Energy & Infrastructure Services · RoRo Pacific Basin 2009 Group Highlights & 2010 Goals Net Profit: US$110m (2008: US$409m) Revenue and Net Profit (US$ m) Basic EPS: HK$0.46 ((2008: HK$1.89)) Revenue Net Profit ROE: 8% (2008: 35%) Net Profit Margin: 12% (2008: 24%) 1,690.9 US
Slide 4: Proposed Convertible Bonds Due 2016
Pacific Basin Proposed Convertible Bonds Due 2016 Issue size US$230 million Maturity Date 12 April 2016 (6 years) Investor Put Date and Price 12 April 2014 (4 years) at par Coupon 1.75% p.a. payable semi-annually in arrears on 12 April and 12 October Redemption Price 100% Initial Conversion Price HK
Slide 5: Pacific Basin Dry Bulk – 2009 Performance
Dry Bulk · Energy & Infrastructure Services · RoRo Pacific Basin Pacific Basin Dry Bulk – 2009 Performance Dry bulk net profit: US$138m Handysize: US$124m Pacific Basin Dry Bulk Fleet: 121 Handymax: US$14m (as at 28 Feb 2010) Fleet employed worldwide carrying a mix of Average age: 6.8 years
Slide 6: Dry Bulk Market Information
Dry Bulk · Energy & Infrastructure Services · RoRo Pacific Basin Dry Bulk Market Information Baltic Dry Index The Baltic Handysize Index (BHSI) 5,000 $US/day 20,000 4,000 16,000 3,000 12,000 2,000 8,000 15 Mar 2010 15 Mar 2010 1,000 4,000 US$ 18,744 (net) 3,574 0 0 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10
Slide 7: Chinese Commodity Demand
Dry Bulk · Energy & Infrastructure Services · RoRo Pacific Basin Chinese Commodity Demand Million China Iron Ore Sourcing for Steel Production China is a Net Importer of Coal Tonnes 1,000 906 900 799 ((+13%)) Million 800 Tonnes 127 628 140 (+218%) 700 (+41%) 120 600 100 500 444 80 400 354 278 60 ((-
Slide 8: Dry Bulk Demand
Dry Bulk · Energy & Infrastructure Services · RoRo Pacific Basin Dry Bulk Demand Dry Bulk Fleet Demand and Supply 2003 - 2009 % Change % change YOY YOY 14 6 14.6 15 10.7 13.0 9.4 5.6 12 9.9 9 68 6.8 70 7.0 65 6.5 6 -0.3 6.1 6.5 3 4.3 0.02 3.8 -5.9 -8.3 0 -10 5 -10.5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 -3 2008 2
Slide 9: Dry Bulk Orderbook
Dry Bulk · Energy & Infrastructure Services · RoRo Pacific Basin Dry Bulk Orderbook Orderbook as % Average of Existing Fleet Age Mil Dwt Orderbook by Year Total Dry Bulk >10,000 Dwt 60% 140 26% 120 Capesize 84% 11 100 20% Panamax 49% 12 80 Handymax 60 10% 52% 15 (35,000-59,999 (35,000 59,999 Dwt) 40
Slide 10: Dry Bulk Fleet Changes
Dry Bulk · Energy & Infrastructure Services · RoRo Pacific Basin Dry Bulk Fleet Changes Dry Bulk Fleet Delivery & Scheduled Orderbook Dry Bulk Scrapping versus BDI Million Dwt Dwt/mil BDI 140 126.0 0.3 0.0 07 0.7 4,500 , 07 0.7 120 Brokers’ 1.4 4,000 1.6 2.2 non-delivery 1.0 1.1 1.1 0.8 3,500 100 pr
Slide 11: Handysize Vessel Values
Dry Bulk · Energy & Infrastructure Services · RoRo Pacific Basin Handysize Vessel Values 5 Year Old 28,000 Dwt Values Sales and purchase activity US$ million Clarksons ceased publication return after stagnation 55 in Oct08: US$44m for most of 2009 50 45 Clarksons resumed 40 publication of ship value
Slide 12: Dry Bulk Outlook
Dry Bulk · Energy & Infrastructure Services · RoRo Pacific Basin Dry Bulk Outlook Global Gl b l economic i recovery Unwinding Chinese economic stimulus Strong cargo demand from China Enormous orderbook for 2010 Port congestion & others botternecks Increasing commodity prices favour Sli
Slide 13: PB Dry Bulk Earnings Coverage
Dry Bulk · Energy & Infrastructure Services · RoRo Pacific Basin PB Dry Bulk Earnings Coverage as at 22 Feb 2010 Handysize Handymax Revenue Days 26,100 days 28,000 Unfixed 24,000 22,630 days Fixed 20 000 20,000 16,000 10,640 days ^ 12,000 8,000 US$14,500 US$14,290 US$19,490 5,280 days ^ 100% 59% 100
Slide 14: PB Energy & Infrastructure Services
