Great Eastern Shipping Co. Ltd. · NSE:GESHIP
Great Eastern Shipping — The Great Eastern Shipping Company — Q2 FY2024 Earnings Presentation
42 slides from Great Eastern Shipping's earnings presentation, Oct 27, 2023
Slide 1: Cover letter to stock exchanges
THE GREAT EASTERN SHIPPING COMPANY LIMITED CIN: L35110MF11948PLC006472 OCEAN HOUSE, 134/A, Dr. Annie Besant Road, Worli, Mumbai - 400 018, INDIA. Tel.: +91(22) 6661 3000 / 2492 2100 Fax : +91(22) 2498 5335 Our Ref.: S/2023/JMT October 27, 2023 BSE Limited National Stock Exchange of India Limited 1st
Slide 2: Q2FY24 Earnings Presentation
Ink The Great Eastern Shipping Co. Ltd. at AT CS". 2023 ING co • C Q2FY24 S Nk.-e.c-- Earnings Presentation 31 OCTOBER 2023 • 7• "-:F. G. TH z STERN SI a T CO. LTD.
Slide 3: Disclaimer
The Great Eastern DISCLAIMER Shipping Ca Ltd. 7948 2023 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 Com
Slide 4: Q2FY24 Highlights
The Great Eastern Q2FY24 HIGHLIGHTS Shipping Ca Ltd. 7948 2023 • Net profits of INR 595 Cr on a consolidated basis • Our consolidated NAV has moved in H1FY24 to INR 1,263/share. First time, our shipping NAV has moved past INR 1,000/Share • Declared 2nd Interim dividend of INR 6.30 /Share for Q2FY202
Slide 5: Reported Highlights
The Great Eastern REPORTED HIGHLIGHTS Shipping Ca Ltd. 7948 2023 St an d al on e C on s l i d at e d Q2 Q2 H1 Q2 Q2 H1 Fig in INR Crores FY24 FY23 FY24 FY24 FY23 FY24 • GE Shipping Q2FY24 I n come St at e me n t consolidated Net Revenue* 1,182 1,402 2,290 1,461 1,700 2,796 Profit at INR 595 Cr EBITD
Slide 6: Normalised Financials
The Great Eastern NORMALISED FINANCIALS Shipping Ca Ltd. 7948 2023 o The impact of the exchange rate on foreign currency loans and current assets and liabilities, including cash and bank balances, has been removed o NCD & Currency Swap: o Funds raised through NCDs have been swapped into USD using IN
Slide 7: Normalised Financial Highlights
The Great Eastern NORMALISED FINANCIAL HIGHLIGHTS Shipping Ca Ltd. 7948 2023 Standalone Conslidated Q2 Q2 H1 Q2 Q2 H1 • GE Shipping Q2FY24 Fig in INR Crores FY24 FY23 FY24 FY24 FY23 FY24 consolidated Net Profit In come St at e me n t at INR 596 Cr Revenue* 1,182 1,402 2,290 1,461 1,700 2,796 • Decla
Slide 8: Normalised Financial Highlights
The Great Eastern NORMALISED FINANCIAL HIGHLIGHTS Shipping Ca Ltd. 7948 2023 Standalone Conslidated Q2 Q2 H1 Q2 Q2 H1 FY24 FY23 FY24 FY24 FY23 FY24 Ke y Financial Figure Return on Equity (ROE%)** 24% 38% 24% 22% 33% 21% Return on Capital Employed (ROCE%)** 19% 26% 19% 17% 23% 16% Gross Debt/Equity (
Slide 9: Normalised Financials – Key Ratios
NORMALISED FINANCIALS – KEY RATIOS The Great Eastern Shipping Co. Ltd. exP Eg 7948 2023 Earnings per Share (INR/Share) Cash Profit per Share (INR/Share) Standalone Consolidated Standalone Consolidated 55 51.21 47.62 48.98 63.89 45 45.03 46.34 60.71 57.95 41.65 55.65 42.38 37.06 53.61 54.73 35.65 37.
