Pacific Basin Shipping Limited · HKEX:2343

Pacific Basin Shipping — H1 2005 Earnings Presentation

29 slides from Pacific Basin Shipping's earnings presentation, Sep 5, 2005

  1. Slide 1: Interim Results

    Interim Results For the period ended 30th June 2005

  2. Slide 2: 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,

  3. Slide 3: 1st half 2005 Results Highlights

    1st half 2005 Results Highlights v Profits - US$85.5 million (1st half 2004 - $43.6 million) v Revenues - US$191.1 million (1st half 2004 - $81.7 million) v Earnings per share US cents 6.75 (HK cents 52.65) (1st half 2004 - US cents 4.80, HK cents 37.44) v Interim dividend of HK cents 30.00 per shar

  4. Slide 4: Handysize Growth Drivers

    Handysize Growth Drivers v Average number of revenue days in 1st half 2005= 6,750 (1st half 2004 = 3,800) v Average TCE rate achieved of $18,600/day (1st half 2004 = $18,000/day) v Revenue days and contract cover now stand at Days Cover $/day 2005 14,200 80% $17,400 2006 15,000 38% $13,700 v Balance

  5. Slide 5: Market Review

    Market Review

  6. Slide 6: The Baltic Dry Index

    The Baltic Dry Index 7,000 6,000 5,000 4,000 3,000 2,000 1,000 Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 www.pacbasin.com 2343.HK 5

  7. Slide 7: Demand – Key Imports to Asia

    Demand – Key Imports to Asia Mil tons 350 Iron Ore 300 Thermal Coal 250 200 150 2001 2002 2003 2004 2005E www.pacbasin.com 2343.HK 6

  8. Slide 8: Demand – China's Iron Ore Imports

    Demand – China’s Iron Ore Imports % of total import to China 45 40 Australia 35 30 India 25 20 Brazil 15 10 Jan Feb Mar Apr May Jun www.pacbasin.com 2343.HK 7

  9. Slide 9: World Fleet & Orderbook

    World Fleet & Orderbook Existing Mil dwt Orderbook % of Existing Fleet Tanker Aug 05 337 90 27% Feb Mar 05 324 90 Other Types Container Dry Bulk Aug 05 335 68 20% Feb 05 322 67 Aug 53% 105 56 05 Feb 99 46 05 Aug 101 19 19% 05 Feb 100 16 05 0 50 100 150 200 250 300 350 400 450 www.pacbasin.com 2343.H

  10. Slide 10: Drybulk Fleet & Orderbook

    Drybulk Fleet & Orderbook Existing 2005 Orderbook Average 2006 2007+ Fleet (%) Age Capesize 112 112 5 5 12 9 14.4 14 25% 11.0 Panamax 84 84 6 6 7 7 10 10 27% 11.6 Handymax 63 63 3 3 66 6 6 22% 11.2 1 Handysize 35 111 1 9% 17.5 35 1 0 20 40 60 80 100 120 140 160 www.pacbasin.com 2343.HK 9

  11. Slide 11: Supply – Replacement or Growth?

    Supply – Replacement or Growth? DWT million 45 920% Fleet > 20 years 40 Orderbook 35 28.0 30 25 22.8 89% 20 550% 14.3 49% 15 83% 10 4.6 5 3.2 0 Capesize Panamax Handymax Handysize Handysize 100K+ 60-100K 40-60K 10-40K 25-35K www.pacbasin.com 2343.HK 10

  12. Slide 12: Supply: Handysize 25-35K Age Profile

    Supply : Handysize 25-35K Age Profile 100 >15 years old: 62% >25 years old: 27% 90 80 Order Book: 70 8.5% Our Fleet Age 60 5 years 48 50 10 42 40 10 30 5 30 20 10 7 0 <7575 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 www.pacbasin.com 2343.HK 11

  13. Slide 13: Industry Summary

    Industry Summary v Market has followed similar track to 2004 v Expect rates to improve in 4th quarter v Rates are still at historically high levels v Possibility for rates to “spike” v Demand remains strong and is growing v More supply coming on stream but potential for increased scrapping limits im

  14. Slide 14: Business Review

    Business Review

  15. Slide 15: Fleet Profile

    Fleet Profile Owned Vessels Newbuildings - Owned Chartered Vessels Newbuildings- Chartered 70 Managed Vessels Newbuildings - Managed 27,000 dwt 60 50 32,000 dwt 20% 48 20% 4 50 11 11 45 4 40 18 11 32 4 28,000 dwt 30 7 60% 33 28 20 34 10 1 1 3 4 0 5 2 2 31 Dec 04 30 Jun 05 31 Aug 05 www.pacbasin.com

  16. Slide 16: Top 10 Customers

    Top 10 Customers Customer Cargoes Main Trade Agrium Urea Alaska Asia / South & Central America Ansac Soda Ash US South East Asia BHP Billiton Concentrates / Alumina Australia Asia Cargill Grain/ Fertilizer US Europe / North Africa Holcim Cement/ Clinker Asia New Zealand / Pacific Islands National Ma

