Great Eastern Shipping Co. Ltd. · NSE:GESHIP
Great Eastern Shipping — The Great Eastern Shipping Company — Investor Presentation (February 2019)
40 slides from Great Eastern Shipping's investor presentation, Feb 12, 2019
Slide 1: Business Overview
BUSINESS OVERVIEW 12 February 2019
Slide 2: Company’s
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 3: Corporate Profile
CORPORATE PROFILE Offshore Shipping (Bulk) (Through wholly-owned subsidiary Greatship (India) Limited) Tankers • Crude Dry Bulk Logistics Drilling • Products/LPG India’s largest private sector shipping company over 70 years of experience 3
Slide 4: Shareholding Pattern
FII/FPI 19% Promoters 30% Govt./FI SHAREHOLDING 25% PATTERN Public 21% Shareholding Pattern as on 31 December 2018 4
Slide 5: Fleet Profile
SHIPPING FLEET Fleet DWT Number of Ships Average Age (Yrs.) PROFILE Crude Carriers 1,608,683 12 13.40 Product Carriers 987,207 17 11.30 Gas Carriers 273,466 6 18.78 Dry Bulk Carriers 1,026,462 13 6.31 Total 3,895,818 48* 11.38 OFFSHORE Fleet Number of Units Average Age (Yrs.) Jack Up Rigs 4 7.06 Pla
Slide 6: Business Philosophy
BUSINESS PHILOSOPHY
Slide 7: 4 Keys to Our Success
4 KEYS TO OUR SUCCESS In-House Dynamically Strong Diversified technical & managing balance Fleet commercial cycles sheet management 7
Slide 8: Net Debt/Equity & Total Capital Employed (Consolidated)
NET DEBT/EQUITY & TOTAL CAPITAL EMPLOYED (CONSOLIDATED) USD Mn 3,000 0.80 0.70 2,500 0.60 2,000 0.50 1,500 0.40 0.30 1,000 0.20 500 0.10 - 0.00 FY1993 FY1994 FY1995 FY1996 FY1997 FY1998 FY1999 FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY
Slide 9: Dividend/Share (30+ Years Continuous Dividend)
- 2.00 6.00 8.00 4.00 10.00 12.00 14.00 16.00 INR/Share FY1991 FY1992 FY1993 FY1994 FY1995 FY1996 FY1997 FY1998 FY1999 FY2000 FY2001 DIVIDEND/SHARE FY2002 Dividend/Share FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 Dividend Yield (RHS) FY2011 FY2012 FY2013 FY2014 FY2015 (30+ YEARS CONTINU
Slide 10: ROE & ROCE (Consolidated)
ROE & ROCE (CONSOLIDATED) 45% 40% Average ROCE: 12% 35% Average ROE: 17% 30% 25% 20% 15% 10% 5% 0% -5% -10% ROCE (Consolidated) ROE (Consolidated) Average ROCE Average ROE 10
Slide 11: BWTS & Scrubber Installation Schedule
BWTS & SCRUBBER INSTALLATION SCHEDULE 40 36 35 30 No. of Vessels 25 20 15 12 8 9 10 7 7 7 5 0 Installed To be Installed CY2019 CY2021 CY2022 CY2023+ BWTS Scrubber • Total 7 Vessels have been fitted with BWTS and 36 vessels are scheduled to be installed with BWTS • 7 Vessels are scheduled to be insta
Slide 12: Shipping Market
SHIPPING MARKET
Slide 13: Key Points on Tanker Market
KEY POINTS ON TANKER MARKET Asset •VLCC 5 yr old asset prices increased about 3% Y-O-Y* Prices •Suezmax 5 yr old asset prices increased about 7% Y-O-Y* Freight •BCTI rose by 10% & BDTI remained flat during full year CY18 Rates •U. S. production is up about 1.9 million barrels a day year-on-year, U.
