Great Eastern Shipping Co. Ltd. · NSE:GESHIP
Great Eastern Shipping — The Great Eastern Shipping — Investor Presentation (November 2018)
39 slides from Great Eastern Shipping's investor presentation, Nov 21, 2018
Slide 1: Business Overview
BUSINESS OVERVIEW 21st November 2018
Slide 2: 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 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 21% Promoters 30% SHAREHOLDING Govt./FI 20% PATTERN Public 22% Shareholding Pattern as on 30 September 2018 4
Slide 5: Fleet Profile
FLEET SHIPPING PROFILE Fleet DWT Number of Ships Average Age (Yrs.) Crude Carriers 1,608,683 12 13.12 Product Carriers 987,207 17 11.03 Gas Carriers 273,466 6 18.50 Dry Bulk Carriers 1,106,942 14 6.12 Total 3,921,808 49* 11.02 OFFSHORE Fleet Number of Units Average Age (Yrs.) Jack Up Rigs 4 7.06 Pla
Slide 6: Philosophy & Business
PHILOSOPHY | BUSINESS
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 4.00 6.00 8.00 10.00 12.00 14.00 16.00 INR/Share FY1991 FY1992 FY1993 FY1994 FY1995 FY1996 FY1997 FY1998 FY1999 FY2000 DIVIDEND/SHARE FY2001 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 35 32 30 25 No. of Vessels 20 15 12 10 9 7 7 7 5 4 0 Installed To be Installed CY2019 CY2021 CY2022 CY2023+ BWTS Scrubber • Total 7 Vessels have been fitted with BWTS and 32 vessels are scheduled to be installed with BWTS • 7 Vessels are scheduled to be installe
Slide 12: Shipping Market
The Great Eastern Shipping Co. Ltd. SHIPPING MARKET
Slide 13: Key Points on Tanker Market
KEY POINTS ON TANKER MARKET Asset •VLCC 5 yr old asset prices increased about 8% Y-O-Y* Prices •Suezmax 5 yr old asset prices increased about 15% Y-O-Y* Freight Rates •BCTI rose by 12% & BDTI rose by about 6% during Q3CY18 •U. S. production is up about 1.5 million barrels a day year-on-year, U. S. e
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 60 140 Ship Price (in million $) Ship Price (in million $) 120 50 100 40 80 60 30 40 20 20 0 10 0 2003-Oct 2004-Oct 2005-Oct 2006-Oct 2007-Oct 2008-Oct 2009-Oct 2010-Oct 2011-Oct 2012-Oct 2013-Oct 2014-O
Slide 15: Baltic Dirty & Clean Index
400 500 600 700 800 900 1,000 1,100 1,200 1,300 1,400 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Source – Industry Reports Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 BALTIC DIRTY TANKER INDEX Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 300 400 500 600 700 800 900 Oct-13 Jan-14 Apr-1
Slide 16: Total Oil Supply & Demand
TOTAL OIL SUPPLY & DEMAND Supply Demand Refinery Throughput (RHS) 103 84 101 82 million barrels per day 99 97 80 million barrels per day 95 78 93 91 76 89 74 87 85 72 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2014 2015 2016 2017 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 In Q3CY18 refining throughput gro
Slide 17: Crude & Product Growth
CRUDE & PRODUCT GROWTH • Crude demand growth was 1.2 Mn barrels a day in Q3CY2018 Y-O-Y. • Core refined products demand growth was 1 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 Americas &
Slide 18: Refinery Margins
