Great Eastern Shipping Co. Ltd. · NSE:GESHIP
Great Eastern Shipping — The Great Eastern Shipping Company — Q2 FY25 Earnings Presentation
44 slides from Great Eastern Shipping's earnings presentation, Nov 7, 2024
Slide 1: Exchange filing cover letter
Our Ref.: S/2024/JMT November 07, 2024 BSE Limited National Stock Exchange of India Limited 1st Floor, Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Plot No. C/1, Dalal Street, Bandra Kurla Complex, Bandra (East), Mumbai – 400 001 Mumbai – 400 051 BSE Scrip code: 500620 Trading Symbol - GESH
Slide 2: Q2 FY25 Earnings Presentation
Q2 FY25 Earnings Presentation 11 NOV 2024
Slide 3: Disclaimer
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, pros
Slide 4: Q2FY25 Highlights
Q2FY25 HIGHLIGHTS • Q2FY25: Net profits of INR 576 Cr on a consolidated basis • Our consolidated NAV is INR 1,463/share as on 30th Sep 2024 • Declared 2nd Interim dividend (11th consecutive quarterly) of INR 7.20/Share for Q2FY2025. GE Shipping – Q2FY25 Results 3
Slide 5: Reported Highlights
REPORTED HIGHLIGHTS St a n d a l on e C on s l i d a t e d Q2 Q2 H1 Q2 Q2 H1 • GE Shipping Q2FY25 Fig in INR Crores FY25 FY24 FY25 FY25 FY24 FY25 consolidated Net I n come St a t e me n t Profit at INR 576 Cr Revenue* 1,253 1,182 2,563 1,580 1,461 3,283 • Declared 2nd Interim EBITDA* 770 723 1,632 8
Slide 6: Normalised Financials
NORMALISED FINANCIALS o The impact of the exchange rate on foreign currency loans and current assets and liabilities, including cash and bank balances, has been removed o NCD & Currency Swap: o Funds raised through NCDs have been swapped into USD using INR-FCY swaps, thus creating synthetic fixed ra
Slide 7: Normalised Financial Highlights
NORMALISED FINANCIAL HIGHLIGHTS Standalone Conslidated • GE Shipping Q2FY25 Q2 Q2 H1 Q2 Q2 H1 consolidated Net Profit Fig in INR Crores FY25 FY24 FY25 FY25 FY24 FY25 at INR 623 Cr In come St at e me n t • Declared 2nd Interim Revenue* 1,253 1,182 2,563 1,580 1,461 3,283 EBITDA* 782 710 1,633 904 843
Slide 8: Normalised Financial Highlights
NORMALISED FINANCIAL HIGHLIGHTS Standalone Conslidated Q2 Q2 H1 Q2 Q2 H1 FY25 FY24 FY25 FY25 FY24 FY25 Ke y Financial Figure Return on Equity (ROE%)** 22% 24% 24% 19% 22% 22% Return on Capital Employed (ROCE%)** 18% 19% 20% 16% 17% 19% Gross Debt/Equity (x) 0.22 0.32 0.22 0.24 0.36 0.24 Net Debt/Equ
Slide 9: Normalised Financials – Key Ratios
NORMALISED FINANCIALS – KEY RATIOS Earnings per Share (INR/Share) Cash Profit per Share (INR/Share) Standalone Consolidated Standalone Consolidated 60 59.57 51.21 48.98 71.06 57.26 50 43.62 70.26 35.65 45.03 41.65 49.13 49.13 63.89 47.62 37.06 38.67 60.71 54.73 52.26 57.44 40 46.34 57.95 41.73 55.65
Slide 10: Consistent Dividend Payouts
CONSISTENT DIVIDEND PAYOUTS 40 36.3 35 30 28.8 25 20 16.2 15 11.5 13.5 15.0 11.0 10.0 10.1 9.9 9.0 8.0 9.0 9.0 10 8.0 7.5 8.1 6.5 6.5 7.2 3.1 5.4 4.0 8.0 3.3 4.0 4.0 5 2.4 2.3 3.0 2.8 2.3 2.0 0 2.0 1.5 Dividend Per Share (INR/Share) GE Shipping – Q2FY25 Results 9
Slide 11: Profit & Loss Statement – Industry Format
