Great Eastern Shipping Co. Ltd. · NSE:GESHIP
Great Eastern Shipping — The Great Eastern Shipping — Q3 FY2022 Earnings Presentation
38 slides from Great Eastern Shipping's earnings presentation, Jan 28, 2022
Slide 1: The Great Eastern Shipping Co. Ltd.
The Great Easte Shipping Co. Ltd.
Slide 2: Forward-looking statements disclaimer
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 directions, prospects and f
Slide 3: Financial Year Q3FY22
FINANCIAL YEAR Q3FY22 28 January 2022
Slide 4: Reported Financial Highlights
REPORTED FINANCIAL HIGHLIGHTS GE Shipping Q3FY22 consolidated Net Profit at Rs. 205 Crores Standalone Key Figures Consolidated Q3FY22 Q3FY21 9MFY22 (Amount in Rs. Crs) Q3FY22 Q3FY21 9MFY22 Income Statement 774 691 2226 Revenue (including other income) 932 854 2686 431 386 1184 EBITDA (including othe
Slide 5: Normalized Financial Highlights
NORMALIZED FINANCIAL HIGHLIGHTS GE Shipping Q3FY22 consolidated Net Profit at Rs. 193 Crores Standalone Key Figures Consolidated Q3FY22 Q3FY21 9MFY22 (Amount in Rs. Crs) Q3FY22 Q3FY21 9MFY22 Income Statement 774 691 2,226 Revenue (including other income) 932 854 2,686 377 317 1,077 EBITDA (including
Slide 6: Normalized Financial Notes
NORMALIZED FINANCIAL NOTES 1) The impact of the exchange rate on foreign currency loans and current assets and liabilities, including cash and bank balances, has been removed 2) NCD & Currency Swap: • Funds raised through NCDs have been swapped into USD using INR-FCY swaps, thus creating synthetic f
Slide 7: Normalized Financial Highlights
NORMALIZED FINANCIAL HIGHLIGHTS Standalone Key Figures Consolidated Q3FY22 Q3FY21 9MFY22 Q3FY22 Q3FY21 9MFY22 Key financial figures 14.00% 10.62% 12.84% *Return on Equity (ROE) (%) 9.74% 6.11% 8.42% 10.03% 7.83% 9.21% *Return on Capital Employed (ROCE) (%) 7.36% 5.23% 6.53% 0.59 0.72 0.59 Gross Debt
Slide 8: Profit & Loss Statement Industry Format
PROFIT & LOSS STATEMENT INDUSTRY FORMAT Standalone INR Crores Consolidated Q3FY22 Q3FY21 9MFY22 Q3FY22 Q3FY21 9MFY22 753 589 2,080 Operating Revenue 932 749 2,563 186 167 522 Less : Direct Operating Expenses/Voyage Expenses 194 175 558 567 422 1,559 Time Charter Equivalent (A) 738 575 2,006 0 57 48
Slide 9: Performance Review
PERFORMANCE REVIEW Break up of Revenue days (Shipping) Revenue Days Q3 FY22 Q3 FY21 Owned Tonnage 3,993 4,081 Inchartered Tonnage 28 44 Total Revenue Days 4,021 4,125 Total Owned Tonnage (mn.dwt) 3.57 3.51 Break up of Revenue days (Offshore) Revenue Days Q3 FY22 Q3 FY21 Offshore Logistics 1,498 1,44
Slide 10: Revenue Visibility & Coverage
REVENUE VISIBILITY & COVERAGE Category-wise coverage of operating days (Shipping) --- FY22 Extent of coverage of fleet’s Category Revenue Visibility operating days Crude Carriers 34% Product Carriers 31% LPG Carriers 89% Rs 251 Cr Dry Bulk 49% Category-wise coverage of operating days (Offshore) ---
Slide 11: GESCO Standalone Debt Repayment Schedule
GESCO STANDALONE DEBT REPAYMENT SCHEDULE (NEXT 5 YEARS) GESCO Standalone (USD mn) 100 600 90 86 79 81 80 500 519 67 70 USD Million 400 USD Million 60 50 300 40 200 30 20 100 10 10 0 0 Dec-21 Mar-22 Mar-23 Mar-24 Mar-25 Mar-26 Loan Repayments Loan O/S (RHS) GESCO: We have effective all-in USD cost of
Slide 12: Fleet Profile