Slide 14: Tankers – Asset Price Movement (5-Year Old)
TANKERS – ASSET PRICE MOVEMENT (5-YEAR OLD) VLCC Suezmax Aframax VLCC Suezmax Aframax 180 70 160 Ship Price (in million $) Ship Price (in million $) 60 140 120 50 100 40 80 60 30 40 20 20 0 10 2004-Jan 2005-Jan 2006-Jan 2007-Jan 2008-Jan 2009-Jan 2010-Jan 2011-Jan 2012-Jan 2013-Jan 2014-Jan 2015-Jan
Slide 15: Baltic Dirty & Clean Tanker Index
400 500 600 700 800 900 1,000 1,100 1,200 1,300 1,400 Jan-14 May-14 Sep-14 Jan-15 May-15 Sep-15 Source – Industry Reports Jan-16 May-16 Sep-16 Jan-17 May-17 Sep-17 BALTIC DIRTY TANKER INDEX Jan-18 May-18 Sep-18 Jan-19 300 400 500 600 800 900 700 1,000 Jan-14 May-14 Sep-14 Jan-15 BALTIC DIRTY & CLEAN
Slide 16: Total Oil Supply & Demand
TOTAL OIL SUPPLY & DEMAND Supply Demand Refinery Throughput (RHS) 103 84 million barrels per day 101 82 99 million barrels per day 97 80 95 78 93 91 76 89 74 87 85 72 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 2016 2017 2018 2017 2017 2017 2017 2018 2018 2018 2018 In Q4CY18 refining throughput shrunk as comp
Slide 17: Crude & Product Growth
CRUDE & PRODUCT GROWTH • Crude demand growth was approx. 0.50 Mn barrels a day in CY2018 Y-O-Y • Core refined products demand growth was 1.00 Mn barrels a day due to middle distillate demand growth especially diesel. • Both crude and product demand is principally fuelled by positive demand in OECD A
Slide 18: Refinery Margins
REFINERY MARGINS Margins deteriorated in Q4CY18 Y-O-Y due to weaker product cracks. 18 5 Source – Industry Reports
Slide 19: Crude Oil Imports (US & China)
CRUDE OIL IMPORTS (US & China) 2015 2016 2017 2018 2015 2016 2017 2018 8,800 11,000 China Crude Oil total Imports (‘000 bpd) 8,600 10,000 US Crude Oil total Imports (‘000 bpd) 8,400 8,200 9,000 8,000 8,000 7,800 7,600 7,000 7,400 6,000 7,200 7,000 5,000 Jan Mar May Jul Sep Nov Jan Mar May Jul Sep No
Slide 20: Crude Oil Exports (US)
CRUDE OIL EXPORTS (US) 2018 2017 2016 2015 3,000 2,500 2,000 1,500 1,000 500 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec In CY2018, US exported 100% higher crude oil than CY2017 20
Slide 21: US LPG Exports of Propane & Propylene
US LPG EXPORTS OF PROPANE & PROPYLENE In Q4CY2018, US propane & propylene exports were flat Y-O-Y 21
Slide 22: World Fleet Growth Crude Tankers
WORLD FLEET GROWTH CRUDE TANKERS Tanker Fleet - mn Dwt 23-Jan-19 1-Jan-19 1-Jan-18 1-Jan-17 1-Jan-16 VLCC 230.55 226.88 225.10 213.80 200.00 Suezmax 81.46 81.85 80.60 74.60 71.09 Aframax 67.45 67.03 67.20 66.40 64.37 Total (80k+)* 384.81 381.11 378.90 355.00 335.46 Order Book (mn Dwt) 2019 2020 2021
Slide 23: World Fleet Growth Product Tankers & VLGC
WORLD FLEET GROWTH PRODUCT TANKERS & VLGC Product Fleet - mn Dwt 23-Jan-19 1-Jan-19 1-Jan-18 1-Jan-17 LR2 39.11 37.9 36.60 33.50 LR1 26.96 26.9 26.51 25.20 MR/Handy (35k+) 83.65 83.3 82.40 80.40 Total (35k+)* 152.55 150.93 147.61 139.40 Order Book(mn Dwt) 2019 2020 2021+ Total Orderbook as % of curr
Slide 24: Key Points on Dry Bulk Markets
KEY POINTS ON DRY BULK MARKETS Asset • Capesize 5 yr old asset prices were flat in Q4CY2018 Y-O-Y Prices • Panamax & Supramax 5 yr old asset prices were flat in Q4CY2018 Y-O-Y • BDI hits 634 on 5-Feb-19 due to Vale’s dam incident, Seasonally low demand and Freight Australia’s Cyclone Rates • CY 2018
Slide 25: Bulker Asset Prices 5-Year Old
BULKER ASSET PRICES 5-YEAR OLD Capesize Panamax Supramax Capesize Panamax Supramax 180 40 160 35 Ship Price (in million $) 140 Ship Price (in million $) 30 120 25 100 20 80 60 15 40 10 20 5 0 0 2004-Jan 2005-Jan 2006-Jan 2007-Jan 2008-Jan 2009-Jan 2010-Jan 2011-Jan 2012-Jan 2013-Jan 2014-Jan 2015-Ja
Slide 26: Baltic Dry Index
BALTIC DRY INDEX 2,250 Vale’s Dam 2,000 Incident 1,750 1,500 1,250 1,000 750 500 250 0 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Apr-14 Jul-14 Apr-15 Jul-15 Apr-16 Jul-16 Apr-17 Jul-17 Apr-18 Jul-18 Oct-14 Oct-15 Oct-16 Oct-17 Oct-18 Baltic Dry Index hit 4.5 year high of 1,774 in Jul’18 before falli
