Great Eastern Shipping Co. Ltd. · NSE:GESHIP
Great Eastern Shipping — The Great Eastern Shipping Company — Q1 FY2024 Earnings Presentation
41 slides from Great Eastern Shipping's earnings presentation, Aug 3, 2023
Slide 1: Cover letter to stock exchanges
THE GREAT EASTERN SHIPPING COMPANY LIMITED CIN: L35110MI-11948PLC006472 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/2023/JMT August 03, 2023 BSE Limited National Stock Exchange of India Limited 1st
Slide 2: Q1FY24 Earnings Presentation
Ink The Great Eastern Shipping Co. Ltd. 7948 2023 fE 2., a, c Q1FY24 trt Nsk.-e.c-- Earnings Presentation 03 AUGUST 2023 G. TH J STERN SI a T CO. LTD.
Slide 3: Disclaimer
The Great Eastern DISCLAIMER Shipping Co. Ltd. 7948 2023 44 sc. 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
Slide 4: Q1FY24 Highlights
The Great Eastern Q1FY24 HIGHLIGHTS Shipping Co. Ltd. 7948 2023 44 sc. • Net profits of INR 576 Cr on a consolidated basis • Our consolidated NAV has moved in Q1FY24 to INR 1202/share • Declared 1st Interim dividend of INR 12.90/Share for Q1FY2024 which includes special dividend of INR 7.50/Share to
Slide 5: Reported Highlights
The Great Eastern REPORTED HIGHLIGHTS Shipping Co. Ltd. 7948 2023 44 sc. St an d al on e C on s l i d at e d Q1 Q1 Q1 Q1 • GE Shipping Q1FY24 Fig in INR Crores FY24 FY23 FY23 FY24 FY23 FY23 consolidated Net Profit at INR 576 Cr I n come St at e me n t Revenue* 1,109 1,165 5,096 1,335 1,398 6,171 • D
Slide 6: Normalised Financials
The Great Eastern NORMALISED FINANCIALS Shipping Co. Ltd. 7948 2023 44 sc. 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
Slide 7: Normalised Financial Highlights
The Great Eastern NORMALISED FINANCIAL HIGHLIGHTS Shipping Co. Ltd. 7948 2023 44 sc. Standalone Conslidated • GE Shipping Q1FY24 Q1 Q1 Q1 Q1 consolidated Net Profit Fig in INR Crores FY24 FY23 FY23 FY24 FY23 FY23 at INR 529 Cr In come St at e me n t • Declared 1st Interim Revenue* 1,109 1,165 5,096
Slide 8: Normalised Financial Highlights
The Great Eastern NORMALISED FINANCIAL HIGHLIGHTS Shipping Co. Ltd. 7948 2023 44 sc. Standalone Conslidated Q1 Q1 Q1 Q1 FY24 FY23 FY23 FY24 FY23 FY23 Ke y Financial Figure Return on Equity (ROE%)** 24% 28% 32% 20% 25% 28% Return on Capital Employed (ROCE%)** 19% 19% 23% 16% 17% 20% Gross Debt/Equity
Slide 9: Normalised Financials – Key Ratios
The Great Eastern NORMALISED FINANCIALS – KEY RATIOS Shipping Co. Ltd. 7948 2023 44 sc. Earnings per Share (INR/Share) Cash Profit per Share (INR/Share) Standalone Consolidated Standalone —M— Consolidated 55 51.21 48.98 63.89 47.62 46.34 60.71 45 45.03 57.95 55.65 42.38 37.06 53.61 35.65 50.61 49.65
Slide 10: Consistent Dividend Payouts
The Great Eastern CONSISTENT DIVIDEND PAYOUTS Shipping Co. Ltd. 7948 2023 35 30 28.8 25 20 15 13.5 12.9 11.5 15.0 10.0 11.0 10.1 9.9 10 9.0 9.0 9.0 8.0 8.0 8.1 7.5 7.2 6.5 6.5 3.1 8.0 5.4 4.0 5 4.0 4.0 3.3 2.3 3.0 2.8 2.4 2.3 2.0 0 2.0 1.5 Dividend Per Share (INR/Share) GE Shipping – Q1FY24 Results
