Precious Shipping Public Co., Ltd. · SET:PSL
Precious Shipping Public — FY2021 Earnings Presentation
57 slides from Precious Shipping Public's earnings presentation, Feb 15, 2022
Slide 1: Precious Shipping Public Company Limited Analyst Presentation
Precious Shipping Public Company Limited Analyst Presentation 15 February 2022
Slide 2: Evolution Of The Baltic Dry Index Since 2016
Evolution Of The Baltic Dry Index Since 2016 6,000 13 Year high 5,500 5,650 – 7 Oct 2021 5,000 4,500 4,000 3,500 3,000 5 Year high 2,500 2,518 – 4 Sep 2019 2,000 2,217 – 24 Dec 2021 1,500 1,000 500 0 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 Source: C
Slide 3: Historical Growth In Seaborne Drybulk Trade – Billion Tonne-Miles
Historical Growth In Seaborne Drybulk Trade – Billion Tonne-Miles Seaborne Drybulk Trade All Units In Billion Tonne-Miles 2016 2017 2018 2019 2020 2021E 2022F Iron Ore 7,936 8,190 8,188 8,028 8410 8,547 8,657 Coal (includes Lignite) 4,641 4,870 5,175 5,090 4,594 4,959 5,058 Grains (includes Soybeans
Slide 4: Historical Growth In Seaborne Minor Bulk Trade – Billion Tonne-Miles
Historical Growth In Seaborne Minor Bulk Trade – Billion Tonne-Miles Seaborne Minor Bulk Trade All Units In Billion Tonne-Miles 2016 2017 2018 2019 2020 2021E 2022F Steel Products 1,949 1,905 1,963 1,797 1,705 1,942 1,974 Forest Products 2,124 2,224 2,300 2,358 2,295 2,426 2,518 Other Minor Bulk 5,3
Slide 5: PSL Cargo Exposure: 2016 – 2021
PSL Cargo Exposure: 2016 – 2021 Bulk cargo in the aggregate amount of 12.3 MMT, 11.7 MMT, 12.7 MMT, 13.72 MMT, 12.4MMT, 12.64MMT was carried on PSL ships in 2016, 2017, 2018, 2019, 2020 & 2021, respectively. 3.5 3.0 2.5 MMT 2.0 1.5 1.0 0.5 0.0 Ore / Conc. Salt Scrap Steel Other cargoes Agri Prods Lo
Slide 6: Commodities Share by Different Dry Bulk Sectors
Commodities Share by Different Dry Bulk Sectors COMMODITIES Capesize Panamax Supramax Handysize Iron Ore 74% 9% 7% 2% Coal 21% 49% 22% 10% Grains 0% 28% 17% 22% Minor Bulk 4% 13% 55% 65% Others 1% 1% - 1% 80% 74% 70% 65% 60% 55% 49% 50% 40% 28% 30% 21% 22% 22% 20% 17% 13% 9% 10% 10% 7% 4% 2% 0% 1% 1
Slide 7: Confirmed Orders as of start of 2022 to December 2024
Confirmed Orders as of start of 2022 (MDWT) to 31 December 2024 20.00 Total Confirmed Orders Until 2024 Year MDWT % of Fleet 2022 29.25 3.11% 16.00 2023 24.80 2.64% 2024 10.60 1.13% Total Orderbook 64.66 6.88% Geared 19.00 5.76% 11.59 12.00 Gearless 45.66 7.50% 10.27 8.14 8.43 8.00 7.52 5.76 4.80 4.
