Great Eastern Shipping Co. Ltd. · NSE:GESHIP

Great Eastern Shipping — The Great Eastern Shipping Company — Q3 FY2024 Earnings Presentation

41 slides from Great Eastern Shipping's earnings presentation, Jan 31, 2024

  1. Slide 1: Exchange filing cover letter

    Our Ref.: S/2024/JMT January 31, 2024 BSE Limited National Stock Exchange of India Limited 1st Floor, Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Plot No. C/1, Dalal Street, Bandra Kurla Complex, Bandra (East), Mumbai – 400 001 Mumbai – 400 051 BSE Scrip code: 500620 Trading Symbol - GESHI

  2. Slide 2: Q3FY24 Earnings Presentation

    Q3FY24 Earnings Presentation 31 JANUARY 2024

  3. Slide 3: 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

  4. Slide 4: Q3FY24 Highlights

    Q3FY24 HIGHLIGHTS • Net profits of INR 538 Cr on a consolidated basis • Our consolidated NAV has moved to INR 1,316/share as on 31 st December 2023 • Declared 3rd Interim dividend of INR 6.30/Share for Q3FY2024. Total dividend for 9MFY24 is INR 25.50/Share GE Shipping – Q3FY24 Results 3

  5. Slide 5: Reported Highlights

    REPORTED HIGHLIGHTS St an d al on e C on s l i d at e d Q3 Q3 9M Q3 Q3 9M Fig in INR Crores FY24 FY23 FY24 FY24 FY23 FY24 • GE Shipping Q3FY24 I n come St at e me n t consolidated Net Revenue* 1,110 1,261 3,401 1,396 1,522 4,192 Profit at INR 538 Cr EBITDA* 686 796 2,155 801 898 2,519 N e t P rofi t

  6. Slide 6: 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

  7. Slide 7: Normalised Financial Highlights

    NORMALISED FINANCIAL HIGHLIGHTS Standalone Conslidated Q3 Q3 9M Q3 Q3 9M • GE Shipping Q3FY24 Fig in INR Crores FY24 FY23 FY24 FY24 FY23 FY24 consolidated Net Profit In come St at e me n t at INR 552 Cr Revenue* 1,110 1,261 3,401 1,396 1,522 4,192 • Declared 3rd Interim EBITDA* 689 771 2,074 789 881

  8. Slide 8: Normalised Financial Highlights

    NORMALISED FINANCIAL HIGHLIGHTS Standalone Conslidated Q3 Q3 9M Q3 Q3 9M FY24 FY23 FY24 FY24 FY23 FY24 Ke y Fi nanci al Fi gure Return on Equity (ROE%)** 22% 31% 23% 19% 27% 20% Return on Capital Employed (ROCE%)** 17% 23% 18% 16% 20% 16% Gross Debt/Equity (x) 0.31 0.46 0.31 0.34 0.50 0.34 Net Debt/

  9. Slide 9: Normalised Financials – Key Ratios

    NORMALISED FINANCIALS – KEY RATIOS Earnings per Share (INR/Share) Cash Profit per Share (INR/Share) Standalone Consolidated Standalone Consolidated 55 51.21 48.98 63.89 47.62 46.34 60.71 45 45.03 57.95 41.65 55.65 54.73 42.38 37.06 53.61 38.67 35.65 50.61 49.65 52.26 35 48.21 32.55 36.23 37.51 45.82

  10. Slide 10: Consistent Dividend Payouts

    CONSISTENT DIVIDEND PAYOUTS 35 30 28.8 25.5 25 YTD 20 15 13.5 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 – Q3FY24 Results 9

  11. Slide 11: Profit & Loss Statement – Industry Format

    PROFIT & LOSS STATEMENT – INDUSTRY FORMAT Standalone Conslidated Q3 Q3 9M Q3 Q3 9M Figures in INR Crores FY24 FY23 FY24 FY24 FY23 FY24 Operating Revenue 990 1,207 2,955 1,230 1,415 3,691 Less: Direct Operating Expenses/Voyage Expenses 141 219 473 164 236 501 Time C har ter Equiv alent ( A) 849 988 2

  12. Slide 12: Shareholding Pattern

    SHAREHOLDING PATTERN FII/FPI Promoters 26% 30% Govt./FI/Corp 19% Public 25% 31-Dec-2023 GE Shipping – Q3 & 9MFY23 Results GE Shipping – Q3FY24 Results 11