Slide 11: Profit & Loss Statement – Industry Format
The Great Eastern PROFIT & LOSS STATEMENT – INDUSTRY FORMAT Shipping Co. Ltd. 7948 2023 44 sc. Q1 Q1 Q1 Q1 Figures in INR Crores FY24 FY23 FY23 FY24 FY23 FY23 Operating Revenue 1,035 1,157 4,809 1,277 1,359 5,660 Less: Direct Operating Expenses/Voyage Expenses 155 322 1,033 157 328 1,068 Time C har
Slide 12: Shareholding Pattern
\ V -r The Great Eastern G Shipping Co. Ltd. 3 F I SHAREHOLDING PATTERN • it 6- garba: m 21111111111w 1 FII/FPI 1 I Promoters 26% 30% A 4 t Govt./FI/Corp 19% Public 25% - , -aLiimh ; INUM11 OZ . er" 4 —.1" • tt. 77 30-JUNE-2023 .-••••• GE Shipping – Q3 & 9MFY23 Results GE Shipping – Q1FY24 Results 1
Slide 13: Performance Review
The Great Eastern PERFORMANCE REVIEW Shipping Co. Ltd. 7948 2023 44 sc. Revenue Days FY24 FY23 Owned Tonnage 3,659 3,929 Inchartered Tonnage 91 215 Total Revenue Days 3,750 4,144 Total Owned Tonnage (mn.dwt) 3.44 3.57 Breakup of Revenue Days (Offshore) Q1 Q1 Revenue Days FY24 FY23 Offshore Logistics
Slide 14: Performance Review
The Great Eastern PERFORMANCE REVIEW Shipping Co. Ltd. 7948 2023 44 sc. Avg TCYs in Various Categories Q1 Q4 QoQ Q1 YoY Avg (TCYs USD/Day) FY24 FY23 % FY23 % Crude Carriers 53,344 64,579 -17% 28,852 85% Product Carriers 33,142 36,665 -10% 25,745 29% LPG Carriers 28,860 29,175 -1% 26,196 10% Dry Bulk
Slide 15: Changes in Standalone NAV (YTD)
The Great Eastern CHANGES IN STANDALONE NAV (YTD) Shipping Co. Ltd. 1948 2023 Changes in Standalone NAV (YTD) 1200 88 995 1000 204 -29 800 INR/SHARE 732 600 400 200 0 NAV Jun-22 Cash Profit Fleet Value Dividend NAV Jun-23 GE Shipping – Q1FY24 Results 14
Slide 16: Years Movement in Standalone NAV
The Great Eastern 5 YEARS MOVEMENT IN STANDALONE NAV Shipping Co. Ltd. 7948 2023 44 sc. Standalone NAV – Continue to touch new highs 1200 CAGR: 22% 995 1000 INR/SHARE 800 600 357 400 200 0 FY18 FY19 FY20 FY21 FY22 FY23 Q1FY24 GE Shipping – Q1FY24 Results 15
Slide 17: Changes in Consolidated NAV (YTD)
The Great Eastern CHANGES IN CONSOLIDATED NAV (YTD) Shipping Co. Ltd. 1948 2023 44 GC Changes in Consolidated NAV (YTD) 1400 195 1204 1200 -29 232 1000 805 INR/SHARE 800 600 400 200 0 NAV Jun-22 Cash Profit Fleet Value Dividend NAV Jun-23 GE Shipping – Q1FY24 Results 16
Slide 18: Revenue Coverage
The Great Eastern REVENUE COVERAGE Shipping Co. Ltd. 7948 2023 44 sc. Coverage of Operating Days (Shipping) Category FY24 Crude Carriers 19% Product Carriers 18% LPG Carriers 92% Dry Bulk 28% Revenue Days FY24 Jack Up Rigs 93% AHTSV 70% MPSVV 27% PSV/ROVSV 84% GE Shipping – Q1FY24 Results 17
Slide 19: Standalone Debt Repayment Schedule
The Great Eastern STANDALONE DEBT REPAYMENT SCHEDULE Shipping Co. Ltd. 7948 2023 44 sc. GESCO Standalone (USD mn) 80 74 74 400 70 68 350 366 60 300 50 45 250 40 36 200 30 150 20 100 10 50 0 0 Jun-23 Mar-24 Mar-25 Mar-26 Mar-27 Mar-28 Loan Repayments Loan O/S (RHS) 1) Effective all-in USD cost of deb
