Pacific Basin Shipping Limited · HKEX:2343
Pacific Basin Shipping — FY2004 Earnings Presentation
32 slides from Pacific Basin Shipping's earnings presentation, Mar 1, 2005
Slide 1: Pacific Basin Shipping Limited Final Results
Pacific Basin Shipping Limited Final Results For the year ended 31st December 2004 www.pacbasin.com 2343.HK
Slide 2: 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,
Slide 3: 2004 Highlights - Financial
2004 Highlights - Financial § Profits - US$103.5 million (2003:$22.7 million) § Revenues - US$234.3 million (2003:$54.2 million) § Earnings per share US cents 9.59 (HK cents 74.80) (2003:US cents 2.85, HK cents 22.23) § 41 owned and chartered vessels in operation at year end (2003:24) § Average TCE
Slide 4: 2005 Highlights – Growth Drivers
2005 Highlights – Growth Drivers § 2004 fleet expansion drives 2005 Handysize revenue days to 13,700, up 38% § 2005 agreed vessel purchases add another 5% or 500 days § 2005 Handysize revenue days and contract cover now stand at Days 05vs04 Cover $/day 14,200 +43% 59% 17,300 § Plan to purchase up to
Slide 5: Financial Review
Financial Review Andrew Broomhead www.pacbasin.com 2343.HK
Slide 6: Profit & Loss - Highlights
Profit & Loss - Highlights (US$mil) FY2004 FY2003 Revenue 234.3 54.2 EBITDA 131.4 35.4 Operating Profit 111.7 27.5 Net Profit 103.5 22.7 Earnings (US cents per share) 9.59 2.85 Dividends* (HK cents per share) 24.0 - * Attributable to shareholders post IPO www.pacbasin.com 2343.HK 5
Slide 7: Revenues
Revenues TCE US$ 9,800/day + 82% US$ 17,900/day 12,000 Revenue Days + 82% 10,000 10,000 8,000 10,000 6,000 5,500 4,000 2,000 - FY2003 FY2004 www.pacbasin.com 2343.HK
Slide 8: Daily Vessel Costs
Daily Vessel Costs US$/day Finance Cost Depreciation Opex Dry-dock Direct Overheads Charter-hire 7,760 8,000 6,900 390 7,000 6,700 7,370* 6,000 5,460 1,260 6,700 5,000 1,020 1,920 4,000 1,670 3,000 2,410 2,000 2,640 1,000 570 740 130 0 FY03 FY04 FY03 FY04 * Excluding Sea Bell Owned Long-term Charter
Slide 9: Balance Sheet - Highlights
Balance Sheet - Highlights (US$mil) FY2004 FY2003 Net Book Value of Fixed Assets* 544.2 200.8 Total Debt 371.0 145.9 Net Debt 323.3 137.7 Shareholder's Equity 232.6 38.9 Net Debt / Fixed Assets 59% 69% Net Debt / Shareholder's Equity 139% 354% * Insured Value of Delivered Vessels (Feb 05) US$845mil
Slide 10: Owned Vessels Commitments
Owned Vessels Commitments US$mil 2005 2006 Total Capital commitments (31/12/04) 67.0 38.7 105.7 Less: Post year end sales - (20.4) (20.4) Net commitments 67.0 18.3 85.3 Add: Post year end acqusition 21.9 21.9 Funded by debt (65.8) (12.9) (78.7) Equity required 23.1 5.4 28.4 Cash from post 31/12/04 s
Slide 11: Chartered-in Vessels Commitments
Chartered-in Vessels Commitments Firm Period Sea Bell Option Period Emerald Bulker Ocean Star ü Purchase Option Held 2005 Sale & Charter back Eastern Star Shinyo challenge ü Portland Bay ü Port Kenny ü Priory Bay Xiamen Sea ü Imabari 507 ü Mount Fisher ü Kanda 479 ü Dec-04 Dec-05 Dec-06 Dec-07 Dec-0
Slide 12: Dividends
Dividends § Dividend Policy : not less than 50% of attributable profits § Post 31 May 2004 profits available for distribution to the post-IPO shareholders: US$mil US Cents HK Cents Profit for year 103.5 Less profit to 31 May 2004 (33.8) Attributable Profit (7 months) 69.7 Interim (paid 6 Jan 05) 13.
