Great Eastern Shipping Co. Ltd. · NSE:GESHIP
Great Eastern Shipping — The Great Eastern Shipping Company — Q4 FY24 Earnings Presentation
45 slides from Great Eastern Shipping's earnings presentation, May 10, 2024
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/2024/JMT May 10, 2024 BSE Limited National Stock Exchange of India Limited 1st Fl
Slide 2: Q4 & FY24 Earnings Presentation
Ink The Great Eastern Shipping Co. Ltd. at AT CS". 2023 ING co • C Q4 & FY24 S Nk.-e.c-- Earnings Presentation 10 MAY 2024 • 7• "-:F. G. TH z STERN SI a T CO. LTD.
Slide 3: Disclaimer
The Great Eastern DISCLAIMER Shipping Ca Ltd. 7948 2023 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 Com
Slide 4: FY24 Highlights
The Great Eastern FY24 HIGHLIGHTS Shipping Ca Ltd. 7948 2023 • 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 3
Slide 5: Reported Highlights
The Great Eastern REPORTED HIGHLIGHTS Shipping Ca Ltd. 7948 2023 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,
Slide 6: Normalised Financials
The Great Eastern NORMALISED FINANCIALS Shipping Ca Ltd. 7948 2023 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 IN
Slide 7: Normalised Financial Highlights
The Great Eastern NORMALISED FINANCIAL HIGHLIGHTS Shipping Ca Ltd. 7948 2023 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,
Slide 8: Normalised Financial Highlights
The Great Eastern NORMALISED FINANCIAL HIGHLIGHTS Shipping Ca Ltd. 7948 2023 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%
Slide 9: Normalised Financials – Key Ratios
NORMALISED FINANCIALS – KEY RATIOS The Great Eastern Shipping Co. Ltd. exP Eg 7948 2023 yha +Y., [a Earnings per Share (INR/Share) Cash Profit per Share (INR/Share) —•- Standalone Consolidated —•— Standalone Consolidated 59.57 55 70.26 51.21 47.62 48.98 49.13 63.89 45 45.03 46.34 60.71 57.95 41.65 5
Slide 10: Consistent Dividend Payouts
The Great Eastern CONSISTENT DIVIDEND PAYOUTS Shipping Co. Ltd. 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 11: Profit & Loss Statement – Industry Format
The Great Eastern PROFIT & LOSS STATEMENT – INDUSTRY FORMAT Shipping Ca Ltd. 7948 2023 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 15
Slide 12: Shareholding Pattern
The Great Eastern Shipping Ca Ltd. F San' 7948 2023 allIVIrw SHAREHOLDING PATTERN • - n , •vr- I a- .41—h AC t. • I = • Isi 1t nil FII/FPI Promoters , .7 27% 30% It Govt./FI/Corp 11 I1 17% Public 26% t, tinnii i tingth " 1"•-•....,""•!• ••• :It •-• w (Oa 31-Mar-2024 GE Shipping – Q3 & 9MFY23 Results
Slide 13: Performance Review
The Great Eastern PERFORMANCE REVIEW Shipping Ca Ltd. 7948 2023 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 Da
Slide 14: Performance Review
The Great Eastern PERFORMANCE REVIEW Shipping Ca Ltd. 7948 2023 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
Slide 15: Changes in Standalone NAV (YTD)
The Great Eastern CHANGES IN STANDALONE NAV (YTD) Shipping Ca Ltd. 7948 2023 Changes in Standalone NAV (YTD) 1400 1200 1127 1000 962 L -35 INR/SHARE 800 600 400 200 0 NAV Mar-23 Cash Profit Fleet Value Dividend NAV Mar-24 GE Shipping – Q4FY24 Results 14
Slide 16: Years Movement in Standalone NAV
The Great Eastern 5 YEARS MOVEMENT IN STANDALONE NAV Shipping Ca Ltd. 7948 2023 Standalone NAV – Continues to touch new highs 1200 1127 1000 CAGR: 25% INR/SHARE 800 600 LJ 374 400 200 0 FY19 FY20 FY21 FY22 FY23 FY24 GE Shipping – Q4FY24 Results 15
Slide 17: Changes in Consolidated NAV (YTD)
The Great Eastern CHANGES IN CONSOLIDATED NAV (YTD) Shipping Co. Ltd. 7948 2023 Changes in Consolidated NAV (YTD) 1600 46 1396 1400 221 35 1200 1164 1000 INR/SHARE 800 600 400 200 0 NAV Mar-23 Cash Profit Fleet Value Dividend NAV Mar-24 GE Shipping – Q4FY24 Results 16
Slide 18: Revenue Coverage
The Great Eastern REVENUE COVERAGE Shipping Ca Ltd. 7948 2023 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 19: Standalone Debt Repayment Schedule
The Great Eastern STANDALONE DEBT REPAYMENT SCHEDULE Shipping Ca Ltd. 7948 2023 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
Slide 20: Fleet Profile
The Great Eastern FLEET PROFILE Shipping Ca Ltd. 7948 2023 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
Slide 21: Shipping Market
The Great Eastern Shipping Co. Ltd. 7948 2023 P . k \\*I \N A SHIPPING MARKET 44, 4 cc" tit • • • • \ \N •1• 1 \ • \\\>.\\,, 114.4--Li 1\ 44 Nit
Slide 22: Crude and Product Tankers
