Great Eastern Shipping Co. Ltd. · NSE:GESHIP
Great Eastern Shipping — The Great Eastern Shipping — FY2021 Earnings Presentation
39 slides from Great Eastern Shipping's earnings presentation, May 7, 2021
Slide 1: The Great Eastern 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 FY 21
FINANCIAL YEAR FY 21 07 May 2021
Slide 4: Reported Financial Highlights
REPORTED FINANCIAL HIGHLIGHTS GE Shipping FY21 consolidated Net Profit at Rs. 919 Crores Proposes final dividend of Rs. 9.00 per share Standalone Key Figures Consolidated FY21 FY20 (Amount in Rs. Crs) FY21 FY20 Income Statement 2,893 3,091 Revenue (including other income) 3,568 3,898 1,640 1,114 EBI
Slide 5: Normalized Financial Highlights
NORMALIZED FINANCIAL HIGHLIGHTS GE Shipping FY21 consolidated Net Profit at Rs. 759 Crores Proposes final dividend of Rs. 9.00 per share Standalone Key Figures Consolidated FY21 FY20 (Amount in Rs. Crs) FY21 FY20 Income Statement 2,893 3,091 Revenue (including other income) 3,568 3,898 1,477 1,414 E
Slide 6: Reported Financial Highlights Q4
REPORTED FINANCIAL HIGHLIGHTS Standalone Key Figures Consolidated Q4FY21 Q4FY20 (Amount in Rs. Crs) Q4FY21 Q4FY20 Income Statement 627 874 Revenue (including other income) 799 1,051 289 193 EBITDA (including other income) 314 208 144 (13) Net Profit 49 (51) Balance Sheet 10,845 10,006 Total Assets 1
Slide 7: Normalized Financial Highlights Q4
NORMALIZED FINANCIAL HIGHLIGHTS Standalone Key Figures Consolidated Q4FY21 Q4FY20 (Amount in Rs. Crs) Q4FY21 Q4FY20 Income Statement 627 874 Revenue (including other income) 799 1,051 260 396 EBITDA (including other income) 305 451 116 206 Net Profit 86 220 Balance Sheet 10,845 10,006 Total Assets 1
Slide 8: 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 9: Normalized Financial Highlights: Key Ratios
NORMALIZED FINANCIAL HIGHLIGHTS Standalone Key Figures Consolidated FY21 FY20 FY21 FY20 Key financial figures 15.08% 12.12% *Return on Equity (ROE) (%) 10.46% 9.06% 10.27% 9.76% *Return on Capital Employed (ROCE) (%) 7.64% 8.16% 0.68 0.83 Gross Debt/Equity (x) 0.71 0.87 0.17 0.38 Net Debt/Equity (x)
Slide 10: Performance Review
PERFORMANCE REVIEW Break up of Revenue days (Shipping) Revenue Days Q4 FY21 Q4 FY20 Owned Tonnage 3,942 4,073 Inchartered Tonnage 13 - Total Revenue Days 3,955 4,073 Total Owned Tonnage (mn.dwt) 3.51 3.70 Break up of Revenue days (Offshore) Revenue Days Q4 FY21 Q4 FY20 Offshore Logistics 1,508 1,618
Slide 11: 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 11% Product Carriers 15% LPG Carriers 68% Rs 556 Cr Dry Bulk 23% Category-wise coverage of operating days (Offshore) ---
Slide 12: GESCO Standalone Debt Repayment Schedule
GESCO STANDALONE DEBT REPAYMENT SCHEDULE (NEXT 5 YEARS) GESCO Standalone (USD Mn) 90 83 83 600 76 78 80 571 500 70 65 USD Million 60 400 USD Million 50 300 40 30 200 20 100 10 0 0 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Mar-26 Repayments Loan O/S (RHS) GESCO: We have effective all-in USD cost of debt of
Slide 13: Fleet Profile
FLEET PROFILE SHIPPING Fleet (7th May 21) Fleet DWT (FY21) Committed Capex/Sale No: Avg Age Crude Carriers 1,164,215 9 13.64 Product Carriers 1,092,465 18 13.11 Gas Carriers 250,687 6 17.85 Dry Bulk Carriers* 1,154,702 13 8.07 1 (Purchase) Total 3,662,069 46 12.02 OFFSHORE Fleet Number of Units Aver
Slide 14: Shipping Market
> The Great Eastern Shipping Co. Ltd. SHIPPING MARKET
Slide 15: Tanker Market
TANKER MARKET
Slide 16: Crude and Product Tankers
Crude and Product Tankers Earnings (USD/Day) Rates Substantially Improved in Q1 as 74,000 64,000 • Oversupply of Oil 54,000 • Ships taken for Floating Storage 44,000 34,000 Rates Substantially Reduced after Q1 as 24,000 14,000 4,000 • Oil Supply was curtailed • Ships released from Floating Storage S
Slide 17: Crude and Product Tankers
Crude and Product Tankers Earnings for Both Crude and Product Tankers remain near operating costs • Demand continues to remains 5 to 6 mbpd below Pre COVID Levels • Fleet Supply remains pressured due to a. Strong Natural Fleet Growth of 3.8% for Crude and 2.9% for Product b. Unwinding of Floating St
Slide 18: Dry Bulk Market
DRY BULK MARKET
Slide 19: Dry Bulk Markets
Major Exporters - Iron ore/Coal/Grains (MMT,%) DRY BULK EuropeUK/Med 4% Others 5% Canada+US, Colombia 2% MARKETS 9% Argentina/S .America,… Australia 38% Commodity wise Break up of Brazil 14% Global DB demand (%) Indonesia 14% Minor Bulks Coal 28% S.Africa/Other Africa 5% 39% Russia 6% Major Importer