PROFIT & LOSS STATEMENT – INDUSTRY FORMAT Standalone Conslidated Q2 Q2 H1 Q2 Q2 H1 Figures in INR Crores FY25 FY24 FY25 FY25 FY24 FY25 Operating Revenue 1,004 930 2,149 1,348 1,184 2,845 Less: Direct Operating Expenses/Voyage Expenses 168 177 310 231 181 393 Time C har ter Equiv alent ( A) 836 753 1
Slide 12: Shareholding Pattern
SHAREHOLDING PATTERN FII/FPI 25% Promoters 30% Govt./FI/Corp 20% Public 25% 30-Sep-2024 GE Shipping – Q3 & 9MFY23 Results GE Shipping – Q2FY25 Results 11
Slide 13: Performance Review
PERFORMANCE REVIEW Breakup of Revenue Days (Shipping) Q2 Q2 Revenue Days FY25 FY24 Owned Tonnage 3,830 3,734 Inchartered Tonnage 0 35 Total Revenue Days 3,830 3,769 Total Owned Tonnage (mn.dwt) 3.36 3.28 Breakup of Revenue Days (Offshore) Q2 Q2 Revenue Days FY25 FY24 Offshore Logistics 1,407 1,448 D
Slide 14: Performance Review
PERFORMANCE REVIEW Avg TCYs in Various Categories Q2 Q1 QoQ Q2 YoY Avg (TCYs USD/Day) FY25 FY25 % FY24 % Crude Carriers 28,492 46,352 -39% 40,645 -30% Product Carriers 28,978 37,153 -22% 27,743 4% LPG Carriers 43,507 36,742 18% 31,100 40% Dry Bulk 16,686 17,976 -7% 11,720 42% GE Shipping – Q2FY25 Re
Slide 15: Changes in Standalone NAV (Y-O-Y)
CHANGES IN STANDALONE NAV (Y-O-Y) Changes in Standalone NAV INR/SHARE GE Shipping – Q2FY25 Results 14
Slide 16: Years Movement in Standalone NAV
5 YEARS MOVEMENT IN STANDALONE NAV Standalone NAV – Continues to touch new highs 1400 1184 1200 CAGR: 23% INR/SHARE 1000 800 600 374 400 200 0 FY19 FY20 FY21 FY22 FY23 FY24 Q2FY25 GE Shipping – Q2FY25 Results 15
Slide 17: Changes in Consolidated NAV (Y-O-Y)
CHANGES IN CONSOLIDATED NAV (Y-O-Y) Changes in Consolidated NAV 251 1463 -18 -32 1263 INR/SHARE GE Shipping – Q2FY25 Results 16
Slide 18: Revenue Coverage
REVENUE COVERAGE Coverage of Operating Days (Shipping) Category Q3FY25 Crude Carriers 54% Product Carriers 62% LPG Carriers 100% Dry Bulk 64% Revenue Days Q3FY25 Jack Up Rigs 74% AHTSV 82% MPSVV 14% PSV/ROVSV 98% GE Shipping – Q2FY25 Results 17
Slide 19: Standalone Debt Repayment Schedule
STANDALONE DEBT REPAYMENT SCHEDULE GESCO Standalone (USD mn) 80 74 74 350 71 70 300 60 296 250 50 41 200 40 36 150 30 100 20 10 50 0 0 Sep-24 Mar-25 Mar-26 Mar-27 Mar-28 Mar-29 Loan Repayments Loan O/S (RHS) 1) Effective all-in USD cost of debt of about 4.00% basis Sep-24 2) 95% of debt portfolio is
Slide 20: Fleet Profile
FLEET PROFILE Fleet Profile - Shipping DWT Fleet (11 Nov'24) Fleet Q2FY25 No Avg Age Crude Carriers* 842,958 6 15.97 *Committed to sell one 2005 Product Carriers* 1,094,446 18 15.87 built Suezmax crude tanker and Gas Carriers 185,363 4 18.99 one 2005 built MR product Dry Bulk Carriers 1,182,454 13 1
Slide 21: Shipping Market
=H The Great Fastern \, Shipping Co. Ltd. SHIPPING MARKET Te ‘SHIPPING
Slide 22: Crude and Product Tankers
CRUDE AND PRODUCT TANKERS Avg. Suezmax Earnings (USD/day) Avg. MR Earnings (USD/day) 100,000 60,000 90,000 50,000 80,000 70,000 40,000 60,000 50,000 30,000 40,000 20,000 30,000 20,000 10,000 10,000 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 FY
