Great Eastern Shipping Co. Ltd. · NSE:GESHIP
Great Eastern Shipping — The Great Eastern Shipping — Investor Presentation (May 2017)
32 slides from Great Eastern Shipping's investor presentation, May 2017
Slide 1: The Great Eastern Shipping Co. Ltd. Business & Financial Review
The Great Eastern Shipping Co. Ltd. Business & Financial Review May 2017
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 Company Offshore Shipping (Bulk) (Through wholly-owned subsidiary Greatship (India) Limited) Tankers - Crude Dry Bulk Logistics Drilling - Products/LPG India’s largest private sector shipping company. Over 69 years of experience 3
Slide 4: Shareholding Pattern
Shareholding Pattern Shareholding Pattern as on March 31, 2017 FII 24% Promoters 30% Govt/FI 20% Public Corporate 20% Bodies 6% 4
Slide 5: Shipping business - owned fleet
Sr. No. Vessel Name Type Shipping business - owned fleet 1 Jag Lalit Suezmax Sr. No. Vessel Name Type 2 Jag Lok Suezmax 28 Jag Vishnu VLGC 3 Jag Lateef Suezmax 29 Jag Vidhi VLGC 4 Jag Lakshita Suezmax 2 Gas Carriers; Age – 22.2 years 5 Jag Laadki Suezmax 30 Jag Anand Capesize 6 Jag Leena Suezmax 31
Slide 6: Vessels on Order & Capital Expenditure
Vessels on Order & Capital Expenditure Vessels on Committed Order & Expected Delivery Vessel Yard Expected Delivery 1 Secondhand STX Shipbuilding Co. MR Product Tanker Q1FY18 Inc, South Korea 6
Slide 7: Key points on Tanker Markets – Q1CY17
Key points on Tanker Markets – Q1CY17 • VLCC 5 yr old asset prices corrected by 20% in Y-O-Y Asset Prices: Q1CY2017 Freight rates: • BCTI was almost flat this quarter & BDTI corrected by 27%. • Crude oil supply decreased slightly due to cut in OPEC Crude Market: production. Release of floating stora
Slide 8: Tankers – Asset Price Movement (5-year old)
Tankers – Asset Price Movement (5-year old) USD mn USD mn VLCC Suezmax Aframax VLCC Suezmax Aframax 180 90 80 160 70 60 140 50 40 120 30 100 20 10 80 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 60 2015 2015 2015 2016 2016 2016 2016 2017 40 20 0 2004-Apr 2017-Apr 2002-Apr 2003-Apr 2005-Apr 2006-Apr 2007-Apr 2008-Apr 2
Slide 9: Downward Movements of BDTI & BCTI
Downward Movements of BDTI & BCTI Baltic Dirty Tanker Index Baltic Clean Tanker Index 1,400 900 1,300 800 1,200 1,100 700 1,000 900 600 800 500 700 600 400 500 400 300 Oct-12 Jan-14 Dec-16 Oct-12 Dec-16 Mar-13 Nov-14 Apr-15 Sep-15 Mar-13 Jan-14 Nov-14 Apr-15 Sep-15 Feb-16 Jul-16 Feb-16 Jul-16 Jun-14
Slide 10: Crude tanker rates decreased due to lower OPEC loadings
Supply reduction leading to demand higher than supply first time in three years million barrels per day Supply Demand Refinery Throughput (RHS) 99 81 97 80 79 95 78 93 77 91 76 75 89 74 87 73 85 72 2012 2013 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 201
Slide 11: Crude and product demand growth
Products growth has increased in Q1CY2017 (Y-O-Y) • Crude: Although China and India’s crude oil demand improved, overall oil demand reduced in other countries. • Products: Naphtha and gasoline demand have increased in Q1CY2017 (Y-O-Y) Source – Industry Reports
Slide 12: Global refinery throughput remains flat due to decline in refinery margins
