Precious Shipping Public Co., Ltd. · SET:PSL
Precious Shipping Public — Q2 2022 Earnings Presentation
44 slides from Precious Shipping Public's earnings presentation, Aug 8, 2022
Slide 1: PSL Analyst Meeting 8 Aug 2022
Precious Shipping Public Company Limited PSL Analyst Meeting 8 Aug 2022
Slide 2: Dry Bulk Freight Markets
Dry Bulk Freight Markets Precious Shipping PCL 2
Slide 3: The BDI since start of 2016
The BDI since start of 2016 6,000 13 Year high 5,500 5,650 – 7 Oct 2021 5,000 4,500 4,000 3,500 3,000 2,500 5 Year high 2,518 – 4 Sep 2019 2,000 1,500 2,240 – 30 Jun 2022 1,000 500 0 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 Source: Clarksons, 30 Jun
Slide 4: Capes, Panamax, Supras, Handy - Top to bottom and back up!
Capes, Panamax, Supras, Handy - Top to bottom and back up! Capesize % Panamax % Supramax % Handysize % Date Date Date Date TC Rate Change TC Rate Change TC Rate Change TC rate Change 07-Oct-21 86,953 25-Oct-21 38,952 21-Oct-21 39,860 25-Oct-21 37,109 26-Jan-22 5,826 -93% 02-Feb-22 15,885 -59% 02-Feb
Slide 5: Despite China's faltering growth FH 2022 has been very good!
Despite China’s faltering growth FH 2022 has been very good! Latest available Data points on China in FH 2022 Vs FH 2021. China’s Iron Ore imports in FH 2022 was 535.9 MMT Vs 561.4 MMT FH 2021 down 4.5%. China’s Coal imports in FH 2022 was 114.9 MMT Vs 139.6 MMT FH 2021 down by 17.7%. China’s
Slide 6: Historical growth in seaborne dry bulk trade – billion tonne-miles
Historical growth in seaborne dry bulk trade – billion tonne-miles Seaborne Dry bulk Trade All Units In Billion Tonne-Miles 2017 2018 2019 2020 2021 2022F 2023F Iron Ore 8,190 8,190 8,022 8408 8,545 8,557 8,619 Coal (includes Lignite) 4,881 5,204 5,136 4,655 4,911 5,069 5,122 Grains (includes Soybea
Slide 7: Historical growth in seaborne minor bulk trade – billion tonne-miles
Historical growth in seaborne minor bulk trade – billion tonne-miles Seaborne Minor Bulk Trade All Units In Billion Tonne-Miles 2017 2018 2019 2020 2021 2022F 2023F Steel Products 1,906 1,978 1,832 1,678 1,966 1,949 1,962 Forest Products 2,223 2,298 2,356 2,293 2,383 2,422 2,504 Other Minor Bulk 6,3
Slide 8: PSL cargo exposure: 2016 – 2021
PSL cargo exposure: 2016 – 2021 Bulk cargo in the aggregate amount of 12.3 MMT, 11.7 MMT, 12.7 MMT, 13.7 MMT, 12.4MMT, 12.6MMT was carried on PSL ships in 2016, 2017, 2018, 2019, 2020 & 2021, respectively. 3.5 3.0 2.5 MMT 2.0 1.5 1.0 0.5 0.0 Ore / Conc. Salt Scrap Steel Other cargoes Agri Prods Logs
Slide 9: Commodities share by different dry bulk sectors
Commodities share by different dry bulk sectors COMMODITIES Capesize Panamax Supramax Handysize Iron Ore 76% 9% 6% 2% Coal 19% 52% 23% 10% Grains - 26% 16% 23% Minor Bulk 5% 13% 54% 64% Others - - 1% 1% 80% 76% 70% 64% 60% 52% 54% 50% 40% 30% 26% 23% 23% 19% 16% 20% 13% 9% 10% 10% 5% 6% 0% 2% 0% Cap
Slide 10: Dry bulk fleet at the start of Q3 2022
Dry bulk fleet at the start of Q3 2022 Fleet Overview Ship Type DWT Range (MT) Ships Av Age (yrs) Total DWT (m MT) Av DWT (MT) % of DWT Handysize 10,000 – 39,999 4,208 13.22 113.57 26,990 11.91% Supra/Ultramax 40,000 – 69,999 3,942 11.24 221.79 52,706 23.25% Panamax 70,000 – 89,999 2,596 11.11 206.5
Slide 11: Confirmed orders as of Jul 2022 (MDWT) – Dec 2025
