Great Eastern Shipping Co. Ltd. · NSE:GESHIP
Great Eastern Shipping — The Great Eastern Shipping Company — Q2 FY2022 Earnings Presentation
39 slides from Great Eastern Shipping's earnings presentation, Oct 29, 2021
Slide 1: Filing cover letter to stock exchanges
Our Ref.: S/2021/JMT October 29, 2021 BSE Limited National Stock Exchange of India Limited 1st Floor, Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Plot No. C/1, Dalal Street, Bandra Kurla Complex, Bandra (East), Mumbai – 400 001 Mumbai – 400 051 Dear Sir, Further to our letter dated October
Slide 2: The Great Eastern Shipping Co. Ltd.
, t. by The Great Eastern! \ Shipping Co. Ltd.
Slide 3: 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 4: Financial Year Q2FY22
FINANCIAL YEAR Q2FY22 29 October 2021
Slide 5: Reported Financial Highlights
REPORTED FINANCIAL HIGHLIGHTS GE Shipping Q2FY22 consolidated Net Profit at Rs. 223 Crores Declared an interim dividend of Rs. 4.50 per share Standalone Key Figures Consolidated Q2FY22 Q2FY21 H1FY22 (Amount in Rs. Crs) Q2FY22 Q2FY21 H1FY22 Income Statement 788 622 1,467 Revenue (including other inco
Slide 6: Normalized Financial Highlights
NORMALIZED FINANCIAL HIGHLIGHTS GE Shipping Q2FY22 consolidated Net Profit at Rs. 217 Crores Declared an interim dividend of Rs. 4.50 per share Standalone Key Figures Consolidated Q2FY22 Q2FY21 H1FY22 (Amount in Rs. Crs) Q2FY22 Q2FY21 H1FY22 Income Statement 788 622 1467 Revenue (including other inc
Slide 7: Normalized Financial Notes
NORMALIZED FINANCIAL NOTES 1) The impact of the exchange rate on foreign currency loans and current assets and liabilities, including cash and bank balances, has been removed 2) NCD & Currency Swap: • Funds raised through NCDs have been swapped into USD using INR-FCY swaps, thus creating synthetic f
Slide 8: Normalized Financial Highlights
NORMALIZED FINANCIAL HIGHLIGHTS Standalone Key Figures Consolidated Q2FY22 Q2FY21 H1FY22 Q2FY22 Q2FY21 H1FY22 Key financial figures 15.87% 10.62% 12.31% *Return on Equity (ROE) (%) 11.16% 7.31% 7.79% 11.17% 7.83% 8.86% *Return on Capital Employed (ROCE) (%) 8.23% 5.91% 6.15% 0.62 0.71 0.62 Gross Deb
Slide 9: Profit & Loss Statement Industry Format
PROFIT & LOSS STATEMENT INDUSTRY FORMAT Standalone INR Crores Consolidated Q2FY22 Q1FY22 H1FY22 Q2FY22 Q1FY22 H1FY22 705 623 1327 Operating Revenue 866 765 1631 168 168 335 Less : Direct Operating Expenses/Voyage Expenses 178 186 363 537 455 992 Time Charter Equivalent (A) 689 579 1268 35 12 48 Prof
Slide 10: Performance Review
PERFORMANCE REVIEW Break up of Revenue days (Shipping) Revenue Days Q2 FY22 Q2 FY21 Owned Tonnage 4,028 4,007 Inchartered Tonnage - 9 Total Revenue Days 4,028 4,016 Total Owned Tonnage (mn.dwt) 3.57 3.70 Break up of Revenue days (Offshore) Revenue Days Q2 FY22 Q2 FY21 Offshore Logistics 1,227 1,706
Slide 11: Revenue Visibility & Coverage
REVENUE VISIBILITY & COVERAGE Category-wise coverage of operating days (Shipping) --- FY22 Extent of coverage of fleet’s Category Revenue Visibility operating days Crude Carriers 10% Product Carriers 18% LPG Carriers 86% Rs 382 Cr Dry Bulk 28% Category-wise coverage of operating days (Offshore) ---
