Great Eastern Shipping Co. Ltd. · NSE:GESHIP
Great Eastern Shipping — The Great Eastern Shipping — Investor Presentation (November 2010)
24 slides from Great Eastern Shipping's investor presentation, November 2010
Slide 1: Business & Financial Review November-December 2010
The Great Eastern Shipping Co. Ltd. Business & Financial Review November-December 2010 1
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 Co. Ltd. Incorporated in 1948 Shipping Business Offshore Business Wet bulk Through subsidiary Greatship (India) Limited - Logistics Crude Tankers Product Tankers - Subsea - Drilling Dry bulk 3
Slide 4: Company at a glance
Company at a glance $ India’s largest private sector Shipping Company $ Diverse asset base with global operations $ Completed 62 years of operations $ More than 26 years of uninterrupted dividend track record Shareholding Pattern as on Sep30, 2010 FIIs Public 13% 27% Govt/FI 20% Bodies Promoters Cor
Slide 5: Shipping business-owned fleet
Shipping business-owned fleet 32 ships aggregating 2.49 Mn dwt, avg.age 9.4 years 27 Tankers avg.age 8.88 years (84% in tonnage terms) - 10 Crude carriers (5 Suezmax, 5 Aframax) avg.age 9.2 years (1 single hull – double sided) - 16 Product tankers (4 LR1, 8 MR, 4 GP) avg.age 8.2 years (2 single
Slide 6: Committed CAPEX – Shipping Business
Committed CAPEX – Shipping Business Committed Capex of around USD 573 Mn - 8 new building contracts aggregating 1.31 mn. dwt To be delivered in: 9FY 2011 - 1 NB, Kamsarmax Dry Bulk Carrier (STX Shipbuilding Co. Ltd) - 2 NB, Supramax Dry Bulk Carriers(Cosco (Zhoushan) Shipyard Co. Ltd) 9FY 2012 - 2 N
Slide 7: Offshore business- Fleet Profile
Offshore business- Fleet Profile ¾ Current Owned Fleet 9 1 350ft Jack Up Rig 9 4 Platform Supply Vessels (PSV) 9 7 Anchor Handling Tug cum Supply Vessels (AHTSV) 9 3 Multipurpose Platform Supply and Support Vessel (MPSSV) 9 1 Platform / ROV Support Vessel (ROVSV) ¾ Current Inchartered Fleet 9 1 350f
Slide 8: Committed CAPEX – Offshore Business
Committed CAPEX – Offshore Business ¾ Delivery Schedule of the Committed Capex To be delivered in: 9 FY 2011 - 2 NB Platform / ROV Support Vessels (CDL) - 2 NB MSVs (Mazagon Dock) 9 FY 2012 - 2 NB 150T AHTSV (Drydock World, Singapore) - 1 NB Platform / ROV Support Vessel (CDL) 9 FY 2013 - 1 NB Platf
Slide 9: Modern & Technologically Advanced Fleet
Modern & Technologically Advanced Fleet Young Young Fleet Fleet Young fleet with an average age of approx. 3 years by FY 2012 -- Higher Higher utilization utilization rates rates Revenue Revenue Demand shifting to modern vessels, especially as Efficiencies Efficiencies -- Minimum Minimum down do
Slide 10: Global Presence-Risk Diversification and Profit Maximization
Global Presence-Risk Diversification and Profit Maximization One One of of the the few few Indian Indian companies companies toto operate operatein indiverse diversemarkets marketsacross acrossthe theworld world with with prestigious prestigious counterparties; counterparties; helps to hedge against
Slide 11: Offshore Service Value Chain
Offshore Service Value Chain Exploration Exploration Development Development Production Production Length Length of of -- 33 to Typical Cycle to 55 years years -- 22 to to 44 years years -- 55 to to 55 55 years years Typical Cycle -- Collection Collectionof ofsurvey surveydata data -- Construction -
Slide 12: Q2FY’11 Financial Highlights
Q2FY’11 Financial Highlights Standalone Consolidated Q2FY'11 Q2FY'10 H1FY'11 (Amount in Rs. crs) Q2FY'11 Q2FY'10 H1FY'11 Income Statement 423.99 521.08 876.88 Revenue 716.41 801.94 1443.64 199.10 242.97 458.59 EBITDA 312.41 299.96 697.62 112.98 96.77 218.92 Net Profit 168.65 108.47 340.45 Balance Sh
Slide 13: Q2FY11 Performance Highlights
