Great Eastern Shipping Co. Ltd. · NSE:GESHIP
Great Eastern Shipping — The Great Eastern Shipping Company — Investor Presentation (September 2024)
36 slides from Great Eastern Shipping's investor presentation, Sep 30, 2024
Slide 1: Exchange filing cover letter
6 THE GREAT EASTERN SHIPPING COMPANY LIMITED CITY: L35110MH1948PLC006472 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 September 30, 2024 BSE Limited National Stock Exchange of India Limited
Slide 2: Corporate Presentation September 2024
AHB The Great Eastern Shipping Co. Ltd. CORPORATE PRESENTATION September 2024
Slide 3: Company History
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Slide 4: Overview
OVERVIEW Ila The Great Eastern Shipping Co. Ltd. Great Eastern Shipping was founded in 1948, with the purchase of a Liberty ship Today, GES is India’s largest private sector shipping company, owning and operating 43 ships and 23 offshore assets, with a balance sheet size of almost USD 2 billion More
Slide 5: Shareholding Pattern
la The Great Eastern Shipping Co. Ltd. FII/FPI 25% Promoters 30% SHAREHOLDING PATTERN Govt./FI/Corp 20% Public 25% , ' Shareholding Pattern as on 30 June 2024 4
Slide 6: Corporate Profile
Ila The Great Eastern Shipping Co. Ltd. CORPORATE PROFILE Offshore Shipping (Bulk) (Through wholly-owned subsidiary A Greatship (India) Limited) Tankers • Crude (6) Logistics (19) Drilling (4) • Product (19) Dry Bulk (14) • LPG (4) India’s largest private sector shipping company, with more than 76 y
Slide 7: Fleet Profile
Ila The Great Eastern Shipping Co. Ltd. FLEET SHIPPING Fleet DWT Number of Ships PROFILE Crude Carriers 842,958 6 Product Carriers 1,145,829 19 Gas Carriers 185,363 4 Dry Bulk Carriers 1,239,274 14 Total 3,413,424 43 OFFSHORE Fleet Number of Units Jack Up Rigs 4 Platform Supply Vessels 4 Anchor hand
Slide 8: Business Philosophy
BUSINESS i s PHILOSOPHYr • • 7
Slide 9: Investment Thesis
Ink The Great Eastern Shipping Co. Ltd. INVESTMENT THESIS Fleet operated at global Offshore fleet – quality standards, with a large operations with low number of international balance sheet leverage customers Prudent Capital Strong cash flows Allocation across a diversified fleet Strong balance shee
Slide 10: Strong cashflows led net debt to net cash
STRONG CASHFLOWS LED NET DEBT USD 360 Ila The Great Eastern Shipping Co. Ltd. MN TO NET CASH OF USD 350+ MN (STANDALONE) USD Mn Net Debt Expansion Phase Net Debt Reduction Phase 400 0.60 0.50 300 r 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 FY201
Slide 11: Significant up move in NAV last years
Ila The Great Eastern Shipping Co. Ltd. SIGNIFICANT UP MOVE IN NAV LAST 2 YEARS (CONSOLIDATED) CONSOLIDATED NAV MOVEMENT - SINCE MARCH 2022 INR/SHARE NAV doubled during upcycle, with high cash profit contribution. ar ash ro t leet al e ividend n ■10
Slide 12: ROE & ROCE Historical
Ila The Great Eastern Shipping Co. Ltd. ROE & ROCE HISTORICAL Average ROCE: 10% (CONSOLIDATED) Average ROE: 13% CONSOLIDATED ROCE Investment in downcycle 25.00% resulted in higher ROE in upcycle 20.00% 15.00% Yields were lower, hence 1 opportunity to invest in down cycle 10.00% 5.00% 0.00% FY15 FY16
Slide 13: Too much volatility? EBITDA movement
TOO MUCH VOLATILITY? Ila The Great Eastern Shipping Co. Ltd. EBITDA MOVEMENT 10 YRS USD Mn Consolidated EBITDA 500 450 400 350 Lowest EBITDA: USD 200 Mn 300 Median EBITDA: USD 262 Mn 250 200 150 100 50 0 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Q1FY25 ■ 12
Slide 14: Fundamentals are stacking up: Demand side
