Great Eastern Shipping Co. Ltd. · NSE:GESHIP
Great Eastern Shipping — The Great Eastern Shipping — Q4 FY2022 Earnings Presentation
43 slides from Great Eastern Shipping's earnings presentation, May 6, 2022
Slide 1: The Great Eastern Shipping Co. Ltd.
The Great Easte Shipping Co. Ltd. ipping Co aa
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 FY2022
FINANCIAL YEAR FY2022 06 May 2022
Slide 4: Reported Financial Highlights
REPORTED FINANCIAL HIGHLIGHTS GE Shipping FY22 consolidated Net Profit at INR 630 Cr Declared second interim dividend of INR 5.40/Share (Total dividend declared of INR 9.90/Share for FY22) Standalone Key Figures Consolidated FY22 FY21 (Amount in INR Cr) FY22 FY21 Income Statement 2,966 2,893 Revenue
Slide 5: Normalized Financial Highlights
NORMALIZED FINANCIAL HIGHLIGHTS GE Shipping FY22 consolidated Net Profit at INR 656 Cr Declared second interim dividend of INR 5.40/Share (Total dividend declared of INR 9.90/Share for FY22) Standalone Key Figures Consolidated FY22 FY21 (Amount in INR Cr) FY22 FY21 Income Statement 2,966 2,893 Reven
Slide 6: Reported Financial Highlights
REPORTED FINANCIAL HIGHLIGHTS Standalone Key Figures Consolidated Q4FY22 Q4FY21 (Amount in INR Cr) Q4FY22 Q4FY21 Income Statement 740 627 Revenue (including other income) 983 799 358 313 EBITDA (including other income) 453 338 186 144 Net Profit 189 49 Balance Sheet 10,969 10,845 Total Assets 13,969
Slide 7: Normalized Financial Highlights
NORMALIZED FINANCIAL HIGHLIGHTS Standalone Key Figures Consolidated Q4FY22 Q4FY21 (Amount in INR Cr) Q4FY22 Q4FY21 Income Statement 740 627 Revenue (including other income) 983 799 302 260 EBITDA (including other income) 407 284 178 116 Net Profit 204 65 Balance Sheet 10,969 10,845 Total Assets 13,9
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
NORMALIZED FINANCIAL HIGHLIGHTS Standalone Key Figures Consolidated FY22 FY21 FY22 FY21 Key financial figures 12.42% 15.08% **Return on Equity (ROE) (%) 8.33% 10.45% 8.94% 10.25% **Return on Capital Employed (ROCE) (%) 6.46% 7.63% 0.59 0.68 Gross Debt/Equity (x) 0.63 0.71 0.12 0.17 Net Debt/Equity (
Slide 10: Profit & Loss Statement Industry Format
PROFIT & LOSS STATEMENT INDUSTRY FORMAT Standalone INR Cr Consolidated FY22 FY21 FY22 FY21 2,798 2,642 Operating Revenue 3,472 3,302 723 571 Less : Direct Operating Expenses/Voyage Expenses 770 588 2,074 2072 Time Charter Equivalent (A) 2,702 2,714 48 86 Profit on sale of ships 53 86 135 165 Other I
Slide 11: Performance Review
PERFORMANCE REVIEW Break up of Revenue days (Shipping) Revenue Days Q4 FY22 Q4 FY21 3,939 3,942 Owned Tonnage Inchartered Tonnage 59 13 Total Revenue Days 3,998 3,955 Total Owned Tonnage (mn.dwt) 3.57 3.51 Break up of Revenue days (Offshore) Revenue Days Q4 FY22 Q4 FY21 Offshore Logistics 1,508 1,50
Slide 12: Performance Review
PERFORMANCE REVIEW Average annual TCYs earned in various (Shipping) categories Average (TCY USD/day) FY22 FY21 Y-o-Y Change Crude Carriers 11,661 24,695 -53% Product Carriers 9,914 14,728 -33% LPG Carriers 27,594 28,186 -2% Dry Bulk 26,995 10,907 148% 12
Slide 13: Performance Review
PERFORMANCE REVIEW Average quarterly TCYs earned in various (Shipping) categories Average (TCY USD/day) Q4 FY22 Q3 FY22 Q-o-Q Change Q4 FY21 Y-o-Y Change Crude Carriers 15,051 12,098 24% 15,674 -4% Product Carriers 10,251 10,689 -4% 10,877 -6% LPG Carriers 26,107 28,609 -9% 27,731 -6% Dry Bulk 22,15
Slide 14: Changes in Standalone Net Asset Value (Y-o-Y)
