Great Eastern Shipping Co. Ltd. · NSE:GESHIP

Great Eastern Shipping — The Great Eastern Shipping — Investor Presentation (December 2015)

31 slides from Great Eastern Shipping's investor presentation, December 2015

  1. Slide 1: Business & Financial Review December 2015

    The Great Eastern Shipping Co. Ltd. Business & Financial Review December 2015 1

  2. 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

  3. 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 - Drilling Dry bulk 3

  4. Slide 4: Company at a glance

    Company at a glance  India’s largest private sector Shipping Company  Diverse asset base with global operations  Completed 67 years of operations  Over 30 years of uninterrupted dividend track record Shareholding Pattern as on September 30, 2015 Public 21% Promoters Bodies 30% Corporate 6% Govt/

  5. Slide 5: Shipping business-owned fleet

    Shipping business-owned fleet 30 ships aggregating 2.4 Mn dwt, avg. age 9.6 years  21 Tankers avg.age 11.0 years - 8 Crude carriers (4 Suezmax, 4 Aframax) avg. age 12.2 years - 12 Product tankers (4 LR1, 8 MR) avg. age 8.4 years - 1 Very Large Gas Carrier avg. age 21.0 years  9 Dry bulk carriers a

  6. Slide 6: Shipping business- CAPEX plan

    Shipping business- CAPEX plan Vessels on Order Vessel Yard CAPEX: ~ USD 180 mnExpected Total committed –ADD YR Delivery 1 Medium Range ProductWISE TankerCAPEX BRK UP) STX Group Q4 FY16 3 Kamsarmax Dry Bulk Carriers Jiangsu New Yangzi Shipbuilding FY17 Co. Ltd, China Committed Capex ~ $120 million Pa

  7. Slide 7: Asset Price Movement (5 yr old)- Tankers

    Source: Clarkson 0 20 40 60 80 100 120 140 160 180 USD mn 2001-01 2001-09 2002-05 2003-01 2003-09 2004-05 2005-01 2005-09 2006-05 VLCC 2007-01 2007-09 2008-05 Amt in US$ mn Suezmax 2009-01 2009-09 2010-05 Timeline- Jan 2001 till Nov 2015 MR 2011-01 2011-09 2012-05 2013-01 2013-09 2014-05 Asset Price

  8. Slide 8: Asset Price Movement (5 yr old) – Dry Bulk

    Source: Clarkson - 100 120 140 160 180 20 40 60 80 USD mn 2001-01 2001-09 2002-05 2003-01 2003-09 2004-05 2005-01 2005-09 Capesize 2006-05 2007-01 2007-09 2008-05 Panamax Amt in US$ mn 2009-01 2009-09 2010-05 Timeline- Jan 2001 till Nov 2015 2011-01 Supramax 2011-09 2012-05 2013-01 2013-09 2014-05 2

  9. Slide 9: Asset Price Movement

    Asset Price Movement Long-term year High /Low: (5 year old assets) (Amt in $mn) High Low Current Tankers 165 49 VLCC 79 (2008) (1994) 105 32 Suezmax 59 (2008) (1993) 46 20 MR 29 (2007) (1999) Dry Bulk 155 25 Capesize 29 (2008) (1999) 92 14 Panamax 16 (2007) (1999) 75 13 Supramax 15 (2007) (1998) 9 S

  10. Slide 10: BDTI & BCTI Movement (Jan 2012 to Nov 2015)

    BDTI & BCTI Movement (Jan 2012 to Nov 2015) Baltic Exchange Dirty Tanker Index Baltic Exchange Clean Tanker Index 1,200 1,000 800 600 400 Jan-12 Mar-12 Sep-12 Nov-12 Jan-13 Mar-13 Sep-13 Nov-13 Jan-14 Mar-14 Sep-14 Nov-14 Jan-15 Mar-15 Sep-15 Nov-15 May-12 May-13 May-14 May-15 Jul-12 Jul-13 Jul-14 J

  11. Slide 11: Oil surplus led to lower prices, in turn boosting refinery runs and demand

    Oil surplus led to lower prices, in turn boosting refinery runs and demand Oil demand, Supply & Surplus Global refinery throughput & growth Oil demand (mbpd) Global Refinery Crude Throughput (mbpd) Supply (mbpd) Growth in Global Refinery throughput y-o-y (per cent) Growth in Oil demand y-o-y (per ce

  12. Slide 12: Strong refinery margins

    Strong refinery margins 12 Source: Industry reports

  13. Slide 13: Middle East refinery capacities get commissioned, Asia to account for bulk of future capacity additions

    Middle East refinery capacities get commissioned, Asia to account for bulk of future capacity additions Future refinery capacity additions Middle East (Crude Throughput)  New refineries in Saudi Arabia (that came online in 2013-15) have already led to increase in products exports from the region 

  14. Slide 14: Overcapacity, potential refinery closures in the OECD region

    Overcapacity, potential refinery closures in the OECD region Actual and forecast refinery closures 14 Source: Industry Reports

  15. Slide 15: Growing Product trade… Changing trade patterns

    Growing Product trade… Changing trade patterns 15 Source: Industry Reports

  16. Slide 16: BDI Movement: Dry Bulk freight rates continued to plummet

    BDI Movement (Jan 2001 to November 2015) Dry Bulk freight rates continued to plummet Baltic Exchange Dry Index 12,000 China – moderation in 10,000 growth, pollution control, rising renewable power 8,000 capacity impacting growth 6,000 4,000 2,000 0 Nov-99 Jun-00 Nov-06 Jun-07 Nov-13 Jun-14 Jan-01 Au