Slide 27: China Iron Ore & Steel Production
CHINA IRON ORE & STEEL PRODUCTION World Steel China Steel % Growth World % Growth China 2000 10% 1800 Steel Production (in Million tonnes) 8% 1600 1400 6% 1200 4% 1000 China Steel Production 2% 800 increased 7% in CY2018 600 0% Y-O-Y 400 -2% 200 0 -4% 2014 2015 2016 2017 2018 4Q 2017 4Q 2018 China I
Slide 28: China Coal Imports
0.0 5.0 10.0 15.0 -15.0 -10.0 -5.0 Mn Tonnes Dec-16 Jan-17 Feb-17 Mar-17 Source – Industry Reports Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 CHINA COAL IMPORTS Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 China coal imports change (Y-O-Y) Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 5
Slide 29: World Fleet Growth Dry Bulk
WORLD FLEET GROWTH DRY BULK Fleet - Mn Dwt 23-Jan-19 1-Jan-19 1-Jan-18 1-Jan-17 Capesize 336 335 324 315 Panamax 208 207 202 196 Handymax 201 201 196 189 Handysize 99 98 96 94 Total 843 841 818 794 Orderbook 2019 2020 2021 2022+ Total (mn Dwt) Orderbook 4.9% 4.4% 1.2% 0.1% 10.7% (%Fleet) Slippage Ab
Slide 30: Scrapping
SCRAPPING Fleet Vessel Scrapping (% of beginning world fleet) (mn Dwt) Category 23 Jan 19 2018 2017 2016 2015 2014 Crude 384.81 4.62% 2.35% 0.35% 0.23% 1.60% Product 152.55 1.64% 1.42% 0.62% 0.61% 1.19% Dry Bulk 842.90 0.54% 1.77% 3.67% 4.03% 2.25% High Scrapping for Tankers, and very low for Dry bu
Slide 31: Greatship (India) Limited
Greatship (India) Limited (a 100% subsidiary)
Slide 32: Offshore Business Fleet Profile
OFFSHORE BUSINESS FLEET PROFILE Fleet Utilization Current Owned Fleet Extent of coverage of Fleet Count Category fleet's operating Type days (3M FY19) Jack Up Rigs (350ft) 4 PSV 67% Platform Supply Vessels (PSV) 4 Anchor Handling Tug cum ROVSV 82% 8 Supply Vessels (AHTSV) AHTSV 90% Multipurpose Plat
Slide 33: Key Points on E&P Markets
KEY POINTS ON E&P MARKETS Q4 CY2018 Day Rates • Day rates for both AHTSV & PSV have come off by ~ 45%-50% since 2014 • Rigs: Total fleet remains broadly same compared to last quarter however, Fleet there is a decline of about 3.8% over one year. Growth • OSV’s: Total fleet remains broadly same compa
Slide 34: Offshore E&P Spending
OFFSHORE E&P SPENDING According to various industry reports, after the sharp fall over last 3 years, the E&P spending declined marginally in 2018 Source – Industry Reports 34
Slide 35: Global Fleet Supply Offshore
GLOBAL FLEET SUPPLY OFFSHORE Fleet & Orderbook Number Jackup Rigs AHTSVs PSV Current Fleet 520 2029 1625 Orderbook 77 81 139 O/B to current fleet 14.8% 4.0% 8.5% • YTD CY2018 actual deliveries have been far lower than scheduled. Due to bleak employment scenario owners have refrained from taking deli
Slide 36: Financial Results Q3 FY 2018-19
FINANCIAL RESULTS Q3 FY 2018-19 36
Slide 37: Financial Highlights
FINANCIAL HIGHLIGHTS GE Shipping Q3FY19 Consolidated Net Profit at Rs. 298.63 Crores Standalone Key Figures Consolidated Q3’FY19 Q3’FY18 9M’FY19 (Amount in Rs. Crs) Q3’FY19 Q3’FY18 9M’FY19 Income Statement 812.01 594.60 2028.26 Revenue (including other income) 1044.18 836.67 2734.55 337.02 230.37 68
Slide 38: Financial Highlights
FINANCIAL HIGHLIGHTS Standalone Key Figures Consolidated Q3’FY19 Q3’FY18 9M’FY19 Q3’FY19 Q3’FY18 9M’FY19 Key financial figures 41.50% 38.74% 33.78% EBITDA Margin 44.37% 43.88% 39.78% 8.72% 1.08% 0.34% #*Return on Equity (ROE) 5.29% 2.78% 0.65% 8.51% 3.90% 4.14% #*Return on Capital Employed (ROCE) 6.
Slide 39: Financial Highlights
FINANCIAL HIGHLIGHTS Breakup of Revenue Days Revenue Days Q3 FY19 Q3 FY18 Owned Tonnage 4,210 4,329 Inchartered Tonnage 16 141 Total Revenue Days 4,226 4.470 Total Owned Tonnage (mn.dwt) 3.90 3.92 Average TCY Details Mix of Spot & Time Average (TCY $ per day) Q3’FY19 Q3’FY18 % Change Days (in %) Q3’
Slide 40: Thank You
THANK YOU THANK YOU visit us at www.greatship.com 40
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