Great Eastern Shipping Co. Ltd. · NSE:GESHIP
Great Eastern Shipping — The Great Eastern Shipping — Q1 FY2024 Earnings Presentation
40 slides from Great Eastern Shipping's earnings presentation, Aug 3, 2023
Slide 1: Q1FY24 Earnings Presentation
Q1FY24 Earnings Presentation 03 AUGUST 2023
Slide 2: Disclaimer
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, pros
Slide 3: Q1FY24 Highlights
Q1FY24 HIGHLIGHTS • Net profits of INR 576 Cr on a consolidated basis • Our consolidated NAV has moved in Q1FY24 to INR 1202/share • Declared 1st Interim dividend of INR 12.90/Share for Q1FY2024 which includes special dividend of INR 7.50/Share to commemorate the 75th anniversary of the company GE S
Slide 4: Reported Highlights
REPORTED HIGHLIGHTS St an d al on e C on s l i d at e d Q1 Q1 Q1 Q1 • GE Shipping Q1FY24 Fig in INR Crores FY24 FY23 FY23 FY24 FY23 FY23 consolidated Net Profit at INR 576 Cr I n come St at e me n t Revenue* 1,109 1,165 5,096 1,335 1,398 6,171 • Declared 1st Interim EBITDA* 746 616 3,098 843 723 3,6
Slide 5: Normalised Financials
NORMALISED FINANCIALS o The impact of the exchange rate on foreign currency loans and current assets and liabilities, including cash and bank balances, has been removed o NCD & Currency Swap: o Funds raised through NCDs have been swapped into USD using INR-FCY swaps, thus creating synthetic fixed ra
Slide 6: Normalised Financial Highlights
NORMALISED FINANCIAL HIGHLIGHTS Standalone Conslidated • GE Shipping Q1FY24 Q1 Q1 Q1 Q1 consolidated Net Profit Fig in INR Crores FY24 FY23 FY23 FY24 FY23 FY23 at INR 529 Cr In come St at e me n t • Declared 1st Interim Revenue* 1,109 1,165 5,096 1,335 1,398 6,171 dividend of INR EBITDA* 675 612 3,0
Slide 7: Normalised Financial Highlights
NORMALISED FINANCIAL HIGHLIGHTS Standalone Conslidated Q1 Q1 Q1 Q1 FY24 FY23 FY23 FY24 FY23 FY23 Ke y Financial Figure Return on Equity (ROE%)** 24% 28% 32% 20% 25% 28% Return on Capital Employed (ROCE%)** 19% 19% 23% 16% 17% 20% Gross Debt/Equity (x) 0.33 0.54 0.35 0.38 0.58 0.40 Net Debt/Equity (x
Slide 8: Normalised Financials – Key Ratios
NORMALISED FINANCIALS – KEY RATIOS Earnings per Share (INR/Share) Cash Profit per Share (INR/Share) Standalone Consolidated Standalone Consolidated 55 51.21 48.98 63.89 47.62 46.34 60.71 45 45.03 57.95 55.65 42.38 37.06 53.61 35.65 50.61 49.65 35 48.21 32.55 36.23 44.17 40.55 25 14.30 16.96 27.84 15
Slide 9: Consistent Dividend Payouts
CONSISTENT DIVIDEND PAYOUTS 35 30 28.8 25 20 15 13.5 12.9 11.5 15.0 10.0 11.0 10.1 9.9 10 9.0 9.0 9.0 8.0 8.0 8.1 7.5 7.2 6.5 6.5 3.1 8.0 5.4 4.0 5 4.0 4.0 3.3 2.3 3.0 2.8 2.4 2.3 2.0 0 2.0 1.5 Dividend Per Share (INR/Share) GE Shipping – Q1FY24 Results 9
Slide 10: Profit & Loss Statement – Industry Format
PROFIT & LOSS STATEMENT – INDUSTRY FORMAT Q1 Q1 Q1 Q1 Figures in INR Crores FY24 FY23 FY23 FY24 FY23 FY23 Operating Revenue 1,035 1,157 4,809 1,277 1,359 5,660 Less: Direct Operating Expenses/Voyage Expenses 155 322 1,033 157 328 1,068 Time C har ter Equiv alent ( A) 880 835 3,776 1,120 1,031 4,592
Slide 11: Shareholding Pattern
SHAREHOLDING PATTERN FII/FPI Promoters 26% 30% Govt./FI/Corp 19% Public 25% 30-JUNE-2023 GE Shipping – Q3 & 9MFY23 Results GE Shipping – Q1FY24 Results 11
Slide 12: Performance Review
PERFORMANCE REVIEW Revenue Days FY24 FY23 Owned Tonnage 3,659 3,929 Inchartered Tonnage 91 215 Total Revenue Days 3,750 4,144 Total Owned Tonnage (mn.dwt) 3.44 3.57 Breakup of Revenue Days (Offshore) Q1 Q1 Revenue Days FY24 FY23 Offshore Logistics 1,520 1,555 Drilling Services 363 356 Total 1,883 1,
Slide 13: Performance Review
