Great Eastern Shipping Co. Ltd. · NSE:GESHIP
Great Eastern Shipping — The Great Eastern Shipping Company — Investor Presentation (April 2024)
29 slides from Great Eastern Shipping's investor presentation, Apr 12, 2024
Slide 1: Exchange filing cover letter
6 THE GREAT EASTERN SHIPPING COMPANY LIMITED CITY: L35110MH1948PLC006472 OCEAN HOUSE, 134/A, Dr. Annie Besant Road, Worli, Mumbai - 400 018, INDIA. Tel.: +91(22) 6661 3000 / 2492 2100 Fax : +91(22) 2498 5335 Our Ref.: S/2024/JMT April 12, 2024 BSE Limited National Stock Exchange of India Limited 1st
Slide 2: Corporate Presentation April 2024
AHB The Great Eastern Shipping Co. Ltd. CORPORATE PRESENTATION April 2024
Slide 3: Company History
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Slide 4: Overview
OVERVIEW Ila The Great Eastern Shipping Co. Ltd. Great Eastern Shipping was founded in 1948, with the purchase of a Liberty ship Today, GES is India’s largest private sector shipping company, owning and operating 43 ships and 23 offshore assets, with a balance sheet size of almost USD 2 billion More
Slide 5: Shareholding Pattern
Ila The Great Eastern Shipping Co. Ltd. Foreign Holding Others (Indian (Including Flls& Public), 25% GDR), 26% li SHAREHOLDING PATTERN Government / Financial Directors And Institutions / Associate Corp, 19% Companies. 30% Shareholding Pattern as on 31 December 2023 4
Slide 6: Corporate Profile
Ila The Great Eastern Shipping Co. Ltd. CORPORATE PROFILE Offshore Shipping (Bulk) (Through wholly-owned subsidiary Alt Greatship (India) Limited) I Tankers • Crude (6) Logistics (19) Drilling (4) • Products (19) Dry Bulk (14) • LPG (4) India’s largest private sector shipping company, with more than
Slide 7: Fleet Profile
Ila The Great Eastern Shipping Co. Ltd. FLEET SHIPPING Fleet DWT Number of Ships PROFILE Crude Carriers 842,958 6 Product Carriers 1,040,662 19 Gas Carriers 185,363 4 Dry Bulk Carriers 1,239,274 14 Total 3,408,257 43 OFFSHORE Fleet Number of Units Jack Up Rigs 4 Platform Supply Vessels 4 Anchor hand
Slide 8: Business Philosophy
BUSINESS i s PHILOSOPHYr • • 7
Slide 9: Investment Thesis
Ink The Great Eastern Shipping Co. Ltd. INVESTMENT THESIS Fleet operated at global Offshore fleet – quality standards, with a large operations with low number of international balance sheet leverage customers Prudent Capital Strong cash flows Allocation across a diversified fleet Strong balance shee
Slide 10: Strong Cashflows Led Net Debt to Net Cash
STRONG CASHFLOWS LED NET DEBT USD 360 Ila The Great Eastern Shipping Co. Ltd. MN TO NET CASH OF USD 300+ MN USD Mn Net Debt Expansion Phase Net Debt Reduction Phase 400 0.60 11 0.50 300 0.40 200 0.30 100 0.20 - 0.10 - -100 (0.10) -200 (0.20) -300 (0.30) FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY20
Slide 11: Movement in NAV (Consolidated)
MOEVEMENT IN NAV (II1She Great Eastern Shipping Co. Ltd. (CONSOLIDATED) CONSOLIDATED NAV MOVEMENT SINCE MARCH 2022 1600 1400 279 1316 -54 1200 402 INR/SHARE 1000 800 692 600 NAV doubled during upcycle, with high 400 cash profit contribution. 200 0 J NAV Mar-22 Cash Profit Fleet Value Dividend NAV De
Slide 12: ROE & ROCE Historical (Consolidated)
ROE & ROCE HISTORICAL 112 The Great 4 Shipping Co.sI,etrd7 Average ROCE: 9% (CONSOLIDATED) Average ROE: 14% CONSOLIDATED ROCE 50.0% Investment in downcycle resulted in 40.0% higher ROE in upcycle 30.0% 20.0% Yields were lower, hence opportunity to invest in down cycle 10.0% 0.0% -10.0% FY14 FY15 FY1
Slide 13: Too Much Volatility? EBITDA Movement
TOO MUCH VOLATILITY? IIla The Great Eastern Shipping Co. Ltd. EBITDA MOVEMENT 10 YRS INR Cr Consolidated EBITDA 4000 3500 3000 Min EBITDA: INR 1294 Cr 2500 Median EBITDA: INR 1691 Cr 2000 1500 1000 500 0 I I II I FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 9MFY24 ■ 12
Slide 14: Suez Canal/Panama Canal disruptions
Suez Canal/Panama Canal disruptions IIla The Great Eastern Shipping Co. Ltd. IMPACT ON SHIPPING In the first two months of 2024, Suez Canal trade dropped by 50 percent from a year earlier while trade through the Panama Canal fell by 32 percent, disrupting supply chains Attacks on vessels in the Red
Slide 15: Suez Canal/Panama Canal disruptions
Suez Canal/Panama Canal disruptions Ila The Great Eastern Shipping Co. Ltd. IMPACT ON SHIPPING Daily transit trade volume (million metric tans, 7-day moving average) Cape of Good Hope 6 L 2 Suez Canal Panama Canal 1 Jan 2023 Apr 2023 Jul 2023 Oct 2023 Jan 2024 Apr 2024 Sources: UN Global Platform, I