Global refinery throughput remains flat due to decline in refinery margins • Due to drop in crude prices and maintenance season, gasoline and naphtha cracks were pushed lower, resulting in decline in refinery margins for Q1CY2017. • Q1CY2017 global refinery throughput is up by 100 kb/d Y-O-Y at 79.1
Slide 13: China importing crude oil at an accelerated rate
Q1FY2017 China importing crude oil at an accelerated rate US Crude Oil Imports (‘000 bpd) China Crude Oil Imports (‘000 bpd) 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 8,800 9,500 8,600 8,400 8,500 8,200 7,500 8,000 7,800 6,500 7,600 5,500 7,400 4,500 7,200 7,000 3,500 Source – Industry Repor
Slide 14: World Fleet Growth – Crude Tankers
World Fleet Growth – Crude Tankers Tanker Fleet - mn Dwt 5th May 2017 1st Jan 2016 1st Jan 2015 1st Jan 2014 VLCC 219.78 200.00 193.75 186.13 Suezmax 76.81 71.09 69.68 68.43 Aframax 67.71 64.37 64.15 63.71 Total (80k+) 364.29 335.46 327.58 318.27 Order Book - mn dwt 2017 2018 2019+ Total Orderbook a
Slide 15: World Fleet Growth – Product Tankers and VLGC
World Fleet Growth – Product Tankers and VLGC Product Fleet - mn Dwt 5th May 2017 1st Jan 2016 1st Jan 2015 1st Jan 2014 LR2 35.01 30.44 27.42 26.93 LR1 25.81 23.75 23.72 23.61 MR/Handy (35k+)* 91.82 82.95 78.40 75.74 Total (35k+) 152.63 137.14 129.54 126.28 Order Book - mn dwt 2017 2018 2019+ Total
Slide 16: Key points on Dry Bulk Markets – Q1CY17
Key points on Dry Bulk Markets – Q1CY17 • Capesize 5 year old asset prices rose by 15% in absolute terms from previous quarter. Asset Prices: • Panamax & Supramax 5 year olds asset prices rose by 10-12% in absolute terms from previous quarter. • BDI hit 26 months high of 1,338 end of the quarter Fre
Slide 17: Bulkers – Asset Prices (5-year old)
Bulkers – Asset Prices (5-year old) Capesize Panamx Supramax Capesize Panamax Supramax 180 40 35 160 30 140 25 20 120 15 100 10 5 80 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 60 2015 2015 2015 2016 2016 2016 2016 2017 40 20 0 2007-Apr 2017-Apr 2002-Apr 2003-Apr 2004-Apr 2005-Apr 2006-Apr 2008-Apr 2009-Apr 2010-Apr
Slide 18: Baltic Dry Index (May 2014 – May 2017)
Baltic Dry Index (May 2014 – May 2017) Dry Bulk freight rates has hit 26 months high during Q1CY2017 Baltic Dry Index 1,600 1,400 1,338 1,200 1,000 800 600 400 290 200 Sep-14 Nov-14 Sep-15 Nov-15 Sep-16 May-14 Jan-15 Apr-15 May-15 Jan-16 Apr-16 Nov-16 May-16 Jan-17 Apr-17 May-17 Jun-14 Jul-14 Mar-15
Slide 19: Steel Production & China's Iron ore imports have grown significantly
Steel Production & China’s Iron ore imports have grown significantly Steel Production increased 5% in Q1CY2017 (Y-O-Y) World Steel China Steel % Growth World % Growth China 2000 15% 1500 10% 1000 5% 500 0% 0 -5% 2013 2014 2015 2016 Q1CY16 Q1CY17 China’s iron ore import grew 12% in Q1CY2017 (Y-O-Y) A
Slide 20: Coal imports by China and India
0.0 5.0 -5.0 -15.0 -10.0 10.0 15.0 mt Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Source – Industry Reports Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 China coal imports change (Y-O-Y) Feb-17 Mar-17 mt -8.00 -6.00 -4.00 -2.00 0.00 2.
