Great Eastern Shipping Co. Ltd. · NSE:GESHIP
Great Eastern Shipping — The Great Eastern Shipping — Investor Presentation (August 2011)
24 slides from Great Eastern Shipping's investor presentation, August 2011
Slide 1: Business & Financial Review August 2011
The Great Eastern Shipping Co. Ltd. Business & Financial Review August 2011 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 Co. Ltd. Incorporated in 1948 Shipping Business Offshore Business Wet bulk Through subsidiary Greatship (India) Limited - Logistics Crude Tankers Product Tankers - Subsea - Drilling Dry bulk 3
Slide 4: Company at a glance
Company at a glance $ India’s largest private sector Shipping Company $ Diverse asset base with global operations $ Completed 63 years of operations $ More than 27 years of uninterrupted dividend track record Shareholding Pattern as on June 30, 2011 FIIs Public 17% 27% Govt/FI 19% Bodies Promoters C
Slide 5: Shipping business-owned fleet
Shipping business-owned fleet 35 ships aggregating 2.61 Mn dwt, avg.age 8.6 years 26 Tankers avg.age 8.9 years (75% in tonnage terms) - 9 Crude carriers (4 Suezmax, 5 Aframax) avg.age 8.6 years - 16 Product tankers (4 LR1, 8 MR, 4 GP) avg.age 9.0 years (1 single hull – double sided) - 1 LPG carr
Slide 6: Committed CAPEX – Shipping Business
Committed CAPEX – Shipping Business Committed Capex of around USD 55 Mn - 1 new building contracts aggregating 0.08 mn. dwt To be delivered in: 9FY 2012 - 1 NB, Kamsarmax Dry Bulk Carrier (SPP Shipbuilding Co.Ltd) Stage payments already made : around US$33 mn of the total CAPEX 6
Slide 7: Offshore business- Fleet Profile
Offshore business- Fleet Profile ¾ Current Owned Fleet 9 2 350ft Jack Up Rigs 9 4 Platform Supply Vessels (PSV) 9 7 Anchor Handling Tug cum Supply Vessels (AHTSV) 9 3 Multipurpose Platform Supply and Support Vessels (MPSSV) 9 3 Platform / ROV Support Vessels (ROVSV) 7
Slide 8: Committed CAPEX – Offshore Business
Committed CAPEX – Offshore Business ¾ Committed Capex of around USD 450 Mn To be delivered in: 9 FY 2012 - 2 NB MSVs (Mazagon Dock) - 2 NB 150T AHTSV (Drydock World, Singapore) - 1 NB Platform / ROV Support Vessel (CDL) 9 FY 2013 - 2 NB Platform / ROV Support Vessels (CDL) - 1 Jackup Rig (350 feet)
Slide 9: Modern & Technologically Advanced Fleet
Modern & Technologically Advanced Fleet Young Young Fleet Fleet Young fleet with an average age of approx. 3 years by FY 2012 -- Higher Higher utilization utilization rates rates Revenue Revenue Demand shifting to modern vessels, especially as Efficiencies Efficiencies -- Minimum Minimum down do
Slide 10: Global Presence-Risk Diversification and Profit Maximization
Global Presence-Risk Diversification and Profit Maximization One One of of the the few few Indian Indian companies companies toto operate operatein indiverse diversemarkets marketsacross acrossthe theworld world with with prestigious prestigious counterparties; counterparties; helps to hedge against
Slide 11: Offshore Service Value Chain
Offshore Service Value Chain Exploration Exploration Development Development Production Production Length Length of of -- 33 to Typical Cycle to 55 years years -- 22 to to 44 years years -- 55 to to 55 55 years years Typical Cycle -- Collection Collectionof ofsurvey surveydata data -- Construction -
Slide 12: Q1FY'12 Financial Highlights
Q1FY’12 Financial Highlights Standalone Consolidated Q1FY'12 Q1FY'11 (Amount in Rs. crs) Q1FY'12 Q1FY'11 Income Statement 518.83 453.24 Revenue (including other income) 784.75 727.58 244.68 259.49 EBITDA (including other income) 384.12 385.21 101.90 105.94 Net Profit 162.59 171.80 Balance Sheet 9805
Slide 13: Q1FY'12 Performance Highlights