REFINERY MARGINS Margins continued to stay low in Q3CY18 Y-O-Y due to rising feedstock prices. Throughput however continues to be high due to strong middle distillate demand in OECD Americas and Non-OECD Asia. 5 18 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 10,000 8,600 9,500 China Crude Oil total Imports (‘000 bpd) 8,400 9,000 US Crude Oil total Imports (‘000 bpd) 8,200 8,500 8,000 8,000 7,500 7,800 7,000 7,600 6,500 7,400 6,000 7,200 5,500 7,000 5,000 Jan Mar May Jul Sep Nov
Slide 20: US LPG Exports of Propane & Propylene
US LPG EXPORTS OF PROPANE & PROPYLENE In Q3CY2018, US propane & propylene exports grew 31% Y-O-Y 20
Slide 21: World Fleet Growth Crude Tankers
WORLD FLEET GROWTH CRUDE TANKERS Tanker Fleet (mn Dwt) 19-Oct-18 1-Jan-18 1-Jan-17 1-Jan-16 1-Jan-15 1-Jan-14 VLCC 226.20 225.10 213.80 200.00 193.75 186.13 Suezmax 82.30 80.60 74.60 71.09 69.68 68.43 Aframax 67.50 67.20 66.40 64.37 64.15 63.71 Total 381.40 378.90 355.00 335.46 327.58 318.27 Order B
Slide 22: World Fleet Growth Product Tankers & VLGC
WORLD FLEET GROWTH PRODUCT TANKERS & VLGC Product Fleet (mn Dwt) 19-Oct-18 1-Jan-18 1-Jan-17 1-Jan-16 LR2 38.64 36.60 33.50 30.10 LR1 27.10 26.51 25.20 24.00 MR/Handy (35k+) 83.36 82.40 80.40 76.70 Total 151.93 147.61 139.40 130.80 Order Book(mn Dwt) 2018 2019 2020+ Total Orderbook as % of current 1
Slide 23: Key Points on Dry Bulk Markets
KEY POINTS ON DRY BULK MARKETS Asset • Capesize 5 yr old asset prices rose by about 6% in Q3CY2018 Y-O-Y Prices • Panamax & Supramax 5 yr old asset prices were flat in Q2CY2018 Y-O-Y Freight • BDI hits a 4.5 year high of 1,774 in Jul-18 Rates • YTD 2018, BDI rose about 95% from 900 to 1750+ and then
Slide 24: Bulker Asset Prices 5-Year Old
BULKER ASSET PRICES 5-YEAR OLD Capesize Panamax Supramax Capesize Panamax Supramax 180 40 160 35 140 30 Ship Price (in million $) Ship Price (in million $) 120 25 100 20 80 60 15 40 10 20 5 0 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2003-Oct 2004-Oct 2005-Oct 2006-Oct 2007-Oct 2008-Oct 2009-Oct 2010-Oct 2011-Oct 2
Slide 25: Baltic Dry Index
BALTIC DRY INDEX 2,500 2,250 2,000 1,750 1,500 1,250 1,000 750 500 250 0 Oct-13 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 Oct-17 Apr-18 Oct-18 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18 Baltic Dry Index hits 4.5 year high of 1,774 in Jul’18 from a low of 291 in Feb’
Slide 26: China Iron Ore & Steel Production
CHINA IRON ORE & STEEL PRODUCTION World Steel China Steel % Growth World % Growth China 1800 16% 1600 14% Steel Production (in Million tonnes) 1400 12% 1200 10% 8% 1000 6% China Steel Production 800 4% increased 7% in 600 400 2% 9MCY2018 Y-O-Y 0% 200 -2% 0 -4% 2013 2014 2015 2016 2017 9M 2017 9M 201
Slide 27: China Coal Imports
10.0 12.0 0.0 2.0 4.0 6.0 8.0 -6.0 -4.0 -2.0 Mn Tonnes Sep-16 Oct-16 Nov-16 Dec-16 Source – Industry Reports Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 CHINA COAL IMPORTS Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 China coal imports change (Y-O-Y) Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-1
Slide 28: World Fleet Growth Dry Bulk
