Great Eastern Shipping Co. Ltd. · NSE:GESHIP
Great Eastern Shipping — The Great Eastern Shipping — Investor Presentation (March 2017)
31 slides from Great Eastern Shipping's investor presentation, March 2017
Slide 1: The Great Eastern Shipping Co. Ltd. Business & Financial Review
The Great Eastern Shipping Co. Ltd. Business & Financial Review March 2017
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 69 years of experience 3
Slide 4: Shareholding Pattern
Shareholding Pattern Shareholding Pattern as on December 31, 2016 FII 24% Promoters 30% Govt/FI 19% Public Corporate 21% Bodies 6% 4
Slide 5: Shipping business - owned fleet
Shipping business - owned fleet Sr. No. Vessel Name Type Sr. No. Vessel Name Type 1 Jag Lalit Suezmax 26 Jag Vishnu VLGC 2 Jag Lok Suezmax 27 Jag Vidhi VLGC 3 Jag Lateef Suezmax 2 Gas Carriers; Age - 22 years 4 Jag Lakshita Suezmax 28 Jag Anand Capesize 5 Jag Laadki Suezmax 29 Jag Aarati Kamsarmax 3
Slide 6: Vessels on Order & Capital Expenditure
Vessels on Order & Capital Expenditure Committed Capex - ~$75 Mn Payable as on Mar-2017 - ~$67 Mn Vessels on Committed Order & Expected Delivery Vessel Yard Expected Delivery 2 Suezmax Secondhand Samsung Heavy Crude Carriers Industries Co. Ltd, South Q4FY17 Korea 6
Slide 7: Key points on Tanker Markets – Q4CY16
Key points on Tanker Markets – Q4CY16 Asset Prices: -VLCC 5 yr old prices have gone down by 25% in Y-O-Y Q42016 Freight rates: -BDTI touched a 3-year high of 1,088 in January 2017 and corrected back to 846 & BCTI touched a 5-year high of 867 in January 2017 and corrected back to 580. Crude Market: -
Slide 8: Tankers – Asset Price movement (5-year old)
Tankers – Asset Price movement (5-year old) USD mn VLCC Suezmax Aframax USD mn VLCC Suezmax Aframax 180 90 80 160 70 60 140 50 120 40 30 100 20 10 80 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 60 2015 2015 2015 2015 2016 2016 2016 2016 40 20 0 2017-Feb 2002-Feb 2003-Feb 2004-Feb 2005-Feb 2006-Feb 2007-Feb 2008-Feb 2
Slide 9: Recovery of BDTI & BCTI
Recovery of BDTI & BCTI Baltic Dirty Tanker Index Baltic Clean Tanker Index 1,400 900 1,300 800 1,200 1,100 700 1,000 900 600 800 700 500 600 400 500 400 300 Dec-12 Feb-12 Feb-17 Jun-15 Aug-14 May-13 Oct-13 Nov-15 Apr-16 Jan-15 Sep-16 Mar-14 Jul-12 Aug-14 Feb-12 Dec-12 Feb-17 Jun-15 May-13 Oct-13 Ma
Slide 10: Supply - driven Demand ahead of OPEC Cut
Supply - driven Demand ahead of OPEC Cut Supply Demand Refinery Throughput (RHS) 99 81 97 80 79 95 78 93 77 91 76 89 75 74 87 73 85 72 2012 2013 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2016 • In Q4CY16, Crude tankers rates improved due to the season
Slide 11: Improvement in margins leading to higher refinery throughput
Improvement in margins leading to higher refinery throughput • Due to continued unplanned refinery stoppages, gasoline and diesel cracks were pushed higher, resulting in as much as $2/bbl month-on-month gains for margins in Q4CY2016. • Q4CY2016 global refinery throughput is up by 520 kb/d Y-O-Y at 7