  17. Slide 17: Major Load Areas

    Major Load Areas Asia Pacific Atlantic/Others ‘000 mt 1H 2005 – 74% (4.5mil mt) 1H 2005 – 26% (1.6mil mt) 1H 2004 – 69% (3.2mil mt) 1H 2004 – 31% (1.4mil mt) 1,800 25% 1,600 2005 1,400 20% 2004 1,200 1,000 800 10% 9% 600 8% 6% 7% 6% 400 3% 2% 2% 1% 200 - Australia West S.E. Asia China New Korea Japa

  18. Slide 18: Major Discharge Areas

    Major Discharge Areas Asia Pacific Atlantic/Others ‘000 mt 1H 2005 – 73% (4.4mil mt) 1H 2005 – 27% (1.7mil mt) 1H 2004 – 74% (3.5mil mt) 1H 2004 – 26% (1.2mil mt) 900 12% 2005 12% 800 12% 2004 11% 11% 700 Back-hauls 600 8% 9% 500 7% 6% 400 5% 5% 300 2% 200 100 0 Australia China Korea Japan S.E. Asia

  19. Slide 19: Financial Review

    Financial Review

  20. Slide 20: Results - Highlights

    Results - Highlights (US$mil) 1H 2005 1H 2004 Revenue 191.1 81.7 EBITDA 104.1 53.1 Operating Profit 88.0 45.4 Net Profit 85.5 43.6 Basic Earnings (US cents per share) 6.75 4.80 Dividends (HK cents per share) 30.00 - Payout Ratio 57% Handysize TCE (US$/day) 18,600 18,000 Handysize revenue days 6,750

  21. Slide 21: Results - Analysis

    Results - Analysis US$mil 1st half 2005 Underlying Net Profit 68.6 1) Add - Profit resulting from new Accounting Standards HKAS 39 Financial instruments 5.8 Other (1.1) 4.7 2) Add - Net Gain on disposal of vessels 12.2 Reported Net Profit 85.5 www.pacbasin.com 2343.HK 20

  22. Slide 22: Daily Vessel Costs

    Daily Vessel Costs Finance cost Depreciation Dry Dock Opex Direct Overhead Charter-hire 9,000 8,410 7,760 600 8,000 7,3801 390 6,900 7,000 980 740 6,000 5,000 2,480 2,410 US$/day 4,000 7,8102 2 570 7,370 1Gross of 3,000 2,550 hedging fair 1,920 value gain 2,000 2Excluding 1,000 Sea Bell 1,260 1,370

  23. Slide 23: Balance Sheet - Highlights

    Balance Sheet - Highlights (US$mil) 1H 2005 2004 Net book value of Fixed Assets * 518.2 545.1 Total Debt 293.3 370.1 Net Debt 259.3 322.4 Shareholder's Equity 292.0 233.5 *Insured Value of Delivered Vessels (Aug05) US$828mil Net Debt / Fixed Assets 50% 59% Net Debt / Shareholder's Equity 89% 138% ww

  24. Slide 24: Chartered-in vessel commitments

    Chartered-in vessel commitments TCE US$ per day $8,600 $ 8,500 $ 8,700 $8,600 $8,700 $8,800 Vessels Days As at 30 June 2005 As at 31 August 2005 18,000 15,800 16,000 14,000 12,000 10,000 8,000 9,000 5,800 6,000 4,100 4,000 3,500 1,500 2,000 0 < 1 year 2-5 years >5 years < 1 year 2-5 years >5 years w

  25. Slide 25: Investment Capacity

    Investment Capacity Net = US$124 m US$ m Potential vessel expenditures Interim 350 US$310mil Dividend 49 300 Undrawn Facilities 186 Potential bank cancelled due to 21 250 borrowings sale of vessels 200 Sale & Charter back 70 150 Further Acquisitions Undrawn Facilities 124 95 100 Cash at 30 Jun 05 46

  26. Slide 26: Outlook & Prospects

    Outlook & Prospects

  27. Slide 27: Earnings Momentum

    Earnings Momentum 16,000 Fixed 15,000 days 14,200 days Unfixed 14,000 62% 20% 12,000 9,900 days 10,000 80% 8,000 100% 6,000 38% 4,000 Average Rate Average Rate Average Rate 2,000 $17,900 $17,400 $13,700 0 2004 2005 2006 www.pacbasin.com 2343.HK 26

  28. Slide 28: Summary

    Summary v Market conditions remain positive and our outlook is optimistic v Handysize sector offers the best “demographics” v The demand from our own customer base and our cargo cover give us confidence in our revenues, cashflows and dividends v Strength of our balance sheet allows us to respond qui

  29. Slide 29: Thank You

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