Slide 16: Fundamentals Are Stacking Up: Demand Side
FUNDAMENTALS ARE STACKING UP Ila The Great Eastern Shipping Co. Ltd. DEMAND SIDE Trade pattern shift: Following the onset of Russia-Ukraine conflict, have seen the average distances of seaborne trade rise Oil demand continues to be main driver behind seaborne trade Atlantic basin provides a lot of t
Slide 17: Fundamentals Are Stacking Up: Supply Side
FUNDAMENTALS ARE STACKING UP Ila The Great Eastern Shipping Co. Ltd. SUPPLY SIDE Orderbook significantly lower than historical levels. Yard capacity has shrunk significantly in the last 15 yrs Large Korean yards are full with containers and LNG orders almost till end CY26 Disruption in Suez and Pana
Slide 18: Low Orderbook to Fleet Ratio
LOW ORDERBOOK TO FLEET RATIO la The Great Eastern Shipping Co. Ltd. HISTORICAL Historic Order Book as a % of fleet (Calendar Year) 90% 80% 70% 60% 50% 40% 30% 20% 7% 14% 10% 8.7% 0% 0 '• O'V OO b A tb Oq N0 NN Nry Noh Ntit N, Nb NA Nq, N ,V0 11N ") tit O41 OOO , nj tts 0O 0O 0000 0 0 0 0 0 00 0 000
Slide 19: Offshore Subsidiary: Greatship Story
OFFSHORE SUBSIDIARY Ila The Great Eastern Shipping Co. Ltd. GREATSHIP STORY FY 16 to FY21 • Most challenging years for the offshore sector since late 80s • Utilization levels across asset classes dropped to historic lows, charter rates came down to levels that barely generated any +ve EBITDA • A lar
Slide 20: Offshore Subsidiary: Greatship Story
OFFSHORE SUBSIDIARY Ila The Great Eastern Shipping Co. Ltd. GREATSHIP STORY Post FY21 • Utilization levels have improved • E&P activities have started to increase • Contracts are getting repriced at levels which generate significant EBITDA • The business has now come back to profitability ■19
Slide 21: Financial Highlights (INR Crores)
FINANCIAL HIGHLIGHTS Ila The Great Eastern Shipping Co. Ltd. Standalone Conslidated Q3 Q3 9M Q3 Q3 9M Fig in INR Crores FY24 FY23 FY24 FY24 FY23 FY24 In come St at e me n t Revenue* 1,110 1,261 3,401 1,396 1,522 4,192 EBITDA* 689 771 2,074 789 881 2,408 N e t P rofi t 514 605 1 ,5 7 9 552 640 1 ,6 7
Slide 22: Financial Highlights (USD Mn)
FINANCIAL HIGHLIGHTS Ila The Great Eastern Shipping Co. Ltd. Standalone Conslidated Q3 Q3 9M Q3 Q3 9M Fig in USD Mn FY24 FY23 FY24 FY24 FY23 FY24 Income Statement Revenue* 134 154 412 168 186 507 EBITDA* 83 94 251 95 107 291 Net Profit 62 74 191 66 78 203 Balance Sheet Total Assets 1,593 1,472 1,593
Slide 23: Financial Highlights: Key Figures
FINANCIAL HIGHLIGHTS Ila The Great Eastern Shipping Co. Ltd. Standalone Conslidated Q3 Q3 9M Q3 Q3 9M FY24 FY23 FY24 FY24 FY23 FY24 Key Financial Figure Return on Equity (ROE%)** 22% 31% 23% 19% 27% 20% Return on Capital Employed (ROCE%)** 17% 23% 18% 16% 20% 16% Gross Debt/Equity (x) 0.31 0.46 0.31
Slide 24: Diversification and Prudent Capital Allocation
DIVERSIFICATION AND PRUDENT CAPITAL ALLOCATION Ila The Great Eastern Shipping Co. Ltd. HELPED TO OUTPERFORM PURE PLAY PEERS ROE Vs Max Net Debt/Equity - 5 years 1.25 1.15 Product Tankers Max 5 yrs Net Debt/Equity 1.05 Crude Tankers 0.95 0.85 • LPG Carrier 0.75 0.65 Dry Bulk • GESCO 0.55 0.45 0.35 0.
Slide 25: Sustainability
Ila The Great Eastern Shipping Co. Ltd. SUSTAINABILITY ■ 24
Slide 26: Initiatives on Environment
INITIATIVES ON ENVIRONMENT Ila The Great Eastern Shipping Co. Ltd. Most of our vessels are retrofitted with energy saving measures, including • Propeller caps and ducts • More efficient propellers • High performance paints Savings of between 5 and 10% are achieved with these measures Apart from thes
Slide 27: Great Eastern CSR Foundation
GREAT EASTERN CSR FOUNDATION Ila The Great Eastern Shipping Co. Ltd. (GECSRF) GREAT EASTERN CSR FOUNDATION Since 2015, GECSRF has partnered with 49 NGOS under the three key CSR focus areas. • Education: More than 1.35 Lakh students reached out through primary and secondary education. • Health: More
Slide 28: Great Eastern CSR Foundation
GREAT EASTERN CSR FOUNDATION Ila The Great Eastern Shipping Co. Ltd. (GECSRF) GECSRF currently supporting 28 NGOs working under health, education and GREAT EASTERN livelihoods across 17 states in India GSA FOUNDATION EDUCATION HEALTH LIVELIHOODS 1. Adhyayan Quality Education 1. Anushkaa Foundation f
Slide 29: Thank You
Ila The Great Eastern Shipping Co. Ltd. THANK YOU visit us at www.greatship.com ■ 28
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