Great Eastern Shipping Co. Ltd. · NSE:GESHIP
Great Eastern Shipping — The Great Eastern Shipping — Q1 FY2022 Earnings Presentation
37 slides from Great Eastern Shipping's earnings presentation, Jul 29, 2021
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 Q1FY22
FINANCIAL YEAR Q1FY22 29 July 2021
Slide 4: Reported Financial Highlights
REPORTED FINANCIAL HIGHLIGHTS GE Shipping Q1FY22 consolidated Net Profit at Rs. 12 Crores Standalone Key Figures Consolidated Q1FY22 Q1FY21 (Amount in Rs. Crs) Q1FY22 Q1FY21 Income Statement 679 957 Revenue (including other income) 816 1,119 268 635 EBITDA (including other income) 259 712 99 465 Net
Slide 5: Normalized Financial Highlights
NORMALIZED FINANCIAL HIGHLIGHTS GE Shipping Q1FY22 consolidated Net Profit at Rs. 85 Crores Standalone Key Figures Consolidated Q1FY22 Q1FY21 (Amount in Rs. Crs) Q1FY22 Q1FY21 Income Statement 679 957 Revenue (including other income) 816 1,119 288 593 EBITDA (including other income) 307 672 134 422
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 Q1FY22 Q1FY21 Q1FY22 Q1FY21 Key financial figures 8.70% 31.93% *Return on Equity (ROE) (%) 4.38% 24.12% 6.50% 19.09% *Return on Capital Employed (ROCE) (%) 4.01% 14.66% 0.64 0.76 Gross Debt/Equity (x) 0.68 0.80 0.18 0.24 Net Debt/Eq
Slide 8: Performance Review
PERFORMANCE REVIEW Break up of Revenue days (Shipping) Revenue Days Q1 FY22 Q1 FY21 Owned Tonnage 3,990 4,018 Inchartered Tonnage 16 - Total Revenue Days 4,006 4,018 Total Owned Tonnage (mn.dwt) 3.68 3.70 Break up of Revenue days (Offshore) Revenue Days Q1 FY22 Q1 FY21 Offshore Logistics 1,512 1,626
Slide 9: 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 13% Product Carriers 15% LPG Carriers 71% Rs 454 Cr Dry Bulk 28% Category-wise coverage of operating days (Offshore) ---
Slide 10: GESCO Standalone Debt Repayment Schedule
GESCO STANDALONE DEBT REPAYMENT SCHEDULE (NEXT 5 YEARS) GESCO Standalone (USD mn) 100 600 540 90 81 86 79 500 80 67 USD Million 70 400 USD Million 60 50 300 40 31 30 200 20 100 10 0 0 Jun-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 11: Fleet Profile
FLEET PROFILE SHIPPING Fleet (29th July 21) Committed Fleet DWT (FY21) No: Avg Age Capex/Sale Crude Carriers 1,164,215 9 13.87 Product Carriers 1,092,465 18 13.38 NIL Gas Carriers 212,260 5 16.77 Dry Bulk Carriers 1,210,805 14 8.30 Total 3,679,745 46 12.06 OFFSHORE Fleet Number of Units Average Age
Slide 12: Shipping Market
The Great Eastern Shipping Co. Ltd. SHIPPING MARKET
Slide 13: Tanker Market
TANKER MARKET
Slide 14: Crude and Product Tankers
Crude and Product Tankers Avg. Suezmax Earnings ($/day) Avg. MR Earnings ($/day) 100,000 40,000 80,000 35,000 30,000 60,000 25,000 20,000 40,000 15,000 10,000 20,000 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 Feb Mar FY21 FY22 FY21 FY22 $/day FY
Slide 15: Crude and Product Tankers
Crude and Product Tankers • Refinery Runs and Crude Trade remain 5% and 10% below pre-covid levels • OPEC+ has held back crude supply in order to maintain a higher price • While floating storage yet remains above long term levels, not much was released during the quarter, however, significant supply
Slide 16: Dry Bulk Market
DRY BULK MARKET
Slide 17: Dry Bulk
Dry Bulk Avg. Baltic 5TC Earnings ($/day) 40,000 35,000 Spot Rates have reached decadal highs 30,000 25,000 Rates have almost doubled over the last 6 20,000 months 15,000 10,000 $/day FY21 FY22 % change 5,000 Q1 9,598 31,280 226% 0 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar FY21 FY22 17 Sources
Slide 18: Dry Bulk
Dry Bulk • Trade growth of 2.9% yoy in H1 Cal 21 • Demand for housing and other goods have driven the need for a variety of commodities (minor bulks) • Certain commodities which are usually transported on containers have switched to dry bulk vessels • Port Congestion at the highest level since 2014