FLEET PROFILE SHIPPING Fleet (28th Jan 22) Committed Fleet DWT (FY21) No: Avg Age Capex/Sale Crude Carriers 1,058,499 8 13.94 Product Carriers 1,092,465 18 13.88 NIL Gas Carriers 212,260 5 17.27 Dry Bulk Carriers 1,210,805 14 8.81 Total 3,574,029 45 12.38 OFFSHORE Fleet Number of Units Average Age (
Slide 13: Shipping Market
SHIPPING MARKET 13
Slide 14: Tanker Market
TANKER MARKET
Slide 15: Crude and Product Tankers
Crude and Product Tankers Avg. Suezmax Earnings ($/day) Avg. MR Earnings ($/day) 100,000 40,000 90,000 35,000 80,000 30,000 70,000 60,000 25,000 50,000 20,000 40,000 15,000 30,000 10,000 20,000 10,000 5,000 0 0 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan F
Slide 16: Crude and Product Tankers
Crude and Product Tankers Increase in oil demand, refinery runs led to increase in trade during the quarter. However, while product trade is 3% below pre-COVID levels, crude trade continues to be much worse, at 10% lower Supply overhang continued as nominal fleet grew by 1.5-2% y/y, not counting
Slide 17: Dry Bulk Market
DRY BULK MARKET
Slide 18: Dry Bulk
Dry Bulk Avg. Baltic 5TC Earnings ($/day) 70,000 60,000 Spot rates came off after reaching highs 50,000 not seen since the super cycle 40,000 30,000 20,000 10,000 0 $/day FY21 FY22 % change Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 9M 15,639 38,655 147% FY21 FY22 18 Sources: Industry Reports
Slide 19: Dry Bulk
Dry Bulk Dry trade (in ton-miles) rose by 4.8% y/y in 2021, primarily led by trade growth in minor bulks While the fleet grew by ~3.5% y/y, congestion, which had touched a 10-year high of 5% in Q2 FY22, helped tighten the market 19 Sources: Industry Reports
Slide 20: LPG (Gas) Market
LPG (GAS) MARKET
Slide 21: Gas
Gas Avg. VLGC Earnings ($/day) 120,000 100,000 80,000 Spot rates rise, but still lower than Q3FY21 60,000 40,000 20,000 0 $/day FY21 FY22 % change Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 9M 47,364 32,821 -31% FY21 FY22 21 Sources: Industry Reports
Slide 22: Gas
Gas • VLGC spot earnings averaged USD 39,800 / day during Q3 FY 22. Though earnings showed a drop YoY on a TCE basis, the levels were still strong • While trade demand grew ~ 4.5 % YoY, fleet supply growth of 6% and high bunker prices led to drop in earnings • Strong US LPG exports (long-haul) and i
Slide 23: Fleet Supply
Fleet Supply
Slide 24: One of the Lowest Order Book to Fleet Ratios
One of the Lowest Order Book to Fleet Ratios While ordering is picking up for Bulkers Orderbook as % of Fleet 9% 7.96% 8% 6.99% 7% 6% 5.63% 5% 4% 3% 2% 1% 0% Crude Tankers Product Tankers Dry Bulk 24 Sources: Industry Reports
Slide 25: Asset Price Movement
ASSET PRICE MOVEMENT 25
Slide 26: Asset Price Movement (Indexed)
115 135 155 175 95 100 110 120 130 80 90 Jan-17 Jan-17 Apr-17 Apr-17 Jul-17 Jul-17 Oct-17 Oct-17 Jan-18 Jan-18 Apr-18 Apr-18 Jul-18 Jul-18 Sources: Industry Reports Oct-18 Oct-18 Jan-19 Jan-19 Apr-19 Apr-19 Jul-19 Jul-19 Over the Last 5 Years Suezmax Oct-19 Capesize Oct-19 Jan-20 Jan-20 Apr-20 Apr-2
Slide 27: Scrapping
SCRAPPING Fleet Vessel (mn Dwt) Scrapping (% of beginning world fleet) Category Dec 21 CY2021 CY2020 CY2019 CY2018 CY2017 CY2016 CY2015 CY2014 Crude 435 2.47% 0.53% 0.55% 4.39% 2.43% 0.39% 0.38% 1.75% Product 178 2.11% 0.57% 0.60% 1.72% 1.22% 0.54% 0.62% 1.10% Dry Bulk 945 0.56% 1.74% 0.93% 0.54% 1.
