Great Eastern Shipping Co. Ltd. · NSE:GESHIP
Great Eastern Shipping — The Great Eastern Shipping Company — Investor Presentation (May 2024)
30 slides from Great Eastern Shipping's investor presentation, May 29, 2024
Slide 1: Cover letter to stock exchanges
6 THE GREAT EASTERN SHIPPING COMPANY LIMITED CITY: L35110MH1948PLC006472 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/2024/JMT May 29, 2024 BSE Limited National Stock Exchange of India Limited 1st F
Slide 2: Corporate Presentation May 2024
AHB The Great Eastern Shipping Co. Ltd. CORPORATE PRESENTATION May 2024
Slide 3: Company History
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Slide 4: Overview
OVERVIEW Ila The Great Eastern Shipping Co. Ltd. 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 USD 2 billion More than s
Slide 5: Shareholding Pattern
cla The Great Eastern Shipping Co. Ltd. Foreign Holding Others (Indian (Including FIIs & Public), 26% GDR), 27% SHAREHOLDING PATTERN Government / Financial Directors And Institutions / Associate Corp, 17% Companies, 30% Shareholding Pattern as on 31 March 2024 4
Slide 6: Corporate Profile
Ila The Great Eastern Shipping Co. Ltd. CORPORATE PROFILE Offshore Shipping (Bulk) (Through wholly-owned subsidiary Alt Greatship (India) Limited) I Tankers • Crude (6) Logistics (19) Drilling (4) • Products (19) Dry Bulk (14) • LPG (4) India’s largest private sector shipping company, with more than
Slide 7: Fleet Profile
Ila The Great Eastern Shipping Co. Ltd. FLEET SHIPPING Fleet DWT Number of Ships PROFILE Crude Carriers 842,958 6 Product Carriers 1,040,662 19 Gas Carriers 185,363 4 Dry Bulk Carriers 1,239,274 14 Total 3,408,257 43 OFFSHORE Fleet Number of Units Jack Up Rigs 4 Platform Supply Vessels 4 Anchor hand
Slide 8: Business Philosophy
BUSINESS i s PHILOSOPHYr • • 7
Slide 9: Investment Thesis
Ink The Great Eastern Shipping Co. Ltd. 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 shee
Slide 10: Strong cashflows led net debt to net cash of USD 330+ Mn
STRONG CASHFLOWS LED NET DEBT USD 360 IIla The Great Eastern Shipping Co. Ltd. MN TO NET CASH OF USD 330+ MN USD Mn Net Debt Expansion Phase Net Debt Reduction Phase 400 0.60 I I I 300 0.50 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 FY
Slide 11: Swift Movement in NAV
SWIFT MOVEMENT IN NAV (II1 She Great Eastern Shipping Co. Ltd. (CONSOLIDATED) CONSOLIDATE NAV MOVEMENT - SINCE MARCH 2022 1600 318 1,396 1400 -71 1200 457 INR/SHARE 1000 800 692 600 NAV doubled during upcycle, with high 400 cash profit contribution. 200 0 NAV Mar-22 Cash Profit Fleet Value Dividend
Slide 12: Movement in NAV over years
5 YRS MOVEMENT IN NAV Ila The Great Eastern Shipping Co. Ltd. (CONSOLIDATED) Consolidated NAV - Highest Since Inception 1600 1396 1400 1200 CAGR: 25% INR/SHARE 1000 800 600 455 400 200 0 1 FY19 FY20 FY21 FY22 FY23 FY24 11
Slide 13: "Too Much Volatility"? EBITDA Movement
“TOO MUCH VOLATILITY”? Ila The Great Eastern Shipping Co. Ltd. EBITDA MOVEMENT 10 YRS USD Mn Consoldated EBITDA 500 450 400 Min EBITDA: USD 201 Mn 350 Median EBITDA: USD 257 Mn 300 250 200 150 100 50 - FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 ■ 12
Slide 14: Impact on Shipping: Panama/Suez Canal disruptions
Panama Canal/Suez Canal disruptions Ila The Great Eastern Shipping Co. Ltd. IMPACT ON SHIPPING In the first few months of 2024, Suez Canal trade dropped by 50 percent from a year earlier while trade through the Panama Canal fell by 32 percent, disrupting supply chains On one side of the world, a sev
Slide 15: Impact on Shipping: Canal transit volumes
Suez Canal/Panama Canal disruptions Ila The Great Eastern Shipping Co. Ltd. IMPACT ON SHIPPING Daily transit trade volume (million metric tans, 7-day moving average) Cape of Good Hope 6 L 2 Suez Canal Panama Canal 1 Jan 2023 Apr 2023 Jul 2023 Oct 2023 Jan 2024 Apr 2024 Sources: UN Global Platform, I