Dry Bulk · Energy & Infrastructure Services · RoRo Pacific Basin PB Energy & Infrastructure Services FBSL PB Towage Towage Fleet: 40 vessels (as at 28 Feb 2010) PB Sea-Tow PB Towage Australia PB Towage Middle East (Offshore Projects) (Harbour Towage) (Offshore Projects) 3 Chartered tugs 23 PB Energy
Slide 15: PB Energy & Infrastructure – Fujairah Bulk Shipping
Dry Bulk · Energy & Infrastructure Services · RoRo Pacific Basin PB Energy & Infrastructure – Fujairah Bulk Shipping FBSL contribution to PB results: US$6.3m (2008 US$0.3m) (2008: US$0 3m) Land reclamation for Municipality of Fujairah requiring approx. 54m tonnes of rock & aggregates of which ov
Slide 16: Energy & Infrastructure – Outlook
Dry Bulk · Energy & Infrastructure Services · RoRo Pacific Basin Energy & Infrastructure – Outlook Global economic recovery Container-related harbour towage g High entry barriers market still weak Increase in oil and energy prices Resumption of infrastructure and offshore ff h projects j t
Slide 17: PB RoRo
Dry Bulk · Energy & Infrastructure Services · RoRo Pacific Basin PB RoRo 2009 net profit US$0.1 m Group incurred G i d US$25m US$25 impairment i i t reflecting fl ti our concern about b t ability bilit to t deploy d l RoRo vessels profitably in 2010 and 2011 First vessel “Humber Viking” fixed to
Slide 18: RoRo Market
Dry Bulk · Energy & Infrastructure Services · RoRo Pacific Basin RoRo Market RoRo Vessels (1,300-2,700 Lane Metres) 1-Year Time Charter Rates RoRo Orderbook: 16% 1,300 lm-1,700 lm 45 Vessels (143,408 Lane Metres) E Euro/Day /D 1,800 lm-2,200 lm 30+ Years 0-14 Years 18,000 2,300 lm-2,700 lm Lane Metr
Slide 19: RoRo – Outlook
Dry Bulk · Energy & Infrastructure Services · RoRo Pacific Basin RoRo – Outlook Slow economic recovery in Europe Increased RoRo newbuilding deliveries Increasing environmental regulation, expected in 2010/ 2011 trend towards use of larger, more Limited employment potential fuel efficient RoR
Slide 20: 2009 Financial Highlights
Dry Bulk · Energy & Infrastructure Services · RoRo Pacific Basin 2009 Financial Highlights A att 31 D As December b 2009 2009 2008 Segment g net profit p 141.9 311.5 Treasury (13.8) 21.0 Non direct G&A (12.3) (11.8) Underlying profit 115.8 320.7 Vessel impairment losses – RoRo / Dry bulk (25.0) (19.
Slide 21: Pacific Basin Dry Bulk – Handysize
Dry Bulk · Energy & Infrastructure Services · RoRo Pacific Basin Pacifc Basin Dry Bulk – Handysize As at 31 December 2009 1H09 2H09 2009 2008 Change R Revenue d days (d (days)) 12,460 13,640 26,100 24,890 +5% TCE earnings (US$/day) 13,610 15,310 14,500 29,600 -51% Owned + chartered cost (US$/day) 9,
Slide 22: Daily Vessel Costs - Handysize
Dry Bulk · Energy & Infrastructure Services · RoRo Pacific Basin Daily Vessel Costs - Handysize As at 31 Dec 2009 Owned Chartered US$/day Charter-hire days y & rates Blended US$9,690 US$9 690 (FY2008: US$14,960) US$14 960) 2010-2012 Opex 19,420 US$12,320 530 US$10,970 Depreciation Finance cost 8,480
Slide 23: Balance Sheet
Dry Bulk · Energy & Infrastructure Services · RoRo Pacific Basin As at 31 December 2009 Balance Sheet PB PB PB US$ US$m Dry Bulk EIS RoRo Treasury 31 Dec 09 31 Dec 08 Vessels & other fixed assets 611 160 211 - 998 861 Total assets 767 271 259 , 1,036 , 2,470 , 2,331 Long term borrowings 199 41 65 57
Slide 24: Borrowings and Capex
Dry Bulk · Energy & Infrastructure Services · RoRo Pacific Basin As at 31 Dec 2009 Borrowings and Capex Funded from US$m US$1,106m cash, 400 384.2 new borrowings, and future operating 350 Redeemable in Feb 2011 314.0 cashflows 300 Subject to shareholders 250 approvall att SGM 200 150 97.9 97 9 100 7
Slide 25: Capex and Combined Value by Vessel Types
Dry Bulk · Energy & Infrastructure Services · RoRo Pacific Basin Capex and Combined Value by Vessel Types As at 31 Dec 2009 A Combined View of Vessels Commitments (including options) Vessel Carrying Values and Commitments US$m T t l US$456.8m Total US$456 8 US$m Total US$1,450m 400 384 900 84 773 32