PERFORMANCE REVIEW Avg TCYs in Various Categories Q1 Q4 QoQ Q1 YoY Avg (TCYs USD/Day) FY24 FY23 % FY23 % Crude Carriers 53,344 64,579 -17% 28,852 85% Product Carriers 33,142 36,665 -10% 25,745 29% LPG Carriers 28,860 29,175 -1% 26,196 10% Dry Bulk 13,608 12,704 7% 27,235 -50% GE Shipping – Q1FY24 Re
Slide 14: Changes in Standalone NAV (YTD)
CHANGES IN STANDALONE NAV (YTD) INR/SHARE GE Shipping – Q1FY24 Results 14
Slide 15: Years Movement in Standalone NAV
5 YEARS MOVEMENT IN STANDALONE NAV Standalone NAV – Continue to touch new highs 1200 CAGR: 22% 995 1000 INR/SHARE 800 600 357 400 200 0 FY18 FY19 FY20 FY21 FY22 FY23 Q1FY24 GE Shipping – Q1FY24 Results 15
Slide 16: Changes in Consolidated NAV (YTD)
CHANGES IN CONSOLIDATED NAV (YTD) INR/SHARE GE Shipping – Q1FY24 Results 16
Slide 17: Revenue Coverage
REVENUE COVERAGE Coverage of Operating Days (Shipping) Category FY24 Crude Carriers 19% Product Carriers 18% LPG Carriers 92% Dry Bulk 28% Revenue Days FY24 Jack Up Rigs 93% AHTSV 70% MPSVV 27% PSV/ROVSV 84% GE Shipping – Q1FY24 Results 17
Slide 18: Standalone Debt Repayment Schedule
STANDALONE DEBT REPAYMENT SCHEDULE GESCO Standalone (USD mn) 80 74 74 400 70 68 350 366 60 300 50 45 250 40 36 200 30 150 20 100 10 50 0 0 Jun-23 Mar-24 Mar-25 Mar-26 Mar-27 Mar-28 Loan Repayments Loan O/S (RHS) 1) Effective all-in USD cost of debt of about 4.00% basis Jun-23 2) 90% of debt portfoli
Slide 19: Fleet Profile
FLEET PROFILE Fleet Profile - Shipping DWT Fleet (03 Aug'23) Fleet Q1FY24 No Avg Age Crude Carriers 842,958 6 14.69 Product Carriers 1,092,465 18 15.39 Gas Carriers 185,363 4 17.72 Dry Bulk Carriers 1,210,805 14 10.32 Total 3,331,591 42 13.50 Fleet Profile - Offshore Avg Years Fleet No. of Units Yrs
Slide 20: Shipping Market
QL Tie Great Fasten Shipping Co. Ltd. SHIPPING MARKET
Slide 21: Crude and Product Tankers
CRUDE AND PRODUCT TANKERS Avg. Suezmax Earnings (USD/day) Avg. MR Earnings (USD/day) 100,000 60,000 90,000 50,000 80,000 70,000 40,000 60,000 50,000 30,000 40,000 20,000 30,000 20,000 10,000 10,000 0 0 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar FY
Slide 22: Crude and Product Tankers
CRUDE AND PRODUCT TANKERS • Tanker spot earnings have softened QoQ in 1QFY24 led by OPEC+ crude production cuts starting May-23 and seasonal refinery maintenances. • Overall seaborne crude & product trade grew by ~7% & 4% y/y respectively during 1QFY24. • Trade disruptions led by EU’s embargo on Rus
Slide 23: Dry Bulk
DRY BULK DB Freight softened in Q1FY24 Y-O-Y, both Capes & Sub-Capes continued to remain soft Avg. Baltic Capesize 5T/C Earnings (USD/day) Avg. Baltic Supra BSI-58 10T/C Earnings 70,000 (USD/day) 40000 60,000 35000 50,000 30000 40,000 25000 20000 30,000 15000 20,000 10000 10,000 5000 0 0 Apr May Jun
Slide 24: Dry Bulk
DRY BULK • Spot earnings continued to remain soft & materially down y/y during the quarter. • Ton – Mile demand increased by ~ 2.5 % y/y as against a nominal fleet supply growth of 3 %. • Effective fleet supply growth was higher as all Covid related congestion seen last year completely reversed. • A
Slide 25: LPG Gas
LPG GAS Avg. VLGC Earnings (USD/day) 130,000 VLGC Spot earnings sustained healthy levels during Q1FY- 110,000 24 and were much higher YoY in comparison to Q1FY-23. 90,000 70,000 USD/day FY24 FY23 % change 50,000 3M 75,981 46,005 65% 30,000 10,000 April May June July Aug Sep Oct Nov Dec Jan Feb Mar F
Slide 26: Fleet Supply
The Great Fastern Shipping Co. Ltd FLEET SUPPLY
Slide 27: Low Order Book to Fleet Ratio
LOW ORDER BOOK TO FLEET RATIO Historic Order Book as a % of fleet (Calendar Year) 90% 80% 70% 60% 50% 40% 30% Current Orderbook 20% 9.5% 3.7% 10% 7.4% 0% Bulkers Product tankers Crude tankers Sources: Industry Reports GE Shipping – Q1FY24 Results 27
Slide 28: Asset Price Movement
KK? pe ret Fs a SS ASSET PRICE MOVEMENT THE GREAT EASTERN SHIPPING CO. LTD.
