Great Eastern Shipping Co. Ltd. · NSE:GESHIP
Great Eastern Shipping — The Great Eastern Shipping — Investor Presentation (November 2012)
27 slides from Great Eastern Shipping's investor presentation, November 2012
Slide 1: Business & Financial Review November 2012
The Great Eastern Shipping Co. Ltd. Business & Financial Review November 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 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 subsidiary Greatship (India) Limited - Logistics Crude Tankers Product Tankers - Subsea - Drilling 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 64 years of operations $ 28 years of uninterrupted dividend track record Shareholding Pattern as on September 30, 2012 Public FIIs 25% 23% Govt/FI 16% Promoters Bodies 30% Co
Slide 5: Shipping business-owned fleet
Shipping business-owned fleet 33 ships aggregating 2.60 Mn dwt, avg.age 9.0 years 23 Tankers avg.age 9.4 years - 9 Crude carriers (4 Suezmax, 5 Aframax) avg.age 9.6 years - 13 Product tankers (4 LR1, 6 MR, 3 GP) avg.age 8.2 years - 1 LPG Carrier (1 VLGC) avg. age 22.0 years 10 Dry bulk carrier
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 9 Anchor Handling Tug cum Supply Vessels (AHTSV) 9 2 Multipurpose Platform Supply and Support Vessels (MPSSV) 9 5 Platform / ROV Support Vessels (ROVSV) 6
Slide 7: Committed CAPEX – Offshore Business
Committed CAPEX – Offshore Business ¾ Committed Capex of around USD 210 Mn To be delivered in: 9 FY 2013 - 1 NB Platform / ROV Support Vessel (CDL) - 1 Jackup Rig (350 feet) (Lamprell Energy, Dubai) Stage payments already made : around US$106 mn of the total CAPEX Fleet Growth FY2008 FY2009 FY2010 F
Slide 8: Modern & Technologically Advanced Offshore Fleet
Modern & Technologically Advanced Offshore Fleet Young Fleet Young fleet with an average age of approx. 3 years by FY 2012 - Higher utilization rates Revenue Demand shifting to modern vessels, especially as Efficiencies - Minimum down time safety becomes a major concern for oil companies Technol
Slide 9: Offshore Service Value Chain
Offshore Service Value Chain Exploration Development Production Length of - 3 to 5 years - 2 to 4 years - 5 to 55 years Typical Cycle - Collection of survey data - Construction & installation of - Management of oil & gas production platforms, production - Analysis & interpretation Description pipeli
Slide 10: Q2FY 2013 Financial Highlights
Q2FY 2013 Financial Highlights Standalone Key Figures Consolidated Q2FY'13 Q2FY'12 H1FY'13 (Amount in Rs. crs) Q2FY'13 Q2FY'12 H1FY'13 Income Statement 433.25 503.88 1015.41 Revenue (including other income) 773.06 736.60 1,675.73 77.02 198.01 353.75 EBITDA (including other income) 292.65 323.73 753.
Slide 11: Q2FY 2013 Financial Highlights
Q2FY 2013 Financial Highlights Standalone Key Ratios Consolidated Q2FY'13 Q2FY'12 H1FY'13 Q2FY'13 Q2FY'12 H1FY'13 Key financial figures 17.78% 39.30% 34.84% EBITDA Margin (%) 37.86% 43.95% 44.96% -3.00% 0.18% 2.39% Return on Equity (ROE) (%) 5.21% 1.77% 8.55% -0.22% 4.04% 3.76% Return on Capital Emp
Slide 12: Q2FY’13 Performance Highlights
Q2FY’13 Performance Highlights Breakup of revenue days Revenue Days Q2’FY13 Q2’FY12 Owned Tonnage 2,509 3,026 Inchartered Tonnage 107 224 Total Revenue Days 2,616 3,250 Total Owned Tonnage (mn.dwt) 2.60 2.69 Mix of Spot & Time Days (in %) Q2’FY13 Q2’FY12 Dry Bulk Average TCY Details Spot % 85% 69% T
Slide 13: Asset Price Movement (5 yr old)
Asset Price Movement (5 yr old) Timeline- Sep 2003 till 1 Nov, 2012 Amt in US$ mn 180 160 140 120 VLCC CAPE 100 80 60 40 20 Panamax 0 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 VLCC Aframax Capesize Panamax (Dry) Source: Baltic Sale & Purchase Assessment 13
Slide 14: BDI Movement (1 Jan’01 to Nov’12)
BDI Movement (1 Jan’01 to 1 Nov Aug’12) 14000 China announces 12000 $586 bn stimulus 10000 2008 market 8000 crash, BDI dropped by 94% Cargo growth 6000 but record NB deliveries 4000 2000 0 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 BDI hovering around its low