Slide 26: Cashflow
Dry Bulk · Energy & Infrastructure Services · RoRo Pacific Basin Cashflow As at 31 December 2009 US$m 2009 2008 Operating cash inflows 145 459 Investing cash outflows (176) (244) - Vessels & other fixed assets related payments (297) (381) - Sales of vessels 105 314 - Jointly controlled entities rela
Slide 27: Outlook
Dry Bulk · Energy & Infrastructure Services · RoRo Pacific Basin Outlook Focus on three core businesses: PB Energy & Pacific f Basin Dry Bulk PB RoRo Infrastructure Services Slow, gradual recovery of global economy & international trade C ti Continued d demand d d growth th in i China Chi / As
Slide 28: 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
Slide 29: China at Mid-Industrialisation Stage
Dry Bulk · Energy & Infrastructure Services · RoRo Pacific Basin Appendix: Chi att Mid-Industrialisation China Mid I d t i li ti St Stage Steel Consumption Per Capita Tons per Capita China (from 1990) China growth matches Japan (from 1950) 1.0 Korea (from 1970) historical trend in India (from 2005)
Slide 30: Pacific Basin Dry Bulk - Diversified Cargo
Dry Bulk · Energy & Infrastructure Services · RoRo Pacific Basin Appendix: Pacific Basin Dry Bulk - Diversified Cargo Pacific Basin Dry Bulk Cargo Volume 2009 (Handysize and Handymax) Alumina 6% (+2%) Coal / Coke 9% (+2%) Concentrates 8% (+1%) 28.8 28 8 Fertilisers 8% (-3%) Other Bulks* 5% (-4%) Mil
Slide 31: Towage Financial Drivers
Dry Bulk · Energy & Infrastructure Services · RoRo Pacific Basin Appendix: T Towage Financial Fi i l Drivers Di 2009 Towage net profit: US$1.0m Offshore Towage Harbour Towage Operation Providing project/module Operating harbour tugs in the ports transportation and offshore support of Melbourne, Br
Slide 32: PB Energy & Infrastructure – Gorgon Project
Dry Bulk · Energy & Infrastructure Services · RoRo Pacific Basin Appendix: PB Energy & Infrastructure – G Gorgon Project P j t Pacific Basin’s role: 1/3 partner in Offshore Marine Services Alliance (OMSA) Secured a A$350m marine logistics contract for the Gorgon Project Phase 1: 5 tugs on bare
Slide 33: PB Energy & Infrastructure – Towage Market
Dry Bulk · Energy & Infrastructure Services · RoRo Pacific Basin PB Energy & Infrastructure – Towage Market Charter Rate Oil Price Oil price collapse in 2008 & 2009 US$ US$ resulted in weakened demand and 60 000 60,000 10,000 10 000 bhp+ 100 7,000-10,000 bhp 90 steep decline in offshore charter 5,00
Slide 34: PB RoRo Operations
Dry Bulk · Energy & Infrastructure Services · RoRo Pacific Basin Appendix: PB RoRo Operations Loading and discharging cargoes over the stern ramp A wide range of goods on Our O first fi t RoRo R R vessell wheeled trailers. Examples: has been chartered to Norfolk Line Only the trailers • Chilled vege
Slide 35: PB Energy & Infrastructure Services, PB RoRo
Dry Bulk · Energy & Infrastructure Services · RoRo Pacific Basin Appendix: PB Energy & Infrastructure Services PB RoRo As at 31 December 2009 2009 2008 PB Energy & Infrastructure Services Offshore and project supply and harbour towage services (“Towage”) 1.0 (16.0) Fujairah Bulk Shipping (“FBSL”) 63
Slide 36: Pacific Basin Dry Bulk – Handymax
Dry Bulk · Energy & Infrastructure Services · RoRo Pacific Basin Appendix: Pacifc Basin Dry Bulk – Handymax As at 31 December 2009 1H09 2H09 2009 2008 Change Revenue days (days) 5,150 5,490 10,640 11,050 -4% TCE earnings (US$/day) 19,840 19,160 19,490 44,610 -56% Owned + chartered cost (US$/day) 17,
Slide 37: Impact of Financial Instruments
Dry Bulk · Energy & Infrastructure Services · RoRo Pacific Basin Appendix: Impact of Financial Instruments Year ended 31 December US$ m Realised Unrealised 2009 2008 Net Gains / (Losses) Forward freight agreements 28.3 (54.0) (25.7) 77.0 Bunker swap contracts (0.8) 46.5 45.7 (47.2) Interest rate swa
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