Great Eastern Shipping Co. Ltd. · NSE:GESHIP
Great Eastern Shipping — The Great Eastern Shipping Company — Q1 FY2025 Earnings Presentation
45 slides from Great Eastern Shipping's earnings presentation, Aug 1, 2024
Slide 1: Exchange filing cover letter
THE GREAT EASTERN SHIPPING COMPANY LIMITED CIN: L35110MF11948PLC006472 OCEAN HOUSE, 134/A, Dr. Annie Besant Road, Worli, Mumbai - 400 018, INDIA. Tel.: +91(22) 6661 3000 / 2492 2100 Fax : +91(22) 2498 5335 Our Ref.: S/2024/JMT August 01, 2024 BSE Limited National Stock Exchange of India Limited 1st
Slide 2: Q1 FY25 Earnings Presentation
Ink The Great Eastern Shipping Co. Ltd. at AT CS". 2023 ING co • C Q1 FY25 S Nk.-e.c-- Earnings Presentation 01 AUG 2024 • 7• "-:F. G. TH z STERN SI a T CO. LTD.
Slide 3: Disclaimer
The Great Eastern DISCLAIMER Shipping Ca Ltd. 7948 2023 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 Com
Slide 4: Q1FY25 Highlights
The Great Eastern Q1FY25 HIGHLIGHTS Shipping Ca Ltd. 7948 2023 • Net profits of INR 812 Cr on a consolidated basis • Our consolidated NAV has moved to INR 1,464/share as on 30 th June 2024 • Declared 1st Interim dividend (10th consecutive quarterly) of INR 9.00/Share for Q1FY2025. GE Shipping – Q1FY
Slide 5: Reported Highlights
The Great Eastern REPORTED HIGHLIGHTS Shipping Ca Ltd. 7948 2023 St a n d a l on e C on s l i d a t e d Q1 Q1 Q1 Q1 Fig in INR Crores FY25 FY24 FY24 FY25 FY24 FY24 • GE Shipping Q1FY25 consolidated Net I n come St a t e me n t Revenue* 1,310 1,109 4,724 1,703 1,335 5,919 Profit at INR 812 Cr EBITDA*
Slide 6: Normalised Financials
The Great Eastern NORMALISED FINANCIALS Shipping Ca Ltd. 7948 2023 o The impact of the exchange rate on foreign currency loans and current assets and liabilities, including cash and bank balances, has been removed o NCD & Currency Swap: o Funds raised through NCDs have been swapped into USD using IN
Slide 7: Normalised Financial Highlights
The Great Eastern NORMALISED FINANCIAL HIGHLIGHTS Shipping Ca Ltd. 7948 2023 Standalone Conslidated • GE Shipping Q1FY25 Q1 Q1 Q1 Q1 consolidated Net Profit Fig in INR Crores FY25 FY24 FY24 FY25 FY24 FY24 at INR 817 Cr In come St at e me n t • Declared 1st Interim Revenue* 1,310 1,109 4,724 1,703 1,
Slide 8: Normalised Financial Highlights
The Great Eastern NORMALISED FINANCIAL HIGHLIGHTS Shipping Ca Ltd. 7948 2023 Standalone Conslidated Q1 Q1 Q1 Q1 FY25 FY24 FY24 FY25 FY24 FY24 Ke y Financial Figure Return on Equity (ROE%)** 26% 24% 24% 26% 20% 22% Return on Capital Employed (ROCE%)** 21% 19% 20% 21% 16% 18% Gross Debt/Equity (x) 0.2
Slide 9: Normalised Financials – Key Ratios
NORMALISED FINANCIALS – KEY RATIOS The Great Eastern Shipping Co. Ltd. exP Eg 7948 2023 Earnings per Share (INR/Share) Cash Profit per Share (INR/Share) Standalone Consolidated Standalone Consolidated 70.26 60 71.06 59.57 48.98 51.21 45.03 57.26 50 63.89 60.71 41.65 57.95 54.73 56.30 46.34 49.13 55.