Q1FY’12 Performance Highlights Breakup of revenue days Revenue Days Q1 FY12 Q1 FY11 Owned Tonnage 3,178 3,315 Inchartered Tonnage 213 19 Total Revenue Days 3,391 3,334 Total Owned Tonnage (mn.dwt) 2.55 2.66 Mix of Spot & Time Q1 FY12 Q1 FY11 Days (in %) FY11 FY10 Average TCY Details Dry Bulk Average
Slide 14: Asset Price Movement (5 yr old)
Asset Price Movement (5 yr old) Timeline- Sep2003 till August 01, 2011 Amt in US$ mn 160 160 120 120 80 80 40 40 0 0 16/09/2003 VLCC AFRAMAX CAPESIZE PANAMAX(DRY) Source: Baltic Sale & Purchase Assessment 14
Slide 15: Indices Movement - Timeline Jan'08 to Aug'11
Indices Movement - Timeline Jan'08 to 5 Aug’11 B a lt ic D ry Inde x ( B D I) 12000 10000 8000 6000 4000 2000 0 J an-08 J ul -08 J an-09 J ul -09 J an-10 J ul -10 J an-11 J ul -11 Baltic Dirty Tanker Index (BDTI) & Baltic Clean Tanker Index (BCTI) 2500 BDTI 2000 1500 1000 BCTI 500 0 Jan-08 Jul -08 J
Slide 16: Total Seaborne trade at a glance… Dry Bulk
Total Seaborne trade at a glance… Dry Bulk Seaborne Bulk trade % chg (in mn. tonnes) 2008 2009 2010 2011(F) (CY11 over CY10) Iron ore 841 907 970 1043 8% Steam Coal (Thermal) 578 590 654 680 4% Coking Coal 221 215 264 298 13% Grains 244 236 248 254 2% Bauxite 86 66 79 86 9% Sugar 49 50 53 50 6% Agri
Slide 17: Total Seaborne iron ore trade at a glance
Total Seaborne iron ore trade at a glance Seaborne Iron Ore Imports % chg mn. tonnes 2008 2009 2010 2011(F) (CY10 over CY09) W. Europe 131 81 112 114 2% China 436 615 603 652 8% Asia (Ex. China) 211 164 215 220 2% ROW 56 48 52 54 4% Total 834 908 982 1040 6% Chinese iron ore imports in Jan to June ’
Slide 18: Global Oil Demand
Global Oil Demand % chg mn.bpd 2008 2009 2010 2011 (F) (CY11 over CY10) N.America 24.2 23.3 23.9 23.9 - OECD Europe 15.4 14.5 14.5 14.4 (1)% OECD Pacific (Japan& Korea) 8.0 7.7 7.8 7.8 - Asia (Non OECD) 17.4 18.4 19.8 20.6 4% Other Non OECD 21.0 20.9 22.1 22.7 3% Total 86.0 84.8 88.1 89.1 1% Source:
Slide 19: Total Seaborne crude trade
Total Seaborne crude trade Seaborne Crude Imports % chg mn bpd 2008 2009 2010 2011 (F) (CY11 over CY10) Asia 15.9 16.1 17.6 18.4 5% EU 10.9 10.3 10.0 10.0 - N. America (incl. Canada) 7.0 6.9 6.8 7.0 3% ROW 5.7 5.0 4.8 4.9 2% Total 39.5 38.3 39.2 40.3 3% of which Long Haul Trades 15.0 13.8 14.2 15.0
Slide 20: Gross World fleet addition-Shipping
Gross World fleet addition-Shipping World Fleet addition* Fleet CY2011 CY2012 CY2013 + (as on 1 Aug’11) (in mn dwt) Crude tankers 334.5 7% 9% 4% Product tankers 132.6 7% 5% 2% Dry bulk carriers 576.2 13% 17% 7% Source: Clarksons *includes only new building from yards - 4% of world tanker fleet is si
Slide 21: Global Fleet – Scrapping Details
Global Fleet – Scrapping Details Fleet as on Scrapping CY2011 1st Jun’11 (in mn dwt) CY2008 CY2009 CY2010 YTD (in mn dwt) 334.5 Crude 2.2 5.0 7.1 2.7 132.6 Product 2.2 3.8 5.8 1.9 576.2 Bulk 5.5 10.4 5.7 15.1 Source: Clarksons 21
Slide 22: Slippages… to be a decisive factor
Slippages… to be a decisive factor CY 2010 (in mn dwt) VLCC Suezmax Aframax Panamax MR GP Total Expected orders to be delivered 25.3 9.6 10.5 2.6 10.5 3.0 61.5 in CY’10 Actual deliveries 16.6 5.9 7.7 2.3 5.2 1.3 39.1 Slippages 8.7 3.7 2.8 0.3 5.3 1.7 22.4 Slippages/ cancellations as % of expected de
Slide 23: Global Fleet Supply -Offshore
Global Fleet Supply -Offshore (Nos) Jackup Rigs AHTSVs PSVs Current Fleet 484 3,157 2,235 Orderbook 70 331 300 % of O/B to current fleet 14% 11% 13% Average age 23.0 19.0 18.9 Source: Clarksons, Rigzone Around half of the total offshore fleet above 25 years of age 23
Slide 24: THANK YOU
THANK YOU visit us at www.greatship.com 24
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