Great Eastern Shipping Co. Ltd. · NSE:GESHIP
Great Eastern Shipping — The Great Eastern Shipping — Investor Presentation (August 2009)
24 slides from Great Eastern Shipping's investor presentation, August 2009
Slide 1: Business & Financial Review August 2009
The Great Eastern Shipping Co. Ltd. Business & Financial Review August 2009 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 wholly owned subsidiary Greatship (India) Limited Crude Tankers Product Tankers Offshore oil field Support & Logistics Services 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 61 years of operations $ More than 26 years of uninterrupted dividend track record Shareholding Pattern as on June 30th, 2009 FIIs Public 16% 29% Govt/FI 17% Bodies Corporate
Slide 5: Shipping business-owned fleet
Shipping business-owned fleet 37 ships aggregating 2.84 Mn dwt, avg.age 10.0 years 31 Tankers avg.age 9.5 years (85% in tonnage terms) 12 Crude carriers (6 Suezmax, 6 Aframax) avg.age 9.5 years (2 single hull – both double sided) 18 Product tankers (4 LR1, 9 MR, 5 GP) avg.age 9.4 years (5 si
Slide 6: Shipping business – Inchartered fleet
Shipping business – Inchartered fleet Total Inchartered Fleet : 4 ships (including in subsidiaries) Tankers : 2 9 2 Suezmax Crude Carriers Dry Bulk : 2 9 2 Supramax Bulk Carriers 6
Slide 7: Committed CAPEX – Shipping Business
Committed CAPEX – Shipping Business Committed Capex of around USD 437 Mn - 7 new building contracts aggregating 0.68 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 8: Offshore business- Fleet Profile
Offshore business- Fleet Profile ¾ Current Owned Fleet 9 5 Platform Supply Vessels (PSV) 9 7 Anchor Handling Tug cum Supply Vessel (AHTSV) ¾ Current Inchartered Fleet 9 1 Platform Supply Vessels (PSV) 9 1 350ft Jack Up Rig JV between Greatship (I) Ltd & DOF Subsea, Norway - focus on subsea projects
Slide 9: Committed CAPEX – Offshore Business
Committed CAPEX – Offshore Business ¾ Committed Capex of around USD 686 Mn To be delivered in: 9 FY 2010 - 1 NB 80T AHTSV (Labroy) - 4 NB MPSVs (Keppel Singmarine) - A New Building 350 ft Jack Up Rig (Keppel) - 1 NB Construction Support Vessel (CDL) 9 FY 2011 - 3 NB Construction Support Vessel (CDL)
Slide 10: Committed Capex for the Group
Committed Capex for the Group Total Investment Rs.1,116 crs Equity (Rs852 crs) + Pref (Rs.264 crs) G E Shipping Greatship (India) Ltd (Committed CAPEX (Committed CAPEX USD 437 mn) USD 686 mn) Total committed CAPEX of USD 1. 12 bn Spread over next two & half years To be financed with a mix of debt &
Slide 11: Financial Review
Financial Review 11
Slide 12: Financial Highlights of Q1FY10 Performance
Financial Highlights of Q1FY10 Performance Standalone Consolidated (Rs.crs) Q1FY10 Q1FY09 % chg FY09 Q1FY10 Q1FY09 % chg FY09 Freight & Charter hire 468 702 (33)% 2,829 721 897 (19)% 3,792 Gain on sale of ships 119 254 (53)% 254 119 254 (53)% 254 Total Income 587 956 (38)% 3,083 840 1,151 (27)% 4,04
Slide 13: Q1 FY09 Performance Highlights
Q1 FY09 Performance Highlights Substantially lower TCY rates on dry bulk & crude carriers Operating Profit (PBDIT) on standalone basis down 55% Breakup of revenue days Revenue Days (standalone) Q1 FY10 Q1 FY09 % chg Owned Tonnage 3,393 3,502 (3)% Inchartered Tonnage 88 178 (50)% Total revenue da
Slide 14: Earnings Mix
Earnings Mix GE Shipping Average TCY Details Average TCY ($ per day) Q1 FY10 Q1 FY09 % change Crude Carriers 23,819 40,737 (42)% Product Carriers 17,088 21,541 (21)% Dry Bulk Carriers 19,489 50,619 (61)% Mix of Spot & Time Q1 FY10 Q1 FY09 Days (in %) FY09 Dry Bulk 74% 65% Spot % 72% 26% 35% Time % 2
Slide 15: Industry Scenario
0D eee Industry Scenario 15
Slide 16: Ship prices on a downslide
Ship prices on a downslide Asset Price Movement (5 yr old) – Amt in US$ mn Timeline- Sep2003 till July 27, 2009 160 160 120 120 80 80 40 40 0 0 16/09/2003 VLCC AFRAMAX CAPESIZE PANAMAX(DRY) Source: Baltic Sale & Purchase Assessment 16
Slide 17: World Fleet Supply
World Fleet Supply 2006 2007 2008 Forecast Forecast Forecast 2009 2010 2011+ VLCC 3.4% 4.0% 3.8% 7.0 % 13.1% 17.5% Suezmax 7.0% 4.6% 0.9% 12.7% 11.1% 13.6% Aframax 5.5% 7.3% 6.1% 6.8% 10.9% 6.6% Panamax 13.8% 12.4% 8.8% 8.4% 7.1% 9.9% Handymax 7.9% 8.4% 10.6% 11.6% 12.1% 6.6% Capesize 9.1% 8.5% 9.0%
Slide 18: Gross World fleet addition-Shipping
Gross World fleet addition-Shipping World Fleet addition* 2009 2010 2011 15% of world tanker fleet Crude tankers 7.6% 11.6% 11.4% single hull Product tankers 10.4% 10.6% 6.0% Dry bulk carriers 11.9% 22.7% 13.6% *includes only new building from yards Fleet as on Scrapping 1st Ju1’09 (in mn dwt) CY200
Slide 19: Tanker Market
Tanker Market Crude: Demand for oil to be weaker in 2009, but is expected to increase in 2010 Contraction in world output likely to depress energy consumption High fleet growth to put excessive pressure Product: Low refining margins & depressed demand keeping product tanker rates down Large US o
Slide 20: Dry Bulk Market
Dry Bulk Market Demand for commodities unlikely to pick up in 2009 Excessive fleet addition to be highest in this segment … but a ray of hope… Increase in level of scrapping activity Construction on more than one third of the existing orderbook not yet begun. First trigger for a market upt
Slide 21: Offshore Market…Still holding strong
Offshore Market…Still holding strong 9 Decline in oil & gas reserves 9 Energy Security concerns high on consumer countries agenda 9 Development and drilling activity in mid to deep water 9 Tenders continuing to be issued for long term work Total Subsea fleet development Source: Offshore Research,Par
Slide 22: Life Cycle of Offshore Fields
Life Cycle of Offshore Fields Source: Bourbon, Feb 2008 22
Slide 23: Offshore Supply Market
Offshore Supply Market OSV Fleet Summary (Nos) AHTSVs PSVs Others Current Fleet* 2,226 1,843 1,657 Orderbook 540 245 208 % of O/B to current fleet 24% 13% 12% * Data as on Ju1’09, Source: Clarkson Aging Fleet 9 55% of the total fleet over 25 years old 23
Slide 24: THANK YOU
THANK YOU visit us at www.greatship.com 24
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