Slide 12: CY2016 has seen higher imports due to low oil price
CY2016 has seen higher imports due to low oil price US Crude Oil Imports (‘000 bpd) China Crude Oil Imports (‘000 bpd) 2013 2014 2015 2016 2013 2014 2015 2016 8800 9,000 8600 8,500 8400 8,000 8200 7,500 8000 7,000 7800 6,500 7600 6,000 7400 5,500 7200 5,000 7000 4,500 Source – Industry Reports 12
Slide 13: World Fleet Growth – Crude Tankers
World Fleet Growth – Crude Tankers Tanker Fleet - mn Dwt 1st Feb 2017 1st Jan 2016 1st Jan 2015 1st Jan 2014 VLCC 218.04 200.00 193.75 186.13 Suezmax 80.93 71.09 69.68 68.43 Aframax 67.21 64.37 64.15 63.71 Total (80k+) 366.18 335.46 327.58 318.27 Order Book - mn dwt 2017 2018 2019+ Total Orderbook a
Slide 14: World Fleet Growth – Product Tankers and VLGC
World Fleet Growth – Product Tankers and VLGC Product Fleet - mn Dwt 1st Feb 2017 1st Jan 2016 1st Jan 2015 1st Jan 2014 LR2 34.87 30.44 27.42 26.93 LR1 25.66 23.75 23.72 23.61 MR 91.14 82.95 78.40 75.74 Total (35k+) 151.67 137.14 129.54 126.28 Order Book - mn dwt 2017 2018 2019+ Total Orderbook as
Slide 15: Key points on Dry Bulk Markets – Q4CY16
Key points on Dry Bulk Markets – Q4CY16 Asset Prices: -Capesize 5 year old continues to remain low at $24 Mn (Consistent with previous 3 quarters) -Panamax & Supramax 5 year olds continues to trade at $14-$15 Mn levels Freight rates: -BDI has declined from high of 1200+ in Dec’16 to 714 in Feb’17 Co
Slide 16: Bulkers – Asset Prices (5-year old)
Bulkers – Asset Prices (5-year old) USD mn USD Capesize Panamx Supramax mn Capesize Panamax Supramax 180 40 35 160 30 140 25 20 120 15 100 10 5 80 0 60 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2015 2015 2015 2016 2016 2016 2016 40 20 0 2006-Feb 2007-Feb 2002-Feb 2003-Feb 2004-Feb 2005-Feb 2008-Feb 2009-Feb 2010
Slide 17: Baltic Dry Index (Feb 2014 – Feb 2017)
Baltic Dry Index (Feb 2014 – Feb 2017) Dry Bulk freight rates has corrected during this quarter Baltic Dry Index 1,800 1,600 1,400 1,257 1,200 1,000 800 600 400 290 200 Aug-14 Aug-15 Aug-16 Apr-16 Apr-14 Nov-14 Apr-15 Nov-15 Nov-16 May-14 May-15 May-16 Jun-15 Jun-14 Mar-15 Jun-16 Mar-14 Mar-16 Dec-1
Slide 18: China's iron ore import grows with decent numbers
China’s iron ore import grows with decent numbers Steel Production was steady in CY2016 World Steel China Steel % Growth World % Growth China 2000 15% 1500 10% 1000 5% 500 0% 0 -5% 2013 2014 2015 2016 China’s iron ore import grew 7.4% in CY2016 Australia Brazil Others 954 1025 1000 932 746 819 500 0
Slide 19: China and India coal imports change (Y-O-Y)
-20.0 -10.0 -15.0 0.0 5.0 10.0 15.0 -5.0 mt Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Source – Industry Reports Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 China coal imports change (Y-O-Y) Nov-16 Dec-16 mt -8.00 -6.00 -4.00 -2.00 0
Slide 20: World Fleet Growth – Dry Bulk
