Great Eastern Shipping Co. Ltd. · NSE:GESHIP

Great Eastern Shipping — The Great Eastern Shipping — Q2 FY2024 Earnings Presentation

41 slides from Great Eastern Shipping's earnings presentation, Oct 31, 2023

  1. Slide 1: Q2FY24 Earnings Presentation

    Q2FY24 Earnings Presentation 31 OCTOBER 2023

  2. 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

  3. Slide 3: Q2FY24 Highlights

    Q2FY24 HIGHLIGHTS • Net profits of INR 595 Cr on a consolidated basis • Our consolidated NAV has moved in H1FY24 to INR 1,263/share. First time, our shipping NAV has moved past INR 1,000/Share • Declared 2nd Interim dividend of INR 6.30 /Share for Q2FY2024 GE Shipping – Q2FY24 Results 3

  4. Slide 4: Reported Highlights

    REPORTED HIGHLIGHTS St an d al on e C on s l i d at e d Q2 Q2 H1 Q2 Q2 H1 Fig in INR Crores FY24 FY23 FY24 FY24 FY23 FY24 • GE Shipping Q2FY24 I n come St at e me n t consolidated Net Revenue* 1,182 1,402 2,290 1,461 1,700 2,796 Profit at INR 595 Cr EBITDA* 723 878 1,469 876 1,046 1,719 N e t P rofi

  5. 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

  6. Slide 6: Normalised Financial Highlights

    NORMALISED FINANCIAL HIGHLIGHTS Standalone Conslidated Q2 Q2 H1 Q2 Q2 H1 • GE Shipping Q2FY24 Fig in INR Crores FY24 FY23 FY24 FY24 FY23 FY24 consolidated Net Profit In come St at e me n t at INR 596 Cr Revenue* 1,182 1,402 2,290 1,461 1,700 2,796 • Declared 2nd Interim EBITDA* 710 838 1,385 843 969

  7. Slide 7: Normalised Financial Highlights

    NORMALISED FINANCIAL HIGHLIGHTS Standalone Conslidated Q2 Q2 H1 Q2 Q2 H1 FY24 FY23 FY24 FY24 FY23 FY24 Ke y Financial Figure Return on Equity (ROE%)** 24% 38% 24% 22% 33% 21% Return on Capital Employed (ROCE%)** 19% 26% 19% 17% 23% 16% Gross Debt/Equity (x) 0.32 0.48 0.32 0.36 0.53 0.36 Net Debt/Equ

  8. 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 41.65 55.65 54.73 42.38 37.06 53.61 35.65 37.51 50.61 49.65 35 36.23 48.21 32.55 45.82 44.17 40.55

  9. Slide 9: Consistent Dividend Payouts

    CONSISTENT DIVIDEND PAYOUTS 35 30 28.8 25 YTD 19.2 20 15 13.5 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 – Q2FY24 Results 9

  10. Slide 10: Profit & Loss Statement – Industry Format

    PROFIT & LOSS STATEMENT – INDUSTRY FORMAT Standalone Conslidated Q2 Q2 H1 Q2 Q2 H1 Figures in INR Crores FY24 FY23 FY24 FY24 FY23 FY24 Operating Revenue 930 1,239 1,964 1,184 1,440 2,461 Less: Direct Operating Expenses/Voyage Expenses 177 311 332 184 317 340 Time C har ter Equiv alent ( A) 753 928 1

  11. Slide 11: Shareholding Pattern

    SHAREHOLDING PATTERN FII/FPI Promoters 26% 30% Govt./FI/Corp 19% Public 25% 30-SEP-2023 GE Shipping – Q3 & 9MFY23 Results GE Shipping – Q2FY24 Results 11

  12. Slide 12: Performance Review

    PERFORMANCE REVIEW Breakup of Revenue Days (Shipping) Q2 Q2 Revenue Days FY24 FY23 Owned Tonnage 3,734 3,761 Inchartered Tonnage 35 267 Total Revenue Days 3,769 4,028 Total Owned Tonnage (mn.dwt) 3.28 3.44 Breakup of Revenue Days (Offshore) Q2 Q2 Revenue Days FY24 FY23 Offshore Logistics 1,448 1,523