Slide 8: Dry Bulk Fleet as of start of 2022
Dry Bulk Fleet as of start of 2022 Fleet Overview Ship Type DWT Range (MT) Ships Av Age (yrs) Total DWT (m MT) Av DWT (MT) % of DWT Handysize 10,000 – 39,999 4,129 12.87 111.86 27,090 11.90% Supra/Ultramax 40,000 – 69,999 3,879 10.85 218.25 56,264 23.20% Panamax 70,000 – 89,999 2,540 10.77 201.93 79
Slide 9: Dry Bulk Supply Side Forecast Changes
Dry Bulk Supply Side Forecast Changes Based on 2021 data (annualized), PSL projects net fleet growth for 2022 at 2.11%. 2021 Net Fleet Growth = 32.16 MDWT, +3.55% FY 2022 Net Fleet Growth = 19.79 MDWT, +2.11% 29.25 958.94 38.44 939.15 projected 906.99 projected 939.15 deliveries deliveries Slippage
Slide 10: Putting Orderbook Figures In Context – The Overall Dry bulk Fleet
Putting Orderbook Figures In Context – The Overall Dry bulk Fleet 1000 939 100% Drybulk Fleet 907 900 All Figures In M DWT Unless 873 90% Otherwise Indicated (31 Dec 2021) 841 78.14% 814 Total Fleet 939.15 772 790 800 754 80% Total Orderbook to end 2024 64.66 719 700 Orderbook % Fleet 6.88% 677 70%
Slide 11: Putting Orderbook Figures In Context – Geared Vessels Only
Putting Orderbook Figures In Context – Geared Vessels Only 80% 80% 60% 60% 40% 17.47% 40% 13.76% 20% 20% 0% 0% 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 Orderbook % of Fleet (Handy) Orderbook % of Fleet (Supras/Ultras) % of Fleet Over 20y (Supras/Ultras) % of Fleet Over 20y (Handy) % 20
Slide 12: PSL’s Strategy
PSL’s Strategy Precious Shipping PCL 12
Slide 13: Current and Rolling 4 Year Forward Book
Current and Rolling 4 Year Forward Book Contract Total USD 37.49 m USD 53.98 m USD 29.03 m USD 28.03 m USD 27.95 m value USD 176.48 m 20,000 18,385 100% 16,272 15,560 15,316 15,316 16,000 80% 12,000 13,140 13,140 13,140 13,176 13,140 60% 8,000 40% 22% 18% 4,000 14% 14% 14% 20% 2,304 2,936 1,866 1,83
Slide 14: Difference Between the 2003/2009 Super Cycle and Today
Difference Between the 2003/2009 Super Cycle and Today Precious Shipping PCL 14
Slide 15: Differences in 2003-2009, 2010-2020, 2021, and the future
Differences in 2003-2009, 2010-2020, 2021, and the future Daily average Time Charter rate 2003 – 2009 2010 – 2020 2021 Capesize 67,101* 14,924*** 33,333** Panamax 32,793* 10,965*** 27,898** Supramax 28,013^^ 10,765*** 26,768** Handysize 18,753^^ 8,789*** 25,702** Demand Billion Ton-miles per year +5
Slide 16: Difference Between start, end of 2021, start of 2022, and beyond
Difference Between start, end of 2021, start of 2022, and beyond Period Date Capesize Panamax Supramax Handysize Start of year 04-Jan-2021 16,656 12,272 11,305 12,040 End of Q1 31-Mar-2021 18,327 23,188 20,578 20,999 Start of Q2 01-Apr-2021 19,853 22,354 20,241 20,461 End of Q2 30-Jun-2021 32,604 37
Slide 17: Capes, Panamax, Supras, Handy – Top to bottom and back up!
Capes, Panamax, Supras, Handy – Top to bottom and back up! Capesize % Panamax % Supramax % Handysize % Date Date Date Date TC Rate Change TC Rate Change TC Rate Change TC rate Change 07-Oct-21 86,953 25-Oct-21 38,952 21-Oct-21 39,860 25-Oct-21 37,109 26-Jan-22 5,826 -93% 02-Feb-22 15,885 -59% 02-Feb
Slide 18: Current Market Situation
Current Market Situation Precious Shipping PCL 18
Slide 19: TC Rate
Average Quarterly 2021 Benchmark Time Charter Rates versus Ten-Year Average Avg 10 Avg 10 Avg 10 Avg 10 Q1 ‘21 Change Q2 ‘21 Change Q3 ‘21 Change Q4 ‘21 Change Vessel type Yr Q1 Yr Q2 Yr Q3 Yr Q4 In USD in % In USD in % In USD in % In USD in % In USD In USD In USD In USD Capesize (180K) 8,428 17,126
Slide 20: TC Rate
Average Q1- Q4 Benchmark Time Charter Rates versus Ten-Year Averages Average of Average of Average of Average of Period %Change %Change %Change %Change Capesize Panamax Supramax Handysize Qtr1 8,428 - 8,477 - 8,626 - 7,436 - Qtr2 9,474 12% 8,679 2% 9,079 5% 7,684 3% Qtr3 16,219 71% 10,230 18% 10,247
Slide 21: DWT of Dry Bulk ships ordered in 2021 versus 2020, and 2019
DWT of Dry Bulk ships ordered in 2021 versus 2020, and 2019 Change Change Change Change Change Change Change Change Avg. Geared Gearless Year 2021 vs. 2021 vs. MDWT 2021 vs. 2021 vs. 2021 vs. 2021 vs. 2021 vs. 2021 vs. BDI MDWT MDWT 2020 2019 2020 2019 2020 2019 2020 2019 2019 1,353 - - 25.86 - - 6.
