Great Eastern Shipping Co. Ltd. · NSE:GESHIP
Great Eastern Shipping — The Great Eastern Shipping — Investor Presentation (May 2018)
40 slides from Great Eastern Shipping's investor presentation, May 15, 2018
Slide 1: Business Overview
BUSINESS OVERVIEW 15th MAY 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 3
Slide 4: Shareholding Pattern
FII/FPI 22% Promoters 30% Govt./FI SHAREHOLDING 22% PATTERN Public 21% Shareholding Pattern as on 31 March 2018 4
Slide 5: Fleet Profile
SHIPPING FLEET Fleet DWT Number of Ships Average Age (Yrs.) PROFILE Crude Carriers 1,608,683 12 12.64 Product Carriers 987,207 17 10.54 Gas Carriers 218,976 5 19.64 Dry Bulk Carriers 1,159,121 15 6.13 Total 3,973,987 49 10.61 OFFSHORE Fleet Number of Units Average Age (Yrs.) Jack Up Rigs 4 6.34 Plat
Slide 6: Business Philosophy
BUSINESS PHILOSOPHY
Slide 7: 4 Keys to Our Success
4 KEYS TO OUR SUCCESS In-House Dynamically Strong Diversified technical & managing balance Fleet commercial cycles sheet management 7
Slide 8: Net Debt/Equity & Total Capital Employed (Consolidated)
NET DEBT/EQUITY & TOTAL CAPITAL EMPLOYED (CONSOLIDATED) USD Mn 3,000 0.80 0.70 2,500 0.60 2,000 0.50 1,500 0.40 0.30 1,000 0.20 500 0.10 - 0.00 Total Capital Employed Net Debt/Equity (RHS) 8
Slide 9: Dividend/Share (30+ Years Continuous Dividend)
- 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 INR/Share FY1991 FY1992 FY1993 FY1994 FY1995 FY1996 FY1997 FY1998 FY1999 FY2000 FY2001 DIVIDEND/SHARE FY2002 Dividend/Share FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 Dividend Yield (RHS) FY2011 FY2012 FY2013 FY2014 FY2015 (30+ YEARS CONTINU
Slide 10: ROE & ROCE (Consolidated)
ROE & ROCE (CONSOLIDATED) 50% 40% Average ROE: 19% 30% Average ROCE: 13% 20% 10% 0% -10% ROCE (Consolidated) ROE (Consolidated) Average ROCE Average ROE 10
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 3% Y-O-Y Prices • Suezmax & Aframax 5 yr old asset prices have moved up about 5% Y-O-Y Freight • BCTI fell by 15% & BDTI fell by about 7% during Q1FY18 Rates • U. S. production is up about 1 million barrels a day year-on-yea
Slide 13: Tankers – Asset Price Movement
TANKERS – ASSET PRICE MOVEMENT (5-YEAR OLD) VLCC Suezmax Aframax 180 160 Ship Price (in million $) 140 120 100 VLCC Suezmax Aframax 80 70 60 Ship Price (in million $) 40 60 20 50 0 40 30 20 10 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2016 2016 2017 2017 2017 2017 2018 13 5 Source – Industry Reports
Slide 14: Baltic Dirty & Clean Index
400 500 600 700 800 900 1,000 1,100 1,200 1,400 1,300 May-13 Aug-13 Nov-13 Feb-14 May-14 Aug-14 Nov-14 Feb-15 May-15 Source – Industry Reports 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 May-18 300 400 500 600 700 800 900 May-13 Aug-13 Nov-1
Slide 15: Crude Oil Supply & Demand
CRUDE OIL SUPPLY & DEMAND Supply Demand Refinery Throughput (RHS) 101 82 99 81 million barrels per day 97 80 million barrels per day 95 79 93 78 91 77 89 76 87 75 85 74 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2014 2015 2016 2017 2016 2016 2016 2016 2017 2017 2017 2017 2018 In Q1CY18, despite strong demand and re
Slide 16: Crude & Product Growth
CRUDE & PRODUCT GROWTH Crude: Majority of the demand is principally Products: Majority of the demand growth fuelled by positive growth in Asia/Pacific, is principally fuelled by positive growth OECD Europe & North America. in OECD Americas & Non-OECD Asia. 16 5 Source – Industry Reports
