Great Eastern Shipping Co. Ltd. · NSE:GESHIP
Great Eastern Shipping — The Great Eastern Shipping — Investor Presentation (September 2024)
35 slides from Great Eastern Shipping's investor presentation, September 2024
Slide 1: Corporate Presentation
CORPORATE PRESENTATION September 2024
Slide 2: Company History
‘The Great Eastern Shipping Co, Lid. COMPANY HISTOR
Slide 3: Overview
OVERVIEW Great Eastern Shipping was founded in 1948, with the purchase of a Liberty ship Today, GES is India’s largest private sector shipping company, owning and operating 43 ships and 23 offshore assets, with a balance sheet size of almost USD 2 billion More than size, we pride ourselves on being
Slide 4: Shareholding Pattern
FII/FPI 25% Promoters 30% SHAREHOLDING PATTERN Govt./FI/Corp 20% Public 25% Shareholding Pattern as on 30 June 2024 4
Slide 5: Corporate Profile
CORPORATE PROFILE Offshore Shipping (Bulk) (Through wholly-owned subsidiary Greatship (India) Limited) Tankers • Crude (6) Logistics (19) Drilling (4) • Product (19) Dry Bulk (14) • LPG (4) India’s largest private sector shipping company, with more than 76 years of experience in commodity shipping 5
Slide 6: Fleet Profile
FLEET SHIPPING Fleet DWT Number of Ships PROFILE Crude Carriers 842,958 6 Product Carriers 1,145,829 19 Gas Carriers 185,363 4 Dry Bulk Carriers 1,239,274 14 Total 3,413,424 43 OFFSHORE Fleet Number of Units Jack Up Rigs 4 Platform Supply Vessels 4 Anchor handling Tug Cum Supply 9 Vessels Multipurpo
Slide 7: Business Philosophy
BUSINESS PHILOSOPHY
Slide 8: Investment Thesis
INVESTMENT THESIS Fleet operated at global Offshore fleet – quality standards, with a large operations with low number of international balance sheet leverage customers Prudent Capital Strong cash flows Allocation across a diversified fleet Strong balance sheet High level of operating enables capaci
Slide 9: Strong Cashflows Led Net Debt USD 360 Mn to Net Cash of USD 350+ Mn
STRONG CASHFLOWS LED NET DEBT USD 360 MN TO NET CASH OF USD 350+ MN (STANDALONE) 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 -400 -0.40 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 Q1FY2
Slide 10: Significant Up Move in NAV Last Years (Consolidated)
SIGNIFICANT UP MOVE IN NAV LAST 2 YEARS (CONSOLIDATED) CONSOLIDATED NAV MOVEMENT - SINCE MARCH 2022 INR/SHARE NAV doubled during upcycle, with high cash profit contribution. ar ash ro t leet al e ividend n 10
Slide 11: ROE & ROCE Historical (Consolidated)
ROE & ROCE HISTORICAL Average ROCE: 10% (CONSOLIDATED) Average ROE: 13% CONSOLIDATED ROCE Investment in downcycle 25.00% resulted in higher ROE in upcycle 20.00% 15.00% Yields were lower, hence opportunity to invest in down cycle 10.00% 5.00% 0.00% FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Q
Slide 12: Too Much Volatility? EBITDA Movement 10 Yrs
TOO MUCH VOLATILITY? EBITDA MOVEMENT 10 YRS USD Mn Consolidated EBITDA 500 450 400 350 Lowest EBITDA: USD 200 Mn 300 Median EBITDA: USD 262 Mn 250 200 150 100 50 0 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Q1FY25 12
Slide 13: Fundamentals Are Stacking Up: Demand Side