World Fleet Growth – Dry Bulk Fleet - Mn Dwt 1st Feb 2017 1st Jan 2016 1st Jan 2015 Capesize 317 309 307 Panamax 198 195 192 Handymax 191 180 167 Handysize 95 93 91 Total 800 776 757 2017 2018 2019+ Total Gross Orderbook %Fleet 6% 2% 1% 10% Slippage – 48% CY2016 Source – Industry Reports 20
Slide 21: Accelerated scrapping in Dry Bulk
Accelerated scrapping in Dry Bulk Scrapping as % of world fleet (year-wise) Vessel Fleet as on Scrapping Category February 17 2016 2015 2014 2013 (in mn dwt) (% of beginning fleet) Crude 366 0.35% 0.23% 1.60% 2.40% Product 152 0.62% 0.61% 1.19% 1.69% Dry Bulk 800 3.67% 4.03% 2.25% 3.36% Source – Ind
Slide 22: Greatship (India) Limited Business Review March 2017
Greatship (India) Limited (a 100% subsidiary) Business Review March 2017
Slide 23: 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 40 ROVSV 71 • 2
Slide 24: Key points on E&P markets – Q4FY16
Key points on E&P markets – Q4FY16 Day rates: - Day rates for both AHTS & PSV have come off by ~45%-50% since 2014 Fleet Growth: - Rigs: No growth from previous quarter - OSV’s: No growth from previous quarter Fleet Utilization Levels: Sub 55% Slippage: - OSV – 60% - 70% CY2016 - Rigs – 60% - 70% CY
Slide 25: Double-digit decline in drilling demand in CY2016
Double-digit decline in drilling demand in CY2016 • Drilling demand has been declining continuously since the peak in 2014 • With the Brent oil price falling sharply since 2014, Offshore E&P spending has also come off significantly Source – Offshore Drilling Market Outlook (DVB) 25
Slide 26: Global Fleet Supply – Offshore
Global Fleet Supply – Offshore Fleet & Orderbook (Nos) Jackup Rigs AHTSVs PSV Current Fleet 542 2130 1630 Orderbook 103 175 199 % of O/B to current fleet 19% 8% 12% • CY2016 actual deliveries have been far lower than scheduled. Due to bleak employment scenario owners have refrained from taking deliv
Slide 27: Financial Highlights Q3 FY 2016-17
FINANCIAL HIGHLIGHTS Q3 FY 2016-17
Slide 28: Q3 FY 2016-17 Financial Highlights
Q3 FY 2016-17 Financial Highlights Standalone Key Figures Consolidated Q3 FY'17 Q3 FY'16 9M FY'17 (Amount in Rs. crs) Q3 FY'17 Q3 FY'16 9M FY'17 Income Statement 567.99 580.31 1609.15 Revenue (including other income) 920.49 1037.97 2754.56 338.24 317.01 914.51 EBITDA (including other income) 557.77
Slide 29: Q3 FY 2016-17 Financial Highlights
Q3 FY 2016-17 Financial Highlights Standalone Key Figures Consolidated Q3 FY'17 Q3 FY'16 9M FY'17 (Amount in Rs. crs) Q3 FY'17 Q3 FY'16 9M FY'17 Key financial figures 59.55% 54.63% 56.83% EBITDA Margin (%) 60.60% 60.08% 60.45% 13.82% 17.13% 12.28% Return on Equity (ROE) (%) 11.46% 18.62% 12.25% 11.0
Slide 30: Q3 FY 2016-17 Performance Highlights
Q3 FY 2016-17 Performance Highlights Breakup of revenue days Revenue Days Q3’FY17 Q3’FY16 Owned Tonnage 3,339 2,593 Inchartered Tonnage 89 115 Total Revenue Days 3,428 2,708 Total Owned Tonnage (mn.dwt)* 3.23 2.36 * As on 31st December 2016 Mix of Spot & Time Days (in %) Q3’FY17 Q3’FY16 Average TCY
Slide 31: Thank You
THANK YOU visit us at www.greatship.com
The Great Eastern Shipping — Investor Presentation (March 2017) on 6ix