Great Eastern Shipping Co. Ltd. · NSE:GESHIP
Great Eastern Shipping — The Great Eastern Shipping — Investor Presentation (June 2013)
26 slides from Great Eastern Shipping's investor presentation, June 2013
Slide 1: Business & Financial Review June 2013
The Great Eastern Shipping Co. Ltd. Business & Financial Review June 2013 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 subsidiary Greatship (India) Limited - Logistics Crude Tankers Product Tankers - Subsea - Drilling 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 65 years of operations $ 29 years of uninterrupted dividend track record Shareholding Pattern as on March 31, 2013 Public FIIs 24% 24% Govt/FI 17% Promoters Bodies 30% Corpor
Slide 5: Shipping business-owned fleet
Shipping business-owned fleet 30 ships aggregating 2.47 Mn dwt, avg.age 9.3 years 21 Tankers avg.age 9.8 years - 9 Crude carriers (4 Suezmax, 5 Aframax) avg.age 10.6 years - 11 Product tankers (4 LR1, 6 MR, 1 GP) avg.age 7.4 years - 1 LPG Carrier (1 VLGC) avg. age 23.0 years On Order: - 1 NB Med
Slide 6: Offshore business- Fleet Profile
Offshore business- Fleet Profile ¾ Current Owned Fleet 9 3 Jack Up Rigs (350ft) 9 4 Platform Supply Vessels (PSV) 9 9 Anchor Handling Tug cum Supply Vessels (AHTSV) 9 2 Multipurpose Platform Supply and Support Vessels (MPSSV) 9 6 Platform / ROV Support Vessels (ROVSV) 6
Slide 7: Modern & Technologically Advanced Offshore Fleet
Modern & Technologically Advanced Offshore Fleet Young Fleet Young fleet with an average age of approx. 3 years by FY 2012 - Higher utilization rates Revenue Demand shifting to modern vessels, especially as Efficiencies - Minimum down time safety becomes a major concern for oil companies Technol
Slide 8: Offshore Service Value Chain
Offshore Service Value Chain Exploration Development Production Length of - 3 to 5 years - 2 to 4 years - 5 to 55 years Typical Cycle - Collection of survey data - Construction & installation of - Management of oil & gas production platforms, production - Analysis & interpretation Description pipeli
Slide 9: FY 2013 Financial Highlights
FY 2013 Financial Highlights Standalone Key Figures Consolidated FY'13 FY'12 (Amount in Rs. crs) FY'13 FY'12 Income Statement 2033.79 2004.74 Revenue 3400.45 3233.27 729.71 781.26 EBITDA 1533.26 1363.79 146.26 143.34 Net Profit 537.76 316.55 Balance Sheet 9745.32 9925.22 Total Assets 14449.04 13681.
Slide 10: FY 2013 Financial Highlights
FY 2013 Financial Highlights Standalone Key Ratios Consolidated FY'13 FY'12 FY'13 FY'12 Key financial figures 35.88% 38.97% EBITDA Margin (%) 45.68% 42.18% 2.89% 2.70% Return on Equity (ROE) (%) 8.72% 5.34% 4.03% 4.67% Return on Capital Employed (ROCE) (%) 6.91% 6.16% 0.73 0.76 Gross Debt/Equity Rat
Slide 11: Q4FY'13 Performance Highlights
Q4FY’13 Performance Highlights Breakup of revenue days Revenue Days Q4’FY13 Q4’FY12 Owned Tonnage 2,745 3,022 Inchartered Tonnage 195 183 Total Revenue Days 2,940 3,205 Total Owned Tonnage (mn.dwt) 2.53 2.62 Mix of Spot & Time Days (in %) Q4’FY13 Q4’FY12 Dry Bulk Average TCY Details Spot % 53% 80% T
Slide 12: Asset Price Movement (5 yr old)
Asset Price Movement (5 yr old) Timeline- Sep 2003 till 28 May, 2013 Amt in US$ mn 180 160 140 120 VLCC 100 CAPE 80 60 40 20 Panamax 0 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 VLCC Aframax Capesize Panamax (Dry) Source: Baltic Sale & Purchase Assessment 12
Slide 13: BDI Movement (1 Jan 2001 to 31 May 2013)
BDI Movement (1 Jan 2001 to 31 May 2013) 14000 China announces 12000 $586 bn stimulus 10000 2008 market 8000 crash, BDI dropped by 94% Cargo growth 6000 but record NB deliveries 4000 2000 0 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 BDI hovering around
Slide 14: Seaborne Bulk Trade … growing steadily