Slide 16: Fundamentals Are Stacking Up: Demand Side
FUNDAMENTALS ARE STACKING UP Ila The Great Eastern Shipping Co. Ltd. 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 t
Slide 17: Fundamentals Are Stacking Up: Supply Side
FUNDAMENTALS ARE STACKING UP Ila The Great Eastern Shipping Co. Ltd. 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 and Pana
Slide 18: Low Orderbook to Fleet Ratio
LOW ORDERBOOK TO FLEET RATIO la The Great Eastern Shipping Co. Ltd. HISTORICAL Historic Order Book as a % of fleet (Calendar Year) 90% 80% 70% 60% 50% 40% 30% 24.7% 20% 7.4% 15.0% 10% 9.3% 0% Sources: Industry Reports Bulkers Product tankers Crude tankers LPG Carriers (65K+ CBM) 17
Slide 19: Orderbook and Scrapping Potential
ORDERBOOK AND SCRAPPING Ila The Great Eastern Shipping Co. Ltd. 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%
Slide 20: Offshore Subsidiary: Greatship Story
OFFSHORE SUBSIDIARY Ila The Great Eastern Shipping Co. Ltd. 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 lar
Slide 21: Offshore Subsidiary: Greatship Story Post FY21
OFFSHORE SUBSIDIARY Ila The Great Eastern Shipping Co. Ltd. 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 • The business has now come back to profitability ■20
Slide 22: Offshore Subsidiary: Repricing Schedule
OFFSHORE SUBSIDIARY IIla The Great Eastern Shipping Co. Ltd. REPRICING SCHEDULE Current contracts are repriced at significantly higher day rates than previous contracts • Vessels • Rigs 12 2 2 I I0 1 1 1 1 1 1 li s N 0 0 0 H1 FY25 H2 FY25 H2FY26 H1FY27 H2FY27 H1FY28 ■ 21
Slide 23: Financial Highlights (INR Crores)
FINANCIAL HIGHLIGHTS Ila The Great Eastern Shipping Co. Ltd. Standalone Conslidated Q4 Q4 Q4 Q4 Fig in INR Crores FY24 FY23 FY24 FY23 FY24 FY23 FY24 FY23 Income State me nt Revenue* 1,323 1,268 4,724 5,096 1,727 1,551 5,919 6,171 EBITDA* 858 811 2,932 3,032 1,100 935 3,508 3,513 N e t Profit 701 662
Slide 24: Financial Highlights (USD Mn)
FINANCIAL HIGHLIGHTS Ila The Great Eastern Shipping Co. Ltd. Standalone Conslidated Q4 Q4 Q4 Q4 Fig in USD Mn FY24 FY23 FY24 FY23 FY24 FY23 FY24 FY23 Income Statement Revenue* 159 154 571 637 208 188 716 771 EBITDA* 103 99 355 379 132 114 424 439 Net Profit 84 80 276 301 102 85 305 323 Balance Sheet
Slide 25: Financial Highlights: Key Financial Figures
FINANCIAL HIGHLIGHTS Ila The Great Eastern Shipping Co. Ltd. Standalone Conslidated Q4 Q4 Q4 Q4 FY24 FY23 FY24 FY23 FY24 FY23 FY24 FY23 Key Financial Figure Return on Equity (ROE%)** 28% 32% 24% 32% 28% 28% 22% 28% Return on Capital Employed (ROCE%)** 23% 24% 20% 23% 23% 21% 18% 20% Gross Debt/Equit
Slide 26: Sustainability
Ila The Great Eastern Shipping Co. Ltd. SUSTAINABILITY ■ 25
Slide 27: Initiatives on Environment
INITIATIVES ON ENVIRONMENT Ila The Great Eastern Shipping Co. Ltd. Most of our vessels are retrofitted with energy saving measures, including • Propeller caps and ducts • More efficient propellers • High performance paints Savings of between 5 and 10% are achieved with these measures Apart from thes
Slide 28: Great Eastern CSR Foundation (GECSRF)
GREAT EASTERN CSR FOUNDATION Ila The Great Eastern Shipping Co. Ltd. (GECSRF) GREAT EASTERN CSR FOUNDATION Since 2015, GECSRF has partnered with 49 NGOs under the three key CSR focus areas. • Education: More than 1.50 Lakh students reached out through primary and secondary education. • Health: More
Slide 29: Great Eastern CSR Foundation (GECSRF) Supported NGOs
GREAT EASTERN CSR FOUNDATION Ila The Great Eastern Shipping Co. Ltd. (GECSRF) GECSRF currently supporting 28 NGOs working under health, education and GREAT EASTERN livelihoods across 17 states in India GSA FOUNDATION EDUCATION HEALTH LIVELIHOODS 1. Adhyayan Quality Education 1. Anushkaa Foundation f
Slide 30: Thank You
Ila The Great Eastern Shipping Co. Ltd. THANK YOU visit us at www.greatship.com ■ 29
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