Great Eastern Shipping Co. Ltd. · NSE:GESHIP
Great Eastern Shipping — The Great Eastern Shipping — Q4 FY2024 Earnings Presentation
44 slides from Great Eastern Shipping's earnings presentation, May 10, 2024
Slide 1: Q4 & FY24 Earnings Presentation
Q4 & FY24 Earnings Presentation 10 MAY 2024
Slide 2: Disclaimer
DISCLAIMER 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 directions, pros
Slide 3: FY24 Highlights
FY24 HIGHLIGHTS • Highest ever net profits of INR 2,614 Cr on a consolidated basis • Our consolidated NAV has moved to INR 1,396/share as on 31 st March 2024 • Declared 4th Interim dividend of INR 10.80/Share for Q4FY2024. Total dividend for FY24 is INR 36.30/Share GE Shipping – Q4FY24 Results 3
Slide 4: Reported Highlights
REPORTED HIGHLIGHTS St an d al on e Con s l i d at e d Q4 Q4 Q4 Q4 • GE Shipping FY24 Fig in INR Crores FY24 FY23 FY24 FY23 FY24 FY23 FY24 FY23 consolidated Net Profit at INR 2,614 Cr I n come St at e me n t Revenue* 1,323 1,268 4,724 5,096 1,727 1,551 5,919 6,171 • Declared 4th Interim EBITDA* 895
Slide 5: Normalised Financials
NORMALISED FINANCIALS o The impact of the exchange rate on foreign currency loans and current assets and liabilities, including cash and bank balances, has been removed o NCD & Currency Swap: o Funds raised through NCDs have been swapped into USD using INR-FCY swaps, thus creating synthetic fixed ra
Slide 6: Normalised Financial Highlights
NORMALISED FINANCIAL HIGHLIGHTS Standalone Conslidated • GE Shipping FY24 Q4 Q4 Q4 Q4 consolidated Net Profit Fig in INR Crores FY24 FY23 FY24 FY23 FY24 FY23 FY24 FY23 at INR 2,520 Cr Income State me nt • Declared 4th Interim Revenue* 1,323 1,268 4,724 5,096 1,727 1,551 5,919 6,171 EBITDA* 858 811 2
Slide 7: Normalised Financial Highlights
NORMALISED FINANCIAL HIGHLIGHTS 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/Equity (x) 0.26 0.35 0.26 0.35 0.2
Slide 8: Normalised Financials – Key Ratios
NORMALISED FINANCIALS – KEY RATIOS Earnings per Share (INR/Share) Cash Profit per Share (INR/Share) Standalone Consolidated Standalone Consolidated 59.57 55 70.26 51.21 48.98 49.13 63.89 47.62 46.34 60.71 45 45.03 57.95 41.65 55.65 54.73 56.01 42.38 37.06 53.61 38.67 35.65 50.61 49.65 52.26 35 48.21
Slide 9: Consistent Dividend Payouts
CONSISTENT DIVIDEND PAYOUTS 40 36.3 35 30 28.8 25 20 15 13.5 11.5 15.0 10.0 11.0 10.1 9.9 9.0 8.0 9.0 9.0 10 8.0 7.5 8.1 6.5 6.5 7.2 3.1 5.4 4.0 8.0 3.3 4.0 4.0 5 2.3 3.0 2.8 2.4 2.3 2.0 0 2.0 1.5 Dividend Per Share (INR/Share) GE Shipping – Q4FY24 Results 9
Slide 10: Profit & Loss Statement – Industry Format
PROFIT & LOSS STATEMENT – INDUSTRY FORMAT Standalone Conslidated Q4 Q4 Q4 Q4 Figures in INR Crores FY24 FY23 FY24 FY23 FY24 FY23 FY24 FY23 Operating Revenue 1,148 1,206 4,102 4,809 1,484 1,446 5,176 5,660 Less: Direct Operating Expenses/Voyage Expenses 153 181 626 1,033 179 186 680 1,068 Time C har
Slide 11: Shareholding Pattern
SHAREHOLDING PATTERN FII/FPI Promoters 27% 30% Govt./FI/Corp 17% Public 26% 31-Mar-2024 GE Shipping – Q3 & 9MFY23 Results GE Shipping – Q4FY24 Results 11
Slide 12: Performance Review
PERFORMANCE REVIEW Breakup of Revenue Days (Shipping) Q4 Q4 Revenue Days FY24 FY23 Owned Tonnage 3,744 3,831 Inchartered Tonnage 0 80 Total Revenue Days 3,744 3,911 Total Owned Tonnage (mn.dwt) 3.36 3.44 Breakup of Revenue Days (Offshore) Q4 Q4 Revenue Days FY24 FY23 Offshore Logistics 1,521 1,447 D
Slide 13: Performance Review
PERFORMANCE REVIEW Avg TCYs in Various Categories Q4 Q3 QoQ Q4 YoY Avg (TCYs USD/Day) FY24 FY24 % FY23 % Crude Carriers 53,182 45,556 17% 64,579 -18% Product Carriers 37,637 28,566 32% 36,665 3% LPG Carriers 35,506 31,255 14% 29,175 22% Dry Bulk 14,921 16,478 -9% 12,704 17% Avg TCYs in Various Categ
Slide 14: Changes in Standalone NAV (YTD)
CHANGES IN STANDALONE NAV (YTD) INR/SHARE GE Shipping – Q4FY24 Results 14
Slide 15: Years Movement in Standalone NAV
5 YEARS MOVEMENT IN STANDALONE NAV Standalone NAV – Continues to touch new highs 1200 1127 1000 CAGR: 25% INR/SHARE 800 600 374 400 200 0 FY19 FY20 FY21 FY22 FY23 FY24 GE Shipping – Q4FY24 Results 15
