Precious Shipping Public Co., Ltd. · SET:PSL

Precious Shipping Public — Non-Deal Roadshow (December 2017)

21 slides from Precious Shipping Public's roadshow presentation, Dec 6, 2017

  1. Slide 1: Precious Shipping Public Company Limited (PSL) Non Deal Road Show

    PRECIOUS SHIPPING PUBLIC COMPANY LIMITED (“PSL”) MKE-PSL Non Deal Road Show, Website http://www.preciousshipping.com London, E-Mail psl@preciousshipping.com 6th December 2017. ir@preciousshipping.com Precious Shipping PCL 1

  2. Slide 2: Changes in average annual BDI

    Changes in average annual BDI Lowest 8000 average BDI 7,065 in history!! 7000 6,390 Fourth 6000 Second lowest lowest BDI Third lowest ever BDI in 4,510 in history. BDI in 5000 history. history. 4000 3,371 3,180 2,758 2,617 2,617 3000 1,549 2000 906 1,018 1,137 920 1,206 1,105 1,109 715 719 673 1000

  3. Slide 3: The BDI values in 2016 – 11M'2017

    The BDI values in 2016 – 11M’2017 2016: BDI went from 473 at the start to 290 by February to end the year at 961 after reaching a peak of 1,257 in November. 2017: BDI went from 953 at the start to lows of 685 in Feb & 820 in July and reached peaks of 1,338 in March & 1,588 in October. Precious Shipp

  4. Slide 4: Owners Scrapping Action versus BDI

    Owners Scrapping Action versus BDI 35 Lowest 1200 50% lower than average BDI 1,137 1,109 the lowest in history!! average BDI in 29.74 30 994 1,006 history!! 1000 945 25 800 736 673 20 mDWT BDI 612 600 15 14.22 14.33 360 400 10 8.52 4.99 200 5 3.76 3.66 4.15 3.24 0 0 Q1-2016 Q2-2016 Q3-2016 Q4-2016 2

  5. Slide 5: Ships Delivered & Scrapped (Jan-Nov '16 & '17)

    Ships Delivered & Scrapped (Jan-Nov ’16 & ’17) Delivered in 11M’16 = 46.24 mDWT Scrapped in 11M’16 = 28.53 mDWT Delivered in 11M’17 = 37.33 mDWT Scrapped in 11M’17 = 14.33 mDWT Change = - 8.91 mDWT (- 19.3%) Change = - 14.2 mDWT (- 49.8%) Precious Shipping PCL 5

  6. Slide 6: Dry Bulk Fleet as of 30th Nov 2017

    Dry Bulk Fleet as of 30th Nov 2017 Ship Type DWT Range (MT) Ships Av Age (yrs) Total DWT Av DWT % of DWT (m MT) (MT) Handysize 10,000 – 29,999 1,863 14.21 38.71 20,776 4.76% Handymax 30,000 – 39,999 1,724 7.20 60.53 35,111 7.44% Super Handymax 40,000 – 59,999 2,685 9.74 142.94 53,235 17.57% Ultramax

  7. Slide 7: Annual increase in Dry Bulk Ship Supply in DWT

    Annual increase in Dry Bulk Ship Supply in DWT Year End No of ships Av Dwt Total Dwt % Change CAGR 2000 5,366 51,215 274,817,898 2.86% 2001 5,475 52,281 286,240,329 4.16% 2002 5,557 53,024 294,652,566 2.94% 2003 5,632 53,834 303,190,410 2.90% 2004 5,847 55,139 322,395,450 6.33% 5.38 % 2005 6,161 56,

  8. Slide 8: Bulk Carrier Contracting (MDWT)

    Bulk Carrier Contracting (MDWT) 180.00 169.19 160.00 140.00 120.00 104.12 104.46 104.12 100.00 80.00 57.32 59.51 60.00 42.23 38.52 40.00 30.56 24.41 22.60 17.93 20.00 13.23 0.00 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 11M-2017 Bulk Carrier Contracting (m DWT) Precious Shipping PC

  9. Slide 9: BDI vs Chinese Soyabean imports

    BDI vs Chinese Soyabean imports 10M2016: 66.6 MMT, 10M2017: 77.4 MMT, %CHANGE: + 16.2 Y-O-Y Precious Shipping PCL 9

  10. Slide 10: Are China's Import Growth Sustainable?

    Are China’s Import Growth Sustainable?  China wants to stop producing ‘product’ or normal Steel by June 2017 and produce only high quality Steel. To do that you will need high grade iron ore and high grade coke, both mainly available from imports.  China has slapped a ban on imports of Coal from N

