Great Eastern Shipping Co. Ltd. · NSE:GESHIP
Great Eastern Shipping — The Great Eastern Shipping — Investor Presentation (April 2010)
22 slides from Great Eastern Shipping's investor presentation, April 2010
Slide 1: Business & Financial Review April 2010
The Great Eastern Shipping Co. Ltd. Business & Financial Review April 2010 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 intent, belief or current expectations of GE Shipping and its management regarding the Company’s operations, strategic
Slide 3: Corporate Profile
Corporate Profile The Great Eastern Shipping Co. Ltd. Incorporated in 1948 Shipping Business Offshore Business Wet bulk Through wholly owned subsidiary Greatship (India) Limited Crude Tankers Product Tankers Offshore oil field Support & Logistics Services Dry bulk 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 61 years of operations $ More than 26 years of uninterrupted dividend track record Shareholding Pattern as on Mar 31, 2010 FIIs Public 13% 28% Govt/FI 21% Bodies Promoters Co
Slide 5: Shipping business-owned fleet
Shipping business-owned fleet 37 ships aggregating 2.74 Mn dwt, avg.age 10.9 years 31 Tankers avg.age 10.4 years (85% in tonnage terms) 11 Crude carriers (5 Suezmax, 6 Aframax) avg.age 10.1 years (2 single hull – both double sided) 19 Product tankers (4 LR1, 10 MR, 5 GP) avg.age 10.6 years (
Slide 6: Committed CAPEX – Shipping Business
Committed CAPEX – Shipping Business Committed Capex of around USD 577 Mn - 8 new building contracts aggregating 1.31 mn. dwt To be delivered in: 9FY 2011 - 1 NB, Kamsarmax Dry Bulk Carrier (STX Shipbuilding Co. Ltd) - 2 NB, Supramax Dry Bulk Carriers(Cosco (Zhoushan) Shipyard Co. Ltd) 9FY 2012 - 2 N
Slide 7: Offshore business- Fleet Profile
Offshore business- Fleet Profile ¾ Current Owned Fleet 9 1 350ft Jack Up Rig 9 5 Platform Supply Vessels (PSV)* 9 8 Anchor Handling Tug cum Supply Vessels (AHTSV) 9 1 Multipurpose Platform Supply and Support Vessel ¾ Current Inchartered Fleet 9 1 350ft Jack Up Rig 9 1 Platform Supply Vessel (PSV) JV
Slide 8: Committed CAPEX – Offshore Business
Committed CAPEX – Offshore Business ¾ Committed Capex of around USD 362 Mn Year wise addition to the gross block To be delivered in: (Amt in US$ mn) FY11 FY12 9 FY 2011 Total CAPEX : US$ 362 mn 326 36 - 3 NB Platform / ROV Support Vessels (CDL) - 2 NB MPSV (Keppel Singmarine) US$125 mn of the total
Slide 9: Global Presence-Risk Diversification and Profit Maximization
Global Presence-Risk Diversification and Profit Maximization One One of of the the few few Indian Indian companies companies toto operate operatein indiverse diversemarkets marketsacross acrossthe theworld world with with prestigious prestigious counterparties; counterparties; helps to hedge against
Slide 10: Committed Capex for the Group
Committed Capex for the Group Total Investment US$232 mn Equity (US$ 177mn) + Pref (US$ 55mn) G E Shipping Greatship (India) Ltd (Committed CAPEX (Committed CAPEX USD 577 mn) USD 362 mn) Total committed CAPEX of USD 939 mn Spread over next two & half years To be financed with a mix of debt & interna
Slide 11: Financial Highlights of Q3FY10 Performance