Slide 12: GESCO Standalone Debt Repayment Schedule
GESCO STANDALONE DEBT REPAYMENT SCHEDULE (NEXT 5 YEARS) GESCO Standalone (USD mn) 100 600 90 86 79 81 80 500 528 70 67 USD Million 400 USD Million 60 50 300 40 200 30 19 20 100 10 0 0 Jun-21 Mar-22 Mar-23 Mar-24 Mar-25 Mar-26 Loan Repayments Loan O/S (RHS) GESCO: We have effective all-in USD cost of
Slide 13: Fleet Profile
FLEET PROFILE SHIPPING Fleet (29th Oct 21) Committed Fleet DWT (FY21) No: Avg Age Capex/Sale Crude Carriers 1,058,499 8 13.69 Product Carriers 1,092,465 18 13.63 NIL Gas Carriers 212,260 5 17.02 Dry Bulk Carriers 1,210,805 14 8.55 Total 3,574,029 45 12.13 OFFSHORE Fleet Number of Units Average Age (
Slide 14: Shipping Market
SHIPPING MARKET 13
Slide 15: Tanker Market
TANKER MARKET
Slide 16: Crude and Product Tankers
Crude and Product Tankers Avg. Suezmax Earnings ($/day) Avg. MR Earnings ($/day) 100,000 40,000 90,000 35,000 80,000 30,000 70,000 60,000 25,000 50,000 20,000 40,000 15,000 30,000 10,000 20,000 10,000 5,000 0 0 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan F
Slide 17: Crude and Product Tankers
Crude and Product Tankers Freight rates continue to hover around operating costs While demand for all other core products has returned close to pre-pandemic levels, Jet demand is ~2.7 mbpd (33%) lower than pre-pandemic levels (Sep-19) as air-traffic remains impacted due to Covid. Refinery runs
Slide 18: Dry Bulk Market
DRY BULK MARKET
Slide 19: Dry Bulk
Dry Bulk Avg. Baltic 5TC Earnings ($/day) 60,000 50,000 Spot rates reached highs not seen since 40,000 the super cycle 30,000 20,000 10,000 0 $/day FY21 FY22 % change Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar H1 15,130 36,830 143% FY21 FY22 18 Sources: Industry Reports
Slide 20: Dry Bulk
Dry Bulk Trade growth of approx. 5.5% YoY in Jan-Sep 21 Covid related congestion in Asia, and weather disruptions – tightened tonnage supply. Congestion in Q3 Cal 21 @ 5% of the fleet was highest since Q4 2011. World energy shortage led to surging coal prices. Global coal trade was strongly su
Slide 21: LPG Market
LPG MARKET
Slide 22: Gas
Gas Avg. VLGC Earnings ($/day) 120,000 100,000 80,000 Spot rates trended lower 60,000 40,000 20,000 0 $/day FY21 FY22 % change Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar H1 36,864 29,308 -20% FY21 FY22 21 Sources: Industry Reports
Slide 23: Gas
Gas VLGC earnings averaged US $ 23,000 / day during the quarter down 44 % YoY. Earnings were down 35 % from Q1 FY 2022 as well. Global VLGC trade grew by ~ 5 % YoY during the quarter mainly led by US export growth. VLGC fleet grew by 6 % YoY during the quarter. On a qoq basis, effective VLGC s
Slide 24: Fleet Supply
Fleet Supply
Slide 25: One of the Lowest Order Book to Fleet Ratios
One of the Lowest Order Book to Fleet Ratios While ordering is picking up for Bulkers Orderbook as % of Fleet 9% 8.40% 8% 7% 6.48% 6.20% 6% 5% 4% 3% 2% 1% 0% Crude Tankers Product Tankers Dry Bulk 24 Sources: Industry Reports
Slide 26: Asset Price Movement
ASSET PRICE MOVEMENT 25
Slide 27: Asset Price Movement (Indexed)
