Great Eastern Shipping Co. Ltd. · NSE:GESHIP
Great Eastern Shipping — The Great Eastern Shipping — Investor Presentation (February 2018)
39 slides from Great Eastern Shipping's investor presentation, February 2018
Slide 1: Business Overview February 2018
BUSINESS OVERVIEW FEBRUARY 2018
Slide 2: Forward looking statements 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, prospects and f
Slide 3: Corporate Profile
CORPORATE PROFILE Offshore Shipping (Bulk) (Through wholly-owned subsidiary Greatship (India) Limited) Tankers • Crude Dry Bulk Logistics Drilling • Products/LPG India’s largest private sector shipping company Over 69 years of experience
Slide 4: Shareholding Pattern
FII/FPI 23% Promoters 30% Govt./FI SHAREHOLDING 20% PATTERN Public 22% Shareholding Pattern as on 31 December 2017
Slide 5: Fleet Profile
SHIPPING FLEET Fleet DWT Number of Ships Average Age (Yrs.) PROFILE Crude Carriers 1,608,683 12 12.39 Product Carriers 987,207 17 10.30 Gas Carriers 126,099 3 22.48 Dry Bulk Carriers 1,211,485 16 6.29 Total 3,933,474 48 10.31 OFFSHORE Fleet Number of Units Average Age (Yrs.) Jack Up Rigs 4 6.34 Plat
Slide 6: Business Philosophy
BUSINESS PHILOSOPHY
Slide 7: Key to Our Success
4 KEY TO OUR SUCCESS IM Dynamically managing cycles Diversified Fleet In-House technical & commercial management v ‘The Great Eastern ' Shipping Co, Ltd. Strong balance sheet jusiness & Financial Review November 2017
Slide 8: Net Debt/Equity & Total Capital Employed
A = The Great Eastem \ Shipping Co, Ltd. NET DEBT/EQUITY & TOTAL CAPITAL EMPLOYED (CONSOLIDATED) 3,000 2,500 2,000 1,500 1,000 500 — Net Debt/Equity (RHS) ms Total Capital Employed
Slide 9: Dividend / Share (30+ Years Continuous Dividend)
‘ ‘The Great Easter " Shipping Co. Ltd. DIVIDEND / SHARE (30+ YEARS CONTINUOUS DIVIDEND) 16.00 2 17% 14.00 15% 12.00 z 13% 10.00 : 11% ari nny 9% 6.00 7% 4.00 o i 5% 2.00 | boar 3% UU U U 1% wn, MUL aM $ 8S Mahe m9" 59 RS My a wr ee POPP PIESE sal ws segs Sg sre CS C=Dividend/Share -8=Dividend Yield
Slide 10: ROE & ROCE
q The Great Eastern AA shipping Co. Ltd. ROE & ROCE (CONSOLIDATED) 40% 35% 30% 25% 20% 15% 10% 5% 0% FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 ——ROCE (Consolidated) ROE (Consolidated)--- Average ROCE --- Average ROE Business & Financial Review November 2017 | > |
Slide 11: Shipping Market
SHIPPING MARKET
Slide 12: Key Points on Tanker Market
KEY POINTS ON TANKER MARKET Asset • VLCC 5 yr old asset prices are up about 5% Y-O-Y Prices • Suezmax & Aframax 5 yr old asset prices have moved marginally Y-O-Y Freight • BCTI rose by 8% & BDTI fell by about 7% during Q3FY18 Rates • In 2018, BCTI has decreased by 11% while BDTI has decreased by 23%
Slide 13: Tankers – Asset Price Movement
TANKERS – ASSET PRICE MOVEMENT (5-YEAR OLD) VLCC SUEZMAX AFRAMAX 180 160 140 Ship Price (in million $) 120 VLCC AFRAMAX SUEZMAX 100 90 80 80 60 70 Ship Price (in million $) 40 20 60 0 50 40 30 20 10 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2016 2016 2016 2017 2017 2017 2017 Source – Industry Reports
Slide 14: Baltic Dirty & Clean Tanker Index
1,000 1,200 1,300 1,400 1,100 400 500 600 700 800 900 Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14 Aug-14 Nov-14 Feb-15 Source – Industry Reports May-15 Aug-15 Nov-15 Feb-16 May-16 Aug-16 Nov-16 Feb-17 BALTIC DIRTY TANKER INDEX May-17 Aug-17 Nov-17 Feb-18 300 350 400 450 500 550 600 700 750 800 850 900