FUNDAMENTALS ARE STACKING UP Ila The Great Eastern Shipping Co. Ltd. DEMAND SIDE Trade pattern shift: Following the onset of Russia-Ukraine conflict, have seen the average distances of seaborne trade rise Oil demand continues to be main driver behind seaborne trade Atlantic basin provides a lot of t
Slide 15: Trade pattern shift post Russia Ukraine conflict
FUNDAMENTALS ARE STACKING UP Ila The Great Eastern Shipping Co. Ltd. TRADE PATTERN SHIFT – POST RUSSIA UKRAINE CONFLICT MERE I.1,35 SEA NC1IVYAY IZNITFb I.PC 7:7;N:1 Russia to EU - 4 Days LIKSLAME &Nei iiiSZAKEISTAK MOP SU.I1 s GREECE leLMENISNPI CH IRAQ IRAN • PAKISTAN LAVA EGYPT SALCI Russia to In
Slide 16: Fundamentals are stacking up: Supply side
FUNDAMENTALS ARE STACKING UP Ila The Great Eastern Shipping Co. Ltd. SUPPLY SIDE Orderbook significantly lower than historical levels. Yard capacity has shrunk significantly in the last 15 yrs Large Korean yards are full with containers and LNG orders almost till end CY26 Disruption in Suez canal %
Slide 17: Supply side (yard capacity)
FUNDAMENTALS ARE STACKING UP Ila The Great Eastern Shipping Co. Ltd. SUPPLY SIDE (YARD CAPACITY) Orderbook by Year of Delivery (m. GT) Active Yards: South Korea China Japan World 50 ■Tanker ■ Bulker ■Boxship Gas Carrier Other 2011 24 275 64 511 2024 10 125 51 247 Average Yard Output (20 i943) Change
Slide 18: Suez Canal disruptions impact on shipping
Suez Canal disruptions Ila The Great Eastern Shipping Co. Ltd. IMPACT ON SHIPPING 2X Jump in Volumes Through Cape of Good Hope Since Red Sea Disruption FAIN Pit Daily transit volume: 7 day moving average 15 days (Volume in MMT) —Suez cal Cape of goad hope IRAN 9 I vla Satz ALGERIA — EGYPT — Will YEM
Slide 19: Orderbook to fleet ratio
ORDERBOOK TO FLEET RATIO III:l k The Great Eastern Shipping Co. Ltd. HISTORICAL Historic Order Book as a % of fleet (Calendar Year) 90% 80% 70% 60% 50% 40% 30% 24.7% 20% 8.3% 17.4% 10% 9.6% 0% Sources: Industry Reports Bulkers Product tankers Crude tankers LPG Carriers (65K+ CBM) 18
Slide 20: Orderbook and scrapping potential
ORDERBOOK AND SCRAPPING Ila The Great Eastern Shipping Co. Ltd. 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% Sources: Industry Reports 0% 5% 10% 15% 20% 25% 30%
Slide 21: Asset price movement indexed over last 5 years
85 125 145 165 185 205 225 85 95 105 115 135 145 155 165 175 105 125 Jul-19 Jul-19 Oct-19 Oct-19 Jan-20 Jan-20 Apr-20 Apr-20 Jul-20 Jul-20 Oct-20 Oct-20 Sources: Industry Reports Source: Industry reports Jan-21 Jan-21 Apr-21 Apr-21 Jul-21 Jul-21 Oct-21 Oct-21 Jan-22 Jan-22 Suezmax Capesize Apr-22 Ap
Slide 22: Offshore subsidiary: Greatship story
OFFSHORE SUBSIDIARY Ila The Great Eastern Shipping Co. Ltd. GREATSHIP STORY FY 16 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 • A lar
Slide 23: Offshore subsidiary: Greatship story post FY21
OFFSHORE SUBSIDIARY Ila The Great Eastern Shipping Co. Ltd. GREATSHIP STORY Post FY21 • Utilization levels have improved • E&P activities have started to increase • Contracts are getting repriced at levels which generate significant EBITDA • Negligible O/B to Current Fleet Ratio How are we positione
Slide 24: Offshore subsidiary: Fleet supply
OFFSHORE SUBSIDIARY Ila The Great Eastern Shipping Co. Ltd. FLEET SUPPLY Number Jack-up Rigs PSV+AHTSV Current Fleet 500 3,351 Under Contract Fleet 371 2,328 Order Book 15 46 O/B to Current Fleet 3.0% 1.4% Total Scrapping since Jan 2016 (Nos) 145 713 No of Vessels/Rigs more than 20/30 years old (% F
Slide 25: Offshore subsidiary: Repricing