CHANGES IN STANDALONE NET ASSET VALUE (Y-O-Y) INR/SHARE 14
Slide 15: Buyback Updates
BUYBACK UPDATES Total Shares Bought Back 4,199,323 Amount Earmarked 225.00 Average Price (INR/Share) 316.21* (INR Cr) Taxation on Amount Amount Utilized (INR Cr) 132.79* 52.42 (INR Cr) Total Amount % of Equity Reduced 2.86% 277.42 Earmarked (INR Cr) Buyback tax on Utilized Maximum Buy Back 29.96 333
Slide 16: Revenue Visibility & Coverage
REVENUE VISIBILITY & COVERAGE Category-wise coverage of operating days (Shipping) --- FY23 Extent of coverage of Category Revenue Visibility fleet’s operating days Crude Carriers 10% Product Carriers 20% LPG Carriers 70% INR 744 Cr Dry Bulk 21% Category-wise coverage of operating days (Offshore) ---
Slide 17: GESCO Standalone Debt Repayment Schedule
GESCO STANDALONE DEBT REPAYMENT SCHEDULE (NEXT 5 YEARS) GESCO Standalone (USD mn) 100 600 86 85 79 81 80 500 509 67 400 60 USD mn USD mn 300 40 200 20 100 0 0 Mar-22 Mar-23 Mar-24 Mar-25 Mar-26 Mar-27 Loan Repayments Loan O/S (RHS) GESCO: We have effective all-in USD cost of debt of less than 3.50%:
Slide 18: Fleet Profile
FLEET PROFILE SHIPPING Fleet (6-May-22) Committed Fleet DWT (FY22) No: Avg Age Capex/Sale Crude Carriers 1,058,499 8 14.21 Product Carriers 1,092,465 18 14.15 NIL Gas Carriers 212,260 5 17.54 Dry Bulk Carriers 1,210,805 14 9.07 Total 3,574,029 45 12.65 OFFSHORE Fleet Number of Units Average Age (Yrs
Slide 19: Shipping Market
SHIPPING MARKET 19
Slide 20: Tanker Market
TANKER MARKET
Slide 21: Crude and Product Tankers
Crude and Product Tankers Avg. Suezmax Earnings (USD/day) Avg. MR Earnings (USD/day) 100,000 40,000 90,000 35,000 80,000 30,000 70,000 60,000 25,000 50,000 20,000 40,000 15,000 30,000 10,000 20,000 10,000 5,000 0 0 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec J
Slide 22: Crude and Product Tankers
Crude and Product Tankers Crude & product trade remained 6% & 4% below pre-COVID levels. In the same period, the crude and product tanker fleets have grown by almost 6% and 5% respectively Owing to these factors, freight rates remained very subdued until Feb-end. The onset of the Russia- Ukrai
Slide 23: Dry Bulk Market
DRY BULK MARKET
Slide 24: Dry Bulk
Dry Bulk DB Freight softened in Q4FY22 in line with seasonality, but Sub-Capes outperformed Capes Avg Baltic Capesize 5T/C Earnings (USD/day) Avg Baltic Supra Earnings BSI-58 10T/C 70,000 (USD/day) 50,000 60,000 50,000 40,000 40,000 30,000 30,000 20,000 20,000 10,000 10,000 - 0 Apr May June July Aug
Slide 25: Dry Bulk
Dry Bulk The dry bulk trade (in Ton-miles) was marginally down (i.e. -0.5% to -1% YoY) in Q4FY22, primarily led by weather disruptions (rains) in Brazil, Indonesian coal export ban in Jan ‘22, and lost export volumes from Ukraine/Russia due to the conflict While the dry bulk fleet grew by ~3.6%
Slide 26: LPG (Gas) Market
LPG (GAS) MARKET
Slide 27: Gas
Gas Avg. VLGC Earnings (USD/day) 120,000 100,000 VLGC Spot earnings sustained healthy levels during Q4 FY-22 but were lower YoY in comparison to Q4 80,000 FY-21. 60,000 40,000 20,000 - USD/day FY21 FY22 % change Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 12M 45,500 32,100 -29% FY 21 FY 22 27 So
Slide 28: Gas
Gas • VLGC spot earnings averaged USD 30,000 / day during Q4 FY-22 down 25 % YoY. • The drop in earnings was majorly attributed to a 60 % YoY increase in bunker prices (VLSFO). • VLGC trade grew 10 % YoY whereas fleet growth was ~ 7 % YoY. • Effective VLGC fleet supply was higher due to a YoY drop i
