Great Eastern Shipping Co. Ltd. · NSE:GESHIP
Great Eastern Shipping — The Great Eastern Shipping — Investor Presentation (January 2012)
23 slides from Great Eastern Shipping's investor presentation, January 2012
Slide 1: Business & Financial Review
The Great Eastern Shipping Co. Ltd. B i Business & Financial Fi i l Review R i January 2012 1
Slide 2: Forward Looking Statements
Forward Looking Statements Except for historical information, the statements made in this presentation constitute forward looking statements. These include statements regarding the i t t belief intent, b li f or currentt expectations t ti off GE Shipping Shi i and d its it managementt regarding the
Slide 3: Corporate Profile
Corporate Profile The Great Eastern Shipping Co. Ltd. Incorporated in 1948 Shipping S pp g Business us ess Offshore Business Wet bulk Through subsidiary Greatship (India) Limited - Logistics Crude Tankers Product Tankers - Subsea - Drilling Dr b Dry bulk lk 3
Slide 4: Company at a glance
Company at a glance $ India’s largest private sector Shipping Company $ Diverse asset base with global operations $ Completed 63 years of operations $ More than 27 years of uninterrupted dividend track record Shareholding Pattern as on December 31, 2011 Public FIIs 26% 21% Govt/FI 16% Bodies Promote
Slide 5: Shipping business-owned fleet
Shipping business-owned fleet 34 ships aggregating 2.62 Mn dwt, avg.age 8.9 years 24 Tankers avg.age 9.3 years (72% in tonnage terms) - 9 Crude carriers (4 Suezmax, 5 Aframax) avg.age 9.6 years - 14 Product tankers (4 LR1, 7 MR, 3 GP) avg.age 8.8 years (1 single hull – double sided) - 1 LPG carr
Slide 6: Offshore business - Fleet Profile
Offshore business- Fleet Profile ¾ Current Owned Fleet 9 2 350ft Jack Up Rigs 9 4 Platform Supply Vessels (PSV) 9 8 Anchor Handling Tug cum Supply Vessels (AHTSV) 9 3 Multipurpose p p Platform Supply pp y and Support pp Vessels ((MPSSV)) 9 3 Platform / ROV Support Vessels (ROVSV) 6
Slide 7: Committed CAPEX – Offshore Business
Committed CAPEX – Offshore Business ¾ Committed Capex of around USD 355 Mn To be delivered deli ered in: in 9 FY 2012 - 1 NB MSVs (Mazagon Dock) - 1 NB 150T AHTSV (Drydock World World, Singapore) - 1 NB Platform / ROV Support Vessel (CDL) 9 FY 2013 - 2 NB Platform / ROV Support Vessels (CDL) - 1 Jac
Slide 8: Modern & Technologically Advanced Fleet
Modern & Technologically g y Advanced Fleet Young Fleet Young fleet with an average age of approx. 3 years by FY 2012 - Higher utilization rates Revenue Demand shifting to modern vessels, especially as Efficiencies - Minimum down time safety becomes a major concern for oil companies Technologica
Slide 9: Global Presence - Risk Diversification and Profit Maximization
Global Presence-Risk Diversification and Profit Maximization One of the few Indian companies to operate in diverse markets across the world with prestigious counterparties; helps to hedge against fluctuations in charter rates India North Sea ONGC GSPC BG India Mediterranean Reliance Thailand
Slide 10: Offshore Service Value Chain
Offshore Service Value Chain Exploration Development Production Length of - 3 to 5 y years - 2 to 4 y years - 5 to 55 y years T i l Cycle Typical C l - Collection of survey data - Construction & installation of - Management of oil & gas production platforms, production d ti - Analysis & interpretati
Slide 11: Q2FY'12 Financial Highlights
Q2FY’12 Financial Highlights Consolidated Standalone Q2FY'12 Q2FY'11 H1FY'12 (Amount in Rs. crs) Q2FY'12 Q2FY'11 H1FY'12 Income Statement 503.27 423.99 1022.1 Revenue (including other income) 732.94 716.41 1517.69 198.01 199.10 442.69 EBITDA ((including g other income)) 323.72 312.41 707.84 2.56 112
Slide 12: Q2FY'12 Performance Highlights