Slide 15: Crude Oil Supply & Demand
CRUDE OIL SUPPLY & DEMAND SUPPLY DEMAND REFINERY THROUGHPUT 99 82 98.5 81.5 million barrels per day 81 million barrels per day 98 80.5 97.5 80 97 79.5 96.5 79 96 78.5 95.5 78 95 77.5 94.5 77 94 76.5 Q1 2016 Q2 2016 Q3 2016 Q4 2016 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 2017 In Q3FY18, despite strong d
Slide 16: Crude & Product Growth
CRUDE & PRODUCT GROWTH Crude: Majority of the demand is Products: Majority of the demand principally fuelled by positive growth in growth is principally fuelled by Asia, OECD Europe & North America. positive growth in Non-OECD Asia. Source – Industry Reports
Slide 17: Refinery Margins
REFINERY MARGINS Margins have been high, driven by healthy demand & limited available refining capacity Source – Industry Reports
Slide 18: Crude Oil Imports
CRUDE OIL IMPORTS 2017 2016 2015 2017 2016 2015 9500 9500 9000 9000 China Crude Oil Imports (‘000 bpd) 8500 8500 US Crude Oil Imports (‘000 bpd) 8000 8000 7500 7500 7000 7000 6500 6500 6000 6000 5500 5500 5000 5000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep O
Slide 19: World Fleet Growth Crude Tankers
WORLD FLEET GROWTH CRUDE TANKERS Tanker Fleet (mn Dwt) 31-Jan-18 1-Jan-18 1-Jan-17 1-Jan-16 1-Jan-15 1-Jan-14 VLCC 221.60 221.0 209.6 200.00 193.75 186.13 Suezmax 79.6 78.4 72.2 71.09 69.68 68.43 Aframax 63.9 63.7 63.0 64.37 64.15 63.71 Total 365.1 363.1 344.8 335.46 327.58 318.27 Order Book (mn Dwt
Slide 20: World Fleet Growth Product Tankers & VLGC
WORLD FLEET GROWTH PRODUCT TANKERS & VLGC Product Fleet (mn Dwt) 31-Jan-18 1-Jan-18 1-Jan-17 1-Jan-16 1-Jan-15 1-Jan-14 LR2 36.9 36.59 33.68 30.44 27.42 26.93 LR1 31.62 31.54 30.62 23.75 23.72 23.61 MR/Handy (35k+) 91.2 91.21 88.35 82.95 78.40 75.74 Total 159.79 159.35 152.64 137.14 129.54 126.28 Or
Slide 21: Key Points on Dry Bulk Markets
KEY POINTS ON DRY BULK MARKETS Asset • Capesize 5 yr old asset prices rose by about 32% in CY2017 Prices • Panamax & Supramax 5 yr old asset prices rose by about 28% in CY2017 Freight • BDI hits a 4 year high of 1,670 in Dec-17 Rates • In 2018, BDI has fallen by 18% Coal • China total coal imports f
Slide 22: Bulker Asset Prices
BULKER ASSET PRICES 5-YEAR OLD CAPESIZE PANAMAX SUPRAMAX CAPESIZE PANAMAX SUPRAMAX 40 160 35 140 30 Ship Price (in million $) Ship Price (in million $) 120 25 100 20 80 60 15 40 10 20 5 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2016 2016 2016 2017 2017 2017 2017 Dry Bulk asset prices on average rose by about
Slide 23: Baltic Dry Index
BALTIC DRY INDEX Baltic Dry Index 2,500 2,000 1,500 1,000 500 0 Baltic Dry Index hits 4 year high of 1,670 in Dec’17 from a low of 291 in Feb’16 Source – Industry Reports
Slide 24: China Iron Ore & Steel Production
CHINA IRON ORE & STEEL PRODUCTION World Steel China Steel % Growth World % Growth China Steel Production (in Million tonnes) 2000 6.0% 4.0% 1500 2.0% Steel Production 1000 0.0% increased 5% in CY2017 500 -2.0% 0 -4.0% 2014 2015 2016 2017 Australia Brazil Others 1200 1076 1025 Iron ore import(in Mill
Slide 25: China Coal Imports
CHINA COAL IMPORTS China coal imports change (Y-O-Y) 15 10 5 0 -5 -10 -15 Source – Industry Reports
Slide 26: World Fleet Growth Dry Bulk
WORLD FLEET GROWTH DRY BULK Fleet (mn Dwt) 31-Jan-18 1-Jan-18 1-Jan-17 1-Jan-16 Capesize 325.44 324 315 309 Panamax 202.47 202 196 195 Handymax 197.07 196 189 180 Handysize 96.4 96 94 93 Total 821.38 817 794 776 Orderbook 2018 2019 2020 2021+ Total (mn Dwt) Orderbook 4% 3% 2% 1% 10% (%Fleet) Slippag