Slide 29: Fleet Supply
Fleet Supply
Slide 30: One of the Lowest Order Book to Fleet Ratios
One of the Lowest Order Book to Fleet Ratios Orderbook as % of Fleet 8% 6.83% 6.62% 7% 6% 4.98% 5% 4% 3% 2% 1% 0% Crude Tankers Product Tankers Dry Bulk 30 Sources: Industry Reports
Slide 31: Asset Price Movement
ASSET PRICE MOVEMENT 31
Slide 32: Asset Price Movement (Indexed)
100 110 120 130 90 75 85 95 105 115 125 135 Apr-17 Apr-17 Jul-17 Jul-17 Oct-17 Oct-17 Jan-18 Jan-18 Apr-18 Apr-18 Jul-18 Jul-18 Oct-18 Oct-18 Sources: Industry Reports Jan-19 Jan-19 Apr-19 Apr-19 Jul-19 Jul-19 Oct-19 Oct-19 Suezmax Capesize Jan-20 Jan-20 Apr-20 Apr-20 Jul-20 Over the Last 5 Years Ju
Slide 33: Scrapping
SCRAPPING Fleet Vessel (mn Dwt) Scrapping (% of beginning world fleet) Category Apr 22 Q1CY2022 CY2021 CY2020 CY2019 CY2018 CY2017 CY2016 CY2015 CY2014 Crude 438 0.31% 2.47% 0.53% 0.55% 4.39% 2.43% 0.39% 0.38% 1.75% Product 174 0.47% 2.11% 0.57% 0.60% 1.72% 1.22% 0.54% 0.62% 1.10% Dry Bulk 952 0.11%
Slide 34: Greatship (India) Limited
Greatship (India) Limited (a 100% subsidiary)
Slide 35: Fleet Supply: Increasing number of Cold Stacked Rigs
Fleet Supply Increasing number of Cold Stacked Rigs Number Jackup Rigs PSVs + AHTSVs Current Fleet 488 3,515 Orderbook 28 132 O/B to current fleet 5.7% 3.8% Total Scrapping since January 2016 (nos.) 141 507 No. of Vessels/Rigs more than 20/30 years 33% 19% old (as %age of fleet) Cold Stacked more th
Slide 36: Market Trends: Utilisation
200 250 300 350 400 450 Apr 10 Oct 10 Apr 11 Oct 11 Apr 12 Oct 12 Apr 13 Oct 13 Apr 14 Market Trends: Utilisation Oct 14 Apr 15 Oct 15 Under Contract Apr 16 Oct 16 Apr 17 Oct 17 Apr 18 Total Utilisation Oct 18 Jack up utilisation: gradual improvement Apr 19 Oct 19 Apr 20 Oct 20 Apr 21 Oct 21 Apr 22
Slide 37: Repricing
Repricing Vessels Rigs 6 4 4 2 1 1 1 1 1 0 0 0 H1 FY23 H2 FY23 H1 FY24 H2 FY24 H1 FY25 H2 FY25 One JU Rig has received LOA for next contract after completion of the existing contract. It comes for repricing only in H2FY26 37
Slide 38: Greatship Debt Repayment Schedule
GREATSHIP DEBT REPAYMENT SCHEDULE (NEXT 3 YEARS) GIL (USD Mn) 120 180 97 160 100 159 140 80 120 USD mn USD mn 100 60 80 40 36 60 25 40 20 20 0 0 Mar-22 Mar-23 Mar-24 Mar-25 Repayments Loan O/S (RHS) 38
Slide 39: Initiatives on Environment
INITIATIVES ON ENVIRONMENT • Voluntarily published our first Environment Social Governance (ESG) report • Established a working group for feasibility study on alternate fuels and fuel optimisation technologies in view of the IMO emission reduction targets. • After the Jan 2020 IMO mandate on switchi
Slide 40: Financials
FINANCIALS 40
Slide 41: Counter Cyclical Investments have Generated Strong Cash Flows
Counter Cyclical Investments have Generated Strong Cash Flows 6 Year Cycle Net Debt Expansion Net Debt Reduction 400 0.60 Phase Phase 350 0.50 300 0.40 250 USD mn 200 0.30 150 0.20 100 0.10 50 - - FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 Net Debt Net Debt to Equity 41
Slide 42: Share Price to Consolidated NAV
Share Price to Consolidated NAV Share Price to Consolidated NAV 800 1 700 0.9 0.8 600 INR/Share 0.7 500 0.6 400 0.5 300 0.4 0.3 200 0.2 100 0.1 0 0 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Consolidated NAV Standalone NAV Share Price/Consol. NAV (RHS) * For FY22 we have taken share price as on 5th May 2022
Slide 43: Thank You
THANK YOU visit us at www.greatship.com 43
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