Q2FY’12 Performance Highlights Breakup of revenue days Revenue Days Q2 FY12 Q2 FY11 O ned Tonnage Owned 3 026 3,026 3 069 3,069 Inchartered Tonnage - - Total Revenue Days 3,026 3,069 Total Owned Tonnage (mn.dwt) 2.69 2.61 Mix of Spot & Time Q2 FY12 Q2 FY11 Days (in %) FY11 FY10 A Average TCY D Detai
Slide 13: Asset Price Movement (5 yr old)
Asset Price Movement (5 yr old) Timeline- Sep2003 till January 03, 2012 Amt in US$ mn 200 160 120 VLCC CAPE 80 40 Panamax 0 16/09/2003 VLCC Aframax Capesize Panamax(Dry) Source: Baltic Sale & Purchase Assessment 13
Slide 14: Indices Movement - Timeline Jan'08 to Jan'12
Indices Movement - Timeline Jan'08 to 06 Jan’12 12000 Baltic Dry Index (BDI) 10000 8000 6000 4000 2000 0 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan- Baltic Dirty Tanker Index (BDTI) & Baltic Clean Tanker Index (BCTI) 2500 2000 BDTI 1500 1000 500 BCTI 0 Jan-08 Jul-08 Jan-09 Jul-09 Ja
Slide 15: Total Seaborne trade at a glance… Dry Bulk
Total Seaborne trade at a gglance… Dryy Bulk Seaborne Bulk trade % chg (CY12 over (in mn. tonnes) 2008 2009 2010 2011 2012(F) CY11) Iron ore 843 900 995 1053 1079 3% Steam Coal (Thermal) 579 599 669 705 734 4% Coking Coal 199 188 235 222 227 2% Grains 323 317 341 349 358 3% Bauxite 125 92 107 124 12
Slide 16: Global Oil Demand
Global Oil Demand % chg mn.bpd 2008 2009 2010 2011 (CY11 over CY10) N.America 24.2 23.3 23.8 23.5 (1.3)% OECD Europe 15.4 14.7 14.6 14.4 (1.4)% OECD Pacific (Japan& Korea) 8.0 7.7 7.8 7.9 1.3% Asia (Non OECD) 17.4 18.2 19.5 20.3 4.1% Other Non OECD 21.5 21.7 22.7 23.2 % 2.2% Total 86.5 85.6 88.4 89.
Slide 17: Total Seaborne crude trade
Total Seaborne crude trade Seaborne Crude Imports Global Crude Imports by Region -2011 2011 mn bpd 2008 2009 2010 2011 Asia 15.9 16.1 17.6 18.3 US 18% EU 10.9 10.3 10.0 8.9 Others 28% N. America (incl. Canada) 7.0 6.9 6.8 7.5 Japan 10% ROW 5.7 5.0 4.8 3.5 Other Asia Total 39.5 38.3 39.2 38.2 9% Chin
Slide 18: Gross World fleet addition - Shipping
Gross World fleet addition addition-Shipping Shipping World Fleet addition* Fleet CY2012 CY2013 CY2014 + (as on 1 Jan’12) Jan 12) (in mn dwt) Crude tankers 341.6 12% 6% 2% Product tankers 134.4 7% 4% 1% Dry bulk carriers 611.1 23% 7% 2% Source: Clarksons *includes only new building from yards - 3% o
Slide 19: Global Fleet – Scrapping Details
Global Fleet – Scrapping Details Fleet as on Scrapping 1st Jan’12 (in mn dwt) CY2008 CY2009 CY2010 CY2011 (in mn dwt) 341.6 Crude 2.2 5.0 7.1 6.9 134.4 Product 2.2 3.8 5.8 3.0 611.1 Bulk 5.5 10.4 5.7 22.2 Source: Clarksons 19
Slide 20: Shrinkage in Global Shipbuilding Capacity..
Shrinkage in Global Shipbuilding Capacity.. Capacity to contract due to combination of: ¾ yard closures ¾ return to pre-boom business models such as ship repairs ¾ use of shipbuilding berths and workforces for non-shipbuilding non shipbuilding activity ¾ reduction in berth productivity (in mn gt) CY
Slide 21: Slippages… to be a decisive factor
Slippages… to be a decisive factor CY 2011 (in mn dwt) VLCC Suezmax Aframax Panamax MR GP Total Expected orders to be delivered 27.6 9.8 8.9 3.8 8.2 2.1 60.4 in CY’11 Actual deliveries 18.7 6.4 6.5 2.0 3.5 1.1 38.2 Slippages 8.9 3.4 2.4 1.8 4.7 1.0 22.2 Slippages/ cancellations as % 32% 34% 26% 47%
Slide 22: Global Fleet Supply - Offshore
Global Fleet Supply pp y -Offshore (Nos) Jackup Rigs AHTSVs PSVs Current Fleet 484 2,917 2,290 Orderbook 68 340 352 % of O/B to current fleet 14% 12% 15% Average age 23.0 20.0 19.9 Source: Clarksons, Rigzone Around half of the total offshore fleet above 25 years of age 22
Slide 23: THANK YOU
THANK YOU visit us at www.greatship.com 23
The Great Eastern Shipping — Investor Presentation (January 2012) on 6ix