Slide 10: Consistent Dividend Payouts
The Great Eastern CONSISTENT DIVIDEND PAYOUTS Shipping Co. Ltd. 35 30 28.8 25 YTD 19.2 20 15 13.5 11.5 15.0 10.0 11.0 10.1 9.9 10 9.0 9.0 9.0 8.0 8.0 8.1 7.5 7.2 6.5 6.5 3.1 8.0 5.4 4.0 5 4.0 4.0 3.3 2.3 3.0 2.8 2.4 2.3 2.0 0 2.0 1.5 Dividend Per Share (INR/Share) GE Shipping – Q2FY24 Results 9
Slide 11: Profit & Loss Statement – Industry Format
The Great Eastern PROFIT & LOSS STATEMENT – INDUSTRY FORMAT Shipping Ca Ltd. 7948 2023 Standalone Conslidated Q2 Q2 H1 Q2 Q2 H1 Figures in INR Crores FY24 FY23 FY24 FY24 FY23 FY24 Operating Revenue 930 1,239 1,964 1,184 1,440 2,461 Less: Direct Operating Expenses/Voyage Expenses 177 311 332 184 317
Slide 12: Shareholding Pattern
The Great Eastern Shipping Ca Ltd. F San' 7948 2023 allIVIrw SHAREHOLDING PATTERN • - n , •vr- I a- .41—h AC t. • I = • Isi 1t nil FII/FPI Promoters , .7 26% 30% It 11 Govt./FI/Corp I1 19% Public 25% t, tinnii i tingth " 1"•-•....,""•!• ••• :It •-• w (Oa 30-SEP-2023 GE Shipping – Q3 & 9MFY23 Results
Slide 13: Performance Review
The Great Eastern PERFORMANCE REVIEW Shipping Ca Ltd. 7948 2023 Breakup of Revenue Days (Shipping) Q2 Q2 Revenue Days FY24 FY23 Owned Tonnage 3,734 3,761 Inchartered Tonnage 35 267 Total Revenue Days 3,769 4,028 Total Owned Tonnage (mn.dwt) 3.28 3.44 Breakup of Revenue Days (Offshore) Q2 Q2 Revenue
Slide 14: Performance Review
The Great Eastern PERFORMANCE REVIEW Shipping Ca Ltd. 7948 2023 Avg TCYs in Various Categories Q2 Q1 QoQ Q2 YoY Avg (TCYs USD/Day) FY24 FY24 % FY23 % Crude Carriers 40,645 53,344 -24% 33,076 23% Product Carriers 27,743 33,142 -16% 35,691 -22% LPG Carriers 31,100 28,860 8% 31,235 0% Dry Bulk 11,720 1
Slide 15: Changes in Standalone NAV (YTD)
The Great Eastern CHANGES IN STANDALONE NAV (YTD) Shipping Ca Ltd. 7948 2023 Changes in Standalone NAV (YTD) 1200 194 53 1020 1000 -36 809 800 INR/SHARE - I 600 400 200 0 NAV Sep-22 Cash Profit Fleet Value Dividend NAV Sep-23 GE Shipping – Q2FY24 Results 14
Slide 16: Years Movement in Standalone NAV
The Great Eastern 5 YEARS MOVEMENT IN STANDALONE NAV Shipping Ca Ltd. 7948 2023 Standalone NAV – Continue to touch new highs 1200 1020 1000 CAGR: 21% INR/SHARE 800 600 357 400 200 0 FY18 FY19 FY20 FY21 FY22 FY23 Q2FY24 GE Shipping – Q2FY24 Results 15