The Great Eastern CRUDE AND PRODUCT TANKERS Shipping Ca Ltd. 7948 2023 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 le a 0 0 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Slide 23: Crude and Product Tankers
The Great Eastern CRUDE AND PRODUCT TANKERS Shipping Ca Ltd. 7948 2023 • 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. •
Slide 24: Dry Bulk
The Great Eastern Shipping Ca Ltd. DRY BULK 7948 2023 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 20,00
Slide 25: Dry Bulk
The Great Eastern Shipping Ca Ltd. DRY BULK 7948 2023 • 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
Slide 26: LPG Gas
The Great Eastern Shipping Ca Ltd. LPG GAS 7948 2023 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
Slide 27: Suez Canal/Panama Canal Disruptions
The Great Eastern Shipping Ca Ltd. SUEZ CANAL/PANAMA CANAL DISRUPTIONS 7948 2023 • 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 Daily transit trade volume supply chains (million metric
Slide 28: Fleet Supply
The Great Eastern Shipping Ca Ltd. 7948 2023 •„ , sr' "4. -4, - • 'woo FLEET SUPPLY r?; "1 • t,P 'F Il i taii , to.7440, • ' %:,...41 . ...0„ . ', ICS° \ . - $4.• - • t) .' 1: ...' , . . in, ., i • t,'. THE AT EAST F P.01 • r, IIPPING CO. I ILA ; c /
Slide 29: Low Order Book to Fleet Ratio
LOW ORDER BOOK TO FLEET RATIO The Great Eastern Shipping Co. Ltd. 7948 2023 Historic Order Book as a % of fleet (Calendar Year) 90% 80% 70% 60% 50% Current Orderbook 40% 30% 24.7% 20% 7.4% Alm 15.0% 10% 0% 9.3% On' rb OC\ N N O61' • O6\ rl/C)C) (19' r15) Bulkers Product tankers Crude tankers LPG Car
Slide 30: Scrapping
The Great Eastern SCRAPPING Shipping Ca Ltd. 7948 2023 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
Slide 31: 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 Shipp
Slide 32: Asset Price Movement
The Great Eastern Shipping Ca Ltd. 7948 2023 1 :1 : H - -t - lar ASSET PRICE MOVEMENT .4 -a d- r I GHLAT EA,STERN 4 • 0 THE GREAT EASTERN _ 0— SI EPPING Co, LTR
Slide 33: 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 34: Greatship (India) Limited 100% Subsidiary
The Great Eastern :11 sr:6 Shipping Co. Ltd. r , , :, .Vg) ,.%. 7948 2023 blibe i•z,-.,.;:.4., I... 1- gi! 411 livi,':/..- W:, 1. ' -14 !!',Illt‘el::* A 11\1 Al, 'Al4 W1,4 If - '' ih.,4 4,h, ,„i,r,,_ Eli l'illi, ;4,4 P,PNqra IN „..,,,• ,,,0,ii.. _ 4'1„•,. .:,..4:!‘.44 ,,,I., / ':2:4:. .1A .1 GREATSH
Slide 35: Offshore Subsidiary – Greatship Story
The Great Eastern Shipping Ca Ltd. OFFSHORE SUBSIDIARY – GREATSHIP STORY 7948 2023 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 •
Slide 36: 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 37: Fleet Supply
The Great Eastern Shipping Ca Ltd. FLEET SUPPLY 7948 2023 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% C
Slide 38: Repricing
The Great Eastern REPRICING Shipping Ca Ltd. 7948 2023 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 39: Debt Repayment Schedule
The Great Eastern DEBT REPAYMENT SCHEDULE Shipping Ca Ltd. 7948 2023 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 40: Financials
The Great Eastern Shipping Ca Ltd. 7948 2023 IfKtit :1 L. I 4 0.1 4 Mir 7711°F 4 "II Kau 4.444.4. _ _ FINANCIALS II! cv 111 O ! 0 . f • •i trlit ti I I • • • ! • 4) : I I a I `F " /07/2022 ThitE GRE,PcT hAr, , SI EPPING Ott 1:11O1 4-,r
Slide 41: Strong Cashflows Led Net Debt USD 360 Mn to Net Cash of USD 330+ Mn
The Great Eastern Shipping Co. Ltd. STRONG CASHFLOWS LED NET DEBT USD 360 7948 2023 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
Slide 42: Share Price to Consolidated NAV
The Great Eastern SHARE PRICE TO CONSOLIDATED NAV Shipping Co. Ltd. 7948 2023 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 sh
Slide 43: Great Eastern CSR Foundation
GREAT EASTERN CSR FOUNDATION 7948 O 2023 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
Slide 44: Great Eastern CSR Foundation
GREAT EASTERN CSR FOUNDATION 7948 O 2023 GECSRF currently supporting 28 NGOs working under health, education and livelihoods across 17 states in India GREAT EASTERN CSR FOUNDATION EDUCATION HEALTH LIVELIHOODS 1. Adhyayan Quality Education 1. Anushkaa Foundation for 1. Ayang Trust Foundation (AQEF) E
Slide 45: Thank You
THANK YOU The Great Eastern Shipping 7948 2023 Visit us at www.greatship.com From a modest beginning… ...to most admired globally 'e go Ocean House EASTERN TE: GREAT LTD. II I SONO CO, 4"9-.V.... } • I 4. pill Will.. I a THE GREAT EASTERN Res SHIPPING COMPANY LIMITED 1948 2024 I Read the Story of GE
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