Slide 10: Consistent Dividend Payouts
The Great Eastern CONSISTENT DIVIDEND PAYOUTS Shipping Co. Ltd. 40 36.3 35 30 28.8 25 20 15 11.5 13.5 15.0 9.0 10.0 9.0 11.0 es 10.1 9.0 9.9 9.0 10 8.0 8.0 7.5 8.1 6.5 6.5 7.2 3.1 5.4 4.0 8.0 3.3 4.0 4.0 5 2.4 2.3 3.0 2.8 2.3 2.0 0 2.0 1.5 Dividend Per Share (INR/Share) GE Shipping – Q1FY25 Results
Slide 11: Profit & Loss Statement – Industry Format
The Great Eastern PROFIT & LOSS STATEMENT – INDUSTRY FORMAT Shipping Ca Ltd. 7948 2023 Standalone Conslidated Q1 Q1 Q1 Q1 Figures in INR Crores FY25 FY24 FY24 FY25 FY24 FY24 Operating Revenue 1,145 1,035 4,102 1,497 1,277 5,176 Less: Direct Operating Expenses/Voyage Expenses 142 155 626 162 157 680
Slide 12: Shareholding Pattern
The Great Eastern Shipping Ca Ltd. F San' 7948 2023 allIVIrw SHAREHOLDING PATTERN • - n , •vr- I a- .41—h AC t. • I = • Isi 1t FII/FPI nil 25% Promoters , .7 30% It Govt./FI/Corp 11 20% I1 Public 25% t, tinnii i tingth " 1"•-•....,""•!• ••• :It •-• w (Oa 30-Jun-2024 GE Shipping – Q3 & 9MFY23 Results
Slide 13: Performance Review
The Great Eastern PERFORMANCE REVIEW Shipping Ca Ltd. 7948 2023 Breakup of Revenue Days (Shipping) Q1 Q1 Revenue Days FY25 FY24 Owned Tonnage 3,782 3,659 Inchartered Tonnage 0 91 Total Revenue Days 3,782 3,750 Total Owned Tonnage (mn.dwt) 3.41 3.44 Breakup of Revenue Days (Offshore) Q1 Q1 Revenue Da
Slide 14: Performance Review
The Great Eastern PERFORMANCE REVIEW Shipping Ca Ltd. 7948 2023 Avg TCYs in Various Categories Q1 Q4 QoQ Q1 YoY Avg (TCYs USD/Day) FY25 FY24 % FY24 % Crude Carriers 46,352 53,182 -13% 53,344 -13% Product Carriers 37,153 37,637 -1% 33,142 12% LPG Carriers 36,742 35,506 3% 28,860 27% Dry Bulk 17,976 1
Slide 15: Changes in Standalone NAV (YTD)
The Great Eastern CHANGES IN STANDALONE NAV (YTD) Shipping Ca Ltd. 7948 2023 Changes in Standalone NAV (YTD) 1400 204 19 1200 1181 -36 995 1000 800 INR/SHARE 600 400 200 0 NAV Jun-23 Cash Profit Fleet Value Dividend NAV Jun-24 GE Shipping – Q1FY25 Results 14
Slide 16: Years Movement in Standalone NAV
The Great Eastern 5 YEARS MOVEMENT IN STANDALONE NAV Shipping Ca Ltd. 7948 2023 Standalone NAV – Continues to touch new highs 1400 1181 1200 CAGR: 24% INR/SHARE 1000 800 600 374 400 200 0 FY19 FY20 FY21 FY22 FY23 FY24 Q1FY25 GE Shipping – Q1FY25 Results 15
Slide 17: Changes in Consolidated NAV (YTD)
The Great Eastern CHANGES IN CONSOLIDATED NAV (YTD) Shipping Ca Ltd. 7948 2023 Changes in Consolidated NAV (YTD) 1600 248 1464 1400 -36 1204 1200 1000 INR/SHARE 800 600 400 200 0 NAV Jun-23 Cash Profit Fleet Value Dividend NAV Jun-24 GE Shipping – Q1FY25 Results 16
Slide 18: Revenue Coverage
The Great Eastern REVENUE COVERAGE Shipping Ca Ltd. 7948 2023 Coverage of Operating Days (Shipping) Category Q2FY25 Crude Carriers 47% Product Carriers 53% LPG Carriers 100% Dry Bulk 51% Revenue Days Q2FY25 Jack Up Rigs 100% AHTSV 90% MPSVV 4% PSV/ROVSV 75% GE Shipping – Q1FY25 Results 17