Slide 22: Market Segmentation Q4 2021
Market Segmentation Q4 2021 Index PSL Avg Q4 2021 Market PSL Performance Index PSL Avg PSL Ship Index Speed/Con Speed/Con Average Av. TC Av. TC vs Ship DWT Ship DWT Number (1) (1) Index Rate (2) Rate Benchmark Laden: Laden: 15 Handysize 12K/18T 12K/20T BHSI & USD USD 38,000 30,496* 1,743 -20.11% (Ha
Slide 23: Reasons for our Q4 underperformance and outperformance
2 Reasons for our Q4 underperformance and 1 for outperformance 1. Our ships are ‘different’ from the index ships. On an apples-to-apples comparison, our Handy ships are ranked 25% below and the Supras are 10% below the index ship TC rates. 2. If we see the way the market has gone down, virtually in
Slide 24: Reasons for Q4 Performance
Reasons for Q4 Performance 1. PSL ship at discount compared to Index ship 2. If Vessels are fixed on 1st day of the quarter. Performance Q4 Avg. Index PSL Ship at Index rate Index TC rate Q4 Avg Index Vessel Vessel VS rate Discount after discount 01.10.21 TC Benchmark Handysize 31,370 -25%* 23,528 H
Slide 25: PSL True Performance versus Benchmark in Q4 2021
PSL True Performance versus Benchmark in Q4 2021 PSL long Q4 average PSL average PSL ship Difference if term time PSL true PSL true Index time time charter difference vessel fixed charter time Type of {A*(C+D+E)} performance charter rate Rate in Q4 from Index on 1st day ships charter rate vessel = (
Slide 26: Market Segmentation 2021
Market Segmentation 2021 Index PSL Avg 2021 Market PSL Performance Index PSL Avg PSL Ship Index Speed/Con Speed/Con Average Av. TC Av. TC vs Ship DWT Ship DWT Number (1) (1) Index Rate (2) Rate Benchmark Laden: Laden: 15 Handysize 12K/18T 12K/20T BHSI & USD USD 38,000 30,496* 1,428 -26.84% (Handysiz
Slide 27: Main Reasons for our 2021 underperformance
2 Main Reasons for our 2021 underperformance 1. Our ships are ‘different’ from the index ships. On an apples-to-apples comparison, our Handy ships are ranked 25% below and the Supras are 10% below the index ship TC rates. 2. The 7 Handysize ships, out of our fleet of 19, on long term charter are fix
Slide 28: Reasons for 2021 Underperformance
Reasons for 2021 Underperformance 1. PSL ship at discount compared to Index ship Vessel 2021 Average Index rate PSL Ship at Discount Index rate after discount Handysize 25,702 -25%* 19,277 Supra 26,768 -10%* 24,091 2. Long Term Charter Period vessel effect Rate PSL Long term PSL Actual Adjusted PSL
Slide 29: PSL True Performance versus Benchmark in 2021
PSL True Performance versus Benchmark in 2021 PSL long 2021 Average PSL average PSL ship term time PSL true PSL true Index time time charter difference charter Type of {A*(C+D)} time charter performance charter rate in Rate in 2021 from Index ships vessel = (E) in $ rate in $ versus Index ship in $
Slide 30: Port Congestion in the Dry Bulk fleet
Port Congestion in the Dry Bulk fleet Total Bulkcarrier Port Congestion as % of Bulkcarrier Fleet • Total Port congestion stood at 4.6% of 7.0% 6.6% total bulk carrier fleet in 2021. 6.0% 5.2% • This data is based on reports of vessels 5.0% 4.2% 4.2% 4.2% 4.6% waiting at a selected number of ports 3
Slide 31: Key Industry Takeaways
Key Industry Takeaways The Good News in 2021 Supply/demand balance was reached in 2021. The BDI reached 5,650 on 7th October, from 1,374 points at the start of 2021! Material improvement in dry bulk demand and rates took place during 2021 and is likely to last during 2022/2025 but with extreme