Slide 27: Scrapping
SCRAPPING Fleet Vessel Scrapping(% of beginning world fleet) (mn Dwt) Category 31 Jan 18 2018 (YTD) 2017 2016 2015 2014 Crude 365.1 0.40% 2.35% 0.35% 0.23% 1.60% Product 159.79 0.40% 1.42% 0.62% 0.61% 1.19% Dry Bulk 821.4 0.08% 1.77% 3.67% 4.03% 2.25% Scrapping picks up for tankers, and slows down f
Slide 28: Greatship (India) Limited (a 100% subsidiary)
Greatship (India) Limited (a 100% subsidiary)
Slide 29: Offshore Business Fleet Profile
OFFSHORE BUSINESS FLEET PROFILE Fleet Utilization Current Owned Fleet Extent of coverage of Fleet Count Category fleet's operating Type days (Q4 FY18) Jack Up Rigs (350ft) 4 PSV 74% Platform Supply Vessels (PSV) 4 Anchor Handling Tug cum ROVSV 72% 8 Supply Vessels (AHTSV) AHTSV 97% Multipurpose Plat
Slide 30: Key Points on E&P Markets CY 2017
KEY POINTS ON E&P MARKETS CY 2017 • Day rates for both AHTSV & PSV have come off by ~ 45%-50% since Day Rates 2014 • Rigs: Remain flat as compared to year 2016 Fleet • OSV’s: Fleet size has reduced by around 1% in last one year; however operating Growth fleet has reduced by 11% compared to year befo
Slide 31: Offshore E&P Spending
OFFSHORE E&P SPENDING E&P spending in 2017 has marginally declined however, the same is expected to show a flattish trend in 2018 Source – Industry Reports
Slide 32: Jack Up Rigs on Contract
JACK UP RIGS ON CONTRACT Number of Jack-up Rigs on contract which fell from a peak in 2014 have gradually started picking up. Source – Industry Reports
Slide 33: OSV Fleet (PSV + AHTSV) on Term Contract
OSV FLEET (PSV + AHTSV) ON TERM CONTRACT Number of PSVs and AHTSVs on contract are also increasing showing signs of recovery in the market. Source – Industry Reports
Slide 34: Global Fleet Supply Offshore
GLOBAL FLEET SUPPLY OFFSHORE Fleet & Orderbook Number Jackup Rigs AHTSVs PSV Current Fleet 541 2081 1647 Orderbook 96 121 159 O/B to current fleet 17.7% 5.8% 7.6% • Q4CY2017 actual deliveries have been far lower than scheduled. Due to bleak employment scenario owners have refrained from taking deliv
Slide 35: Financial Highlights Q3 FY18
FINANCIAL HIGHLIGHTS Q3 FY18
Slide 36: Q3 FY18 Financial Highlights
Q3 FY18 FINANCIAL HIGHLIGHTS Standalone Key Figures Consolidated Q3 FY'18 Q3 FY'17 9M FY'18 (Amount in Rs. crs) Q3 FY'18 Q3 FY'17 9M FY'18 Income Statement 676.98 511.87 1808.37 Revenue (including other income) 920.31 853.06 2576.77 271.40 338.24 793.75 EBITDA (including other income) 414.82 547.62
Slide 37: Q3 FY18 Financial Highlights
Q3 FY18 FINANCIAL HIGHLIGHTS Standalone Key Figures Consolidated Q3 FY18 Q3 FY17 9M FY18 Q3 FY18 Q3 FY17 9M FY18 Key financial figures 40.09% 66.08% 43.89% EBITDA Margin 45.07% 64.19% 48.46% 4.23% 13.82% 4.45% Return on Equity (ROE) 5.40% 13.10% 3.83% Return on Capital Employed 5.59% 11.04% 5.80% 5.
Slide 38: Q3 FY18 Financial Highlights: Revenue Days
Q3 FY18 FINANCIAL HIGHLIGHTS Breakup of Revenue Days Revenue Days Q3 FY18 Q3 FY17 Owned Tonnage 4,329 3,339 Inchartered Tonnage 141 89 Total Revenue Days 4,470 3,428 Total Owned Tonnage (mn.dwt) 3.92 3.23 Average TCY Details Mix of Spot & Time Average (TCY $ per day) Q3’FY18 Q3’FY17 % Change Days (i
Slide 39: Thank You
THANK YOU THANK YOU visit us at www.greatship.com
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