Great Eastern Shipping Co. Ltd. · NSE:GESHIP
Great Eastern Shipping — The Great Eastern Shipping — Investor Presentation (February 2016)
30 slides from Great Eastern Shipping's investor presentation, February 2016
Slide 1: Business & Financial Review February 2016
The Great Eastern Shipping Co. Ltd. Business & Financial Review February 2016 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 Company Offshore Shipping (Bulk) (Through wholly-owned subsidiary Greatship (India) Limited) Tankers - Crude Bulk Logistics Drilling - Products India’s largest private sector shipping company. Over 67 years of experience 3
Slide 4: Uninterrupted dividend for 30 years
Uninterrupted dividend for 30 years Dividend per share (Rs) Dividend Payout Ratio (%) (RHS) 16 100 14 90 80 12 70 10 60 8 50 6 40 30 4 20 2 10 0 0 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2
Slide 5: Shareholding Pattern
Shareholding Pattern Shareholding Pattern as on December 31, 2015 Public 21% Promoters Corporate 30% Bodies 6% Govt/FI 20% FII 23% 5
Slide 6: Shipping business - owned fleet
Shipping business - owned fleet Sr. No. Vessel Name Type Sr. No. Vessel Name Type 1 Jag Lalit Suezmax 22 Jag Vishnu VLGC 2 Jag Lok Suezmax 1 Gas Carrier; Age - 22 years 3 Jag Lateef Suezmax 23 Jag Aarati Kamsarmax 4 Jag Lakshita Suezmax 24 Jag Aditi Kamsarmax 5 Jag Lyall Aframax 25 Jag Arya Kamsarma
Slide 7: Vessels on Order & Capital Expenditure
Vessels on Order & Capital Expenditure Vessels on Order & Expected Delivery Vessel Yard Expected Delivery 1 Medium Range STX Group Q4 FY16 Product Tanker 3 Kamsarmax Dry Bulk Jiangsu New Yangzi Q1 FY17, Q3 FY17 & Carriers Shipbuilding Co. Ltd, Q4 FY18 China Committed Capex & Payment Schedule Committ
Slide 8: Tankers – Asset Prices (5-year old)
Tankers – Asset Prices (5-year old) VLCC Suezmax MR 2011 2012 2013 2014 2015 USD mn 90.00 USD mn 180 80.00 160 70.00 140 120 60.00 100 50.00 80 40.00 60 30.00 40 20.00 20 10.00 0 2001-01 2001-12 2002-11 2003-10 2004-09 2005-08 2006-07 2007-06 2008-05 2009-04 2010-03 2011-02 2012-01 2012-12 2013-11 2
Slide 9: Bulkers – Asset Prices (5-year old)
Bulkers – Asset Prices (5-year old) Capesize Panamax Supramax 2011 2012 2013 2014 2015 50.00 USD mn USD mn 180 45.00 160 40.00 140 35.00 120 30.00 100 80 25.00 60 20.00 40 15.00 20 10.00 - 5.00 2001-01 2001-12 2002-11 2003-10 2004-09 2005-08 2006-07 2007-06 2008-05 2009-04 2010-03 2011-02 2012-01 20
Slide 10: Low oil prices positively impacted tanker rates
Low oil prices positively impacted tanker rates Baltic Exchange Dirty Tanker Baltic Exchange Clean Tanker Index Index 1,400 900 1,200 800 1,000 700 800 600 600 500 400 400 Oct-13 Oct-14 Oct-15 Jan-13 Jan-14 Jan-15 Jan-16 Jan-13 Jan-14 Jan-15 Jan-16 Apr-13 Jul-13 Oct-13 Apr-14 Jul-14 Oct-14 Apr-15 Ju
Slide 11: Lower oil prices, leading to increased demand & refinery runs
Lower oil prices, leading to increased demand & refinery runs Global Refinery Crude Throughput y-o-y change (mbpd) Oil demand y-o-y change (mbpd) Oil Prices ($/bbl) $/bbl mbpd 3.5 130 3.0 120 2.5 110 2.0 100 1.5 90 1.0 80 0.5 0.0 70 -0.5 60 -1.0 50 -1.5 40 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3
Slide 12: Healthy refinery margins on account of high gasoline demand
Healthy refinery margins on account of high gasoline demand Europe Refining Margins Asia Refining Margins 14 12 12 10 10.10 10 8 8 7.02 6 4.83 6 4 4 2 4.78 2 0 0 -2 Jan-06 Sep-07 Nov-06 Jan-11 Sep-12 Jul-08 May-09 Mar-10 Nov-11 Jul-13 May-14 Jan-16 Mar-15 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Ja
Slide 13: Rising Product exports from Middle East
Rising Product exports from Middle East New export-oriented refineries leading to increased trade kbpd Naphtha Motor and aviation gasoline Kerosenes Gas/diesel oil 1200 1000 800 600 400 200 0 Jul2013 Nov2013 Jul2014 Nov2014 Jul2015 Nov2015 Sep2013 Sep2014 Sep2015 Jan2013 Mar2013 May2013 Jan2014 Mar2
Slide 14: Rising Naphtha imports from West to Asia supporting LRs
Rising Naphtha imports from West to Asia supporting LRs Asian Naphtha Imports by Source Asian Naphtha Imports - Market Share 3,500 100% kt 8% 15% 90% 23% 3,000 30% 29% 80% 2,500 40% 70% 34% 2,000 60% 31% 24% 26% 50% 1,500 40% 1,000 30% 52% 51% 46% 45% 48% 500 20% 10% 0 Jan-08 Jul-08 Jan-09 Jul-09 Ja
Slide 15: Dry Bulk freight rates continued to plummet
Baltic Dry Index (Jan 2000 – Jan 2016) Dry Bulk freight rates continued to plummet BDI 14000 12000 10000 8000 6000 4000 2000 0 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jul-00 Jul-01 Jul-02 Jul-03 Jul-04 Jul-05 Jul-06 Jul-0
Slide 16: Moderation in China's import growth, increase in short-haul trade
Moderation in China’s import growth, increase in short- haul trade Steel Production fell in 2015 World China Growth in World Production (RHS) Growth in China Production (RHS) 2000 15% mt 1500 10% 1000 5% 500 0% 0 -5% 2013 2014 2015 China Iron Ore Imports (Source-wise) Australia Brazil Others Market
Slide 17: Coal imports by top importers on a declining trend
Coal imports by top importers on a declining trend China coal imports India coal imports Chinese Coal imports 2015 YoY Indian Coal Imports - 2015 YoY mt mt Growth Growth Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov 10 0.0 8.9 -0.9 8 -2.0 -1.4 6.5 -4.0 -3.4 6 4.3 -6.0 -4.8 4 -6.0 2.9 2.6 -8.0 -7.3 -7.