  13. Slide 13: Performance Review

    PERFORMANCE REVIEW Avg TCYs in Various Categories Q2 Q1 QoQ Q2 YoY Avg (TCYs USD/Day) FY24 FY24 % FY23 % Crude Carriers 40,645 53,344 -24% 33,076 23% Product Carriers 27,743 33,142 -16% 35,691 -22% LPG Carriers 31,100 28,860 8% 31,235 0% Dry Bulk 11,720 13,608 -14% 21,882 -46% GE Shipping – Q2FY24 R

  14. Slide 14: Changes in Standalone NAV (YTD)

    CHANGES IN STANDALONE NAV (YTD) INR/SHARE GE Shipping – Q2FY24 Results 14

  15. Slide 15: Years Movement in Standalone NAV

    5 YEARS MOVEMENT IN STANDALONE NAV Standalone NAV – Continue to touch new highs 1200 1020 1000 CAGR: 21% INR/SHARE 800 600 357 400 200 0 FY18 FY19 FY20 FY21 FY22 FY23 Q2FY24 GE Shipping – Q2FY24 Results 15

  16. Slide 16: Changes in Consolidated NAV (YTD)

    CHANGES IN CONSOLIDATED NAV (YTD) INR/SHARE GE Shipping – Q2FY24 Results 16

  17. Slide 17: Revenue Coverage

    REVENUE COVERAGE Coverage of Operating Days (Shipping) Category FY24 Crude Carriers 18% Product Carriers 23% LPG Carriers 89% Dry Bulk 43% Revenue Days FY24 Jack Up Rigs 90% AHTSV 78% MPSVV 54% PSV/ROVSV 93% GE Shipping – Q2FY24 Results 17

  18. Slide 18: Standalone Debt Repayment Schedule

    STANDALONE DEBT REPAYMENT SCHEDULE GESCO Standalone (USD mn) 80 74 74 400 70 68 350 364 60 300 50 250 41 40 36 200 30 150 20 100 10 50 0 0 Sep-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 Sep-23 2) 95% of debt portfoli

  19. Slide 19: Fleet Profile

    FLEET PROFILE Fleet Profile - Shipping DWT Fleet (30 Oct'23) Fleet Q2FY24 No Avg Age *We sold and delivered our Supramax Bulk Crude Carriers 842,958 6 14.93 Carrier “Jag Rohan” in Product Carriers** 1,138,662 19 15.64 October -2023 Gas Carriers 185,363 4 17.95 Dry Bulk Carriers* 1,158,355 13 10.23 *

  20. Slide 20: Shipping Market

    QL Tie Great Fasten Shipping Co. Ltd. SHIPPING MARKET

  21. 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

  22. Slide 22: Crude and Product Tankers

    CRUDE AND PRODUCT TANKERS • Crude tanker earnings were down in 2QFY24 (~46% q/q drop in Suezmax earnings) amidst lower exports from Middle East and Russia due to implementation of OPEC+ production cuts. • Product tanker earnings saw 5% q/q drop in 2QFY24. • Overall seaborne crude trade was flat y/y

  23. Slide 23: Dry Bulk

    DRY BULK DB Freight picked up in H1FY24 Y-O-Y, however both capes and sub-capes averaged lower Y-O-Y 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

  24. Slide 24: Dry Bulk

    DRY BULK • Spot earnings continued to remain down y/y during the quarter but witnessed recovery in September- 2023. • Ton – Mile demand increased by ~ 5 % y/y as against a nominal fleet supply growth of 3 %. • Effective fleet supply growth remained higher as all Covid related congestion seen last ye

  25. Slide 25: LPG Gas

    LPG GAS Avg. VLGC Earnings (USD/day) 170,000 VLGC Spot earnings sustained healthy levels during Q2FY- 150,000 24 and were much higher YoY in comparison to Q2FY-23. 130,000 110,000 90,000 USD/day FY24 FY23 % change 70,000 6M 92,773 42,317 119% 50,000 30,000 10,000 April May June July Aug Sep Oct Nov

  26. Slide 26: Fleet Supply

    The Great Fastern Shipping Co. Ltd FLEET SUPPLY

  27. 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% 10.0% 4.1% 10% 8.1% 0% Bulkers Product tankers Crude tankers Sources: Industry Reports GE Shipping – Q2FY24 Results 27

  28. Slide 28: Asset Price Movement

    ©? pe ret Fs ak OS ASSET PRICE MOVEMENT THE GREAT EASTERN SHIPPING CO. LTD.