Slide 17: Refinery Margins
REFINERY MARGINS Margins retreated in March’18 due to the increase in crude oil prices. Throughput has been high due to high demand & capacity additions. 17 5 Source – Industry Reports
Slide 18: Crude Oil Imports
CRUDE OIL IMPORTS 2015 2016 2017 2018 2015 2016 2017 2018 8,800 10,500 China Crude Oil total Imports (‘000 bpd) 8,600 9,500 US Crude Oil total Imports (‘000 bpd) 8,400 8,200 8,500 8,000 7,500 7,800 6,500 7,600 5,500 7,400 7,200 4,500 7,000 3,500 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Fe
Slide 19: World Fleet Growth Crude Tankers
WORLD FLEET GROWTH CRUDE TANKERS Tanker Fleet (mn Dwt) 19-Apr-18 1-Jan-18 1-Jan-17 1-Jan-16 1-Jan-15 1-Jan-14 VLCC 223.46 225.10 213.80 200.00 193.75 186.13 Suezmax 81.90 80.60 74.60 71.09 69.68 68.43 Aframax 67.09 67.20 66.40 64.37 64.15 63.71 Total 378.35 378.90 355.00 335.46 327.58 318.27 Order B
Slide 20: World Fleet Growth Product Tankers & VLGC
WORLD FLEET GROWTH PRODUCT TANKERS & VLGC Product Fleet (mn Dwt) 19-Apr-18 1-Jan-18 1-Jan-17 1-Jan-16 LR2 37.73 36.60 33.50 30.10 LR1 26.58 26.51 25.20 24.00 MR/Handy (35k+) 82.50 82.40 80.40 76.70 Total 149.64 147.61 139.40 130.80 Order Book(mn Dwt) 2018 2019 2020+ Total Orderbook as % of current 4
Slide 21: Key Points on Dry Bulk Markets
KEY POINTS ON DRY BULK MARKETS Asset • Capesize 5 yr old asset prices are at same levels in Q1CY2018 Y-O-Y Prices • Panamax & Supramax 5 yr old asset prices rose by about 10% in Q1CY2018 Y-O-Y Freight • BDI hits a 4 year high of 1,670 in Dec-17 Rates • In 2018, BDI rose about 60% from 900 to 1465 Co
Slide 22: Bulker Asset Prices
BULKER ASSET PRICES 5-YEAR OLD Capesize Panamax Supramax 180 Capesize Panamax Supramax 160 140 40 Ship Price (in million $) Ship Price (in million $) 120 35 100 30 80 25 60 20 40 15 10 20 5 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2016 2016 2017 2017 2017 2017 2018 Dry Bulk asset prices on average rose by a
Slide 23: Baltic Dry Index
BALTIC DRY INDEX Baltic Dry Index 2,450 2,250 2,050 1,850 1,650 1,450 1,250 1,050 850 650 450 250 May-13 Nov-13 Feb-14 May-14 Nov-14 Feb-15 May-15 Nov-15 Feb-16 May-16 Nov-16 Feb-17 May-17 Nov-17 Feb-18 May-18 Aug-13 Aug-14 Aug-15 Aug-16 Aug-17 Baltic Dry Index hits 4 year high of 1,670 in Dec’17 fr
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) 1800 15% 1600 1400 10% 1200 1000 5% China Steel Production 800 increased 5% in 600 400 0% Q1CY2018 Y-O-Y 200 0 -5% 2013 2014 2015 2016 2017 Q1 2017 Q1 2018 Australia Brazil Ot
Slide 25: China Coal Imports
0.0 2.0 4.0 6.0 8.0 -6.0 -4.0 -2.0 10.0 12.0 Mn Tonnes Mar-16 Apr-16 May-16 Jun-16 Source – Industry Reports Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 CHINA COAL IMPORTS Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 China coal imports change (Y-O-Y) Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-1
Slide 26: World Fleet Growth Dry Bulk
WORLD FLEET GROWTH DRY BULK Fleet(in mn Dwt) 19-Apr-18 1-Jan-18 1-Jan-17 1-Jan-16 Capesize 327 324 315 309 Panamax 203 202 196 195 Handymax 198 196 189 180 Handysize 97 96 94 93 Total 825 818 794 776 Orderbook 2018 2019 2020 2021+ Total (mn Dwt) Orderbook 3% 4% 3% 1% 9.9% (%Fleet) Slippage (As on 30