Slide 19: Standalone Debt Repayment Schedule
The Great Eastern STANDALONE DEBT REPAYMENT SCHEDULE Shipping Ca Ltd. 7948 2023 GESCO Standalone (USD mn) 80 74 74 350 71 70 66 300 321 60 250 50 200 40 36 150 30 100 20 10 50 0 0 Jun-24 Mar-25 Mar-26 Mar-27 Mar-28 Mar-29 Loan Repayments Loan O/S (RHS) 1) Effective all-in USD cost of debt of about 4
Slide 20: Fleet Profile
The Great Eastern FLEET PROFILE Shipping Ca Ltd. 7948 2023 Fleet Profile - Shipping DWT Fleet (01 Aug'24) Fleet Q4FY24 No Avg Age Crude Carriers 842,958 6 15.69 *Committed to sell one 2004 Product Carriers* 1,145,829 19 15.77 built MR “Jag Pranam” and one Gas Carriers 185,363 4 18.71 2005 built MR “
Slide 21: Shipping Market
The Great Eastern Shipping Co. Ltd. 7948 2023 P . k \\*I \N A SHIPPING MARKET 44, 4 cc" tit • • • • \ \N •1• 1 \ • \\\>.\\,, 114.4--Li 1\ 44 Nit
Slide 22: Crude and Product Tankers
The Great Eastern CRUDE AND PRODUCT TANKERS Shipping Ca Ltd. 7948 2023 Avg. Suezmax Earnings (USD/day) Avg. MR Earnings (USD/day) 100,000 60,000 90,000 50,000 80,000 70,000 40,000 60,000 a % • 50,000 30,000 •. 40,000 20,000 30,000 20,000 10,000 10,000 0 0 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
Slide 23: Crude and Product Tankers
The Great Eastern CRUDE AND PRODUCT TANKERS Shipping Ca Ltd. 7948 2023 • Crude tanker earnings were softer y/y in 1QFY25 led by weaker crude oil trade but continue to be firm under historic context. Chinese crude imports have been surprisingly soft, declining by 9% y/y in 1QFY25 amidst weak refinery
Slide 24: Dry Bulk
The Great Eastern Shipping Co. Ltd. DRY BULK 7948 2023 DB Freight picked up in Q1FY25 Y-O-Y, including sub-capes which averaged higher Y-O-Y Avg. Baltic Capesize 5T/C Earnings (USD/day) Avg. Baltic Supra BSI-58 10T/C Earnings 70,000 (USD/day) 40000 60,000 35000 50,000 30000 40,000 25000 20000 30,000
Slide 25: Dry Bulk
The Great Eastern Shipping Ca Ltd. DRY BULK 7948 2023 • During 1QFY25, spot earnings witnessed growth across segments with Capesize earnings up 45% y/y, while Kamsarmax and Supramax earnings grew by 32% and 37% y/y, respectively. Strong freight rates during the quarter kept asset prices firm. • Earn
Slide 26: LPG Gas
The Great Eastern Shipping Ca Ltd. LPG GAS 7948 2023 Avg. VLGC Earnings (USD/day) 170,000 VLGC Spot earnings corrected to levels closer to Q1 FY-23 150,000 during Q1 FY-25 and averaged lower YoY in comparison to 130,000 Q1 FY-24. 110,000 90,000 USD/day FY25 FY24 % change 70,000 3M 52,406 75,981 -31%
Slide 27: Fleet Supply
The Great Eastern Shipping Ca Ltd. 7948 2023 •„ , sr' "4. -4, - • 'woo FLEET SUPPLY r?; "1 • t,P 'F Il i taii , to.7440, • ' %:,...41 . ...0„ . ', ICS° \ . - $4.• - • t) .' 1: ...' , . . in, ., i • t,'. THE AT EAST F P.01 • r, IIPPING CO. I ILA ; c /
Slide 28: Low Order Book to Fleet Ratio