FUNDAMENTALS ARE STACKING UP DEMAND SIDE Trade pattern shift: Following the onset of Russia-Ukraine conflict, have seen the average distances of seaborne trade rise Oil demand continues to be main driver behind seaborne trade Atlantic basin provides a lot of the incremental oil, while Asia-Pacific p
Slide 14: Trade Pattern Shift – Post Russia Ukraine Conflict
FUNDAMENTALS ARE STACKING UP TRADE PATTERN SHIFT – POST RUSSIA UKRAINE CONFLICT New trade routes are formed and average trade distances of seaborne trade has risen 14 Source: Industry reports
Slide 15: Fundamentals Are Stacking Up: Supply Side
FUNDAMENTALS ARE STACKING UP SUPPLY SIDE Orderbook significantly lower than historical levels. Yard capacity has shrunk significantly in the last 15 yrs Large Korean yards are full with containers and LNG orders almost till end CY26 Disruption in Suez canal 15
Slide 16: Supply Side (Yard Capacity)
FUNDAMENTALS ARE STACKING UP SUPPLY SIDE (YARD CAPACITY) Global active shipyards is down 52% basis number of yards compared to 2011 building peak, ~40% basis CGT capacity. 16 Source: Industry reports
Slide 17: Suez Canal Disruptions Impact on Shipping
Suez Canal disruptions IMPACT ON SHIPPING 17 Source: Industry reports
Slide 18: Orderbook to Fleet Ratio Historical
ORDERBOOK TO FLEET RATIO HISTORICAL Historic Order Book as a % of fleet (Calendar Year) 90% 80% 70% 60% 50% 40% 30% 24.7% 20% 8.3% 17.4% 10% 9.6% 0% Sources: Industry Reports Bulkers Product tankers Crude tankers LPG Carriers (65K+ CBM) 18
Slide 19: Orderbook and Scrapping Potential
ORDERBOOK AND SCRAPPING POTENTIAL Orderbook Vs Scrapping Potential 20% Aeging FLeet as a % of Total Fleet 18% Crude Tankers 16% 14% Product Tankers 12% 10% Dry Bulk Carriers 8% LPG Carriers 6% 4% 2% 0% Sources: Industry Reports 0% 5% 10% 15% 20% 25% 30% Orderbook as % of Total Fleet Scrapping potent
Slide 20: Asset Price Movement Indexed Over Last 5 Yrs
85 125 145 165 185 205 225 85 95 105 115 135 145 155 165 175 105 125 Jul-19 Jul-19 Oct-19 Oct-19 Jan-20 Jan-20 Apr-20 Apr-20 Jul-20 Jul-20 Oct-20 Oct-20 Sources: Industry Reports Source: Industry reports Jan-21 Jan-21 Apr-21 Apr-21 Jul-21 Jul-21 Oct-21 Oct-21 Jan-22 Jan-22 Suezmax Capesize Apr-22 Ap
Slide 21: Offshore Subsidiary Greatship Story FY16 to FY21
OFFSHORE SUBSIDIARY GREATSHIP STORY FY 16 to FY21 • Most challenging years for the offshore sector since late 80s • Utilization levels across asset classes dropped to historic lows, charter rates came down to levels that barely generated any +ve EBITDA • A large part of industry went through financi
Slide 22: Offshore Subsidiary Greatship Story Post FY21
OFFSHORE SUBSIDIARY GREATSHIP STORY Post FY21 • Utilization levels have improved • E&P activities have started to increase • Contracts are getting repriced at levels which generate significant EBITDA • Negligible O/B to Current Fleet Ratio How are we positioned currently? • Cash on the balance sheet
Slide 23: Offshore Subsidiary Fleet Supply
OFFSHORE SUBSIDIARY FLEET SUPPLY Number Jack-up Rigs PSV+AHTSV Current Fleet 500 3,351 Under Contract Fleet 371 2,328 Order Book 15 46 O/B to Current Fleet 3.0% 1.4% Total Scrapping since Jan 2016 (Nos) 145 713 No of Vessels/Rigs more than 20/30 years old (% Fleet) 32% 21% Cold stacked more than 3 y
Slide 24: Offshore Subsidiary Repricing