Slide 20: Fleet Profile
The Great Eastern FLEET PROFILE Shipping Co. Ltd. 7948 2023 44 sc. Fleet Profile - Shipping DWT Fleet (03 Aug'23) Fleet Q1FY24 No Avg Age Crude Carriers 842,958 6 14.69 Product Carriers 1,092,465 18 15.39 Gas Carriers 185,363 4 17.72 Dry Bulk Carriers 1,210,805 14 10.32 Total 3,331,591 42 13.50 Flee
Slide 21: Shipping Market
The Great Eastern Shipping Co. Ltd. 1948 1 I II pI NO SII0i( I I I fisrrtr 4•71p;! 11 I I 10,4. tit if - II III% h igi r. SHIPPING MARKET 4 \ V•,%,,,,:;11:! *:-i-4,,, • ••,:;..Vg. rk. • ., 4 _ ..-• ' 8. 40\- 5- "4 6 4 mit i iillg '--- l 1 ss % ' \* ** i bri • lliall!4 ..Y Li •I , 4 * ••• ICI Mill •
Slide 22: Crude and Product Tankers
The Great Eastern CRUDE AND PRODUCT TANKERS Shipping Co. Ltd. 7948 2023 44 sc. 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 M
Slide 23: Crude and Product Tankers
The Great Eastern CRUDE AND PRODUCT TANKERS Shipping Co. Ltd. 7948 2023 44 sc. • Tanker spot earnings have softened QoQ in 1QFY24 led by OPEC+ crude production cuts starting May-23 and seasonal refinery maintenances. • Overall seaborne crude & product trade grew by ~7% & 4% y/y respectively during 1
Slide 24: Dry Bulk
The Great Eastern Shipping Co. Ltd. DRY BULK 7948 sc. 44 2023 DB Freight softened in Q1FY24 Y-O-Y, both Capes & Sub-Capes continued to remain soft 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
Slide 25: Dry Bulk
The Great Eastern Shipping Co. Ltd. DRY BULK 7948 sc. 44 2023 • Spot earnings continued to remain soft & materially down y/y during the quarter. • Ton – Mile demand increased by ~ 2.5 % y/y as against a nominal fleet supply growth of 3 %. • Effective fleet supply growth was higher as all Covid relat
Slide 26: LPG Gas
The Great Eastern Shipping Co. Ltd. LPG GAS 7948 sc. 44 2023 Avg. VLGC Earnings (USD/day) 130,000 VLGC Spot earnings sustained healthy levels during Q1FY- 110,000 24 and were much higher YoY in comparison to Q1FY-23. 90,000 44. 70,000 USD/day FY24 FY23 % change 50,000 3M 75,981 46,005 65% 30,000 10,
Slide 27: Fleet Supply
The Great Eastern Shipping Co. Ltd. p.E 7948 2023 r•- - • • ••.% , 1 6 . • VO w. • FLEET SUPPLY . • ;• "4•.' ..$•• L • / .411.' • "v• • .• 4" ,
Slide 28: Low Order Book to Fleet Ratio
The Great Eastern LOW ORDER BOOK TO FLEET RATIO Shipping Co. Ltd. 7948 2023 44 sc. Historic Order Book as a % of fleet (Calendar Year) 90% 80% 70% 60% 50% 40% 30% Current Orderbook 20% 9.5% 3.7% 10% 7.4% 0% Bulkers Product tankers Crude tankers Sources: Industry Reports GE Shipping – Q1FY24 Results
Slide 29: Asset Price Movement
The Great Eastern Shipping Co. Ltd. 7948 2023 9 14 3 r •1 f -s i P i f ASSET PRICE MOVEMENT 711 ( . 4,' • imp" , ' ler f. fri .. ' ...1- 1 — • * 0 - 43 -i . .m,.." GRLAT • sEASTERN • THE GREAT EASTERN SHIPPING CO. LTD.