Slide 32: COVID-19’s Impact
COVID-19’s Impact Precious Shipping PCL 32
Slide 33: Impact On Shipping – Container Lines
Impact On Shipping – Container Lines Reports suggest container shipping may have an annual operating profit of about $190bn in 2021 and about $200bn in 2022! Maersk’s full-year 2021 EBITDA was $24bn, the highest ever recorded for any shipping company! ONE has projected its full-year net profit
Slide 34: Impact On Shipping – Dry bulk
Impact On Shipping – Dry bulk Freight rates moved upwards and continued throughout 2021. BDI in 2021 has been the highest in the last decade indicating a V shaped recovery! 6,000 13 year high 5,650– 7 Oct 2021 5,000 4,000 5 Year high 2,518 – 4 Sep 2019 3,000 2,000 2,217– 24 Dec 2021 1,000 0 Jan-
Slide 35: New Regulations – EEXI and CII
New Regulations – EEXI and CII Precious Shipping PCL 35
Slide 36: Energy Efficiency Existing Ship Index or EEXI
Energy Efficiency Existing Ship Index or EEXI 1. What is EEXI? It is a design efficiency index and requires a one-time technical adjustment for non-compliant existing vessels. It describes the CO2 emissions per cargo ton-mile, by determining the standardized CO2 emissions related to installed engine
Slide 37: Carbon Intensity Indicator or CII
Carbon Intensity Indicator or CII 1. What is CII? It is an operational efficiency index, which aims to ensure continuous improvement in a vessel's emissions. The CII framework regulates the carbon emissions per unit of ‘transport work’ or the operating mileage each year. CII is expressed in grams of
Slide 38: Financials
Financials Precious Shipping PCL 38
Slide 39: Highlights
Highlights PSL has entered new long-term charter contracts for 4 vessels at levels linked to the underlying index for vessels of that size. The variability of rate under this type of time charter allows us to fully capture the upside in the market, although it exposes us to the risk of a fall in f
Slide 40: Financial Profile
Financial Profile 2021 2020 2019 2018 2017 2016 Cash & Cash Equivalents $73.9m $36.6m $39.2m $56.8m $56.7m $74.7m Total Assets $704.1m $712.3m $831.1m $857.9m $882.3m $901.9m Gross Debt $245.9m $318.3m $391.7m $432.8m $469.4m $482.1m Net Debt $172.0m $281.7m $352.5m $376.0m $412.6m $407.4m Equity $4
Slide 41: Operating Expenses
Operating Expenses These are the fixed costs required to run a ship and are evenly spread over 365 days. Our operating costs per ship per day for 2020 and 2021 were USD 4,705 and 5,090 respectively. Breakdown of costs: 2020 2021 Particulars USD % USD % Crew costs 2,302 48.93% 2,322 45.62% Mannin
Slide 42: Operating Expenses Comparison
Operating Expenses Comparison OPEX Comparison with Industry compiled by BDO LLP OPEX excluding dry dock and special survey cost Industry OPEX for 2021 will be published in October 2022 For Years 2016 2017 2018 2019 2020 2021 Particulars Industry PSL Industry PSL Industry PSL Industry PSL Indus
Slide 43: Financial Highlights – Income Statement
Financial Highlights – Income Statement Particulars 2021 2020 Q4-2021* Q3-2021 Q4-2020* Total Revenues - USD Million 272.09 119.85 84.47 80.53 34.30 Gross Profit - USD Million 200.54 54.98 69.19 64.36 18.04 Net Profit (loss) - USD Million 136.96 (40.80) 53.01 45.40 0.90 Gain (loss) on derivatives -
Slide 44: Financial Highlights – Financial Position
Financial Highlights – Financial Position Particulars 31-Dec-2021 31-Dec-2020 Cash & Cash Equivalents - USD Million 73.85 36.64 Total Current Assets - USD Million 84.07 64.52 Ships Net - USD Million 605.04 634.77 Fixed Assets Net - USD Million 606.97 636.70 Total Assets - USD Million 704.09 712.35 T