LOW ORDER BOOK TO FLEET RATIO The Great Eastern Shipping Co. Ltd. 7948 2023 Historic Order Book as a % of fleet (Calendar Year) 90% 80% 70% 60% 50% Current Orderbook 40% 30% 24.7% 20% 8.3% Alm 17.4% 10% 0% 9.6% On' rb OC\ N N O61' • O6\ rl/C)C) (19' r15) Bulkers Product tankers Crude tankers LPG Car
Slide 29: Orderbook – Yearwise Breakup
ORDERBOOK – YEARWISE BREAKUP Orderbook - Most of the orders are tail ended 25% Total: 24.72% 19.87% 20% 15% Total: 17.35% 10.23% Total: 12.16% 10% Total: 8.32% 7.41% Total: 9.64% 6.49% 4.82% 5% 0% Crude Product Product Ex LR2 Dry Bulk LPG ■ Cal 2024 ■ Cal 2025 ■ Cal 2026 and Beyond Sources: Industry
Slide 30: Scrapping
The Great Eastern SCRAPPING Shipping Ca Ltd. 7948 2023 Scrapping continues to be very low, and the pool of old ships continues to grow Fleet (Mn Dwt) Vessel Category Jul'24 Crude 463 Product 186 Dry Bulk 1,020 Scrapping (% Beginning world fleet) CYTD CY CY CY CY CY CY CY CY Vessel Category 2024 2023
Slide 31: Orderbook and Scrapping Potential
ORDERBOOK AND SCRAPPING POTENTIAL Orderbook Vs Scrapping Potential 30% Aeging FLeet as a % of Total Fleet 25% 20% • Crude Tankers 15% • Product Tankers 10% Dry Bulk Carriers • LPG Carriers 5% 0% 0% 5% 10% 15% 20% 25% 30% Orderbook as % of Total Fleet Scrapping Potential: For LPG carriers 25+ age is
Slide 32: Orderbook and Scrapping Potential (as on 01-01-2027)
ORDERBOOK AND SCRAPPING POTENTIAL (AS ON 01-01-2027) Orderbook Vs Scrapping Potential (As on 01-01-2027) 35% Aeging FLeet as a % of Total Fleet Crude Tankers 30% 00 25% Product Tankers 20% 0 Dry Bulk Carriers LPG Carriers 15% 10% 5% 0% 0% 5% 10% 15% 20% 25% 30% 35% Orderbook as % of Total Fleet Scra
Slide 33: Asset Price Movement
The Great Eastern Shipping Ca Ltd. 7948 2023 1 :1 : H - -t - lar ASSET PRICE MOVEMENT .4 -a d- r I GHLAT EA,STERN 4 • 0 THE GREAT EASTERN _ 0— SI EPPING Co, LTR
Slide 34: Asset Price Movement (Indexed Over Last 5 Yrs)
85 105 125 145 165 185 205 225 85 95 105 115 125 135 145 155 165 175 Jul-19 Jul-19 Oct-19 Oct-19 Jan-20 Jan-20 5 YRS) Apr-20 Apr-20 Jul-20 Jul-20 Sources: Industry Reports Oct-20 Oct-20 Jan-21 Jan-21 Apr-21 Apr-21 Jul-21 Jul-21 Oct-21 Oct-21 Jan-22 Jan-22 Capesize Suezmax Apr-22 Apr-22 Jul-22 Jul-22
Slide 35: Greatship (India) Limited 100% Subsidiary
The Great Eastern :11 sr:6 Shipping Co. Ltd. r , , :, .Vg) ,.%. 7948 2023 blibe i•z,-.,.;:.4., I... 1- gi! 411 livi,':/..- W:, 1. ' -14 !!',Illt‘el::* A 11\1 Al, 'Al4 W1,4 If - '' ih.,4 4,h, ,„i,r,,_ Eli l'illi, ;4,4 P,PNqra IN „..,,,• ,,,0,ii.. _ 4'1„•,. .:,..4:!‘.44 ,,,I., / ':2:4:. .1A .1 GREATSH
Slide 36: Market Trends: Utilisation
The Great Eastern MARKET TRENDS: UTILISATION Shipping Ca Ltd. 7948 2023 Jack Up Under Contract Utilisation : Gradual Improvement % Util 450 85 80 400 75 350 70 300 65 60 250 55 200 50 Jul 2023 Jul 2010 Jul 2011 Jul 2012 Jul 2013 Jul 2014 Jan 2015 Jul 2015 Jul 2016 Jul 2017 Jul 2018 Jul 2019 Jul 2020
Slide 37: Fleet Supply