Slide 17: Changes in Consolidated NAV (YTD)
The Great Eastern CHANGES IN CONSOLIDATED NAV (YTD) Shipping Ca Ltd. 7948 2023 Changes in Consolidated NAV (YTD) 1400 142 1263 1200 -36 1000 INR/SHARE 800 600 400 200 0 NAV Sep-22 Cash Profit Fleet Value Dividend NAV Sep-23 GE Shipping – Q2FY24 Results 16
Slide 18: Revenue Coverage
The Great Eastern REVENUE COVERAGE Shipping Ca Ltd. 7948 2023 Coverage of Operating Days (Shipping) Category FY24 Crude Carriers 18% Product Carriers 23% LPG Carriers 89% Dry Bulk 43% Revenue Days FY24 Jack Up Rigs 90% AHTSV 78% MPSVV 54% PSV/ROVSV 93% GE Shipping – Q2FY24 Results 17
Slide 19: Standalone Debt Repayment Schedule
The Great Eastern STANDALONE DEBT REPAYMENT SCHEDULE Shipping Ca Ltd. 7948 2023 GESCO Standalone (USD mn) 80 74 74 400 70 68 350 364 60 300 50 250 41 40 36 200 30 150 20 100 10 50 0 0 Sep-23 Mar-24 Mar-25 Mar-26 Mar-27 Mar-28 Loan Repayments Loan O/S (RHS) 1) Effective all-in USD cost of debt of abo
Slide 20: Fleet Profile
The Great Eastern FLEET PROFILE Shipping Ca Ltd. 7948 2023 Fleet Profile - Shipping DWT Fleet (30 Oct'23) Fleet Q2FY24 No Avg Age *We sold and delivered our Supramax Bulk Crude Carriers 842,958 6 14.93 Carrier “Jag Rohan” in Product Carriers** 1,138,662 19 15.64 October -2023 Gas Carriers 185,363 4
Slide 21: Shipping Market
The Great Eastern Shipping Co. Ltd. 7948 2023 P . k \\*I \N A SHIPPING MARKET 44, 4 cc" tit • • • • \ \N •1• 1 \ • \\\>.\\,, 114.4--Li 1\ 44 Nit
Slide 22: Crude and Product Tankers
The Great Eastern CRUDE AND PRODUCT TANKERS Shipping Ca Ltd. 7948 2023 Avg. Suezmax Earnings (USD/day) Avg. MR Earnings (USD/day) 100,000 60,000 90,000 50,000 80,000 70,000 40,000 60,000 50,000 30,000 N 40,000 20,000 30,000 20,000 10,000 10,000 0 0 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
Slide 23: Crude and Product Tankers
The Great Eastern CRUDE AND PRODUCT TANKERS Shipping Ca Ltd. 7948 2023 • Crude tanker earnings were down in 2QFY24 (~46% q/q drop in Suezmax earnings) amidst lower exports from Middle East and Russia due to implementation of OPEC+ production cuts. • Product tanker earnings saw 5% q/q drop in 2QFY24.