Ila The Great Eastern Shipping Co. Ltd. OFFSHORE SUBSIDIARY REPRICING • Vessels • Rigs 5 5 3 2 2 2 I I II 1 1 1 II 0 0 0 H2 FY25 H2FY26 H1FY27 H2FY27 H1FY28 H2FY28 • Remaining 1 vessel will come up for repricing in H1FY29 •24
Slide 26: Financial Highlights (INR Crores)
FINANCIAL HIGHLIGHTS Ila The Great Eastern Shipping Co. Ltd. Standalone Consl idated O1 O1 O1 O1 Fig in INR Crores FY25 FY24 FY24 FY25 FY24 FY24 Income Statement Revenue* 1,310 1,109 4,724 1,703 1,335 5,919 EBITDA* 851 675 2,932 1,092 776 3,508 Net Profit 677 517 2280 817 529 2,52O Balance Sheet Tot
Slide 27: Financial Highlights (USD Mn)
FINANCIAL HIGHLIGHTS Ila The Great Eastern Shipping Co. Ltd. Standalone Conslidated Q1 Q1 Q1 Q1 Fig in USD Mn FY25 FY24 FY24 FY25 FY24 FY24 Income Statement Revenue* 157 135 571 205 162 716 EBITDA* 102 82 355 131 94 424 Net Profit 81 63 276 98 64 305 Balance Sheet Total Assets 1,689 1,517 1,632 2,08
Slide 28: Financial Highlights: Key financial figures
FINANCIAL HIGHLIGHTS Ila The Great Eastern Shipping Co. Ltd. Standalone Conslidated Q1 Q1 Q1 Q1 FY25 FY24 FY24 FY25 FY24 FY24 Ke y Financial Figure Return on Equity (ROE%)** 26% 24% 24% 26% 20% 22% Return on Capital Employed (ROCE%)** 21% 19% 20% 21% 16% 18% Gross Debt/Equity (x) 0.25 0.33 0.26 0.26
Slide 29: Total return to shareholders & dividend
TOTAL RETURN TO SHAREHOLDERS (TRS) & DIVIDEND – GESCO vs NIFTY50 (Last 5 years) Ila The Great Eastern Shipping Co. Ltd. TRS, Div Yield and Div Payout - GESCO Vs NIFTY 50 35% 32% 32% 30% 25% 20% 20% 15% 15% 10% 5% 4% 1.29% 0% GESCO Nifty 50 • Dividend Payout • Div Yield • TRS Source: Industry reports
Slide 30: Sustainability
Ila The Great Eastern Shipping Co. Ltd. SUSTAINABILITY ■ 29
Slide 31: GE Shipping Decarbonization Strategy
GE SHIPPING DECARBONIZATION Inik The Great Eastern Shipping Co. Ltd. STRATEGY ALTERNATIVE FUEL ALTERNATE FUELS 1, • HULL COATINGS ENERGY SAVING DEVICES • DATA DRIVEN TECHNOLOGIES OPTIMIZED OPERATION DECARBONIZATION 30
Slide 32: Initiatives on Environment
INITIATIVES ON ENVIRONMENT Ila The Great Eastern Shipping Co. Ltd. Most of our vessels are retrofitted with energy saving measures, including • Mewis ducts, Eco Cap, Rudder Bulb, MT fast fins • Propeller Boss Cap Fins, Redesigned Efficient Propellers, High Performance Paints • Ultrasonic Antifouling
Slide 33: CO2 Emissions Trend Analysis
CO2 EMISSIONS Ila The Great Eastern Shipping Co. Ltd. TREND ANALYSIS CO2 EMISSION (MT) 1200000 1083665 1063223 982804 979106 1000000 935658 863761 800000 600000 400000 200000 0 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 (Vessels 50) (Vessels 48) (Vessels 49) (Vessels 47) (Vessels 45) (Vessels 4
Slide 34: Great Eastern CSR Foundation
GREAT EASTERN CSR FOUNDATION la The Great Eastern Shipping Co. Ltd. C (GECSRF) GREAT EASTERN GSA FOUNDATION ' Since 2015, GECSRF has partnered with 53 NGOS under the three key CSR focus areas. • Education: More than 1.50 Lakh students reached out through primary and secondary education. • Health: Mo
Slide 35: Great Eastern CSR Foundation supported NGOs
GREAT EASTERN CSR FOUNDATION Ink The Great Eastern Shipping Co. Ltd. (GECSRF) GECSRF currently supporting 27 NGOs working under health, education and GREAT EASTERN livelihoods across 17 states in India CUP FOUNDATION EDUCATION HEALTH LIVELIHOODS 1. Adhyayan Quality Education 1. Anushkaa Foundation f
Slide 36: Thank You
Ila The Great Eastern Shipping Co. Ltd. THANK YOU visit us at www.greatship.com ■ 35
The Great Eastern Shipping Company — Investor Presentation (September 2024) on 6ix