Confirmed orders as of 1 Jul 2022 (MDWT) – 31 Dec 2025 20.00 Total Confirmed Orders Until 2025 Year M DWT % of Fleet 2022 16.98 1.78% 16.00 2023 31.05 3.26% 2024 18.14 1.90% 2025 1.53 0.16% Total Orderbook 67.70 7.10% 12.00 11.35 Geared 23.28 2.44% Gearless 44.42 4.66% 9.76 8.05 8.00 6.52 5.82 5.73
Slide 12: PSL dry bulk supply side forecast
PSL dry bulk supply side forecast Actual data for FH 22. PSL forecasts net fleet growth for 2022 at 2.62%, assuming 5% slippage and 6.14 MDWT of scrapping in SH 22. FH 2022 Net Fleet Growth = 14.64 MDWT, +1.54%. SH 2022 Net Fleet Growth = 10.00 MDWT, +1.05% 963.79 953.79 953.79 17.51 939.15 projecte
Slide 13: Putting orderbook figures in context – overall dry bulk fleet
Putting orderbook figures in context – overall dry bulk fleet 1000 968 100% Dry bulk Fleet 939 907 900 All Figures In M DWT Unless 873 90% Otherwise Indicated (30 Jun 2022) 841 78.14% 814 Total Fleet 953.79 772 790 800 754 80% Total Orderbook to end 2025 67.70 719 700 Orderbook % Fleet 7.10% 677 70%
Slide 14: Putting orderbook figures in context – geared vessels only
Putting orderbook figures in context – geared vessels only 80% 80% 60% 60% 40% 19.19% 40% 20% 15.65% 20% 0% 0% 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 Orderbook % of Fleet (Handy) Orderbook % of Fleet (Supras/Ultras) % of Fleet Over 20y (Supras/Ultras) % of Fleet Over 20y (Handy)
Slide 15: Why did the challenges in FH of 2022 not sink the freight market?
Why did the challenges in FH of 2022 not sink the freight market? Challenges in 2022: • China’s dismal import/export performance. • Russia-Ukraine war reduced grain, coal, and other commodity shipments. • Central banks ended Covid stimulus, ended QE, and raised interest rates, to combat inflation. •
Slide 16: Differences in 2003-2009, 2010-2020, 2021 and the future
Differences in 2003-2009, 2010-2020, 2021 and the future Daily average Time Charter rate 2003 – 2009 2010 – 2020 2021 FH 2022 Capesize 67,101* 14,924*** 33,333** 18,089** Panamax 32,793* 10,965*** 27,898** 24,876** Supramax 28,013^^ 10,765*** 26,768** 26,983** Handysize 18,753^^ 8,789*** 25,702** 25
Slide 17: Difference between 2021, and 2022
Difference between 2021, and 2022 During 2021 Supply-Demand balance was reached by mid-2021; upward momentum in freight markets continued during 2021; speed of the freight market rise took everyone by surprise. GDP growth rates in China, and the ROW, started to rise sharply. Congestion peaked
Slide 18: Port Congestion
Port Congestion Total Bulkcarrier Port Congestion as % of Bulkcarrier Fleet • This data is based on reports of vessels 7.0% 6.6% waiting at a selected number of ports 6.0% globally. 5.2% 5.0% 4.6% 4.2% 4.2% 4.2% 3.9% 3.8% 4.1% 3.9% • Total Port congestion stood at 4.6% of 4.0% total bulk carrier fle
Slide 19: DWT of dry bulk ships ordered in FH 22 versus prior years
DWT of dry bulk ships ordered in FH 22 versus FH 19, 20 and 21 %age %age %age Gearless New orders Geared %age change change change Change new orders Year Avg. BDI in new orders in versus versus versus versus in MDWT MDWT 2022 2022 2022 2022 MDWT FH 2019 895 +155% 20.12 -18% 6.03 -8% 14.09 -22% FH 20
Slide 20: Key Industry Takeaways
Key Industry Takeaways The good news in 2021 Dry bulk supply-demand balance was finally reached by mid 2021. China’s USD 667b steel intensive fiscal stimulus announced on 22 May 2020 pushed the BDI to 5,650 on 7th October from 1,374 points at the start of 2021! Material improvement in dry bulk