  11. Slide 11: Regulatory changes - BWM Systems & Scrubbers

    Regulatory changes - BWM Systems & Scrubbers Ballast Water Management Plant Scrubber Plant Cost: about USD 1 Million Cost: about USD 3 - 6 Million Downtime: about 10 days in drydock Downtime: about 4 months in drydock Precious Shipping PCL 11

  12. Slide 12: Scrubbers and their merits / demerits

    Scrubbers and their merits / demerits Issues:  Differential between clean oil and dirty oil is expected to increase to over USD 400 PMT.  Ship burns 25 MT of oil/day additional cost per day would be about USD 10,000 (about USD 2m per year assuming 200 days at sea).  Scrubber costs about USD 6m, r

  13. Slide 13: Regulatory Impact of 'Clean' oil and BWM from Jan'20

    Regulatory Impact of ‘Clean’ oil and BWM from Jan’20 45% By the start of 2020, there will be 142.64 MDWT or 17.54% 41.6% of existing dry bulk fleet that would be over 15 years of age 40% and become likely scrapping candidates due to expensive regulatory environment, the direction of BDI and scrap 35

  14. Slide 14: What steps will Owners take post 1st Jan 2020?

    What steps will Owners take post 1st Jan 2020?  Try and reduce the additional daily cost by burning less clean oil per day.  This can be done by slowing the speed of the ship.  Daily consumption would drop by between 3 to 4 MT per day per Knot of lower speed.  Most owners would reduce speed by a

  15. Slide 15: What has PSL been doing for Regulatory Compliance

    What has PSL been doing for Regulatory Compliance  Raised equity via a Rights Issue in middle 2015 of about USD 65m.  Raised about USD 100m via a 5 year, covenant light, bullet repayment, unsecured bond, coupon under 6%, in January 2016. Was awarded “Public Debt Deal of the Year” by Marine Money.

  16. Slide 16: PSL Fleet

    PSL Fleet As of 31st Dec 2013 31st Dec 2014 31st Dec 2015 31st Dec 2016 30th Sep 2017 Number of Vessels 40 44 45 36 36 Average Age 11.35 years 10.45 years 9.78 years 5.83 years 5.28 years (Simple Avg) USD 596.30 USD 727.00 USD 716.90 USD 695.10 USD 715.50 Insured Value Million Million Million Millio

  17. Slide 17: New Buildings with Chinese shipyards - Current Status

    New Buildings with 2 Chinese shipyards - Current Status Sainty Shipyard  12 Shipbuilding Contracts were cancelled during 2015 - 2016.  PSL received refunds, of advance paid plus interest, of USD 8.81 million from RG claim in 2016 and received an additional USD 0.18 million from Sainty in 2017 for

  18. Slide 18: Financial Profile

    FINANCIAL PROFILE Sep-17 2016 2015 2014 2013 2012 Cash & Cash equivalent $82.17m $74.69m $12.57m $16.23m $89.65m $62.06m Total Assets $909.39m $901.91m $899.39m $846.66m $777.41m $784.47m Funded Debt $482.44m $480.93m $410.38m $361.41m $282.59m $296.00m Equity $374.41m $381.21m $456.82m $463.66m $47

  19. Slide 19: Total Return to Shareholders: 1993 to 2017

    Total Return to Shareholders: 1993 to 2017 700 80 Inflow/Outflow 70 600 Net Cash Position before sale of investment 496 512 520 480 60 500 458 No of Shares held 423.2 440 440 440 50 400 351.2 No of shares 40 300 239.2 Baht 30 200 149.2 20 90 112 100 67 82.2 72 51 35 10 25 6 22 4 6 -10 9 6 61 16 16 8

  20. Slide 20: Value of Investment to Shareholders

    Value of Investment to Shareholders Investment 1993(IPO) 1995 2000 2005 2010 2015 (Beginning of Year) Cost of Investment (THB) 1,000 1,000 1,000 1,000 1,000 1,000 Share price (THB) 85 302 10 39.75 18.60 13.60 Shares Obtained (Nos.) 11.76 3.31 100.00 25.16 53.76 73.53 Dividends Received (THB) 7,235.2

  21. Slide 21: Thank You!

    Thank You! A PRECIOUS SHIPPING PRESENTATION Precious Shipping PCL 21

Precious Shipping Public Company — Non-Deal Roadshow (December 2017) on 6ix