  17. Slide 17: Slow growth in steel consumption impacting demand for seaborne iron ore imports

    Slow growth in steel consumption impacting demand for seaborne iron ore imports China crude steel production (mt) China iron ore imports (mt) India Substitution of other import sources by Australia leading to short-haul trade 17 Source: Industry Reports

  18. Slide 18: Focus on pollution control, rising hydropower generation – Severe blow to coal trade

    Focus on pollution control, rising hydropower generation – Severe blow to coal trade China coal imports India coal imports 2015-16 2014-15 mt 22 20 18 16 14 12 10 August July May April September October June China coal imports decline sharply. Growth in Indian coal imports coming off too 18 Source:

  19. Slide 19: World Fleet Growth

    World Fleet Growth 800 mn dwt 700 Dry Bulk Crude Product 600 500 400 300 200 100 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Fleet World Fleet addition CY2015 CY2016 CY2017+ Nov 15 (in mn dwt) Crude tankers 328 3% 9% 8-9% Product tankers 131 8% 8% 7-8% Dry bulk carriers 776 3%

  20. Slide 20: Accelerated scrapping in Dry Bulk

    Accelerated scrapping in Dry Bulk Scrapping as % of world fleet (year wise) Fleet as on Scrapping Vessel Category CY2012 CY2013 st 1 Jan 2015 Jan-Nov (in mn dwt) (in mn dwt) 327 0.8 Crude 3% 2% 131 0.3 Product 2% 2% 756 27.2 Bulk 5% 3% 20 Source: Clarkson

  21. Slide 21: Greatship (India) Limited Business Review December 2015

    Greatship (India) Limited (a 100% subsidiary) Business Review December 2015 21

  22. Slide 22: 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) Category fleet's operating days (per cent)  8 Anchor Handling Tug cum Supply Vessels (AHTSV) PSV 81 ROVSV 100  2 Multip

  23. Slide 23: Greatship’s Modern & Technologically Advanced Fleet & High Utilization

    Greatship’s Modern & Technologically Advanced Fleet & High Utilization Young Fleet  Young fleet with an average age of approx. 4 years by FY 2014-15 - Higher utilization rates  Demand shifting to modern vessels, Revenue especially as safety becomes a major Efficiencies - Minimum down time concern

  24. Slide 24: Sharp decline in E&P spending led by lower oil prices

    Sharp decline in E&P spending led by lower oil prices E&P spending set to decline  Oversupply of crude oil led to significant decline in E&P spending  Stacking of rigs & renegotiations of rates on the rise, utilisations levels decline  Deep & Ultra-deep water projects severely impacted Impact on

  25. Slide 25: Global Fleet Supply – Offshore

    Global Fleet Supply – Offshore Fleet & Orderbook (Nos) Jackup Rigs AHTSVs PSV Current Fleet 522 2,003 1,535 Orderbook 132 258 274 % of O/B to current fleet 25% 13% 18% High orderbook amid industry slowdown continues to be a concern Delays & Slippages on OSV orders & Stacking of rigs on the rise 25 S

  26. Slide 26: Financial Highlights Q2 FY 2015-16

    FINANCIAL HIGHLIGHTS Q2 FY 2015-16 26

  27. Slide 27: Q2 FY 2015-16 Financial Highlights

    Q2 FY 2015-16 Financial Highlights Standalone Key Figures Consolidated Q2FY'16 Q2FY'15 H1FY'16 (Amount in Rs. crs) Q2FY'16 Q2FY'15 H1FY'16 Income Statement 647 549 1,187 Revenue (including other income) 1,090 959 2,115 370 243 658 EBITDA (including other income) 645 460 1,230 249 108 411 Net Profit

  28. Slide 28: Q2 FY 2015-16 Financial Highlights

    Q2 FY 2015-16 Financial Highlights Standalone Key Figures Consolidated Q2FY'16 Q2FY'15 H1FY'16 (Amount in Rs. crs) Q2FY'16 Q2FY'15 H1FY'16 Key financial figures 57.20% 44.30% 55.50% EBITDA Margin (%) 59.20% 47.90% 58.20% 19.20% 8.80% 16.10% Return on Equity (ROE) (%) 19.10% 11.60% 18.10% 14.40% 7.70

  29. Slide 29: Q2 FY 2015-16 Performance Highlights

    Q2 FY 2015-16 Performance Highlights Breakup of revenue days Revenue Days Q2’FY16 Q2’FY15 Owned Tonnage 2,769 2,603 Inchartered Tonnage 65 0 Total Revenue Days 2,834 2,603 Total Owned Tonnage (mn.dwt)* 2.36 2.45 * As on 30th September Mix of Spot & Time Days (in %) Q2’FY16 Q2’FY15 Average TCY Detail

  30. Slide 30: Book Value & Net Asset Value (NAV) comparison

    Book Value & Net Asset Value (NAV) comparison Last 4 quarters Consol. Book Consol. NAV Value (Rs. Per share) (Rs. Per share) September 2015 544 565 June 2015 518 536 March 2015 493 518 December 2014 496 557 30

  31. Slide 31: Thank You

    THANK YOU visit us at www.greatship.com 31

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