Slide 21: Market Segmentation Q2 2022
Market Segmentation Q2 2022 Index PSL Avg Q2 2022 Market PSL Performance Index PSL Avg PSL Ship Index Speed/Con Speed/Con Average Av. TC Av. TC vs Ship DWT Ship DWT Number (1) (1) Index Rate (2) Rate Benchmark Laden: Laden: 16 Handysize 12K/18T 12K/20T BHSI & USD USD 38,000 30,766* 1,531 -22.37% (Ha
Slide 22: PSL's Strategy
PSL’s Strategy Precious Shipping PCL 22
Slide 23: Current and rolling 4-year forward book until 2025
Current and rolling 4-year forward book until 2025 Contract Total USD 105.21 m USD 34.97 m USD 28.03 m USD 27.95 m value USD 196.15 m 24,000 22,737 100% 20,000 16,778 80% 15,316 15,316 16,000 60% 12,000 13,339 13,505 13,542 13,505 40% 8,000 35% 15% 14% 14% 20% 4,000 4,627 2,084 1,830 1,825 0 0% 2022
Slide 24: PSL Fleet
PSL Fleet As of 31st Dec 2018 31st Dec 2019 31st Dec 2020 31st Dec 2021 25th Jul 2022 Number of 36 36 36 36 38 Vessels Average Age 7.3 years 8.3 years 9.3 years 10.3 years 10.5 years (Simple Avg) Insured Value 700.30 650.00 650.00 747.55 799.15 (US$ million) Book Value 689.37 664.89 634.77 605.04 64
Slide 25: Financials
Financials Precious Shipping PCL 25
Slide 26: Q2 2022 Highlights
Q2 2022 Highlights Prepaid USD 24.14 million of loans from BNP Paribas on 5 April 2022. PSL declared an interim dividend (No.1) of 50 Satang which was paid on 8 June 2022. Signed an MOA for the purchase of two secondhand Handysize vessels on 30 May 2022. Took delivery of Phatra Naree on 13 Jun
Slide 27: Financial Profile
Financial Profile H1-2022 2021 2020 2019 2018 2017 Cash & Cash Equivalents $54.3m $73.9m $36.6m $39.2m $56.8m $56.7m Total Assets $709.5m $704.1m $712.3m $831.1m $857.9m $882.3m Gross Debt $216.7m $245.9m $318.3m $391.7m $432.8m $469.4m Net Debt $162.4m $172.0m $281.7m $352.5m $376.0m $412.6m Equity
Slide 28: Operating Expenses
Operating Expenses These are the fixed costs required to run a ship and are evenly spread over 365 days. Our operating costs per ship per day for 2021 and H1’2022 were USD 5,090 and 4,797 respectively. Breakdown of costs: 2021 H1’2022 Particulars USD % USD % Crew costs 2,322 45.62% 2,281 47.55%
Slide 29: Operating Expenses Comparison
Operating Expenses Comparison OPEX Comparison with Industry compiled by BDO LLP OPEX excluding dry dock and special survey cost Industry OPEX for 2021 will be published in October 2022 For Years 2016 2017 2018 2019 2020 2021 Particulars Industry PSL Industry PSL Industry PSL Industry PSL Indus
Slide 30: Financial Highlights – Income Statement
Financial Highlights – Income Statement Particulars H1-2022 H1-2021 Q2-2022 Q1-2022 Q2-2021 Total Revenues - USD Million 145.13 107.09 76.25 68.88 62.58 Gross Profit - USD Million 117.08 66.99 62.43 54.65 42.36 Net Profit (loss) - USD Million 86.98 38.55 47.95 39.03 26.23 Gain (loss) on derivatives
Slide 31: Financial Highlights – Financial Position
Financial Highlights – Financial Position Particulars 30-Jun-2022 31-Dec-2021 Cash & Cash Equivalents - USD Million 54.31 73.85 Total Current Assets - USD Million 71.61 84.07 Ships Net - USD Million 617.83 605.04 Fixed Assets Net - USD Million 619.95 606.97 Total Assets - USD Million 709.50 704.09 T