Slide 29: Asset Price Movement (Indexed Over Last 5 Years)
70 80 90 90 100 110 120 130 140 150 100 110 120 130 140 150 160 170 180 Jul-18 Jul-18 Oct-18 Oct-18 Jan-19 Jan-19 5 YRS) Apr-19 Apr-19 Jul-19 Jul-19 Sources: Industry Reports Oct-19 Oct-19 Jan-20 Jan-20 Apr-20 Apr-20 Jul-20 Jul-20 Oct-20 Oct-20 Jan-21 Jan-21 Suezmax Capesize Apr-21 Apr-21 Jul-21 Jul
Slide 30: Scrapping
SCRAPPING Vessel Category Jul'23 Crude 459 Product 183 Dry Bulk 989 Scrapping (% Beginning world fleet) CYTD CY CY CY CY CY CY CY CY Vessel Category 2023 2022 2021 2020 2019 2018 2017 2016 2015 Crude - 0.78 2.47 0.53 0.55 4.39 2.43 0.39 0.38 Product 0.10 0.76 2.11 0.57 0.60 1.72 1.22 0.54 0.62 Dry B
Slide 31: Greatship (India) Limited 100% Subsidiary
GREATSHIP (INDIA) LIMITED 100% SUBSIDIARY
Slide 32: Fleet Supply
FLEET SUPPLY Number Jack-up Rigs PSV+AHTSV Current Fleet 495 3,406 Under Contract Fleet 354 2,304 Order Book 20 83 O/B to Current Fleet 4.0% 2.4% Total Scrapping since Jan 2016 (Nos) 143 648 No of Vessels/Rigs more than 20/30 years old (% Fleet) 33% 20% Cold stacked more than 3 years 45 497 Source:
Slide 33: Market Trends: Utilisation
200 250 300 350 400 450 Jan 2010 Jun 2010 Nov 2010 Apr 2011 Sep 2011 Feb 2012 Jul 2012 Dec 2012 May 2013 Oct 2013 Mar 2014 Aug 2014 Jan 2015 Jun 2015 Nov 2015 Apr 2016 MARKET TRENDS: UTILISATION Under Contract Sep 2016 Feb 2017 Jul 2017 GE Shipping – Q1FY24 Results Dec 2017 May 2018 Total Util % Oct
Slide 34: Repricing
REPRICING Remaining 3 vessels will come up for repricing in FY27 & FY28 Remaining 1 rig will come up for repricing in FY 27 Vessels Rigs 6 5 4 1 1 1 1 0 0 0 0 0 H1 FY24 H2 FY24 H1 FY25 H2 FY25 H1FY26 H2FY26 GE Shipping – Q1FY24 Results 34
Slide 35: Debt Repayment Schedule
DEBT REPAYMENT SCHEDULE GIL (USD Mn) 120 140 97 120 100 127 100 80 80 60 60 40 29 40 20 20 0 0 Jun-23 Mar-24 Mar-25 Repayments Loan O/S (RHS) GE Shipping – Q1FY24 Results 35
Slide 36: Financials
‘The Great Eastern Shipping Co. Ltd. FINANCIALS
Slide 37: Strong Cashflows Led Net Debt to Net Cash
STRONG CASHFLOWS LED NET DEBT USD 360 MN TO NET CASH OF USD 200 MN USD Mn Net Debt Expansion Phase Net Debt Reduction Phase 400 0.60 0.50 300 0.40 200 0.30 100 0.20 - 0.10 - -100 -0.10 -200 -0.20 -300 -0.30 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 Q1 FY2024 Net Debt Net Debt/Equity (R
Slide 38: Share Price to Consolidated NAV
SHARE PRICE TO CONSOLIDATED NAV INR/Share 1400 1 0.9 1200 0.8 1000 0.7 0.6 800 0.5 600 0.4 400 0.3 0.2 200 0.1 0 0 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Q1FY24 Consolidated NAV Standalone NAV Share Price/Consol. NAV (RHS) * For Q1FY24 we have taken share price as on 03rd Aug 2023 GE Shipping – Q1F
Slide 39: Great Eastern CSR Foundation
GREAT EASTERN CSR FOUNDATION GECSRF supports NGOs working under health, education and livelihoods CURRENT PARTNERS EDUCATION HEALTH LIVELIHOODS GE Shipping – Q1FY24 Results 39
Slide 40: Thank You
THANK YOU Visit us at www.greatship.com From a modest beginning… ...to most admired globally 1948 2023 Read the Story of GE Shipping – Coffee Table Book GE Shipping – Q1FY24 Results 40
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