The Great Eastern Shipping Ca Ltd. FLEET SUPPLY 7948 2023 Number Jack-up Rigs PSV+AHTSV Current Fleet 500 3,351 Under Contract Fleet 371 2,328 Order Book 15 46 O/B to Current Fleet 3.0% 1.4% Total Scrapping since Jan 2016 (Nos) 145 713 No of Vessels/Rigs more than 20/30 years old (% Fleet) 32% 21% C
Slide 38: Repricing
The Great Eastern REPRICING Shipping Ca Ltd. 7948 2023 • Vessels • Rigs 6 5 3 2 2 1 1 1 1 0 0 0 0 0 H1 FY25 H2 FY25 H2FY26 H1FY27 H2FY27 H1FY28 H2FY28 • 6 vessels coming off in FY25 have already been repriced • Remaining 1 vessel will come up for repricing in H1FY29 GE Shipping – Q1FY25 Results 37
Slide 39: Debt Repayment Schedule
The Great Eastern DEBT REPAYMENT SCHEDULE Shipping Ca Ltd. 7948 2023 GIL (USD Mn) 30 100 26 26 26 90 25 92 80 70 20 60 15 15 50 40 10 30 20 5 10 0 0 Jun-24 Mar-25 Mar-26 Mar-27 Mar-28 Repayments Loan O/S (RHS) GE Shipping – Q1FY25 Results 38
Slide 40: Financials
The Great Eastern Shipping Ca Ltd. 7948 2023 IfKtit :1 L. I 4 0.1 4 Mir 7711°F 4 "II Kau 4.444.4. _ _ FINANCIALS II! cv 111 O ! 0 . f • •i trlit ti I I • • • ! • 4) : I I a I `F " /07/2022 ThitE GRE,PcT hAr, , SI EPPING Ott 1:11O1 4-,r
Slide 41: Strong Cashflows Led Net Debt USD 360 Mn to Net Cash of USD 350 Mn
The Great Eastern Shipping Co. Ltd. STRONG CASHFLOWS LED NET DEBT USD 360 7948 2023 MN TO NET CASH OF USD 350 MN USD Mn Net Debt Expansion Phase Net Debt Reduction Phase 400 0.60 300 0.50 0.40 200 0.30 100 0.20 - 0.10 -100 - -0.10 -200 -0.20 -300 -0.30 -400 -0.40 FY2016 FY2017 FY2018 FY2019 FY2020 F
Slide 42: Share Price to Consolidated NAV
The Great Eastern SHARE PRICE TO CONSOLIDATED NAV Shipping Co. Ltd. 7948 2023 INR/Share 1600 1.2 1400 1 1200 0.8 1000 11 800 0.6 600 0.4 400 0.2 200 0 0 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Q1FY25 Consolidated NAV Standalone NAV Share Price/Consol. NAV (RHS) * For Q1FY25 we have taken share
Slide 43: Great Eastern CSR Foundation
GREAT EASTERN CSR FOUNDATION 7948 O 2023 GREAT EASTERN CSR FOUNDATION Since 2015, GECSRF has partnered with 53 NGOs under the three key CSR focus areas. • Education: More than 1.50 Lakh students reached out through primary and secondary education. • Health: More than 78,000 women and 40,300 children
Slide 44: Great Eastern CSR Foundation
GREAT EASTERN CSR FOUNDATION FY 2024-25: GECSRF currently supporting 27 NGOs working under education, 7948 O 2023 health and livelihoods across 17 states in India GREAT EASTERN EDUCATION HEALTH LIVELIHOODS CSR FOUNDATION 1. Adhyayan Quality Education 1. Anushkaa Foundation for 1. Ayang Trust Foundat
Slide 45: Thank You
THANK YOU The Great Eastern Shipping 7948 2023 Visit us at www.greatship.com From a modest beginning… ...to most admired globally 'e go Ocean House EASTERN TE: GREAT LTD. II I SONO CO, 4"9-.V.... } • I 4. pill Will.. I a THE GREAT EASTERN Res SHIPPING COMPANY LIMITED 1948 2024 I Read the Story of GE
The Great Eastern Shipping Company — Q1 FY2025 Earnings Presentation on 6ix