Great Eastern Shipping Co. Ltd. · NSE:GESHIP
Great Eastern Shipping — The Great Eastern Shipping — Investor Presentation (January 2010)
23 slides from Great Eastern Shipping's investor presentation, January 2010
Slide 1: Business & Financial Review January 2010
The Great Eastern Shipping Co. Ltd. Business & Financial Review January 2010 1
Slide 2: Forward Looking Statements
Forward Looking Statements 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
Slide 3: Corporate Profile
Corporate Profile The Great Eastern Shipping Co. Ltd. Incorporated in 1948 Shipping Business Offshore Business Wet bulk Through wholly owned subsidiary Greatship (India) Limited Crude Tankers Product Tankers Offshore oil field Support & Logistics Services Dry bulk 3
Slide 4: Company at a glance
Company at a glance $ India’s largest private sector Shipping Company $ Diverse asset base with global operations $ Completed 61 years of operations $ More than 26 years of uninterrupted dividend track record Shareholding Pattern as on Sep 30th, 2009 FIIs Public 15% 29% Govt/FI 17% Bodies Corporate
Slide 5: Shipping business-owned fleet
Shipping business-owned fleet 37 ships aggregating 2.84 Mn dwt, avg.age 11.0 years 31 Tankers avg.age 10.5 years (85% in tonnage terms) 12 Crude carriers (6 Suezmax, 6 Aframax) avg.age 10.5 years (2 single hull – both double sided) 18 Product tankers (4 LR1, 9 MR, 5 GP) avg.age 10.4 years (5
Slide 6: Shipping business – Inchartered fleet
Shipping business – Inchartered fleet Total Inchartered Fleet : 3 ships (including in subsidiaries) Tankers : 1 9 1 Suezmax Crude Carrier Dry Bulk : 2 9 2 Supramax Bulk Carriers 6
Slide 7: Committed CAPEX – Shipping Business
Committed CAPEX – Shipping Business Committed Capex of around USD 437 Mn - 7 new building contracts aggregating 0.68 mn. dwt To be delivered in: 9FY 2011 - 1 NB, Kamsarmax Dry Bulk Carrier (STX Shipbuilding Co. Ltd) - 2 NB, Supramax Dry Bulk Carriers(Cosco (Zhoushan) Shipyard Co. Ltd) 9FY 2012 - 2 N
Slide 8: Offshore business- Fleet Profile
Offshore business- Fleet Profile ¾ Current Owned Fleet 9 1 350ft Jack Up Rig 9 * 5 Platform Supply Vessels (PSV) 9 8 Anchor Handling Tug cum Supply Vessel (AHTSV) 9 1 Multipurpose Platform Supply and Support Vessel ¾ Current Inchartered Fleet 9 1 350ft Jack Up Rig 9 1 Platform Supply Vessel (PSV) JV
Slide 9: Committed CAPEX – Offshore Business
Committed CAPEX – Offshore Business ¾ Committed Capex of around USD 423 Mn To be delivered in: 9 FY 2010 Year wise addition to the gross block - 3 NB MPSVs (Keppel Singmarine) (Amt in US$ mn) FY10 FY11 FY12 - 1 NB Platform / ROV Support Vessel (CDL) * Total CAPEX : US$ 423 mn 159 228 36 9 FY 2011 -
Slide 10: Global Presence-Risk Diversification and Profit Maximization
Global Presence-Risk Diversification and Profit Maximization One One of of the the few few Indian Indian companies companies toto operate operatein indiverse diversemarkets marketsacross acrossthe theworld world with with prestigious prestigious counterparties; counterparties; helps to hedge against
Slide 11: Committed Capex for the Group
Committed Capex for the Group Total Investment US$232 mn Equity (US$ 177mn) + Pref (US$ 55mn) G E Shipping Greatship (India) Ltd (Committed CAPEX (Committed CAPEX USD 437 mn) USD 423 mn) Total committed CAPEX of USD 860 mn Spread over next two & half years To be financed with a mix of debt & interna
Slide 12: Financial Highlights of Q2FY10 Performance
