Great Eastern Shipping Co. Ltd. · NSE:GESHIP
Great Eastern Shipping — The Great Eastern Shipping — Investor Presentation (July 2016)
28 slides from Great Eastern Shipping's investor presentation, July 2016
Slide 1: Business & Financial Review July 2016
The Great Eastern Shipping Co. Ltd. Business & Financial Review July 2016 1
Slide 2: Forward Looking Statements
Forward Looking Statements 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
Slide 3: Corporate Profile
Corporate Profile The Great Eastern Shipping Company Offshore Shipping (Bulk) (Through wholly-owned subsidiary Greatship (India) Limited) Tankers - Crude Bulk Logistics Drilling - Products India’s largest private sector shipping company. Over 67 years of experience 3
Slide 4: Uninterrupted dividend for 30 years
0 2 4 6 8 10 12 16 14 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 Dividend per share (Rs) 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Uninterrupted dividend for 30
Slide 5: Shareholding Pattern
Shareholding Pattern Shareholding Pattern as on March 31, 2016 Public 20% Promoters Corporate 31% Bodies 6% Govt/FI 19% FII 24% 5
Slide 6: Shipping business - owned fleet
Shipping business - owned fleet Sr. No. Vessel Name Type Sr. No. Vessel Name Type 1 Jag Lalit Suezmax 22 Jag Vishnu VLGC 2 Jag Lok Suezmax 23 Jag Vidhi VLGC 3 Jag Lateef Suezmax 2 Gas Carriers; Age - 21 years 4 Jag Lakshita Suezmax 24 Jag Aarati Kamsarmax 5 Jag Lyall Aframax 25 Jag Aditi Kamsarmax 6
Slide 7: Vessels on Order & Capital Expenditure
Vessels on Order & Capital Expenditure Committed Capex - $90-100 mn Vessels on Order & Expected Delivery Vessel Yard Expected Delivery 3 Kamsarmax Dry Bulk Jiangsu New Yangzi Q2 FY17 & Q4 FY17 Carriers Shipbuilding Co. Ltd, China 1 Secondhand Capesize Hyundai Heavy Q2 FY17 Dry Bulk Carrier Industrie
Slide 8: Tankers – Asset Prices (5-year old)
Tankers – Asset Prices (5-year old) VLCC Suezmax Aframax VLCC Suezmax Aframax USD mn USD mn 180 90 160 80 140 70 120 60 100 50 80 40 60 30 40 20 20 10 0 0 2006-01 2001-01 2002-01 2003-01 2004-01 2005-01 2007-01 2008-01 2009-01 2010-01 2011-01 2012-01 2013-01 2014-01 2015-01 2016-01 2011 2012 2013 20
Slide 9: Bulkers – Asset Prices (5-year old)
Bulkers – Asset Prices (5-year old) Capesize Panamax Supramax Capesize Panamax Supramax USD mn USD mn 180 50 160 45 140 40 120 35 100 30 80 25 60 20 15 40 10 20 5 0 2006-01 2001-01 2002-01 2003-01 2004-01 2005-01 2007-01 2008-01 2009-01 2010-01 2011-01 2012-01 2013-01 2014-01 2015-01 2016-01 0 2011
Slide 10: Low oil prices positively impacted tanker rates
Low oil prices positively impacted tanker rates Baltic Dirty Tanker Index Baltic Clean Tanker Index 1400 1000 1300 900 1200 1100 800 1000 900 700 800 600 700 600 500 500 400 400 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Source – Industry Report
Slide 11: Lower oil prices, leading to increased demand & refinery runs
Lower oil prices, leading to increased demand & refinery runs Supply Demand Refinery Throughput (RHS) 99 81 mbpd mbpd 97 80 79 95 78 93 77 91 76 75 89 74 87 73 85 72 2012 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 • Crude tanker rates, although lower than Q4 2015 le
Slide 12: Rising supply, contango led to commercial stocking, SPR filling and forced storage
Rising supply, contango led to commercial stocking, SPR filling and forced storage • Lower crude oil prices - SPR filling and increase in commercial inventory • Forced storage of oil products due to product-specific oversupply and logistical constraints Source – Industry Reports 12
Slide 13: US and China Crude Oil Imports
US and China Crude Oil Imports US Crude Oil Imports (‘000 bpd) China Crude Oil Imports (‘000 bpd) 2016 2015 2014 2013 2016 2015 2014 2013 8500 9000 8000 8000 7500 7000 7000 6000 6500 5000 6000 4000 Dec Dec Oct Oct Apr May Jun Jul Apr May Jun Jul Mar Aug Nov Mar Aug Nov Feb Sep Feb Sep Jan Jan Source
Slide 14: Dry Bulk freight rates improved during the quarter
Baltic Dry Index (Jan 2000 – Apr 2016) Dry Bulk freight rates improved during the quarter Baltic Dry Index 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Nov-15 Nov-00 Aug-04 Nov-05 Aug-09 Nov-10 Aug-14 Jan-00 Apr-01 May-03 Mar-04 Jan-05 Apr-06 May-08 Mar-09 Jan-10 Apr-11 May-13 Mar-14 Jan-15 Apr-16