Q2FY11 Performance Highlights Breakup of revenue days Revenue Days Q2’FY11 Q2’FY10 Owned Tonnage 3,069 3,146 Inchartered Tonnage - 122 Total Revenue Days 3,063 3,268 Total Owned Tonnage (mn.dwt) 2.61 2.84 Mix of Spot & Time Q2 FY11 Q2 FY10 Days (in %) FY10 FY09 Average TCY Details Dry Bulk 47% 74% S
Slide 14: Asset Price Movement (5 yr old)
Asset Price Movement (5 yr old) Timeline- Sep2003 till Nov 22, 2010 Amt in US$ mn 160 160 120 120 80 80 40 40 0 0 16/ 09/ 2003 VLCC AFRAMAX CAPESIZE PANAMAX(DRY) Source: Baltic Sale & Purchase Assessment 14
Slide 15: Indices Movement - Timeline Jan'08 to 22Nov’10
Indices Movement - Timeline Jan'08 to 22Nov’10 Baltic Dry Index (BDI) 14000 12000 10000 8000 6000 4000 2000 0 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Baltic Dirty Tanker Index (BDTI) & Baltic Clean Tanker Index (BCTI) 2500 BDTI 2000 1500 1000 BCTI 500 0 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 So
Slide 16: Total Seaborne trade at a glance… Dry Bulk
Total Seaborne trade at a glance… Dry Bulk Seaborne Bulk trade % chg (in mn. tonnes) 2008 2009 2010(F) (CY10 over CY09) Iron ore 841 907 960 5.8% Steam Coal (Thermal) 578 590 625 5.9% Coking Coal 221 215 264 22.8% Grains 244 235 245 4.3% Bauxite 86 66 79 19.7% Sugar 49 50 53 6.0% Agri. Bulks 114 115
Slide 17: Total Seaborne iron ore trade at a glance
Total Seaborne iron ore trade at a glance Seaborne Iron Ore Imports % chg mn. tonnes 2008 2009 2010(F) (CY10 over CY09) W. Europe 131 81 108 33.3% China 436 615 596 (3.1)% Asia (Ex. China) 211 164 200 21.9% ROW 56 48 55 14.6% Total 835 907 960 5.8% China Imports – Jan’10 to Oct’10: 503 mn tons Sourc
Slide 18: Global Oil Demand
Global Oil Demand % chg mn.bpd 2008 2009 2010(F) (CY10 over CY09) N.America 24.2 23.3 23.8 2.1% OECD Europe 15.4 14.5 14.3 (1.4)% OECD Pacific (Japan& Korea) 8.0 7.7 7.7 - Asia (Non OECD) 17.4 18.4 19.4 5.4% Other Non OECD 21.0 20.9 21.7 3.8% Total 86.0 84.8 86.9 2.5% Source: Clarksons 18
Slide 19: Total Seaborne crude trade
Total Seaborne crude trade Seaborne Crude Imports % chg mn bpd 2008 2009 2010(F) (CY10 over CY09) Asia 15.9 16.1 17.1 6.2% EU 10.9 10.3 10.3 - N. America (incl. Canada) 7.0 6.6 6.7 1.5% ROW 5.7 5.0 5.2 4.0% Total 39.5 38.0 39.3 3.4% of which Long Haul Trades 15.0 13.8 14.5 5.0% 38% 36% 37% Source: C
Slide 20: Gross World fleet addition-Shipping
Gross World fleet addition-Shipping World Fleet addition* Fleet CY2010 CY2011 CY2012 + (as on 1 Nov’10) (in mn dwt) Crude tankers 319.5 3% 14% 12% Product tankers 129.4 4% 10% 5% Dry bulk carriers 519.8 6% 22% 18% Source: Clarksons *includes only new building from yards - 7% of world tanker fleet is
Slide 21: Global Fleet – Scrapping Details
Global Fleet – Scrapping Details Fleet as on Scrapping As on 1st Nov’10 (in mn dwt) CY2008 CY2009 1st Nov10 (in mn dwt) 319.5 Crude 1.3 5.1 6.5 129.4 Product 1.5 3.3 5.4 519.8 Bulk 3.6 10.0 5.0 Source: Clarksons World Dry Bulk Fleet: -17% above 25 years - 24% above 20 years 21
Slide 22: Slippages… to be a decisive factor
Slippages… to be a decisive factor H1 CY 2010 (in mn dwt) VLCC Suezmax Aframax Panamax MR GP Total Expected orders to be delivered 12.6 4.8 5.3 1.3 5.3 1.5 30.8 till end Jun’10 Actual deliveries 8.8 3.9 4.0 1.1 2.9 0.8 21.5 Slippages 3.8 0.9 1.3 0.2 2.4 0.7 9.3 Slippages/ cancellations as % of expec
Slide 23: Global Fleet Supply -Offshore
Global Fleet Supply -Offshore (Nos) Jackup Rigs AHTSVs PSVs MSV, DSV & ROV Support Current Fleet 474 2,990 2,125 268 Orderbook 71 320 193 87 % of O/B to current fleet 15% 11% 9% 32% % fleet over 25 years 66% 48% 40% 20% Average age 23.0 18.9 17.6 12.7 Source: Clarksons 23
Slide 24: THANK YOU
THANK YOU visit us at www.greatship.com 24
The Great Eastern Shipping — Investor Presentation (November 2010) on 6ix