Slide 16: Changes in Consolidated NAV (YTD)
CHANGES IN CONSOLIDATED NAV (YTD) INR/SHARE GE Shipping – Q4FY24 Results 16
Slide 17: Revenue Coverage
REVENUE COVERAGE Coverage of Operating Days (Shipping) Category Q1FY25 Crude Carriers 50% Product Carriers* 60% LPG Carriers 100% Dry Bulk 63% Revenue Days Q1FY25 Jack Up Rigs 99% AHTSV 93% MPSVV 100% PSV/ROVSV 76% GE Shipping – Q4FY24 Results 17
Slide 18: Standalone Debt Repayment Schedule
STANDALONE DEBT REPAYMENT SCHEDULE GESCO Standalone (USD mn) 80 74 74 350 71 70 68 300 323 60 250 50 200 40 36 150 30 100 20 10 50 0 0 Mar-24 Mar-25 Mar-26 Mar-27 Mar-28 Mar-29 Loan Repayments Loan O/S (RHS) 1) Effective all-in USD cost of debt of about 4.00% basis Mar-24 2) 95% of debt portfolio is
Slide 19: Fleet Profile
FLEET PROFILE Fleet Profile - Shipping DWT Fleet (10 May'24) Fleet Q4FY24 No Avg Age Crude Carriers 842,958 6 15.46 *Committed to sell one 2004 Product Carriers* 1,192,148 20 15.70 built MR “Jag Pahel”. Gas Carriers 185,363 4 18.48 Dry Bulk Carriers 1,239,274 14 10.71 Total 3,459,743 44 14.00 Fleet
Slide 20: Shipping Market
QL Tie Great Fasten Shipping Co. Ltd. SHIPPING MARKET
Slide 21: Crude and Product Tankers
CRUDE AND PRODUCT TANKERS Avg. Suezmax Earnings (USD/day) Avg. MR Earnings (USD/day) 100,000 60,000 90,000 50,000 80,000 70,000 40,000 60,000 50,000 30,000 40,000 20,000 30,000 20,000 10,000 10,000 0 0 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar FY
Slide 22: Crude and Product Tankers
CRUDE AND PRODUCT TANKERS • Crude tanker earnings experienced a y/y decrease in 4QFY24 attributed to a decline in Middle East exports on OPEC+ voluntary supply cuts. However, the growth in Atlantic crude exports offered support to crude tanker earnings. • Product tanker earnings were higher y/y in 4
Slide 23: Dry Bulk
DRY BULK DB Freight picked up in FY24 Y-O-Y, however sub-capes averaged lower Y-O-Y Avg. Baltic Capesize 5T/C Earnings (USD/day) Avg. Baltic Supra BSI-58 10T/C Earnings 70,000 (USD/day) 40000 60,000 35000 50,000 30000 40,000 25000 20000 30,000 15000 20,000 10000 10,000 5000 0 0 Apr May Jun Jul Aug S
Slide 24: Dry Bulk
DRY BULK • During the quarter, Capesize spot earnings witnessed significant y/y growth of 175%. Kamsarmax and Supramax earnings also grew y/y by 39% and 30%, respectively. • The surge in earnings was primarily due to higher supply of iron ore from Brazil owing to lower weather disruptions. This was
Slide 25: LPG Gas
LPG GAS Avg. VLGC Earnings (USD/day) 170,000 VLGC Spot earnings sustained healthy levels during FY-24 150,000 and averaged much higher YoY in comparison to FY-23. 130,000 110,000 90,000 USD/day FY24 FY23 % change 70,000 12M 85,061 63,072 35% 50,000 30,000 10,000 April May June July Aug Sep Oct Nov D
Slide 26: Suez Canal/Panama Canal Disruptions
SUEZ CANAL/PANAMA CANAL DISRUPTIONS • In the first two 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 • A severe drought at the Panama Canal has forced authorities to impose restrictions tha
Slide 27: Fleet Supply
The Great Fastern Shipping Co. Ltd FLEET SUPPLY
Slide 28: Low Order Book to Fleet Ratio
LOW ORDER BOOK TO FLEET RATIO Historic Order Book as a % of fleet (Calendar Year) 90% 80% 70% 60% Current Orderbook 50% 40% 30% 24.7% 20% 7.4% 15.0% 10% 9.3% 0% Bulkers Product tankers Crude tankers LPG Carriers (65K+ CBM) Sources: Industry Reports GE Shipping – Q4FY24 Results 28
Slide 29: Scrapping
SCRAPPING Scrapping continues to be very low, and the pool of old ships continues to grow Fleet (Mn Dwt) Vessel Category May'24 Crude 463 Product 186 Dry Bulk 1,014 Scrapping (% Beginning world fleet) CYTD CY CY CY CY CY CY CY CY Vessel Category 2024 2023 2022 2021 2020 2019 2018 2017 2016 Crude 0.1
Slide 30: 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% 0% 5% 10% 15% 20% 25% 30% Orderbook as % of Total Fleet Sources: Industry Reports GE Shipping – Q4
Slide 31: Asset Price Movement
©? pe ret Fs ak OS ASSET PRICE MOVEMENT THE GREAT EASTERN SHIPPING CO. LTD.
