Pacific Basin Shipping Limited · HKEX:2343
Pacific Basin Shipping — Investor Day (May 2014)
17 slides from Pacific Basin Shipping's investor day presentation, May 9, 2014
Slide 1: 2014 Analyst Day Presentation
2014 Analyst Day Presentation 9 May 2014
Slide 2: Our Dry Bulk Market
Our Dry Bulk Market 2014 Analyst Day 2
Slide 3: Overview
Overview Forecast market recovery 2014 - 2016 due to healthy demand and muted supply growth No sign in the cargo data of China slowing down Chinese price-related buying behaviour is causing the delay to a seasonal pickup that should have started in early April 2014 Analyst Day 3
Slide 4: Our Market Outlook
Our Market Outlook 16% Market improvement continuing during the 14% forecast period 2014 -2016 12% 10% Forecast 8% Demand avg +7.5% Demand 6% Supply avg +5.5% Supply 4% 10 11 12 13 14f 15f 16f 2014 Analyst Day 4
Slide 5: What lies behind the supply side assumptions?
What lies behind the supply side assumptions? Mill dwt 100 20% Mill dwt Orderbook Deliveries 1 99 100 2 18% 140 80 80 16% 16% 139 139 14% 14% Delivery forecast 14% 120 127 60 12% 62 60 10% 100 99 100 Delivery 52 52 102 40 8% forecast 8% 6% 6% 80 80 5% 5% 20 4% 75 62 2% 60 58 60 52 52 0 -7 0% -12 -11
Slide 6: What is so special about 2014?
What is so special about 2014? 18% Annual supply growth (based on avg. fleet size for each cal. year) 16% 16% This is what is measured against 14% YoY demand growth 14% 12% Monthly YoY fleet growth (each month compared to 1 year earlier) 10% 8% 8% 7% 6% 4% 4% 2014 will be the first time in 10 years
Slide 7: Demand Side Update – Chinese Imports
Demand Side Update – Chinese Imports Mill T Mill T 230 Iron ore 90 224 220 8 minor bulks incl bauxite & nickel ore 215 217 210 80 79 80 200 199 72 70 190 189 65 180 60 59 2013 q2 q3 q4 2014 q2 Mill T 82 50 Coal As above less bauxite & nickel ore 80 80 79 42 78 40 40 37 38 76 76 30 30 74 74 73 72 20
Slide 8: Solid growth for the logs trade to China
Solid growth for the logs trade to China Chinese log imports 1.30 Mill cu.m / month 2mos rolling avg +`+33% 1.10 Trendline annual growth / decline 0.90 -4% +31% 0.70 0.50 0.30 Jan-12 Jan-13 Jan-14 2014 Analyst Day 8
Slide 9: Drybulk Supply / Demand is favoured towards the second half of the year
Drybulk Supply / Demand is biased is favoured towards the second half of the year 9% NZ log exports 8% 12% Major bulk exports 8% since 2000 since 2000 8% 7% 8% 6% 5% 6% 9% difference 4% 4% difference 3% 2% 2% 0% 1% -1% 0% -4% 1H 2H 1H 2H 8.5% 10% China minor imports 9% Net fleet growth 8% 9% since 2
Slide 10: Pacific Basin Dry Bulk
Pacific Basin Dry Bulk 2014 Analyst Day
Slide 11: Business Foundation
Business Foundation People Unique network of 13 local dry bulk offices Close to our customers and understand their needs 24/7 chartering and operations support Fleet Modern, quality ships with best-in-class design Competitive freight for customers Low breakeven cost and fuel efficient Co
Slide 12: PB Dry Bulk Network
PB Dry Bulk Network London: 25 Vancouver: 12 China: 18 New York: 6 (Beijing/Dalian) Tokyo: 4 Dubai: 2 Hong Kong: 112 Manila: 20 Staff in Dry Bulk Division Management: 4 Chartering and Asset Management: 43 Auckland: 9 Operations and Revenue Accounting: 73 Santiago: 5 Technical & Crewing: 92 Durban: 4
Slide 13: Cargo Systems
Cargo Systems Europe North Asia America India/ Middle East South America Oceania Africa = Key front haul = Key back haul 2014 Analyst Day 13
Slide 14: Diversified Cargo
Diversified Cargo Pacific Basin Handysize and Handymax Cargo Volume 2013 Energy Agricultural Products Coal 5% Petcoke 7% 12% Grains & Agriculture Products 17% Fertiliser 9% 30% Sugar 4% Metals Alumina 5% 17% 50.3 Ores 7% Concentrates & 5% Million Tonnes Construction Materials Other Metals 8% Logs &
Slide 15: PB Handysize and Handymax Fleet
PB Handysize and Handymax Fleet Inward Charter Commitments (As at 31 Dec 2013) Handysize Vessel Days Index-linked: 10,980 days Type Handysize Handymax $8,530 Index-linked: ST: 10,850 days 13,530 days Market rate $8,490 ST: 1,530 days 64 15 $9,010 Owned LT: LT: 9,140 days 9,030 days $9,290 $9,860 201
Slide 16: Pacific Basin Values
Pacific Basin Values We are determined to find and deliver the right solutions to problems and We believe in the importance challenges faced by our customers. We strongly believe in the value of human interaction and the of long term relationships over personal touch. short term gain. Everyone in Pa
Slide 17: Disclaimer
Disclaimer This presentation contains certain forward looking statements with respect to the financial condition, results of operations and business of Pacific Basin and certain plans and objectives of the management of Pacific Basin. Such forward looking statements involve known and unknown risks,