  13. Slide 13: Performance Review

    PERFORMANCE REVIEW Breakup of Revenue Days (Shipping) Q3 Q3 Revenue Days FY24 FY23 Owned Tonnage 3,690 3,684 Inchartered Tonnage 0 94 Total Revenue Days 3,690 3,778 Total Owned Tonnage (mn.dwt) 3.36 3.44 Breakup of Revenue Days (Offshore) Q3 Q3 Revenue Days FY24 FY23 Offshore Logistics 1,566 1,507 D

  14. Slide 14: Performance Review

    PERFORMANCE REVIEW Avg TCYs in Various Categories Q3 Q2 QoQ Q3 YoY Avg (TCYs USD/Day) FY24 FY24 % FY23 % Crude Carriers 45,556 40,645 12% 60,143 -24% Product Carriers 28,566 27,743 3% 36,423 -22% LPG Carriers 31,255 31,100 0% 29,803 5% Dry Bulk 16,478 11,720 41% 17,020 -3% GE Shipping – Q3FY24 Resul

  15. Slide 15: Changes in Standalone NAV (YTD)

    CHANGES IN STANDALONE NAV (YTD) INR/SHARE GE Shipping – Q3FY24 Results 14

  16. Slide 16: Years Movement in Standalone NAV

    5 YEARS MOVEMENT IN STANDALONE NAV Standalone NAV – Continue to touch new highs 1200 1068 1000 CAGR: 21% INR/SHARE 800 600 357 400 200 0 FY18 FY19 FY20 FY21 FY22 FY23 9MFY24 GE Shipping – Q3FY24 Results 15

  17. Slide 17: Changes in Consolidated NAV (YTD)

    CHANGES IN CONSOLIDATED NAV (YTD) INR/SHARE GE Shipping – Q3FY24 Results 16

  18. Slide 18: Revenue Coverage

    REVENUE COVERAGE Coverage of Operating Days (Shipping) Category FY24 Crude Carriers 40% Product Carriers* 41% LPG Carriers 100% Dry Bulk 68% Revenue Days FY24 Jack Up Rigs 96% AHTSV 88% MPSVV 92% PSV/ROVSV 90% *Excludes vessel delivered to buyer in January 2024 GE Shipping – Q3FY24 Results 17

  19. Slide 19: Standalone Debt Repayment Schedule

    STANDALONE DEBT REPAYMENT SCHEDULE GESCO Standalone (USD mn) 80 74 74 400 70 68 350 362 60 300 50 250 41 40 36 200 30 150 20 100 10 50 0 0 Dec-23 Mar-24 Mar-25 Mar-26 Mar-27 Mar-28 Loan Repayments Loan O/S (RHS) 1) Effective all-in USD cost of debt of about 4.00% basis Dec-23 2) 95% of debt portfoli

  20. Slide 20: Fleet Profile

    FLEET PROFILE Fleet Profile - Shipping DWT Fleet (31 Jan'24) Fleet Q3FY24 No Avg Age Crude Carriers 842,958 6 15.19 Product Carriers 1,090,663 18 15.73 Gas Carriers 185,363 4 18.21 Dry Bulk Carriers 1,239,274 14 10.43 Total 3,358,258 42 13.78 Fleet Profile - Offshore Avg Years Fleet No. of Units Yrs

  21. Slide 21: Shipping Market

    QL Tie Great Fasten Shipping Co. Ltd. SHIPPING MARKET

  22. Slide 22: 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

  23. Slide 23: Crude and Product Tankers

    CRUDE AND PRODUCT TANKERS • Crude tanker earnings were lower y/y in 3QFY24 due to drop in Middle East exports. However, North & South America saw y/y growth in crude oil exports. • Product tanker earnings were also lower y/y in 3QFY24. East of Suez earnings were lower led by drop in Middle East & Ch

  24. Slide 24: Dry Bulk

    DRY BULK DB Freight picked up in Q3FY24 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

  25. Slide 25: Dry Bulk

    DRY BULK • During the quarter, Capesize spot earnings witnessed significant y/y growth of ~ 93 % while Kamsarmax and Supramax earnings were flat y/y. • Ton – Mile demand increased by ~ 8 % y/y during the quarter as against a nominal fleet supply growth of 3 %. • Asset prices increased marginally dur

  26. Slide 26: LPG Gas

    LPG GAS Avg. VLGC Earnings (USD/day) 170,000 VLGC Spot earnings sustained healthy levels during Q3FY- 150,000 24 and were much higher YoY in comparison to Q3FY-23. 130,000 110,000 90,000 USD/day FY24 FY23 % change 70,000 9M 101,337 61,484 65% 50,000 30,000 10,000 April May June July Aug Sep Oct Nov

  27. Slide 27: Fleet Supply

    The Great Fastern Shipping Co. Ltd FLEET SUPPLY

  28. 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% 50% 40% 30% Current Orderbook 20% 4.6% 12.4% 10% 8.7% 0% Bulkers Product tankers Crude tankers Sources: Industry Reports GE Shipping – Q3FY24 Results 27

  29. Slide 29: Asset Price Movement

    ©? pe ret Fs ak OS ASSET PRICE MOVEMENT THE GREAT EASTERN SHIPPING CO. LTD.