Slide 18: World Fleet Growth
World Fleet Growth Fleet 1000 800 Dry Bulk Crude Product Mn.dwt 600 400 200 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Fleet Gross Fleet Addition CY2016 CY2017 CY2018+ Feb 16 (in mn dwt) Crude tankers 338.3 8% 8% 3% Product tankers 142.5 10% 8% 3% Dry bulk carriers 778.8
Slide 19: Accelerated scrapping in Dry Bulk
Accelerated scrapping in Dry Bulk Scrapping as % of world fleet (year-wise) Fleet as on Scrapping Vessel Category Feb 16 2015 2014 2013 (in mn dwt) (% of beginning fleet) Crude 338.3 0.2% 1% 2% Product 142.5 0.2% 1% 2% Bulk 778.8 4% 2% 3% Source – Industry Reports 19
Slide 20: Market Trends in brief
Market Trends in brief Tankers Dry Bulk Decline in China’s steel production, iron Low oil prices, high demand ore import dependency already at higher levels China Coal imports declining – Govt’s Healthy refining margins & runs focus on pollution control, renewables SPR, commercial storage & floating
Slide 21: Greatship (India) Limited Business Review February 2016
Greatship (India) Limited (a 100% subsidiary) Business Review February 2016
Slide 22: Offshore business - Fleet Profile
Offshore business- Fleet Profile The Greatship Group Current Owned Fleet High Fleet Utilization • 4 Jack Up Rigs (350ft) Extent of coverage of • 5 Platform Supply Vessels (PSV) fleet's operating days Category (per cent) (Q4FY16) • 8 Anchor Handling Tug cum Supply Vessels (AHTSV) PSV 74 ROVSV 83 •
Slide 23: Greatship's Modern & Technologically Advanced Fleet & High Utilization
Greatship’s Modern & Technologically Advanced Fleet & High Utilization Young Fleet Young jack-up fleet with an average age of approx. 4.5 years Demand shifting to modern vessels, - Higher utilization rates Revenue especially as safety becomes a major Efficiencies - Minimum down time concern for
Slide 24: Double-digit decline in capex spending in 2016
Double-digit decline in capex spending in 2016 2 years of continuous decline in capex spending Source – Industry Reports 24
Slide 25: Global Fleet Supply – Offshore
Global Fleet Supply – Offshore Fleet & Orderbook (Nos) Jackup Rigs AHTSVs PSV Current Fleet 484 1913 1428 Orderbook 129 207 261 % of O/B to current 25% 13% 18% fleet • Actual deliveries much lower than estimated deliveries in 2015. Trend is likely to continue in 2016 • Jack-up utilisation has droppe
Slide 26: Financial Highlights Q3 FY 2015-16
FINANCIAL HIGHLIGHTS Q3 FY 2015-16
Slide 27: Q3 FY 2015-16 Financial Highlights
Q3 FY 2015-16 Financial Highlights Standalone Key Figures Consolidated Q3FY'16 Q3FY'15 9MFY'16 (Amount in Rs. crs) Q3FY'16 Q3FY'15 9MFY'16 Income Statement 533 513 1,720 Revenue (including other income) 995 944 3,110 245 207 903 EBITDA (including other income) 556 407 1,786 102 69 514 Net Profit 275
Slide 28: Q3 FY 2015-16 Financial Highlights
Q3 FY 2015-16 Financial Highlights Standalone Key Figures Consolidated Q3FY'16 Q3FY'15 9MFY'16 (Amount in Rs. crs) Q3FY'16 Q3FY'15 9MFY'16 Key financial figures 45.96% 40.37% 52.51% EBITDA Margin (%) 55.91% 43.09% 57.43% 7.68% 5.55% 13.27% Return on Equity (ROE) (%) 13.12% 9.87% 16.38% 7.18% 5.76% 1
Slide 29: Q3 FY 2015-16 Performance Highlights
Q3 FY 2015-16 Performance Highlights Breakup of revenue days Revenue Days Q3’FY16 Q3’FY15 Owned Tonnage 2,593 2,547 Inchartered Tonnage 115 0 Total Revenue Days 2,708 2,547 Total Owned Tonnage (mn.dwt)* 2.36 2.45 * As on 31st December Mix of Spot & Time Days (in %) Q3’FY16 Q3’FY15 Average TCY Detail
Slide 30: THANK YOU
THANK YOU visit us at www.greatship.com
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