Slide 24: Dry Bulk
The Great Eastern Shipping Ca Ltd. DRY BULK 7948 2023 DB Freight picked up in H1FY24 Y-O-Y, however both capes and sub-capes averaged lower Y-O-Y Avg. Baltic Capesize 5T/C Earnings (USD/day) Avg. Baltic Supra BSI-58 10T/C Earnings 70,000 (USD/day) 40000 60,000 35000 50,000 30000 40,000 25000 20000 3
Slide 25: Dry Bulk
The Great Eastern Shipping Ca Ltd. DRY BULK 7948 2023 • Spot earnings continued to remain down y/y during the quarter but witnessed recovery in September- 2023. • Ton – Mile demand increased by ~ 5 % y/y as against a nominal fleet supply growth of 3 %. • Effective fleet supply growth remained higher
Slide 26: LPG Gas
The Great Eastern Shipping Ca Ltd. LPG GAS 7948 2023 Avg. VLGC Earnings (USD/day) 170,000 VLGC Spot earnings sustained healthy levels during Q2FY- 150,000 24 and were much higher YoY in comparison to Q2FY-23. 130,000 110,000 90,000 USD/day FY24 FY23 % change 70,000 6M 92,773 42,317 119% 50,000 30,00
Slide 27: Fleet Supply
The Great Eastern Shipping Ca Ltd. 7948 2023 •„ , sr' "4. -4, - • 'woo FLEET SUPPLY r?; "1 • t,P 'F Il i taii , to.7440, • ' %:,...41 . ...0„ . ', ICS° \ . - $4.• - • t) .' 1: ...' , . . in, ., i • t,'. THE AT EAST F P.01 • r, IIPPING CO. I ILA ; c /
Slide 28: Low Order Book to Fleet Ratio
LOW ORDER BOOK TO FLEET RATIO The Great Eastern Shipping Co. Ltd. 7948 2023 Historic Order Book as a % of fleet (Calendar Year) 90% 80% 70% 60% 50% 40% 30% Current Orderbook 20% 4.1% 10.0% 10% 8.1% 0% Bulkers Product tankers Crude tankers Sources: Industry Reports GE Shipping – Q2FY24 Results 27
Slide 29: Asset Price Movement
The Great Eastern Shipping Ca Ltd. 7948 2023 1 :1 : H - -t - lar ASSET PRICE MOVEMENT .4 -a d- r I GHLAT EA,STERN 4 • 0 THE GREAT EASTERN _ 0— SI EPPING Co, LTR
Slide 30: Asset Price Movement (Indexed Over Last 5 Years)
70 80 90 90 100 110 120 130 140 150 100 110 120 130 140 150 160 170 180 Oct-18 Oct-18 Jan-19 Jan-19 Apr-19 Apr-19 5 YRS) Jul-19 Jul-19 Oct-19 Oct-19 Sources: Industry Reports Jan-20 Jan-20 Apr-20 Apr-20 Jul-20 Jul-20 Oct-20 Oct-20 Jan-21 Jan-21 Apr-21 Apr-21 Suezmax Capesize Jul-21 Jul-21 Oct-21 Oct
Slide 31: Scrapping
The Great Eastern SCRAPPING Shipping Ca Ltd. 7948 2023 Vessel Category Oct'23 Crude 462 Product 184 Dry Bulk 996 Scrapping (% Beginning world fleet) CYTD CY CY CY CY CY CY CY CY Vessel Category 2023 2022 2021 2020 2019 2018 2017 2016 2015 Crude - 0.78 2.47 0.53 0.55 4.39 2.43 0.39 0.38 Product 0.11
Slide 32: Greatship (India) Limited – 100% Subsidiary
The Great Eastern :11 sr:6 Shipping Co. Ltd. r , , :, .Vg) ,.%. 7948 2023 blibe i•z,-.,.;:.4., I... 1- gi! 411 livi,':/..- W:, 1. ' -14 !!',Illt‘el::* A 11\1 Al, 'Al4 W1,4 If - '' ih.,4 4,h, ,„i,r,,_ Eli l'illi, ;4,4 P,PNqra IN „..,,,• ,,,0,ii.. _ 4'1„•,. .:,..4:!‘.44 ,,,I., / ':2:4:. .1A .1 GREATSH
Slide 33: Jack Up Rigs - Market
JACK UP RIGS - MARKET Demand Side: • Ramp up in demand from Middle East was the prime mover at the start of this upcycle. After a flurry of tendering activity over last 12-18 months, the focus for most operators & contractors has now shifted towards preparing and mobilizing the rigs against awarded