Slide 23: Crude and Product Tankers
CRUDE AND PRODUCT TANKERS • In 2QFY25, crude tanker earnings experienced seasonal softness. • Overall, seaborne crude trade declined by 3% during this quarter, primarily driven by weak refinery margins. Chinese crude imports fell by 8% y/y. The crude tanker fleet remained flat compared to the previo
Slide 24: Dry Bulk
DRY BULK DB Freight picked up in H1FY25 Y-O-Y, including sub-capes which averaged higher Y-O-Y Avg. Baltic Capesize 5T/C Earnings (USD/day) Avg. Baltic Supra BSI-58 10T/C Earnings 70,000 (USD/day) 40000 60,000 35000 50,000 30000 40,000 25000 20000 30,000 15000 20,000 10000 10,000 5000 0 0 Apr May Ju
Slide 25: Dry Bulk
DRY BULK • In 2QFY25, spot earnings for Capesizes witnessed significant growth of 86% y/y, while Kamsarmax and Supramax earnings also grew by 17% and 45% y/y, respectively. • Earnings were supported by strong bauxite imports into China which grew at ~ 15% y/y during 2QFY25. China’s iron ore imports
Slide 26: LPG Gas
LPG GAS Avg. VLGC Earnings (USD/day) 170,000 VLGC Spot earnings corrected to levels closer to H1 FY-23 150,000 during H1 FY-25 and averaged much lower YoY in 130,000 comparison to H1 FY-24. 110,000 90,000 USD/day FY25 FY24 % change 70,000 6M 42,321 89,843 -53% 50,000 30,000 10,000 April May June Jul
Slide 27: Fleet Supply
The Great Eastern Shipping Co. Ltd. FLEET SUPPLY
Slide 28: Low Order Book to Fleet Ratio
LOW ORDER BOOK TO FLEET RATIO Historic Order Book as a % of fleet (Calendar Year) 90% 80% 70% 60% Current Orderbook 50% 40% 30% 25.7% 20% 9.2% 21.6% 10% 10.3% 0% Bulkers Product tankers Crude tankers LPG Carriers (65K+ CBM) Sources: Industry Reports GE Shipping – Q2FY25 Results 27
Slide 29: Orderbook – Yearwise Breakup
ORDERBOOK – YEARWISE BREAKUP Orderbook - Most of the orders are tail ended 25% Total: 25.70% 21.70% 20% Total: 21.60% 14.70% 15% Total: 15.26% 10.69% 10% Total: 9.20% 7.60% Total: 10.30% 6.00% 5% 0% Crude Product Product Ex LR2 Dry Bulk LPG Cal 2024 Cal 2025 Cal 2026 and Beyond Sources: Industry Rep
Slide 30: Scrapping
SCRAPPING Scrapping continues to be very low, and the pool of old ships continues to grow Fleet (Mn Dwt) Vessel Category Oct'24 Crude 463 Product 188 Dry Bulk 1,027 Scrapping (% Beginning world fleet) CYTD CY CY CY CY CY CY CY CY Vessel Category 2024 2023 2022 2021 2020 2019 2018 2017 2016 Crude 0.1
Slide 31: Orderbook and Scrapping Potential
ORDERBOOK AND SCRAPPING POTENTIAL Orderbook Vs Scrapping Potential 20% Aeging FLeet as a % of Total Fleet 18% Crude Tankers 16% 14% Product Tankers 12% 10% Dry Bulk Carriers 8% LPG Carriers 6% 4% 2% 0% 0% 5% 10% 15% 20% 25% 30% Orderbook as % of Total Fleet Scrapping Potential: For LPG carriers 25+
Slide 32: Asset Price Movement
THE GREAT EASTERN SHIPPING CO. LTD. ASSET PRICE MOVEMENT
Slide 33: Asset Price Movement (Indexed Over Last 5 Yrs)
85 105 125 145 165 185 205 225 80 90 100 110 120 130 140 160 170 150 Oct-19 Oct-19 Jan-20 Jan-20 Apr-20 Apr-20 5 YRS) Jul-20 Jul-20 Oct-20 Oct-20 Sources: Industry Reports Jan-21 Jan-21 Apr-21 Apr-21 Jul-21 Jul-21 Oct-21 Oct-21 Jan-22 Jan-22 Apr-22 Apr-22 Capesize Suezmax Jul-22 Jul-22 Oct-22 Oct-22
