Pacific Basin Shipping Limited · HKEX:2343
Pacific Basin Shipping — Investor Day (May 2013)
27 slides from Pacific Basin Shipping's investor day presentation, May 3, 2013
Slide 1: Pacific Basin 2013 Analyst Day
Pacific Basin 1. Our Dry Bulk Business Model 2. Dry Bulk Market ie 3. More on Accounting 4 " Discontinued Operations = Towage Online Reporting ENTE SH S 3 May 2013
Slide 2: 2013 Analyst Day
> 2013 Analyst Day Pacific Basin 3 May, HK
Slide 3: How we create value
How we create value Our large, flexible Fleet Our strong corporate profile Large scale, high-quality dry bulk fleet Founded in 1987 Interchangeable nature provides flexibility Strong balance sheet enhancing our to customers and ability to optimise profile as a preferred counterparty for sche
Slide 4: PB Dry Bulk Markets
PB Dry Bulk Markets Pacific Basin Business By Cargo Volumes (2012) Asia North South Australia & New Europe India/M.E Africa 23% America America 4% Zealand 13% 3% 23% 19% 17% Atlantic : 46% Pacific : 54% Locations of PB Offices Note: Top 10 trading regions; Darker shades denote heavier trading Analys
Slide 5: 2013 Analyst Day
> 2013 Analyst Day Pacific Basin 3 May, HK
Slide 6: Drybulk market Update – May 2013
Drybulk market Update – May 2013 Baltic Dry Index Off scale 8000 7000 6000 Baltic Dry Index is at its 5000 lowest level since 1986 4000 3000 Min/Max Average 2000 1000 YTD 2013 = 815 0 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 Analyst Day 6
Slide 7: Spot rates for handysize and supramax
Spot rates for handysize and supramax US$ / day 35,000 Supramax 52k Handysize 28k 30,000 25,000 20,000 15,000 10,000 High / Low range is 5,000 compressed Floor level is reached 0 2009 2010 2011 2012 2013 Analyst Day 7
Slide 8: Recent development of our markets
Recent development of our markets 14,000 US$ per day Supramax BSI 13,000 US$/day 15,000 12,000 Supramax 52k 11,000 2012 10,000 Handysize 28k 2013 9,000 12,500 8,000 7,000 6,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 10,000 11,000 Handysize BHSI US$/day 10,000 9,000 2012 8,000 2013 7,500 7,0
Slide 9: Recent development of handysize pricing
Recent development of handysize pricing +24% US$ mill. 100 99 23.00 Yen / US$ Handysize pricing 95 exchange rate last 12 months 22.00 90 Newbuilding prices 89 21.00 21.00 85 81 80 20.00 79 79 75 19.00 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Has a lot to do 18.00 17.90 with US$/Yen 17.00 16.00 Clarkson 32
Slide 10: Delivery shortfall against o'book schedule
Delivery shortfall against o’book schedule Mill dwt / quarter 60 2009: 2010: 2011: 2012: 2013+: Orderbook as of start: 40% sh- 37% sh- 29% sh- 29% sh- 31% sh- 50 2013 fall fall fall fall fall 2012 Quarterly (est.) 2011 deliveries 40 2010 2009 30 20 If we are right about 70M dwt deliveries in 2013, a
Slide 11: Drybulk yard deliveries slowing down
Drybulk yard deliveries slowing down Mill dwt / quarter 35 34 Cape New Year Pmax effect 30 30 Hmax New Year 27 Handy effect 14 25 25 Small 24 New Year 23 12 21 21 effect 10 20 20 19 19 We expect deliveries in 20 11 10 the last three quarters of 9 10 9 7 15 7 2013 to average 17M dwt 15 9 8 10 or tota
Slide 12: A noticeable change in fleet growth
A noticeable change in fleet growth Fleet mill dwt 750 740 730 720 710 700 690 So what does this mean? 680 670 660 650 640 630 620 610 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Analyst Day 12
Slide 13: Significantly reduced BC Net Fleet Growth
Significantly reduced BC Net Fleet Growth 20.0% This is why the 17.5% Long term view on market bust drybulk fleet growth (annualised % of fleet) 15.0% 12.5% 8% difference in fleet growth from boom to bust 10.0% 7.5% 5.0% This is why the 2.5% market boomed 0.0% Low growth around year end and -2.5% pi