WORLD FLEET GROWTH DRY BULK Fleet(in mn Dwt) 19-Oct-18 1-Jan-18 1-Jan-17 1-Jan-16 Capesize 333 324 315 309 Panamax 206 202 196 195 Handymax 200 196 189 180 Handysize 98 96 94 93 Total 837 818 794 776 Orderbook 2018 2019 2020 2021+ Total (mn Dwt) Orderbook 1% 4% 4% 1% 10.0% (%Fleet) Slippage 25% (YTD
Slide 29: Scrapping
SCRAPPING Fleet Vessel Scrapping(% of beginning world fleet) (mn Dwt) Category 19 Oct 18 2018 (YTD) 2017 2016 2015 2014 Crude 381.40 4.08% 2.35% 0.35% 0.23% 1.60% Product 151.93 1.14% 1.42% 0.62% 0.61% 1.19% Dry Bulk 837.1 0.38% 1.77% 3.67% 4.03% 2.25% High Scrapping for Tankers, and very low for Dr
Slide 30: Greatship (India) Limited
Greatship (India) Limited (a 100% subsidiary)
Slide 31: Offshore Business Fleet Profile
OFFSHORE BUSINESS FLEET PROFILE Fleet Utilization Current Owned Fleet Extent of coverage of Fleet Count Type Category fleet's operating days (FY19) Jack Up Rigs (350ft) 4 PSV 90% Platform Supply Vessels (PSV) 4 Anchor Handling Tug cum ROVSV 75% 8 Supply Vessels (AHTSV) AHTSV 88% Multipurpose Platfor
Slide 32: Key Points on E&P Markets
KEY POINTS ON E&P MARKETS Q3 CY2018 Day Rates • Day rates for both AHTSV & PSV have come off by ~ 45%-50% since 2014 Fleet • Rigs: Total fleet remains broadly same compared to last quarter however, there is a decline of about 4.8% over one year. Growth • OSV’s: Total fleet remains broadly same compa
Slide 33: 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 is expected to further decline, albeit marginally, in 2018 Source – Industry Reports 33
Slide 34: Global Fleet Supply Offshore
GLOBAL FLEET SUPPLY OFFSHORE Fleet & Orderbook Number Jackup Rigs AHTSVs PSV Current Fleet 518 2034 1627 Orderbook 82 84 136 O/B to current fleet 15.8% 4.1% 8.35% • YTD CY2018 actual deliveries have been far lower than scheduled. Due to bleak employment scenario owners have refrained from taking del
Slide 35: Financial Results Q2 FY 2018-19
FINANCIAL RESULTS Q2 FY 2018-19 35
Slide 36: Financial Highlights
FINANCIAL HIGHLIGHTS GE Shipping Q2FY19 consolidated Net Loss at Rs. 223.47 Crores Standalone Key Figures Consolidated Q2’FY19 Q2’FY18 H1’FY19 (Amount in Rs. Crs) Q2’FY19 Q2’FY18 H1’FY19 Income Statement 618.17 470.12 1222.42 Revenue (including other income) 850.87 724.24 1694.80 166.70 160.50 348.1
Slide 37: Financial Highlights
FINANCIAL HIGHLIGHTS Standalone Key Figures Consolidated Q2’FY19 Q2’FY18 H1’FY19 Q2’FY19 Q2’FY18 H1’FY19 Key financial figures 26.97% 34.14% 28.48% EBITDA Margin 35.77% 43.37% 36.85% -4.50% -3.20% -3.70% #*Return on Equity (ROE) -2.67% -4.63% -1.60% 1.65% 1.86% 2.01% #*Return on Capital Employed (RO
Slide 38: Financial Highlights
FINANCIAL HIGHLIGHTS Breakup of Revenue Days Revenue Days Q2 FY19 Q2 FY18 Owned Tonnage 4,285 4,089 Inchartered Tonnage 115 - Total Revenue Days 4,400 4.089 Total Owned Tonnage (mn.dwt) 3.98 3.93 Average TCY Details Mix of Spot & Time Average (TCY $ per day) Q2’FY19 Q2’FY18 % Change Days (in %) Q2’F
Slide 39: Thank You
THANK YOU THANK YOU visit us at www.greatship.com 39
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