  30. Slide 30: Asset Price Movement (Indexed Over Last 5 Years)

    80 85 95 90 100 110 120 130 140 150 160 105 115 125 135 145 155 165 175 Jan-19 Jan-19 Apr-19 Apr-19 Jul-19 Jul-19 5 YRS) Oct-19 Oct-19 Jan-20 Jan-20 Sources: Industry Reports Apr-20 Apr-20 Jul-20 Jul-20 Oct-20 Oct-20 Jan-21 Jan-21 Apr-21 Apr-21 Jul-21 Jul-21 Suezmax Capesize Oct-21 Oct-21 Jan-22 Jan

  31. Slide 31: Scrapping

    SCRAPPING Fleet (Mn Dwt) Vessel Category Jan'24 Crude 462 Product 185 Dry Bulk 1,003 Scrapping (% Beginning world fleet) CY CY CY CY CY CY CY CY CY Vessel Category 2023 2022 2021 2020 2019 2018 2017 2016 2015 Crude 0.08 0.78 2.47 0.53 0.55 4.39 2.43 0.39 0.38 Product 0.15 0.76 2.11 0.57 0.60 1.72 1.

  32. Slide 32: Greatship (India) Limited 100% Subsidiary

    GREATSHIP (INDIA) LIMITED 100% SUBSIDIARY

  33. Slide 33: Fleet Supply

    FLEET SUPPLY Number Jack-up Rigs PSV+AHTSV Current Fleet 498 3,360 Under Contract Fleet 370 2,340 Order Book 18 75 O/B to Current Fleet 3.6% 2.2% Total Scrapping since Jan 2016 (Nos) 144 691 No of Vessels/Rigs more than 20/30 years old (% Fleet) 33% 20% Cold stacked more than 3 years 55 459 Source:

  34. Slide 34: Market Trends: Utilisation

    200 250 350 400 450 300 Jan 2010 Jul 2010 Jan 2011 Jul 2011 Jan 2012 Jul 2012 Jan 2013 Jul 2013 Jan 2014 Jul 2014 Jan 2015 Jul 2015 Jan 2016 Jul 2016 MARKET TRENDS: UTILISATION Under Contract Jan 2017 Jul 2017 Jan 2018 GE Shipping – Q3FY24 Results Jul 2018 Total Util % Jan 2019 Jul 2019 Jack Up Util

  35. Slide 35: Repricing

    REPRICING Remaining 1 vessel will come up for repricing in H1FY29 Vessels Rigs 9 3 3 2 1 1 1 1 1 0 0 0 H2 FY24 H1 FY25 H2 FY25 H2FY26 H1FY27 H2FY27 GE Shipping – Q3FY24 Results 34

  36. Slide 36: Debt Repayment Schedule

    DEBT REPAYMENT SCHEDULE GIL (USD Mn) 120 120 100 97 100 107 80 80 60 60 40 40 20 20 10 0 0 Dec-23 Mar-24 Mar-25 Repayments Loan O/S (RHS) GE Shipping – Q3FY24 Results 35

  37. Slide 37: Financials

    ‘The Great Eastern Shipping Co. Ltd. FINANCIALS

  38. Slide 38: Strong Cashflows Led Net Debt to Net Cash

    STRONG CASHFLOWS LED NET DEBT USD 360 MN TO NET CASH OF USD 250+ MN 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 FY2021 FY2022 FY2023 9M FY2024 Net Debt Net Debt/Equity (

  39. Slide 39: Share Price to Consolidated NAV

    SHARE PRICE TO CONSOLIDATED NAV 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 9MFY24 Consolidated NAV Standalone NAV Share Price/Consol. NAV (RHS) * For 9MFY24 we have taken share price as on 31st Jan 2024 GE Shipping – Q3F

  40. Slide 40: 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

  41. Slide 41: 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 – Q3FY24 Results 40

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