Slide 13: Market Review
Market Review Mark Harris
Slide 14: Strong Freight Market All Year
Strong Freight Market All Year Baltic Dry Index 7,000 6,208 6,000 5,681 4,878 5,000 4,000 3,000 2,622 2,000 2,337 1,000 Jan-03 Mar-03 Jun-03 Sep-03 Dec-03 M ar-04 Jun-04 Sep-04 Dec-04 Source : Bloomberg www.pacbasin.com 2343.HK 13
Slide 15: China’s Iron Ore Imports
China’s Iron Ore Imports Monthly Average +20% 2005F: 20.7 +40% mil/tons 2004 Average: 17.3 +33% 20 2003 Average: 12.4 19.0 17.8 16.9 2002 Average: 9.3 15.7 15 12.8 12.7 12.5 11.4 10.7 9.1 9.5 10 7.9 5 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2005F 2002 2003 2004 www.pacbasin.com Source : Bloomberg / Cl
Slide 16: Dry Bulk – Steady Demand Growth
Dry Bulk – Steady Demand Growth Mil tons 1 2 3 4 Iron Ore Coal Grains Minor Bulks 900 800 4 700 2 1 600 500 400 300 3 200 1999 2000 2001 2002 2003 2004 2005F Source : Clarkson www.pacbasin.com 2343.HK 15
Slide 17: Supply: Still Moderate for Dry Bulk
Supply: Still Moderate for Dry Bulk Existing dwt millions Orderbook Order Book % of fleet Tanker 324 90 28% Dry Bulk 322 67 21% Container 99 46 46% Other Ship Types 100 16 16% 0 50 100 150 200 250 300 350 400 450 Source : Clarkson www.pacbasin.com 2343.HK 16
Slide 18: Handysize Supply: Well Protected
Handysize Supply: Well Protected dwt millions Existing Orderbook Average Fleet Orderbook % of fleet Age >20+ Feb Capesize 05 107 36 33% 11 13% Mar 99 22% 04 22 Feb Panamax 05 81 81 16 20% 11 23% Mar 76 14 18% 04 Handymax Feb 05 60 15 25% 11 17% Mar 56 11 18% 04 Handysize Feb 05 36 4 Handysize = 25,0
Slide 19: Supply: Age Profile of Global Handysize Fleet
Supply: Age Profile of Global Handysize Fleet (within 25-35K segment) 100 >15 years old: 64% >25 years old: 27% Sector Average Age:17 years 90 80 70 Order Book: 10% 60 No. of ships Our Fleet Age 5 years 50 40 30 20 10 0 <75 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 0
Slide 20: Summary - Sector
Summary - Sector § Strong demand and limited supply drove rates to historical highs in 2004 § Positive indicators for demand growth in 2005 § Yard capacity full and spread across the three sectors § Rates expected to be driven off higher base until fundamental change in supply § Conditions that led
Slide 21: Business Review
Business Review
Slide 22: Fleet Expansion & Development
Fleet Expansion & Development Total = Owned & No. Ships Owned Chartered Vessels only 52 Chartered 60 Managed Indicated during IPO 55 43 4 50 41 38 8 Further 45 4 Expansion 4 6 8 40 7 7 35 8 26 30 25 26 91% 20 91% 39 33 86%36 36 34 36 36 33 15 30 62% 10 19 5 0 At IPO Sep-04 Dec-04 Mar-05 Dec-05 www.p
Slide 23: Industrial Shipping for Major Customers
Industrial Shipping for Major Customers Ranking Customers Main 2004 2003 Change FY04 FY03 Commodity US$mil % US$mil % % 1 4 Weyerhaeuser Logs 24.1 7.1 7.0 4.7 244 2 68 Hugo Neu Steel/Scrap 20.1 5.9 0.6 0.4 3,250 3 1 Stratus Logs 17.2 5.0 9.5 6.4 81 4 5 BHP Billiton Minerals 13.8 4.1 5.5 3.7 151 5 -
Slide 24: Major Cargoes Carried
Major Cargoes Carried ‘000 mt Total 2004 : 10,700 +40% Volume Growth 03 vs. 04 (%) 12,000 Other bulk* 26% 10,000 20% Total 2003 : 7,600 Coal/Coke 164% 8,000 10% Steel 61% 22% 11% 6,000 5% 11% Grain 18% 10% 13% 12% 18% 4,000 Fertilisers 15% 16% Cement 95% 2,000 12% 23% 20% Forestry Products 21% 0 200
Slide 25: Major Load Areas
Major Load Areas Asia Pacific Atlantic/Others 2004 – 74% ( 7.9mil mt ) 2004 – 26% ( 2.8mil mt ) ‘000 mt 2003 – 73% ( 5.6mil mt ) 2003 – 27% ( 2.0mil mt ) 2,400 22% 2004 2,200 19% 2003 2,000 1,800 1,600 1,400 12% 1,200 1,000 9% 8% 7% 800 6% 600 5% 5% 400 3% 3% 200 1% 0 Australia West S.E. Asia New Ch
Slide 26: Major Discharge Areas
Major Discharge Areas ‘000 mt Asia Pacific Atlantic/Others 2004 – 76% ( 8.1mil mt ) 2004 – 24% ( 2.6mil mt ) 2003 – 71% ( 5.4mil mt ) 2003 – 29% ( 2.2mil mt ) 1,800 16% 2004 2004 2003 1,600 2003 13% 1,400 12% 1,200 10% 10% 1,000 8% 800 6% 6% 600 5% 5% 4% 4% 400 200 0 Japan China Australia Korea S.E.
Slide 27: Comprehensive Network of Offices
Comprehensive Network of Offices Total Number of Staff = 225 London Vancouver Tokyo Shanghai Hong Kong Melbourne www.pacbasin.com 2343.HK
Slide 28: Outlook & Prospects
Outlook & Prospects
Slide 29: Earnings Momentum - Handysize only
Earnings Momentum - Handysize only 20,000 Fixed Further Unfixed Expansion +25% 19,200 days 18,000 06 16,000 05 15,400 days 14,000 14,500 days +56% 14,200 days 41% 70% 12,000 10,000 9,900 days 100% 8,000 59% 6,000 4,000 30% Average Rate Average Rate Average Rate 2,000 $17,900 $17,300 $14,000 0 2004 2
Slide 30: Strategic Direction
Strategic Direction § Continued expansion of business in core Handysize sector to meet growing cargo and customer demand § 3 newbuildings deliver in 2005 and 2 second-hand vessels already acquired this year § Seek to add up to eight more vessels in 2005 & look for newbuilding and secondhand opportun
Slide 31: Summary
Summary § Strong year in 2004 with record profit of US$103.5mil (EPS:9.59 US cents) § Dividend payout of 24 HK cents (3.1 US cents) per share § Market expected to remain firm through 2005 § 43% growth in fleet revenue days for 2005 already in place with scope for planned further expansion § 59% of t
Slide 32: Thank You
www.pacbasin.com We are moving : March 7th 7/F, Hutchison House 10 Harcourt Road Central Hong Kong General Line: +852 2233 7000 Thank You
Pacific Basin Shipping — FY2004 Earnings Presentation on 6ix