Slide 32: Average OPEX / TC Rates
Average OPEX / TC Rates H1’ Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Avg Age 15.6 15.7 15.8 16.6 17.4 19.0 20.0 19.6 20.6 17.1 15.4 14.2 11.4 11.4 10.5 9.8 5.8 6.3 7.3 8.3 9.3 10.3 10.6 45,000 42,812 44,050 43,829 36,187
Slide 33: Debt & Debt / Equity Ratio
Debt & Debt / Equity Ratio 1.6 500 482 1.5 469 433 1.3 400 1.3 1.2 410 1.2 392 1.1 1.1 361 Debt (Million USD) 1.0 283 300 318 0.9 0.9 0.9 296 Ratio 0.8 0.8 246 240 222 200 217 0.6 0.6 0.6 0.5 163 157 0.5 133 128 0.3 100 110 0.3 106 0.3 86 44 21 0.1 0 0.0 0.0 0.0 0 H1'2022 2000 2001 2002 2003 2004 20
Slide 34: Debt / EBITDA
Debt / EBITDA 24 20 20.3 16.9 16 Ratio 12 8 8.3 8.5 8.3 8.4 6.2 6.1 4.8 4 3.6 3.4 3.3 2.5 1.9 1.5 1.1 1.3 1.0 0 0.4 0.0 0.0 0.0 0.3 H1'2022 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Year Debt/EBITDA Debt / EBITDA calculated per Debt
Slide 35: Net Profit / Cash Profit
Net Profit / Cash Profit 200 196 163 163 167 160 154 145 148 135 137 120 125 110 102 102 93 88 87 Million USD 80 49 46 40 42 44 36 39 25 28 25 24 27 29 27 18 17 23 14 17 0 7 0 4 -2 1 -3 -3 -4 -7 -40 -41 -69 -76 -80 H1'2022 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20
Slide 36: Dividends
Dividends 2.1 2.0 420% 1.8 360% 350% 1.6 1.5 1.5 Dividends as % of EPS 1.5 300% 286% 1.2 Dividends Baht 1.2 240% 1.0 0.9 0.8 0.8 0.8 0.8 0.8 180% 0.6 0.7 0.6 0.5 0.4 0.5 120% 0.4 70% 80% 80% 0.3 0.3 78% 0.3 0.3 56% 59% 61% 0.2 0.2 0.2 61% 60% 60% 42% 0.1 0.1 28% 25% 0.0 0% 2007* 2003 2004 2005 2006
Slide 37: PSL and ESG
PSL and ESG Precious Shipping PCL 37
Slide 38: PSL's ESG Footprint
PSL’s ESG Footprint Environment: PSL is always reducing its environmental impact via new technologies and innovations. We replaced older and less fuel-efficient vessels between 2013 and 2017 with “eco-vessels” resulting in reduction of CO2 emissions. The PSL fleet's average gm CO2/ton*nm has reduc
Slide 39: Investor Relations
Investor Relations Precious Shipping PCL 39
Slide 40: Investor Relations Activities – FH 2022
Investor Relations Activities – FH 2022 The Company has joined many events for press/analyst briefings, which are attended personally by the Managing Director, the Executive Directors and/or IR team. Some of the major events in which the Company participated in 6M 2022 are enumerated herein as under
Slide 41: Shareholder's returns
Shareholder’s returns Precious Shipping PCL 41
Slide 42: Total Return to Shareholders: 1993 to Aug 2022
Total Return to Shareholders: 1993 to 5 Aug 2022 600 575 75 496 512 520 500 458 480 450 423.2 60 440440 440 440440 440 351.2 300 239.2 45 Baht 150 149.2 30 67 72 60 75 4 6 9 6 25 6 82.2 90 112 35 22 16 16 8 61 0 0 0 0 0 0 51 15 -85 -10 -45 -70 -85 -81 -75 -85 -76 -80 -150 0 Inflow/Outflow Net Cash P
Slide 43: Final Food For Thought
Final Food For Thought As described in the Industry section – Demand is growing faster than Supply growth, and this should be good for the next couple of years. Minor bulks, cargoes that PSL carries, are growing faster than other cargoes and certainly faster than supply growth in the geared sector
Slide 44: Thank You !
Thank You ! Precious Shipping Public Company Limited Website: www.preciousshipping.com | E-mail: psl@preciousshipping.com, ir@preciousshipping.com
Precious Shipping Public Company — Q2 2022 Earnings Presentation on 6ix