Slide 20: Dry Bulk
Dry Bulk Earnings (USD/Day) 30,000 25,000 After a weak start due to COVID led lockdown 20,000 15,000 Earnings Strengthened during the year as 10,000 5,000 Industrial Demand Improved led by China 0 Capesize Earnings Kamsarmax Earnings 20 Sources: Industry Reports
Slide 21: Dry Bulk
Dry Bulk Earnings for all asset classes have substantially improved especially the sub capes have reached levels not seen since 2010 • Strong Demand Growth across multiple Dry Bulk Commodities • Port Congestion at a Decadal High 21 Sources: Industry Reports
Slide 22: LPG (Gas) Market
LPG (GAS) MARKET
Slide 23: Gas
Gas Earnings (USD/Day) 90,000 An overall strong market during the year as 80,000 70,000 • US Export to Asia remained healthy 60,000 50,000 • Large number of vessels undergoing Dry 40,000 Dock 30,000 20,000 10,000 VLGC Earnings 23 Sources: Industry Reports
Slide 24: Fleet Supply
Fleet Supply
Slide 25: One of the Lowest Order Book to Fleet Ratios For Tankers and Bulkers
One of the Lowest Order Book to Fleet Ratios For Tankers and Bulkers Lowest Since 2013 Orderbook as % of Fleet 10% 8.84% Lowest Since January 9% 1996 8% Lowest Since January 6.94% 7% 1996 6% 5.59% 5% 4% 3% 2% 1% 0% Crude Tankers Product Tankers Dry Bulk Note : Data does not extend beyond Jan 1996 fo
Slide 26: Asset Price Movement
ASSET PRICE MOVEMENT 26
Slide 27: Asset Price Movement (Indexed)
55 65 75 85 95 105 100 110 120 130 140 150 160 170 90 Apr-16 Apr-16 Jul-16 Jul-16 Oct-16 Oct-16 Jan-17 Jan-17 Apr-17 Apr-17 Jul-17 Jul-17 Oct-17 Oct-17 Sources: Industry Reports Jan-18 Jan-18 Apr-18 Apr-18 Jul-18 Jul-18 Oct-18 Oct-18 Over the Last 5 Years Suezmax Capesize Jan-19 Jan-19 Apr-19 Apr-19
Slide 28: Scrapping
SCRAPPING Fleet Vessel (mn Dwt) Scrapping (% of beginning world fleet) Category Apr 21 YTDCY21 CY2020 CY2019 CY2018 CY2017 CY2016 CY2015 CY2014 Crude 433.44 0.48% 0.38% 0.61% 4.62% 2.35% 0.35% 0.23% 1.60% Product 165.55 0.42% 0.51% 0.43% 1.64% 1.42% 0.62% 0.61% 1.19% Dry Bulk 922.93 0.44% 1.63% 0.92
Slide 29: Greatship (India) Limited
Greatship (India) Limited (a 100% subsidiary)
Slide 30: Offshore Business Fleet Profile
OFFSHORE BUSINESS FLEET PROFILE Fleet Utilization Extent of coverage of fleet's operating days Current Owned Fleet Type Fleet Count (FY22) Jack Up Rigs (350ft) 4 72% Anchor Handling Tug cum Supply Vessels 8 48% (AHTSV) Multipurpose Platform Supply and Support 2 18% Vessels (MPSSV) Platform Supply Ve
Slide 31: Challenged Environment with E&P Spend at 15 Year Low
Challenged Environment with E&P Spend at 15 Year Low Underinvestment in the Sector? Offshore field discoveries and start up declning with E&P spending 200 180 160 140 120 100 80 60 40 20 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 No of fields discovered No of field
Slide 32: Fleet Supply: Increasing Number of Cold Stacked Rigs
Fleet Supply Increasing number of Cold Stacked Rigs Number Jackup Rigs PSVs + AHTSVs Current Fleet 514 3551 Orderbook 35 162 O/B to current fleet 6.8% 4.6% Total Scrapping since January 2016 (nos.) 113 431 No. of Vessels/Rigs more than 20/30 years old 38% 19% (as %age of fleet) Cold Stacked more tha
Slide 33: Repricing
Repricing Vessels Rigs 7 4 3 2 2 1 1 1 1 1 0 0 0 0 H1 FY22 H2 FY22 H1 FY23 H2 FY23 H1 FY24 H2 FY24 H1 FY25 33
Slide 34: Greatship Debt Repayment Schedule
GREATSHIP DEBT REPAYMENT SCHEDULE (NEXT 5 YEARS) GIL (USD Mn) 120 200 97 180 100 160 179 140 USD Million 80 USD Million 120 60 100 80 40 36 25 60 20 40 20 20 0 0 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Repayments Loan O/S (RHS) 34
Slide 35: Financials
\ = Y The Great Eastern \ Shipping Co. Lid FINANCIALS
Slide 36: 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 - - FY2016 FY2017 FY2018 FY2019 FY2020 F
Slide 37: Offshore Block Represents a Smaller Proportion
Offshore Block Represents a Smaller Proportion NET BLOCK PROPORTIONS 12,000 10,000 INR Crores 8,000 6,000 4,000 59% 2,000 40% 0 FY 2016 FY 2021 Shipping Net Block Offshore Net Block 37
Slide 38: Share Price to Consolidated NAV
Share Price to Consolidated NAV Share Price to Consolidated NAV 600 1 0.9 500 0.8 INR/Share 0.7 400 0.6 300 0.5 0.4 200 0.3 0.2 100 0.1 0 0 FY16 FY17 FY18 FY19 FY20 FY21 Consolidated NAV Standalone Share Price/Consol. NAV (RHS) * For FY21 we have taken share price as on 6th May 2021 38
Slide 39: Thank You
THANK YOU visit us at www.greatship.com 39
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