Slide 27: Scrapping
SCRAPPING Fleet Vessel Scrapping(% of beginning world fleet) (mn Dwt) Category 19 Apr 18 2018 (YTD) 2017 2016 2015 2014 Crude 378.35 2.30% 2.35% 0.35% 0.23% 1.60% Product 149.64 0.78% 1.42% 0.62% 0.61% 1.19% Dry Bulk 825.0 0.22% 1.77% 3.67% 4.03% 2.25% Scrapping picks up for tankers, and slows down
Slide 28: Greatship (India) Limited
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 (FY19) Jack Up Rigs (350ft) 4 PSV 89% Platform Supply Vessels (PSV) 4 Anchor Handling Tug cum ROVSV 75% 8 Supply Vessels (AHTSV) AHTSV 91% Multipurpose Platfor
Slide 30: Key Points on E&P Markets Q1 CY2018
KEY POINTS ON E&P MARKETS Q1 CY2018 • Day rates for both AHTSV & PSV have come off by ~ 45%- Day Rates 50% since 2014 • Rigs: Total fleet has reduced by about 1.5% during the quarter due to scrapping of cold stacked rigs and limited new building deliveries. Fleet The effective marketed supply remain
Slide 31: Offshore E&P Spending
OFFSHORE E&P SPENDING According to various industry reports, after the sharp fall over last 3 years, the E&P spending is expected to further decline, albeit marginally, in 2018 31 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, however has been steady at current levels for last 5 quarters 32 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 have increased marginally from the bottom of 2017. 33 Source – Industry Reports
Slide 34: Global Fleet Supply Offshore
GLOBAL FLEET SUPPLY OFFSHORE Fleet & Orderbook Number Jackup Rigs AHTSVs PSV Current Fleet 533 2062 1637 Orderbook 90 100 148 O/B to current fleet 16.9% 4.8% 9% • Q1CY2018 actual deliveries have been far lower than scheduled. Due to bleak employment scenario owners have refrained from taking deliver
Slide 35: Financial Highlights FY18
FINANCIAL HIGHLIGHTS FY18 35 5
Slide 36: Financial Highlights
FINANCIAL HIGHLIGHTS GE Shipping FY18 consolidated Net Loss at Rs. 209.57 Crore Proposes a dividend of Rs. 7.20 per share Standalone Key Figures Consolidated FY18 FY17 (Amount in Rs. Crs) FY18 FY17 Income Statement 2399.27 2224.71 Revenue (including other income) 3376.50 3622.76 986.88 1261.97 EBITD
Slide 37: Financial Highlights
FINANCIAL HIGHLIGHTS Standalone Key Figures Consolidated FY18 FY17 FY18 FY17 Key financial figures 41.13% 56.73% EBITDA Margin 44.68% 58.56% 3.08% 12.30% Return on Equity (ROE) -2.96% 10.95% 5.13% 9.93% Return on Capital Employed (ROCE) 1.81% 8.59% 0.81 0.86 Gross Debt/Equity Ratio 0.90 0.94 0.30 0.
Slide 38: An Important Note to Financial Highlights
AN IMPORTANT NOTE TO FINANCIAL HIGHLIGHTS The consolidated results of the company for the year ended March 31, 2018 includes the following non-cash charges to the Profit & Loss Account : Greatship (India) Limited has recorded a deferred tax liability of Rs. 270.00 crores in its consolidated results.
Slide 39: Financial Highlights
FINANCIAL HIGHLIGHTS Breakup of Revenue Days Revenue Days Q4 FY18 Q4 FY17 Owned Tonnage 4,215 3,636 Inchartered Tonnage 69 77 Total Revenue Days 4,284 3,713 Total Owned Tonnage (mn.dwt) 3.88 3.70 Average TCY Details Mix of Spot & Time Average (TCY $ per day) Q4’FY18 Q4’FY17 % Change Days (in %) Q4’F
Slide 40: Thank You
THANK YOU THANK YOU visit us at www.greatship.com 40
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