  29. 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 Oct-18 Oct-18 Jan-19 Jan-19 Apr-19 Apr-19 5 YRS) Jul-19 Jul-19 Oct-19 Oct-19 Sources: Industry Reports Jan-20 Jan-20 Apr-20 Apr-20 Jul-20 Jul-20 Oct-20 Oct-20 Jan-21 Jan-21 Apr-21 Apr-21 Suezmax Capesize Jul-21 Jul-21 Oct-21 Oct

  30. Slide 30: Scrapping

    SCRAPPING Vessel Category Oct'23 Crude 462 Product 184 Dry Bulk 996 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 0.11 0.76 2.11 0.57 0.60 1.72 1.22 0.54 0.62 Dry B

  31. Slide 31: Greatship (India) Limited 100% Subsidiary

    GREATSHIP (INDIA) LIMITED 100% SUBSIDIARY

  32. Slide 32: Jack Up Rigs - Market

    JACK UP RIGS - MARKET Demand Side: • Ramp up in demand from Middle East was the prime mover at the start of this upcycle. After a flurry of tendering activity over last 12-18 months, the focus for most operators & contractors has now shifted towards preparing and mobilizing the rigs against awarded

  33. Slide 33: Fleet Supply

    FLEET SUPPLY Number Jack-up Rigs PSV+AHTSV Current Fleet 496 3,390 Under Contract Fleet 358 2,324 Order Book 21 79 O/B to Current Fleet 4.2% 2.3% Total Scrapping since Jan 2016 (Nos) 143 668 No of Vessels/Rigs more than 20/30 years old (% Fleet) 33% 20% Cold stacked more than 3 years 54 477 Source:

  34. Slide 34: Market Trends: Utilisation

    200 250 300 350 400 450 Jan 2010 Jul 2010 Jan 2011 Jul 2011 Jan 2012 Jul 2012 Jan 2013 Jul 2013 Jan 2014 Jul 2014 Jan 2015 Jul 2015 Jan 2016 MARKET TRENDS: UTILISATION Under Contract Jul 2016 Jan 2017 Jul 2017 GE Shipping – Q2FY24 Results Jan 2018 Jul 2018 Total Util % Jan 2019 Jack Up Utilisation :

  35. Slide 35: Repricing

    REPRICING Of the Remaining 3 vessels, 2 will come up for repricing in H1FY27 & 1 vessel will come up for repricing in H1FY29 Remaining 1 rig will come up for repricing in H2FY 27 Vessels Rigs 8 7 1 1 1 1 0 0 0 0 H2 FY24 H1 FY25 H2 FY25 H1FY26 H2FY26 GE Shipping – Q2FY24 Results 35

  36. Slide 36: Debt Repayment Schedule

    DEBT REPAYMENT SCHEDULE GIL (USD Mn) 120 140 97 120 100 117 100 80 80 60 60 40 40 20 20 20 0 0 Sep-23 Mar-24 Mar-25 Repayments Loan O/S (RHS) GE Shipping – Q2FY24 Results 36

  37. Slide 37: Financials

    ‘The Great Eastern Shipping Co. Ltd. FINANCIALS

  38. Slide 38: Strong Cashflows Led Net Debt USD 360 Mn to Net Cash of USD 250 Mn

    STRONG CASHFLOWS LED NET DEBT USD 360 MN TO NET CASH OF USD 250 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 H1 FY2024 Net Debt Net Debt/Equity (R

  39. Slide 39: 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 H1FY24 Consolidated NAV Standalone NAV Share Price/Consol. NAV (RHS) * For H1FY24 we have taken share price as on 27th Oct 2023 GE Shipping – Q2F

  40. Slide 40: Great Eastern CSR Foundation

    GREAT EASTERN CSR FOUNDATION GECSRF supports NGOs working under health, education and livelihoods CURRENT PARTNERS EDUCATION HEALTH LIVELIHOODS GE Shipping – Q2FY24 Results 40

  41. Slide 41: 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 – Q2FY24 Results 41

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