Slide 15: China's iron ore import growth picked up
China’s iron ore import growth picked up Steel Production fell during the quarter World Crude Steel Production China Steel Production Growth in World Steel Production (LHS) Growth in China Steel Production (LHS) mt 2000 15% 1500 10% 5% 1000 0% 500 -5% 0 -10% 2013 2014 2015 Q1 2015 Q1 2016 China’s ir
Slide 16: Coal imports by top importers on a declining trend
Coal imports by top importers on a declining trend China coal imports India coal imports mt 10 mt 10.0 5.0 5 0.0 0 -5.0 -5 -10.0 -15.0 -10 -20.0 -15 Apr-14 Jan-14 Jul-14 Jan-15 Apr-15 Jul-15 Jan-16 Apr-16 Oct-14 Oct-15 Jan-15 Jul-15 Nov-15 Jan-16 Mar-15 Sep-15 Mar-16 May-15 Source – Industry Reports
Slide 17: World Fleet Growth
World Fleet Growth Fleet 1000 800 Dry Bulk Crude Product mn dwt 600 400 200 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Fleet Gross Fleet Addition (on CY2016 CY2017 CY2018+ current fleet) May 16 (in mn dwt) Crude tankers 341 7% 8% 4% Product tankers 144 7% 6% 2% Dry bulk
Slide 18: Accelerated scrapping in Dry Bulk
Accelerated scrapping in Dry Bulk Scrapping as % of world fleet (year-wise) Vessel Fleet as on Scrapping Category May 16 2016 YTD 2015 2014 2013 (in mn dwt) (% of beginning fleet) Crude 341 0.1% 0.2% 1% 2% Product 144 0.3% 0.2% 1% 2% Dry Bulk 779 2% 4% 2% 3% Source – Industry Reports 18
Slide 19: Greatship (India) Limited Business Review July 2016
Greatship (India) Limited (a 100% subsidiary) Business Review July 2016
Slide 20: Offshore business- Fleet Profile
Offshore business- Fleet Profile The Greatship Group Current Owned Fleet High Fleet Utilization • 4 Jack Up Rigs (350ft) Extent of coverage of • 5 Platform Supply Vessels (PSV) fleet's operating days Category (per cent) (FY17) • 8 Anchor Handling Tug cum Supply Vessels (AHTSV) PSV 25 ROVSV 31 • 2
Slide 21: Greatship's Modern & Technologically Advanced Fleet & High Utilization
Greatship’s Modern & Technologically Advanced Fleet & High Utilization Young Fleet Young jack-up fleet with an average age of approx. 4.5 years Demand shifting to modern vessels, - Higher utilization rates Revenue especially as safety becomes a major Efficiencies - Minimum down time concern for
Slide 22: Double-digit decline in capex spending in 2016
Double-digit decline in capex spending in 2016 2 years of continuous decline in capex spending Outlook likely to have worsened since the last survey Source – Industry Reports 22
Slide 23: Global Fleet Supply – Offshore
Global Fleet Supply – Offshore Fleet & Orderbook (Nos) Jackup Rigs AHTSVs PSV Current Fleet 464 1942 1439 Orderbook 120 191 234 % of O/B to current fleet 26% 10% 16% • YTD actual deliveries have been far lower than scheduled. Due to bleak employment scenario owners have refrained from taking deliver
Slide 24: Financial Highlights Q4 FY 2015-16
FINANCIAL HIGHLIGHTS Q4 FY 2015-16
Slide 25: Q4 FY 2015-16 Financial Highlights
Q4 FY 2015-16 Financial Highlights Standalone Key Figures Consolidated FY'16 FY'15 (Amount in Rs. crs) FY'16 FY'15 Income Statement 2279.53 2010.51 Revenue (including other income) 4078.51 3713.53 1153.13 840.93 EBITDA (including other income) 2269.57 1708.74 609.90 317.30 Net Profit 1039.40 748.24
Slide 26: Q4 FY 2015-16 Financial Highlights
Q4 FY 2015-16 Financial Highlights Standalone Key Figures Consolidated FY'16 FY'15 (Amount in Rs. crs) FY'16 FY'15 Key financial figures 50.59% 41.83% EBITDA Margin (%) 55.65% 46.01% 12.04% 6.52% Return on Equity (ROE) (%) 13.23% 10.54% 9.83% 6.28% Return on Capital Employed (ROCE) (%) 9.44% 7.81% 0
Slide 27: Q4 FY 2015-16 Performance Highlights
Q4 FY 2015-16 Performance Highlights Breakup of revenue days Revenue Days Q4’FY16 Q4’FY15 Owned Tonnage 2,574 2,603 Inchartered Tonnage 85 0 Total Revenue Days 2,659 2,603 Total Owned Tonnage (mn.dwt)* 2.4 2.3 * As on 31st March Mix of Spot & Time Days (in %) Q4’FY16 Q4’FY15 Average TCY Details Dry
Slide 28: THANK YOU
THANK YOU visit us at www.greatship.com
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