Financial Highlights of Q3FY10 Performance Standalone Consolidated (Rs.crs) Q3FY10 Q3FY09 9mFY10 Q3FY10 Q3FY09 9mFY10 Freight & Charter hire 467 702 1,369 706 967 2,090 Gain on sale of ships - 27 173 - 27 173 Total Income 467 729 1,542 706 994 2,263 Total Expenditure 335 394 977 543 593 1,612 Operat
Slide 12: Q3 FY09 Performance Highlights
Q3 FY09 Performance Highlights Breakup of revenue days Revenue Days (standalone) Q3 FY10 Q3 FY09 % chg Owned Tonnage 3,346 3,517 (5)% Inchartered Tonnage 56 110 (49)% Total revenue days 3,402 3,627 (6)% Particulars (Rs crs) GE Shipping Sharjah Greatship* Group Total Debt as on 31/12/09 3,487 - 2,099
Slide 13: Earnings Mix
Earnings Mix GE Shipping Average TCY Details Average TCY ($ per day) Q3 FY10 Q3 FY09 % change Crude Carriers 17,718 37,653 (53)% Product Carriers (incl. gas) 19,131 23,120 (17)% Dry Bulk Carriers 20,964 30,816 (32)% Mix of Spot & Time Q3 FY10 Q3 FY09 Days (in %) FY09 Dry Bulk 54% 74% Spot % 72% 46%
Slide 14: Asset Price Movement (5 yr old)
Asset Price Movement (5 yr old) Timeline- Sep2003 till April 22, 2010 Amt in US$ mn 160 160 120 120 80 80 40 40 0 0 16/09/2003 VLCC AFRAMAX CAPESIZE PANAMAX(DRY) Source: Baltic Sale & Purchase Assessment 14
Slide 15: Gross World fleet addition-Shipping
Gross World fleet addition-Shipping World Fleet addition* CY2010 CY2011 CY2012 11% of world tanker fleet Crude tankers 11% 12% 3% single hull Product tankers 12% 8% 1% Dry bulk carriers 23% 17% 8% *includes only new building from yards Fleet as on Scrapping CY2010 1st Apr’10 (in mn dwt) CY2008 CY200
Slide 16: Slippages… to be a decisive factor
Slippages… to be a decisive factor CY 2009 (in mn dwt) VLCC Suezmax Aframax Panamax MR GP Total Orderbook as in 1 Jan’09 20.8 10.9 11.9 4.1 10.6 2.1 60.5 Actual Deliveries CY09 16.7 7.1 10.5 2.8 7.2 1.4 45.9 Slippages/ cancellations 4.1 3.8 1.3 1.2 3.4 0.7 14.6 Slippages/ cancellations as % of order
Slide 17: Tanker Market
Tanker Market Crude: Demand outlook for the medium term to be weak High fleet growth to put excessive pressure Product: Low refining margins & depressed demand keeping product tanker rates down Large US oil inventories coupled with new building deliveries expected to keep tanker rates unde
Slide 18: Dry Bulk Market
Dry Bulk Market Chinese iron ore imports to increase by 29%, whereas rest of world to decline by 32% . Therefore, China to be a key support Excessive fleet addition to be a key concern … but a ray of hope… Increase in level of scrapping activity Construction on more than one third of the exi
Slide 19: Offshore Market
Offshore Market 9 Decline in oil & gas reserves 9 Energy Security concerns high on consumer countries agenda 9 Development and drilling activity in mid to deep water 9 Tenders continuing to be issued for long term work Total Subsea fleet development Source: Offshore Research,Pareto 19
Slide 20: Life Cycle of Offshore Fields
Life Cycle of Offshore Fields Source: Bourbon, Feb 2008 20
Slide 21: Offshore Supply Market
Offshore Supply Market OSV Fleet Summary (Nos) AHTSVs PSVs Others Current Fleet* 2,443 1,944 1,757 Orderbook 373 205 173 % of O/B to current fleet 15% 10% 10% * Data as on Apr’10, Source: Clarkson Aging Fleet 9 Half of total world fleet over 25 years old 21
Slide 22: THANK YOU
THANK YOU visit us at www.greatship.com 22
The Great Eastern Shipping — Investor Presentation (April 2010) on 6ix