Seaborne Bulk Trade … growing steadily 4500 Global dry bulk seaborne trade 4000 reached 4.0 bn tons in 2012 3500 Contribution to seaborne trade growth by commodity 3000 2500 50% 2000 45% 1500 40% 35% 1000 30% 500 25% 0 20% Mn.tons 2005 2006 2007 2008 2009 2010 2011 2012 2013 15% Iron Ore Coal Grains
Slide 15: Dry Bulk Trade … Evolving Trade Patterns
Dry Bulk Trade … Evolving Trade Patterns Chinese coastal trade India… catching up ‐Expected to grow rapidly due to inland ‐To be leading coal importer in the transport restrictions world ‐ But.. Mostly done through Chinese ‐ Developing ports to specifically suit flagged vessels the trade ‐ UMPPs to
Slide 16: BDTI & BCTI Movement (Aug'98 to 31 May'13)
BDTI & BCTI Movement (Aug’98 to 31 May’13) 3500 BDTI BCTI 3000 2500 2000 1500 1000 500 0 Aug-98 Aug-99 Aug-00 Aug-01 Aug-02 Aug-03 Aug-04 Aug-05 Aug-06 Aug-07 Aug-08 Aug-09 Aug-10 Aug-11 Aug-12 Sluggish demand & steady fleet growth keeping the TCYs low 16 Source: Clarksons
Slide 17: Global Oil Demand Scenario
Global Oil Demand Scenario Global Oil demand growth Region wise demand growth 4% % chg 3.6% mn.bpd 2011 2012 2013(E) (CY13 over CY12) 2.9% 3% N.America 24.1 23.8 23.8 - 2.3% 2% OECD Europe 14.3 13.8 13.6 (1.5)% 1.6% 1.6% 1.3% 1.0% 1.1% 1.0% OECD Pacific 1% (Japan& Korea) 8.1 8.5 8.3 (2.4)% Asia 0% (
Slide 18: Products trade… promising future!!!
Products trade… promising future!!! 18 Source: Market Reports
Slide 19: Oil Trade – Changing patterns...
Oil Trade – Changing patterns... Oil supply dynamics changing Oil demand sourcing matrix changing Iran – Hit by sanctions China & India in forefront North Sea – Decreasing Supply Venezuela – Diversifying Customer base West Africa – More takers Other Market Developments Angola , Algeria – inching pro
Slide 20: World Fleet Growth
World Fleet Growth 800 700 Dry Bulk Crude Product 600 500 400 300 200 100 0 Mn.dwt 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Fleet growth 2002‐2012 (mn dwt) 2002 2007 2012 % change (2012 over 2002) Dry 295 393 679 130% Crude 222 280 357 60% Product 74 106 136 83% 20 Source: Clarksons
Slide 21: … Fleet continues to grow
… Fleet continues to grow World Fleet addition* Fleet CY2013 CY2014 CY2015 + (as on 1st May’13) (in mn dwt) Crude tankers 363 5% 4% 2% Product tankers 137 4% 4% 2% Dry bulk carriers 697 10% 5% 2% *includes only new building from yards - 2% of world tanker fleet is single hull Source: Clarksons 21
Slide 22: Scrapping… too little to cheer
Scrapping… too little to cheer Fleet as on Scrapping CY2013 1st May’13 (in mn dwt) CY2009 CY2010 CY2011 CY2012 YTD* (in mn dwt) 363 Crude 5.0 7.1 6.9 9.4 2.4 137 Product 3.8 5.8 3.0 2.4 0.6 697 Bulk 10.4 5.7 22.2 32.9 11.3 * As of end May’13 Require acceleration in scrapping to minimize the demand s
Slide 23: Global Shipbuilding… Shrinkage in Capacity
Global Shipbuilding… Shrinkage in Capacity Capacity to contract due to combination of: ¾ yard closures ¾ return to pre-boom business models such as ship repairs ¾ use of shipbuilding berths and workforces for non-shipbuilding activity ¾ reduction in berth productivity ~ Half of Chinese yards having
Slide 24: Global Shipbuilding… Shrinkage in Capacity
Global Shipbuilding… Shrinkage in Capacity Yard Output (mn.gt) 60 50 40 30 20 10 0 2002 2006 2008 2010 2011 2012 2013 Yard output to decline from a peak of 49 mn gt in 2010 to 32 mn gt in 2013 …. A decline of 35% 2013 (e) yard capacity still higher than the pre boom capacity of 2006 24
Slide 25: Global Fleet Supply -Offshore
Global Fleet Supply -Offshore ¾ ~ Half of the world offshore vessel fleet is more than 22 years ¾ Average age of existing jackup rig fleet is about 24 years (Nos) Jackup Rigs AHTSVs PSV/Supply Current Fleet 592 2,960 1,998 Orderbook 92 199 392 % of O/B to current fleet 15% 7% 19% As of May’13 Source
Slide 26: THANK YOU
THANK YOU visit us at www.greatship.com 26
The Great Eastern Shipping — Investor Presentation (June 2013) on 6ix