Slide 14: Drybulk fleet expansion by sector
Drybulk fleet expansion by sector 150 Index Jan. 2011 = 100 145 144 Pmax 65-120k 140 Cape 120k+ 138 Fleet growth for the Hmax 40-65k 135 larger vessel will Handy 25-40k 130 131 decelerate during 2013 129 125 125 123 120 117 115 116 113 The handysize fleet 110 111 111 will remain flat or Dec 2013 Apr
Slide 15: Chinese imports of drybulk cargoes
Chinese imports of drybulk cargoes Change in imports 35% 2012 vs 2011 30% 30% 3mos 2013 vs 3mos 2012 27% 25% 20% 15% 12% 10% 10% 8% 8% 7% 5% 0% 0% TOTAL 8 minor bulks Coal Iron ore 8 minor bulks: logs, soybean, nickel ore, copper conc., fertilizer, wheat, manganese ore Analyst Day 15
Slide 16: Strong Growth for Chinese Major Bulk Import
Strong Growth for Chinese Major Bulk Import 35 New record high New record high 70 in Dec at 32Mt in Dec at 70Mt 30 60 Chinese seaborne coal import 25 (mill tonnes per month 50 on 365/12 days basis) 20 40 YTD avg is same as 2012 15 30 10 20 Chinese iron ore import 10 (mill tonnes per month 5 Annual o
Slide 17: Strong Growth for Chinese Minor Bulks
Strong Growth for Chinese Minor Bulks 16 4.5 2011 YTD imports in 2013 2010 Imports in 2012 are 25% greater were 10% greater YTD is up 6% compared to 2012 14 than in 2013 2011 than in 2011 2012 and March is second 14 highest ever 2013 2012 4.0 12 3.9 12 2013 12 12 11 11 11 Imports in 2012 were 9% bel
Slide 18: Supply / Demand development since 2009
Supply / Demand development since 2009 YoY percent change 20 Demand 16 Supply 15 14 14 14 Balance 10 10 7 7 7 7 We expect no 5 change in the 1 balance for cal 2013 0 0 0 but 2h is likely to be better than 1h -5 -6 -6 -7 Demand: RS Platou including -10 forecast for 2013 Supply: Change in avg fleet si
Slide 19: More on accounting: Discontinued Operations
> 2013 Analyst Day Pacific Basin 3 May, HK More on accounting 50e * Discontinued Operations
Slide 20: Discontinued Operations Accounting - RoRo
Discontinued Operations Accounting - RoRo 6 September 2012, announced sale of all six RoRo vessels for €153 million Buyer is obliged to purchase at least one vessel by the end of each of the six month periods ending 30 June 2013 through 31 December 2015 Buyer to bareboat charter vessels at agr
Slide 21: Segment Reporting
Segment Reporting 2 Core Segments: RoRo moves to Dry Bulk Unallocated Towage Analyst Day
Slide 22: Towage Performance
Towage Performance As at 31 Dec 2012 Operating performance US$55.3m 2012: Direct overheads US$(17.6)m ↑ Offshore towage and Segment net profit US$37.7m support activity in Operating cash flow US$52.1m Australasia Growth in Harbour 17.0% US$m Towage Markets 70 60 50 7.0% 55.3 ? Salvage support
Slide 23: Increased OMSA Shareholding
Increased OMSA Shareholding OSMA PB Sea-Tow OMS (Skilled) Ezion 33.3%50% 33.3%50% 50% shares of OSMA 50% shares of OSMA Ezion agreed to sell its stake on 28 February 2013 Aggregate consideration of AUD35m (each party: AUD17.5) Financial Effects of the Acquisition by PB Sea-Tow: Recognised in
Slide 24: 2012 Online Report
> 2013 Analyst Day a . 3 May, HK Pacific Basin 2012 Online Report www.pacificbasin.com/ar2012
Slide 25: Advantages of our Online Report
4 Advantages of our Online Report Downloadable tables of financial data & other information Analyst Day 25
Slide 26: Advantages of our Online Report
4 Advantages of our Online Report Hyperlinks to key supporting figures, breakdown analyses and further explanations Linkage facilities logical flow and easy access within integrated report Environmentally friendly medium Analyst Day 26
Slide 27: Feedback
Feedback We appreciate your feedback http://pbconnect.pacificbasin.com/annreportsurvey12/ Analyst Day 27