Slide 15: Seaborne Bulk Trade … growing steadily
Seaborne Bulk Trade … growing steadily 4000 Global seaborne trade reached 3500 3.6 bn tons in 2011 3000 2500 Contribution to seaborne trade growth by commodity 2000 50% 1500 45% 40% 1000 35% 500 30% 25% 0 20% Mn.tons 2005 2006 2007 2008 2009 2010 2011 2012(e) 15% Iron Ore Coal Grains Minor Bulk 10%
Slide 16: Dry Bulk Trade … Evolving Trade Patterns
Dry Bulk Trade … Evolving Trade Patterns Chinese coastal trade India… catching up ‐Expected to grow rapidly due to inland ‐To be leading coal importer in the transport restrictions world ‐ But.. Mostly done through Chinese ‐ Developing ports to specifically suit flagged vessels the trade ‐ UMPPs to
Slide 17: BDTI & BCTI Movement (Aug’98 to Nov’12)
BDTI & BCTI Movement (Aug’98 to 1 Nov’12) 3500 BDTI BCTI 3000 2500 2000 1500 1000 500 0 Aug-98 Aug-99 Aug-00 Aug-01 Aug-02 Aug-03 Aug-04 Aug-05 Aug-06 Aug-07 Aug-08 Aug-09 Aug-10 Aug-11 Aug-12 Sluggish demand & steady fleet growth keeping the TCYs low 17 Source: Clarksons
Slide 18: Global Oil Demand Scenario
Global Oil Demand Scenario Global Oil demand growth Region wise demand growth 4% 3.7% % chg 3.3% mn.bpd 2010 2011 2012(E) (CY12 over CY11) 3% N.America 23.8 23.5 23.3 (0.9)% 2.3% 2% 1.8% OECD Europe 14.6 14.3 13.9 (2.8)% 1.4% 1.4% 1.2% OECD Pacific 1% 0.8% 0.9% (Japan& Korea) 7.8 7.9 8.1 2.5% 0.0% A
Slide 19: Products trade… promising future!!!
Products trade… promising future!!! 19
Slide 20: Oil Trade – Changing patterns...
Oil Trade – Changing patterns... Oil supply dynamics changing Oil demand sourcing matrix changing Iran – Hit by sanctions China & India in forefront North Sea – Decreasing Supply Venezuela – Diversifying Customer base West Africa – More takers Other Market Developments Angola , Algeria – inching pro
Slide 21: World Fleet Growth
World Fleet Growth 800 700 Dry Bulk Crude Product 600 500 400 300 200 100 0 Mn.dwt 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012YTD Fleet growth 2002‐2012 (mn dwt) 2002 2007 2012 % change (Jan-Sep) (2012 over 2002) Dry 295 393 670 127% Crude 222 280 353 59% Product 74 106 135 83% 21 Source:
Slide 22: … Fleet continues to grow
… Fleet continues to grow World Fleet addition* Fleet CY2012 CY2013 CY2014 + (as on 1 Oct’12) (in mn dwt) Crude tankers 352.1 4% 7% 2% Product tankers 135.5 3% 4% 3% Dry bulk carriers 670.3 8% 9% 3% Source: Clarksons *includes only new building from yards - 2% of world tanker fleet is single hull 22
Slide 23: Scrapping… too little to cheer
Scrapping… too little to cheer Fleet as on Scrapping 1st Oct’12 (in mn dwt) CY2008 CY2009 CY2010 CY2011 CY12 YTD* (in mn dwt) 352.1 Crude 2.2 5.0 7.1 6.9 8.9 135.5 Product 2.2 3.8 5.8 3.0 1.9 670.3 Bulk 5.5 10.4 5.7 22.2 28.4 * As of 1’Oct 2012 Require acceleration in scrapping to minimize the deman
Slide 24: Global Shipbuilding… Shrinkage in Capacity
Global Shipbuilding… Shrinkage in 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 activity ¾ reduction in berth productivity ~ Half of Chinese yards having
Slide 25: Global Shipbuilding… Shrinkage in Capacity
Global Shipbuilding… Shrinkage in Capacity Yard Output (mn.gt) 60 50 40 30 20 10 0 2002 2006 2008 2010 2011 2012 2013 Yard output to decline from a peak of 49 mn gt in 2010 to 32 mn gt in 2013 …. A decline of 35% 2013 (e) yard capacity still higher than the pre boom capacity of 2006 25 Source: Clark
Slide 26: Global Fleet Supply -Offshore
Global Fleet Supply -Offshore ¾ ~ Half of the world offshore vessel fleet is more than 22 years ¾ Average age of existing jackup rig fleet is about 24 years (Nos) Jackup Rigs AHTSVs PSVs Current Fleet 556 3,008 2,385 Orderbook 73 213 389 % of O/B to current fleet 13% 7% 16% As on 1,Oct’12 Source: Cl
Slide 27: THANK YOU
THANK YOU visit us at www.greatship.com 27
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