Slide 30: Asset Price Movement (Indexed Over Last 5 Years)
70 80 90 90 100 110 120 130 140 150 100 110 120 130 140 150 160 170 180 Jul-18 Jul-18 Oct-18 Oct-18 Jan-19 Jan-19 5 YRS) Apr-19 Apr-19 Jul-19 Jul-19 Sources: Industry Reports Oct-19 Oct-19 Jan-20 Jan-20 Apr-20 Apr-20 Jul-20 Jul-20 Oct-20 Oct-20 Jan-21 Jan-21 Suezmax Capesize Apr-21 Apr-21 Jul-21 Jul
Slide 31: Scrapping
The Great Eastern SCRAPPING Shipping Co. Ltd. 7948 2023 44 sc. Vessel Category Jul'23 Crude 459 Product 183 Dry Bulk 989 Scrapping (% Beginning world fleet) CYTD CY CY CY CY CY CY CY CY Vessel Category 2023 2022 2021 2020 2019 2018 2017 2016 2015 Crude - 0.78 2.47 0.53 0.55 4.39 2.43 0.39 0.38 Produ
Slide 32: Greatship (India) Limited – 100% Subsidiary
„„!,,,.. ,,,k. a „.? Z * *Ito .c. th,-II. /F L/ The Great Eastern Shipping Co. Ltd. I) ' ' 1948 2023 w' 0.. it i, 1A A,.....19!, N. I I,.v..ffl ':16.1yr N f k.....4 laillk 'jig liNr '14/. 11ijibl:. rtjpit4 ':!gi, 41r 144 ,f,A.'"'. hib„ ol..4 WV "'.i - \ kravi INA lioff. GREATSHIP (INDIA) LIMITED 4/
Slide 33: Fleet Supply
The Great Eastern Shipping Co. Ltd. FLEET SUPPLY 7948 sc. 44 2023 Number Jack-up Rigs PSV+AHTSV Current Fleet 495 3,406 Under Contract Fleet 354 2,304 Order Book 20 83 O/B to Current Fleet 4.0% 2.4% Total Scrapping since Jan 2016 (Nos) 143 648 No of Vessels/Rigs more than 20/30 years old (% Fleet) 3
Slide 34: Market Trends: Utilisation
200 250 300 350 400 450 Jan 2010 Jun 2010 Nov 2010 Apr 2011 Sep 2011 Feb 2012 Jul 2012 Dec 2012 May 2013 Oct 2013 Mar 2014 Aug 2014 Jan 2015 Jun 2015 Nov 2015 Apr 2016 MARKET TRENDS: UTILISATION Under Contract Sep 2016 Feb 2017 Jul 2017 GE Shipping – Q1FY24 Results Dec 2017 May 2018 Total Util % Oct
Slide 35: Repricing
The Great Eastern REPRICING Shipping Co. Ltd. 7948 2023 44 sc. Remaining 3 vessels will come up for repricing in FY27 & FY28 Remaining 1 rig will come up for repricing in FY 27 ■ Vessels ■ Rigs 6 5 4 1 1 1 1 11 0 0 0 0 0 H1 FY24 H2 FY24 H1 FY25 H2 FY25 H1FY26 H2FY26 GE Shipping – Q1FY24 Results 34
Slide 36: Debt Repayment Schedule
The Great Eastern DEBT REPAYMENT SCHEDULE Shipping Co. Ltd. 7948 2023 44 sc. GIL (USD Mn) 120 140 97 120 100 127 100 80 80 60 60 40 29 40 20 20 0 0 Jun-23 Mar-24 Mar-25 Repayments Loan O/S (RHS) GE Shipping – Q1FY24 Results 35
Slide 37: Financials
The Great Eastern Shipping Co. Ltd. 7948 2023 44 Litr- z11.1 4 FINANCIALS krk rk AIL ••• rrF 2 0rr c.; 4!: /07/\2022
Slide 38: Strong Cashflows Led Net Debt USD 360 Mn to Net Cash of USD 200 Mn
The Great Eastern Shipping Co. Ltd. STRONG CASHFLOWS LED NET DEBT USD 360 7948 44 2023 MN TO NET CASH OF USD 200 MN s CD 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 FY2016 FY2017 FY2018 FY2019 FY2020 FY20
Slide 39: Share Price to Consolidated NAV
The Great Eastern SHARE PRICE TO CONSOLIDATED NAV Shipping Co- Ltd. 7948 2023 INR/Share 1400 1 0.9 1200 0.8 1000 0.7 0.6 800 0.5 600 0.4 400 0.3 0.2 200 0.1 • 0 0 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Q1FY24 Consolidated NAV Standalone NAV Share Price/Consol. NAV (RHS) * For Q1FY24 we have taken s
Slide 40: Great Eastern CSR Foundation
GREAT EASTERN CSR FOUNDATION 7948 2023 sc. GECSRF supports NGOs working under health, education and livelihoods GREAT EASTERN CSR FOUNDATION CURRENT PARTNERS EDUCATION HEALTH LIVELIHOODS • A EREHWON prAimor Basic Healti-iCare ServiceS I MH &Hon Research and Tialning for HeT alth er PARTNER I N D l A
Slide 41: Thank You
THANK YOU The Great Eastern Shipping Co. Ltd. 7948 2023 Visit us at www.greatship.com °co From a modest beginning… ...to most admired globally 'UV oiPZIMUIT Ocean House , , ••- • "4, • . • - • - !": • . ••.• AV • - • - THE GREAT EASTERN • I SHIPPING COMPANY LIMITED 0. • 1948 2023 Read the Story of G
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