100 105 110 115 120 125 85 90 95 95 115 135 155 175 Oct-2016 Oct-16 Jan-2017 Jan-17 Apr-2017 Apr-17 Jul-2017 Jul-17 Oct-2017 Oct-17 Jan-2018 Jan-18 Apr-2018 Apr-18 Sources: Industry Reports Jul-18 Jul-2018 Oct-18 Oct-2018 Jan-19 Jan-2019 Apr-19 Apr-2019 Over the Last 5 Years Suezmax Jul-19 Capesize
Slide 28: Scrapping
SCRAPPING Fleet Vessel (mn Dwt) Scrapping (% of beginning world fleet) Category Oct 21 YTDCY21 CY2020 CY2019 CY2018 CY2017 CY2016 CY2015 CY2014 Crude 435 1.64% 0.53% 0.55% 4.39% 2.43% 0.39% 0.38% 1.75% Product 177 1.58% 0.57% 0.60% 1.72% 1.22% 0.54% 0.62% 1.10% Dry Bulk 938 0.53% 1.74% 0.93% 0.54% 1
Slide 29: Greatship (India) Limited
Greatship (India) Limited (a 100% subsidiary)
Slide 30: Fleet Supply: Increasing number of Cold Stacked Rigs
Fleet Supply Increasing number of Cold Stacked Rigs Number Jackup Rigs PSVs + AHTSVs Current Fleet 488 3245 Orderbook 33 147 O/B to current fleet 6.8% 4.5% Total Scrapping since January 2016 (nos.) 135 465 No. of Vessels/Rigs more than 20/30 years old 34% 19% (as %age of fleet) Cold Stacked more tha
Slide 31: Market Trends: Utilisation
200 250 300 350 400 450 Jan 2010 Jul 2010 Jan 2011 Jul 2011 Jan 2012 Jul 2012 Jan 2013 Market Trends: Utilisation Jul 2013 Jan 2014 Jul 2014 Jan 2015 Under Contract Jul 2015 Jan 2016 Jul 2016 Jan 2017 Jul 2017 Jan 2018 Total Utilisation Jul 2018 Jack up utilisation: gradual improvement Jan 2019 Jul
Slide 32: Repricing
Repricing Vessels Rigs 6 4 4 2 1 1 1 1 1 1 0 0 0 0 H2 FY22 H1 FY23 H2 FY23 H1 FY24 H2 FY24 H1 FY25 H2 FY25 31
Slide 33: Greatship Debt Repayment Schedule
GREATSHIP DEBT REPAYMENT SCHEDULE (NEXT 5 YEARS) GIL (USD Mn) 120 200 97 180 100 160 169 140 USD Million 80 USD Million 120 60 100 80 40 36 25 60 20 10 40 20 - - Jun-21 Mar-22 Mar-23 Mar-24 Mar-25 Repayments Loan O/S (RHS) 32
Slide 34: Initiatives on Environment
INITIATIVES ON ENVIRONMENT • Voluntarily published our first Environment Social Governance (ESG) report • Established a working group for feasibility study on alternate fuels and fuel optimisation technologies in view of the IMO emission reduction targets. • After the Jan 2020 IMO mandate on switchi
Slide 35: Initiatives on Environment
INITIATIVES ON ENVIRONMENT Implementation of various energy saving devices • High Performance Paint • Mewis Duct • Propeller Boss Cap Fins (PBCF) • ECO Cap • LED Lightings • Rudder Bulb • Pre-swirl Fins 34
Slide 36: Financials
\ = Y The Great Eastern Shipping Co. Lid FINANCIALS
Slide 37: Counter Cyclical Investments have Generated Strong Cash Flows
Counter Cyclical Investments have Generated Strong Cash Flows Net CAPEX of over 400 mn USD but Net Debt has risen 10 mn USD from FY2016 5 Year Cycle Net Debt Expansion 400 Phase Net Debt Reduction 0.60 Phase 350 0.50 300 0.40 USD Million 250 200 0.30 150 0.20 100 0.10 50 - - FY2016 FY2017 FY2018 FY2
Slide 38: Share Price to Consolidated NAV
Share Price to Consolidated NAV Share Price to Consolidated NAV 700 1 0.9 600 0.8 500 INR/Share 0.7 400 0.6 0.5 300 0.4 200 0.3 0.2 100 0.1 0 0 FY16 FY17 FY18 FY19 FY20 FY21 Q2FY22 Consolidated NAV Standalone Share Price/Consol. NAV (RHS) * For Q2FY22 we have taken share price as on 29th October 202
Slide 39: Thank You
THANK YOU visit us at www.greatship.com 38
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