Slide 32: Asset Price Movement (Indexed Over Last 5 Yrs)
85 95 105 115 125 135 145 155 165 175 85 105 125 145 165 185 205 Apr-19 Apr-19 Jul-19 Jul-19 Oct-19 Oct-19 5 YRS) Jan-20 Jan-20 Apr-20 Apr-20 Sources: Industry Reports Jul-20 Jul-20 Oct-20 Oct-20 Jan-21 Jan-21 Apr-21 Apr-21 Jul-21 Jul-21 Oct-21 Oct-21 Suezmax Capesize Jan-22 Jan-22 Apr-22 Apr-22 Jul
Slide 33: Greatship (India) Limited 100% Subsidiary
GREATSHIP (INDIA) LIMITED 100% SUBSIDIARY
Slide 34: Offshore Subsidiary – Greatship Story
OFFSHORE SUBSIDIARY – GREATSHIP STORY FY16 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 financ
Slide 35: Market Trends: Utilisation
200 250 300 400 450 350 Mar 2010 Sep 2010 Mar 2011 Sources: Industry Reports Sep 2011 Mar 2012 Sep 2012 Mar 2013 Sep 2013 Mar 2014 Sep 2014 Mar 2015 Sep 2015 Mar 2016 Sep 2016 MARKET TRENDS: UTILISATION Under Contract Mar 2017 Sep 2017 Mar 2018 GE Shipping – Q4FY24 Results Sep 2018 Total Util % Mar
Slide 36: Fleet Supply
FLEET SUPPLY Number Jack-up Rigs PSV+AHTSV Current Fleet 497 3,358 Under Contract Fleet 388 2,353 Order Book 17 54 O/B to Current Fleet 3.4% 1.6% Total Scrapping since Jan 2016 (Nos) 146 703 No of Vessels/Rigs more than 20/30 years old (% Fleet) 32% 21% Cold stacked more than 3 years 55 449 Source:
Slide 37: Repricing
REPRICING Remaining 1 vessel will come up for repricing in H1FY29 Vessels Rigs 12 2 2 1 1 1 1 1 1 0 0 0 H1 FY25 H2 FY25 H2FY26 H1FY27 H2FY27 H1FY28 GE Shipping – Q4FY24 Results 37
Slide 38: Debt Repayment Schedule
DEBT REPAYMENT SCHEDULE GIL (USD Mn) 30 120 26 26 26 25 100 97 20 20 80 15 60 10 40 5 20 0 0 Mar-24 Mar-25 Mar-26 Mar-27 Mar-28 Repayments Loan O/S (RHS) GE Shipping – Q4FY24 Results 38
Slide 39: Financials
‘The Great Eastern Shipping Co. Ltd. FINANCIALS
Slide 40: Strong Cashflows Led Net Debt to Net Cash
STRONG CASHFLOWS LED NET DEBT USD 360 MN TO NET CASH OF USD 330+ MN USD Mn Net Debt Expansion Phase Net Debt Reduction Phase 400 0.60 300 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 FY2020 FY2021 FY2022 FY2023 FY2024 Net Debt Net Debt/
Slide 41: Share Price to Consolidated NAV
SHARE PRICE TO CONSOLIDATED NAV INR/Share 1600 1 1400 0.9 0.8 1200 0.7 1000 0.6 800 0.5 600 0.4 0.3 400 0.2 200 0.1 0 0 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Consolidated NAV Standalone NAV Share Price/Consol. NAV (RHS) * For FY24 we have taken share price as on 10th May 2024 GE Shipping – Q4
Slide 42: Great Eastern CSR Foundation
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 than 78,000 women and 40,300 children provided with health services – includin
Slide 43: Great Eastern CSR Foundation
GREAT EASTERN CSR FOUNDATION GECSRF currently supporting 28 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. Alumni Asso
Slide 44: Thank You
THANK YOU Visit us at www.greatship.com From a modest beginning… ...to most admired globally 1948 2024 Read the Story of GE Shipping – Coffee Table Book GE Shipping – Q4FY24 Results 44
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