Slide 45: Average OPEX / TC Rates
Average OPEX / TC Rates Year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Avg Age 16.0 16.2 14.2 14.6 15.6 15.6 15.7 15.8 16.6 17.4 19.0 20.0 19.6 20.6 17.1 15.4 14.2 11.4 11.4 10.5 9.8 5.8 6.3 7.3 8.3 9.3 10.3
Slide 46: Debt & Debt / Equity Ratio
Debt & Debt / Equity Ratio 4.0 500 3.8 482 469 433 3.2 400 410 3.0 392 2.9 361 Debt (Million USD) 2.5 2.4 2.4 300 318 296 Ratio 283 257 246 240 227 226 222 1.6 200 211 1.5 185 1.3 1.3 1.2 1.2 163 1.1 1.1 157 1.0 0.9 133 0.9 0.9 128 0.8 0.8 100 110 106 0.6 0.6 0.6 86 0.5 0.3 0.3 21 0.3 44 0 0.0 0.0 0
Slide 47: Debt / EBITDA
Debt / EBITDA 24 20 20.3 16.9 16 Ratio 12 8 8.3 8.5 8.3 8.4 6.5 6.4 6.2 6.1 5.9 4.7 4.3 4.8 4 3.6 3.4 3.3 2.5 1.9 1.5 1.3 1.0 0 0.4 0.0 0.0 0.0 0.3 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Year Debt/EBITDA
Slide 48: Net Profit / Cash Profit
Net Profit / Cash Profit 200 196 167 160 163 163 154 145 148 137 135 120 125 110 102 93 88 Million USD 80 49 46 44 40 37 36 42 39 31 36 25 28 25 24 27 29 27 23 17 21 19 18 17 14 14 7 6 7 0 1 0 4 -6 -3 -3 -2 -4 -7 -15 -40 -41 -69 -80 -76 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 200
Slide 49: Dividends
Dividends 2.1 2.0 420% 1.8 360% 350% 1.6 1.5 1.5 Dividends as % of EPS 1.5 300% 286% 1.2 Dividends Baht 1.2 240% 1.0 0.9 0.8 0.8 0.8 0.8 0.8 180% 0.6 0.7 0.6 0.5 0.4 120% 0.4 70% 80% 80% 0.3 0.3 78% 0.3 0.3 56% 59% 61% 0.2 0.2 0.2 61% 60% 42% 0.1 0.1 28% 25% 0.0 0% 2007* 2003 2004 2005 2006 2008 200
Slide 50: PSL and ESG
PSL and ESG Precious Shipping PCL 50
Slide 51: PSL’s ESG Footprint
PSL’s ESG Footprint Environment: PSL is always reducing its environmental impact via new technologies and innovations. We replaced older and less fuel-efficient vessels between 2013 and 2017 with “eco-vessels” resulting in reduction of CO2 emissions. The PSL fleet's average gm CO2/ton*nm has reduc
Slide 52: Investor Relations & Awards
Investor Relations & Awards Precious Shipping PCL 52
Slide 53: Investor Relations Activities – Y2021
Investor Relations Activities – Y2021 The Company has joined many events for press/analyst briefings, which are attended personally by the Managing Director, the Executive Directors and/or IR team. Some of the major events in which the Company participated in 2021 are enumerated herein as under: Ana
Slide 54: Shareholder’s returns
Shareholder’s returns Precious Shipping PCL 54
Slide 55: Total Return to Shareholders: 1993 to February 2022
Total Return to Shareholders: 1993 to 9 February 2022 600 75 496 512 520 500 500 458 480 450 423.2 60 440440 440 440440 440 351.2 300 239.2 45 Baht 150 149.2 30 67 72 60 4 6 9 6 25 6 82.2 90 112 35 22 16 16 8 61 0 0 0 0 0 0 0 51 15 -85 -10 -45 -70 -85 -81 -75 -85 -76 -80 -150 0 Inflow/Outflow Net Ca
Slide 56: Final Food For Thought
Final Food For Thought As described in the Industry section – Demand is growing faster than Supply growth, and this should be good for the next couple of years. Minor bulks, cargoes that PSL carries, are growing faster than other cargoes and certainly faster than supply growth in the geared sector
Slide 57: Thank You !
Thank You ! Precious Shipping Public Company Limited Website: www.preciousshipping.com | E-mail: psl@preciousshipping.com, ir@preciousshipping.com
Precious Shipping Public Company — FY2021 Earnings Presentation on 6ix