Slide 34: Greatship (India) Limited 100% Subsidiary
GREATSHIP (INDIA) LIMITED 100% SUBSIDIARY
Slide 35: Market Trends: Utilisation
MARKET TRENDS: UTILISATION % Util Jack Up Utilisation : Gradual Improvement 450 85 80 400 75 350 70 300 65 60 250 55 200 50 Sep 2020 Sep 2010 Sep 2012 Sep 2014 Sep 2016 Sep 2018 Sep 2022 Sep 2024 May 2011 May 2013 May 2015 May 2017 May 2019 May 2021 May 2023 Jan 2010 Jan 2012 Jan 2014 Jan 2016 Jan 2
Slide 36: Fleet Supply
FLEET SUPPLY Number Jack-up Rigs PSV+AHTSV Current Fleet 503 3,351 Under Contract Fleet 371 2,342 Order Book 12 55 O/B to Current Fleet 2.4% 1.6% Total Scrapping since Jan 2016 (Nos) 145 721 No of Vessels/Rigs more than 20/30 years old (% Fleet) 32% 21% Cold stacked more than 3 years 60 427 Source:
Slide 37: Repricing
REPRICING Vessels Rigs 7 4 3 2 1 1 1 1 1 1 0 0 0 0 H2 FY25 H1FY26 H2FY26 H1FY27 H2FY27 H1FY28 H2FY28 Remaining 1 vessel will come up for repricing in H1FY29 GE Shipping – Q2FY25 Results 36
Slide 38: Debt Repayment Schedule
DEBT REPAYMENT SCHEDULE GIL (USD Mn) 30 100 26 26 26 90 25 80 87 70 20 60 15 50 40 10 10 30 20 5 10 0 0 Sep-24 Mar-25 Mar-26 Mar-27 Mar-28 Repayments Loan O/S (RHS) GE Shipping – Q2FY25 Results 37
Slide 39: Financials
‘The Great Eastern Shipping Co. Ltd. FINANCIALS Q aa \\o THEGR \ SHIPPING C \
Slide 40: Strong Cashflows Led Net Debt to Net Cash
STRONG CASHFLOWS LED NET DEBT USD 360 MN TO NET CASH OF ~USD 400 MN USD Mn Net Debt Expansion Phase Net Debt Reduction Phase 400 0.60 300 0.50 200 0.40 0.30 100 0.20 - 0.10 -100 - -200 -0.10 -300 -0.20 -400 -0.30 -500 -0.40 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 H1FY2025 Net
Slide 41: Share Price to Consolidated NAV
SHARE PRICE TO CONSOLIDATED NAV INR/Share 1600 1 1400 0.9 0.8 1200 0.7 1000 0.6 800 0.5 600 0.4 0.3 400 0.2 200 0.1 0 0 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 H1FY25 Consolidated NAV Standalone NAV Share Price/Consol. NAV (RHS) * For Q2FY25 we have taken share price as on 07th Nov 2024 GE Ship
Slide 42: Great Eastern CSR Foundation
GREAT EASTERN CSR FOUNDATION Since 2015, GECSRF has partnered with 53 NGOs under the three key CSR focus areas. • Education: More than 1.50 Lakh students reached out through primary and secondary education. • Health: More than 78,000 women and 40,300 children provided with health services – includin
Slide 43: Great Eastern CSR Foundation
GREAT EASTERN CSR FOUNDATION FY 2024-25: GECSRF currently supporting 27 NGOs working under education, health and livelihoods across 17 states in India EDUCATION HEALTH LIVELIHOODS 1. Adhyayan Quality Education 1. Anushkaa Foundation for 1. Ayang Trust Foundation (AQEF) Eliminating Clubfoot (AFEC) 2.
Slide 44: Thank You
THANK YOU Visit us at www.greatship.com From a modest beginning… ...to most admired globally 1948 2024 Read the Story of GE Shipping – Coffee Table Book GE Shipping – Q2FY25 Results 43
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