Slide 28: Greatship (India) Limited
Greatship (India) Limited (a 100% subsidiary)
Slide 29: Fleet Supply: Increasing number of Cold Stacked Rigs
Fleet Supply Increasing number of Cold Stacked Rigs Number Jackup Rigs PSVs + AHTSVs Current Fleet 488 3,519 Orderbook 30 141 O/B to current fleet 6.1% 4.0% Total Scrapping since January 2016 (nos.) 139 485 No. of Vessels/Rigs more than 20/30 years old 34% 19% (as %age of fleet) Cold Stacked more th
Slide 30: Market Trends: Utilisation
200 250 300 350 400 450 Jan 2010 Jul 2010 Jan 2011 Jul 2011 Jan 2012 Jul 2012 Jan 2013 Market Trends: Utilisation Jul 2013 Jan 2014 Jul 2014 Jan 2015 Jul 2015 Under Contract Jan 2016 Jul 2016 Jan 2017 Jul 2017 Jan 2018 Total Utilisation Jul 2018 Jack up utilisation: gradual improvement Jan 2019 Jul
Slide 31: Repricing
Repricing Vessels Rigs 6 4 3 2 1 1 1 1 1 1 0 0 0 0 H2 FY22 H1 FY23 H2 FY23 H1 FY24 H2 FY24 H1 FY25 H2 FY25 One JU Rig has received LOA for next contract after completion of the existing contract. It comes for repricing only in H2FY26 31
Slide 32: Greatship Debt Repayment Schedule
GREATSHIP DEBT REPAYMENT SCHEDULE (NEXT 5 YEARS) GIL (USD Mn) 120 180 97 160 100 164 140 80 120 USD Million USD Million 100 60 80 40 36 60 25 40 20 5 20 0 0 Dec-21 Mar-22 Mar-23 Mar-24 Mar-25 Repayments Loan O/S (RHS) 32
Slide 33: Initiatives on Environment
INITIATIVES ON ENVIRONMENT • Voluntarily published our first Environment Social Governance (ESG) report • Established a working group for feasibility study on alternate fuels and fuel optimisation technologies in view of the IMO emission reduction targets. • After the Jan 2020 IMO mandate on switchi
Slide 34: Initiatives on Environment
INITIATIVES ON ENVIRONMENT Implementation of various energy saving devices • High Performance Paint • Mewis Duct • Propeller Boss Cap Fins (PBCF) • ECO Cap • LED Lightings • Rudder Bulb • Pre-swirl Fins 34
Slide 35: Financials
FINANCIALS 35
Slide 36: Counter Cyclical Investments have Generated Strong Cash Flows
Counter Cyclical Investments have Generated Strong Cash Flows Net CAPEX of over 400 mn USD but Net Debt has declined by 10 mn USD from FY2016 5 Year Cycle Net Debt Expansion 400 Phase Net Debt Reduction 0.60 Phase 350 0.50 300 0.40 USD Million 250 200 0.30 150 0.20 100 0.10 50 - - FY2014 FY2015 FY20
Slide 37: Share Price to Consolidated NAV
Share Price to Consolidated NAV Share Price to Consolidated NAV 700 1 0.9 600 0.8 500 INR/Share 0.7 400 0.6 0.5 300 0.4 200 0.3 0.2 100 0.1 0 0 FY16 FY17 FY18 FY19 FY20 FY21 9MFY22 Consolidated NAV Standalone Share Price/Consol. NAV (RHS) * For 9MFY22 we have taken share price as on 27th January 202
Slide 38: Thank You
THANK YOU visit us at www.greatship.com 38
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