OFFSHORE SUBSIDIARY REPRICING Vessels Rigs 5 5 3 2 2 2 1 1 1 0 0 0 H2 FY25 H2FY26 H1FY27 H2FY27 H1FY28 H2FY28 • Remaining 1 vessel will come up for repricing in H1FY29 24
Slide 25: Financial Highlights (INR Crores)
FINANCIAL HIGHLIGHTS \ The Great Eastern \ Shipping Co. Ltd. Standalone Conslidated Q1 Q1 Q1 Q1 Fig in INR Crores FY25 FY24 FY24 FY25 FY24 FY24 Income Statement Revenue* 1,310 1,109 4,724 1,703 1,335 5,919 EBITDA* 851 675 2,932 1,092 776 3,508 Net Profit 677 517 2,280 817 529 2,520 Balance Sheet Tot
Slide 26: Financial Highlights (USD Mn)
FINANCIAL HIGHLIGHTS Standalone Conslidated Q1 Q1 Q1 Q1 Fig in USD Mn FY25 FY24 FY24 FY25 FY24 FY24 Income Statement Revenue* 157 135 571 205 162 716 EBITDA* 102 82 355 131 94 424 Net Profit 81 63 276 98 64 305 Balance Sheet Total Assets 1,689 1,517 1,632 2,083 1,899 2,016 Equity 1,303 1,093 1,241 1
Slide 27: Financial Highlights: Key Financial Figures
FINANCIAL HIGHLIGHTS Standalone Conslidated Q1 Q1 Q1 Q1 FY25 FY24 FY24 FY25 FY24 FY24 Ke y Financial Figure Return on Equity (ROE%)** 26% 24% 24% 26% 20% 22% Return on Capital Employed (ROCE%)** 21% 19% 20% 21% 16% 18% Gross Debt/Equity (x) 0.25 0.33 0.26 0.26 0.38 0.28 Net Debt/Equity (x) (0.27) (0
Slide 28: Total Return to Shareholders & Dividend – GESCO vs NIFTY50
TOTAL RETURN TO SHAREHOLDERS (TRS) & DIVIDEND – GESCO vs NIFTY50 (Last 5 years) TRS, Div Yield and Div Payout - GESCO Vs NIFTY 50 35% 32% 32% 30% 25% 20% 20% 15% 15% 10% 5% 4% 1.29% 0% GESCO Nifty 50 Dividend Payout Div Yield TRS 28 Source: Industry reports
Slide 29: Sustainability
SUSTAINABILITY 29
Slide 30: GE Shipping Decarbonization Strategy
GE SHIPPING DECARBONIZATION STRATEGY ENERGY ALTERNATE DATA DRIVEN OPTIMIZED HULL COATINGS SAVING FUELS TECHNOLOGIES OPERATION DEVICES DECARBONIZATION 30
Slide 31: Initiatives on Environment
INITIATIVES ON ENVIRONMENT Most of our vessels are retrofitted with energy saving measures, including • Mewis ducts, Eco Cap, Rudder Bulb, MT fast fins • Propeller Boss Cap Fins, Redesigned Efficient Propellers, High Performance Paints • Ultrasonic Antifouling Device for Propellers, In-Transit Hull
Slide 32: CO2 Emissions Trend Analysis
CO2 EMISSIONS TREND ANALYSIS CO2 EMISSION (MT) 1200000 1083665 1063223 982804 979106 1000000 935658 863761 800000 600000 400000 200000 0 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 (Vessels 50) (Vessels 48) (Vessels 49) (Vessels 47) (Vessels 45) (Vessels 45) Since 2019 (Inception of IMO DCS) – W
Slide 33: Great Eastern CSR Foundation (GECSRF)
GREAT EASTERN CSR FOUNDATION (GECSRF) Since 2015, GECSRF has partnered with 53 NGOS under the three key CSR focus areas. • Education: More than 1.50 Lakh students reached out through primary and secondary education. • Health: More than 78,000 women and 40,300 children provided with health services –
Slide 34: Great Eastern CSR Foundation (GECSRF)
GREAT EASTERN CSR FOUNDATION (GECSRF) GECSRF currently supporting 27 NGOs working under health, education and livelihoods across 17 states in India EDUCATION HEALTH LIVELIHOODS 1. Adhyayan Quality Education 1. Anushkaa Foundation for 1. Ayang Trust Foundation (AQEF) Eliminating Clubfoot (AFEC) 2. Al
Slide 35: Thank You
THANK YOU visit us at www.greatship.com 35
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