Slide 19: LPG Market
LPG MARKET
Slide 20: LPG
LPG Avg. VLGC Earnings ($/day) 120,000 100,000 Spot rates have been volatile, 80,000 ending the quarter on a weak note 60,000 40,000 $/day FY21 FY22 % change 20,000 Q1 33,007 35,655 8% 0 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar FY21 FY22 20 Sources: Industry Reports
Slide 21: LPG
LPG • Congestion at Ports have eased • VLGC trade was flat during the quarter • At the end of the Quarter, US LPG exports (a major source of tonne mile demand) suffered as local demand increased and inventories were below 5 year averages 21 Sources: Industry Reports
Slide 22: Fleet Supply
Fleet Supply
Slide 23: One of the Lowest Order Book to Fleet Ratios
One of the Lowest Order Book to Fleet Ratios While ordering is picking up for Tankers Lowest Since 2013 Orderbook as % of Fleet 10% 9% 8.60% Lowest Since January 1996 8% Lowest Since January 7% 6.60% 1996 6% 5.60% 5% 4% 3% 2% 1% 0% Crude Tankers Product Tankers Dry Bulk Note : Data does not extend b
Slide 24: Asset Price Movement
ASSET PRICE MOVEMENT 24
Slide 25: Asset Price Movement (Indexed)
80 85 90 95 100 105 110 115 105 115 125 135 145 155 95 Jul-16 Jul-16 Oct-16 Oct-16 Jan-17 Jan-17 Apr-17 Apr-17 Jul-17 Jul-17 Oct-17 Oct-17 Jan-18 Jan-18 Sources: Industry Reports Apr-18 Apr-18 Jul-18 Jul-18 Oct-18 Oct-18 Jan-19 Jan-19 Over the Last 5 Years Suezmax Capesize Apr-19 Apr-19 Jul-19 Jul-1
Slide 26: Scrapping
SCRAPPING Fleet Vessel (mn Dwt) Scrapping (% of beginning world fleet) Category Jul 21 YTDCY21 CY2020 CY2019 CY2018 CY2017 CY2016 CY2015 CY2014 Crude 436.00 0.79% 0.55% 0.55% 4.39% 2.43% 0.39% 0.38% 1.75% Product 175.70 1.11% 0.57% 0.60% 1.72% 1.22% 0.54% 0.62% 1.10% Dry Bulk 929.31 0.51% 1.74% 0.93
Slide 27: Greatship (India) Limited
Greatship (India) Limited (a 100% subsidiary)
Slide 28: Fleet Supply: Increasing number of Cold Stacked Rigs
Fleet Supply Increasing number of Cold Stacked Rigs Number Jackup Rigs PSVs + AHTSVs Current Fleet 504 3388 Orderbook 34 161 O/B to current fleet 6.7% 4.7% Total Scrapping since January 2016 (nos.) 125 445 No. of Vessels/Rigs more than 20/30 years old 39% 19% (as %age of fleet) Cold Stacked more tha
Slide 29: Market Trends: Utilisation
Market Trends: Utilisation Jack up utilisation: gradual improvement 450 85 80 400 75 350 70 300 65 60 250 55 200 50 Under Contract Total Utilisation 29
Slide 30: Repricing
Repricing Vessels Rigs 7 4 3 2 1 1 1 1 1 1 0 0 0 0 H1 FY22 H2 FY22 H1 FY23 H2 FY23 H1 FY24 H2 FY24 H1 FY25 30
Slide 31: Greatship Debt Repayment Schedule
GREATSHIP DEBT REPAYMENT SCHEDULE (NEXT 5 YEARS) GIL (USD Mn) 120 200 97 180 100 160 174 140 USD Million 80 USD Million 120 60 100 80 40 36 25 60 20 15 40 20 - - Jun-21 Mar-22 Mar-23 Mar-24 Mar-25 Repayments Loan O/S (RHS) 31
Slide 32: 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 33: 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 33
Slide 34: Financials
A = ¥ The Great Eastern \ Shipping Co. Ltd. FINANCIALS
Slide 35: 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 risen 30 mn USD 5 Year Cycle Net Debt Expansion 400 Phase Net Debt Reduction 0.60 Phase 350 0.50 300 USD Million 0.40 250 200 0.30 150 0.20 100 0.10 50 - - FY2014 FY2015 FY2016 FY2017 FY2018 F
Slide 36: Share Price to Consolidated NAV
Share Price to Consolidated NAV Share Price to Consolidated NAV 700 1 0.9 600 0.8 INR/Share 500 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 Q1FY22 Consolidated NAV Standalone Share Price/Consol. NAV (RHS) * For Q1FY22 we have taken share price as on 28th July 2021 3
Slide 37: Thank You
THANK YOU visit us at www.greatship.com 37
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