Financial Highlights of Q2FY10 Performance Standalone Consolidated (Rs.crs) Q2FY10 Q2FY09 % chg H1FY10 Q2FY10 Q2FY09 % chg H1FY10 Freight & Charter hire 434 864 (49)% 902 663 1,153 (42)% 1,384 Gain on sale of ships 54 - - 173 54 - - 173 Total Income 488 864 (43)% 1,075 717 1,153 (37)% 1,557 Total Ex
Slide 13: Q2 FY09 Performance Highlights
Q2 FY09 Performance Highlights Breakup of revenue days Revenue Days (standalone) Q2 FY10 Q2 FY09 % chg Owned Tonnage 3,146 3,594 (12)% Inchartered Tonnage 122 179 (37)% Total revenue days 3,268 3,773 (13)% Particulars (Rs crs) GE Shipping Sharjah Greatship* Group Total Debt as on 30/9/09 3,406 1,880
Slide 14: Earnings Mix
Earnings Mix GE Shipping Average TCY Details Average TCY ($ per day) Q2 FY10 Q2 FY09 % change Crude Carriers 18,779 53,292 (65)% Product Carriers (incl. gas) 18,865 28,648 (34)% Dry Bulk Carriers 17,065 48,822 (65)% Mix of Spot & Time Q2 FY10 Q2 FY09 Days (in %) FY09 Dry Bulk 74% 68% Spot % 72% 26%
Slide 15: Asset Price v/s Spot Rate Comparison
Asset Price v/s Spot Rate Comparison Timeline- Jan 2000 till September, 2009 180,000 180 160,000 Capesize 160 140,000 140 Spot Rates($per day) Asset Price($mn) 120,000 120 100,000 100 80,000 80 60,000 60 40,000 40 20,000 20 0 - 2000-Q1 Capesize Spot Rates Capesize Asset Price 180,000 180 160,000 VLC
Slide 16: Gross World fleet addition-Shipping
Gross World fleet addition-Shipping World Fleet addition* 2009 2010 2011 13% of world tanker fleet Crude tankers 1.9% 13.0% 13.6% single hull Product tankers 3.9% 11.6% 7.4% Dry bulk carriers 4.5% 24.6% 19.4% *includes only new building from yards Fleet as on Scrapping Till end 1st Dec’09 (in mn dwt
Slide 17: World Fleet Supply….. Slippages expected
World Fleet Supply….. Slippages expected Jan to Dec data CY09 Data Fleet as Fleet as Deliveries in % of deliveries Expected Expected % of (in mn. Dwt) on on CY09 to fleet as on deliveries in deliveries in 1 Jan’09 1 Dec’09 till end 1 Jan’09 CY09 CY09 to fleet as Nov’09 on Jan’09 VLCC 153.8 166.6 16.
Slide 18: Tanker Market
Tanker Market Crude: Demand outlook for the medium term to be weak High fleet growth to put excessive pressure Product: Low refining margins & depressed demand keeping product tanker rates down Large US oil inventories coupled with new building deliveries expected to keep tanker rates unde
Slide 19: Dry Bulk Market
Dry Bulk Market Total seaborne drybulk trade expected to decline by 2.7% in 2009 Chinese iron ore imports to increase by 29%, whereas rest of world to decline by 32% . Therefore, China to be a key support Excessive fleet addition to be a key concern … but a ray of hope… Increase in level of
Slide 20: Offshore Market…Still holding strong
Offshore Market…Still holding strong 9 Decline in oil & gas reserves 9 Energy Security concerns high on consumer countries agenda 9 Development and drilling activity in mid to deep water 9 Tenders continuing to be issued for long term work Total Subsea fleet development Source: Offshore Research,Par
Slide 21: Life Cycle of Offshore Fields
Life Cycle of Offshore Fields Source: Bourbon, Feb 2008 21
Slide 22: Offshore Supply Market
Offshore Supply Market OSV Fleet Summary (Nos) AHTSVs PSVs Others Current Fleet* 2,351 1,877 1,727 Orderbook 446 225 196 % of O/B to current fleet 18% 11% 11% * Data as on Dec09, Source: Clarkson Aging Fleet 9 Half of total world fleet over 25 years old 22
Slide 23: THANK YOU
THANK YOU visit us at www.greatship.com 23
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