Slide 34: Fleet Supply
The Great Eastern Shipping Ca Ltd. FLEET SUPPLY 7948 2023 Number Jack-up Rigs PSV+AHTSV Current Fleet 496 3,390 Under Contract Fleet 358 2,324 Order Book 21 79 O/B to Current Fleet 4.2% 2.3% Total Scrapping since Jan 2016 (Nos) 143 668 No of Vessels/Rigs more than 20/30 years old (% Fleet) 33% 20% C
Slide 35: Market Trends: Utilisation
200 250 300 350 400 450 Jan 2010 Jul 2010 Jan 2011 Jul 2011 Jan 2012 Jul 2012 Jan 2013 Jul 2013 Jan 2014 Jul 2014 Jan 2015 Jul 2015 Jan 2016 MARKET TRENDS: UTILISATION Under Contract Jul 2016 Jan 2017 Jul 2017 GE Shipping – Q2FY24 Results Jan 2018 Jul 2018 Total Util % Jan 2019 Jack Up Utilisation :
Slide 36: Repricing
The Great Eastern REPRICING Shipping Ca Ltd. 7948 2023 Of the Remaining 3 vessels, 2 will come up for repricing in H1FY27 & 1 vessel will come up for repricing in H1FY29 Remaining 1 rig will come up for repricing in H2FY 27 Vessels • Rigs 8 7 1 1 1 1 0 0 0 0 H2 FY24 H1 FY25 H2 FY25 H1FY26 H2FY26 GE
Slide 37: Debt Repayment Schedule
The Great Eastern DEBT REPAYMENT SCHEDULE Shipping Ca Ltd. 7948 2023 GIL (USD Mn) 120 140 97 120 100 117 100 80 80 60 60 40 40 20 20 20 0 0 Sep-23 Mar-24 Mar-25 Repayments Loan O/S (RHS) GE Shipping – Q2FY24 Results 36
Slide 38: Financials
The Great Eastern Shipping Ca Ltd. 7948 2023 IfKtit :1 L. I 4 0.1 4 Mir 7711°F 4 "II Kau 4.444.4. _ _ FINANCIALS II! cv 111 O ! 0 . f • •i trlit ti I I • • • ! • 4) : I I a I `F " /07/2022 ThitE GRE,PcT hAr, , SI EPPING Ott 1:11O1 4-,r
Slide 39: Strong Cashflows Led Net Debt USD 360 Mn to Net Cash of USD 250 Mn
The Great Eastern Shipping Co. Ltd. STRONG CASHFLOWS LED NET DEBT USD 360 7948 2023 MN TO NET CASH OF USD 250 MN USD Mn Net Debt Expansion Phase Net Debt Reduction Phase 400 0.60 0.50 300 0.40 200 0.30 100 0.20 - 0.10 - -100 -0.10 -200 -0.20 -300 -0.30 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY202
Slide 40: Share Price to Consolidated NAV
The Great Eastern SHARE PRICE TO CONSOLIDATED NAV Shipping Co. Ltd. 7948 2023 INR/Share 1400 1 0.9 1200 0.8 1000 0.7 0.6 800 0.5 1 600 0.4 400 0.3 0.2 200 0.1 0 0 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 H1FY24 Consolidated NAV Standalone NAV Share Price/Consol. NAV (RHS) * For H1FY24 we have taken s
Slide 41: Great Eastern CSR Foundation
GREAT EASTERN CSR FOUNDATION 7948 2023 GECSRF supports NGOs working under health, education and livelihoods GREAT EASTERN CSR FOUNDATION CURRENT PARTNERS EDUCATION HEALTH LIVELIHOODS A IMM EREHWON Iraqi( Easic HeaLtliCale MTH \ &Hon new:arch and 'Gaining fa Health QrtHl Shirring limovorrerin %. Serv
Slide 42: Thank You
THANK YOU The Great Eastern Shipping 7948 2023 Visit us at www.greatship.com From a modest beginning… ...to most admired globally 'e go Ocean House EASTERN TE: GREAT LTD. II I SONO CO, 4"9-.V.... } • I 4. pill Will.. I a THE GREAT EASTERN Res SHIPPING COMPANY LIMITED 1948 2023 I Read the Story of GE
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