Slide 21: World Fleet Growth – Dry Bulk
World Fleet Growth – Dry Bulk Fleet - Mn Dwt 5th May 2017 1st Jan 2016 1st Jan 2015 Capesize 320 309 307 Panamax 200 195 192 Handymax 192 180 167 Handysize 95 93 91 Total 807 776 757 Order Book - mn dwt 2017 2018 2019+ Total Gross Orderbook %Fleet 4% 3% 1% 8% Slippage – 41% (Jan’17 – Apr’17) Source
Slide 22: Scrapping slows down
Scrapping slows down Scrapping as % of world fleet (year-wise) Vessel Fleet as on Scrapping Category May 17 YTD 2017 2016 2015 2014 (in mn dwt) (% of beginning fleet) Crude 364 0.32% 0.35% 0.23% 1.60% Product 153 0.08% 0.62% 0.61% 1.19% Dry Bulk 807 0.76% 3.67% 4.03% 2.25% Source – Industry Reports
Slide 23: Greatship (India) Limited Business Review May 2017
Greatship (India) Limited (a 100% subsidiary) Business Review May 2017
Slide 24: Offshore business- Fleet Profile
Offshore business- Fleet Profile The Greatship Group Current Owned Fleet Fleet Utilization • 4 Jack Up Rigs (350ft) Extent of coverage of • 4 Platform Supply Vessels (PSV) fleet's operating days Category (per cent) (FY18) • 8 Anchor Handling Tug cum Supply Vessels (AHTSV) PSV 32 ROVSV 49 • 2 Multi
Slide 25: Key points on E&P markets – Q1CY17
Key points on E&P markets – Q1CY17 Day rates: • Day rates for both AHTS & PSV have come off by ~45%-50% since 2014 Fleet Growth: • Rigs: Remains flat in Q1FY17 • OSV’s: Remains flat in Q1FY17 Fleet Utilization Levels: Sub 50% Slippage: • OSV – 60% - 70% YTD2017 • Rigs – 60% - 70% YTD2017 24
Slide 26: No signs of recovery in Offshore E&P spending in Q1CY17
No signs of recovery in Offshore E&P spending in Q1CY17 • Drilling demand has been declining continuously since the peak in 2014 • With the Brent oil price showing signs of stabilization at lower levels, Offshore E&P spending which had come off significantly since 2014 shows no signs of recovery yet
Slide 27: Global Fleet Supply – Offshore
Global Fleet Supply – Offshore Fleet & Orderbook (Nos) Jackup Rigs AHTSVs PSV Current Fleet 539 2066 1620 Orderbook 102 156 182 % of O/B to current fleet 19% 8% 11% • Q1CY2017 actual deliveries have been far lower than scheduled. Due to bleak employment scenario owners have refrained from taking del
Slide 28: Financial Highlights Q4 FY 2016-17
FINANCIAL HIGHLIGHTS Q4 FY 2016-17
Slide 29: FY 2016-17 Financial Highlights
FY 2016-17 Financial Highlights Standalone Key Figures Consolidated FY'17 FY'16 (Amount in Rs. crs) FY'17 FY'16 Income Statement 2,226.74 2,110.39 Revenue (including other income) 3,629.13 3,926.49 1,261.97 1,108.30 EBITDA (including other income) 2,121.44 2,267.07 601.39 618.28 Net Profit 754.96 1,
Slide 30: FY 2016-17 Financial Highlights
FY 2016-17 Financial Highlights Standalone Key Figures Consolidated FY'17 FY'16 (Amount in Rs. crs) FY'17 FY'16 Key financial figures 56.67% 52.52% EBITDA Margin (%) 58.46% 57.74% 12.30% 13.78% Return on Equity (ROE) (%) 10.95% 17.87% 9.93% 10.76% Return on Capital Employed (ROCE) (%) 8.59% 11.30% 0
Slide 31: Q4 FY 2016-17 Performance Highlights
Q4 FY 2016-17 Performance Highlights Breakup of revenue days Revenue Days Q4’FY17 Q4’FY16 Owned Tonnage 3,636 2,574 Inchartered Tonnage 77 85 Total Revenue Days 3,713 2,659 Total Owned Tonnage (mn.dwt)* 3.70 2.36 * As on 31st March 2017 Mix of Spot & Time Days (in %) Q4’FY17 Q4’FY16 Average TCY Deta
Slide 32: Thank You
THANK YOU visit us at www.greatship.com
The Great Eastern Shipping — Investor Presentation (May 2017) on 6ix