Great Eastern Shipping Co. Ltd. · NSE:GESHIP
Great Eastern Shipping — The Great Eastern Shipping — Investor Presentation (April 2018)
31 slides from Great Eastern Shipping's investor presentation, April 2018
Slide 1: Investor Presentation
The Great Eastern Shipping Co. Ltd. Business & Financial Review April 2018 Investor Presentation September 2017 1
Slide 2: Corporate profile
Corporate profile India’s largest non-government shipping company Tankers - Crude Commodity Shipping - Products/LPG The Great Dry Bulk Eastern Shipping Offshore Oilfield Services Company Drilling (Through wholly-owned subsidiary Logistics Greatship (India) Limited) 2
Slide 3: Shareholding pattern
Shareholding pattern Shareholding Pattern as on December 31, 2017 Foreign Institutional Investors Promoters 23% 30% Govt/FI 20% Public 22% Corporate Bodies 5% Market Cap: USD 783 Mn (As on 17th April 2018) 3
Slide 4: Fleet profile (Shipping)
fleet profile (Shipping) Shipping Fleet DWT Number of ships Average Age Crude Carriers 1,608,683 12 12.53 Suezmax 1,076,376 7 13.39 Aframax 532,307 5 10.78 Product Carriers 987,207 17 10.44 Long Range 2 105,900 1 8.84 Long Range 1 299,400 4 9.12 Medium Range 581,907 12 11.41 LPG Carriers 180,549 4 1
Slide 5: Business philosophy
is <y BUSINESS PHILOSOPHY
Slide 6: 4 Keys to our Success
4 KeyS to our SuCCeSS In-House Dynamically Strong Diversified technical & managing balance Fleet commercial cycles sheet management 6
Slide 7: Strength & Flexibility
Strength & flexiBility Strong Cash & Liquidity Position Low cost of debt capital Strong relationships with charterers, shipyards & lenders Stringent adherence to Risk Management policies 7
Slide 8: Capital Allocation
Capital alloCation The ability to dynamically change allocations between different markets and asset types to ensure best returns on capital Buy low sell high. Don’t focus on quarterly P & L, only long term value Create the capability to buy when all others are forced to sell! 8
Slide 9: Historical performance
hiStoriCal performanCe 9
Slide 10: Dividend/Share (30+ years continuous dividend)
dividend/Share (30+ yearS INR/Share ContinuouS dividend) 16.00 17% 14.00 15% 12.00 13% 10.00 11% 8.00 9% 6.00 7% 4.00 5% 2.00 3% - 1% Dividend/Share Dividend Yield (RHS) 10
Slide 11: Consolidated net profit
USD Mn ConSolidated net profit 400 350 300 250 200 150 100 50 - 11
Slide 12: Net Debt/Equity & Total Capital Employed (Consolidated)
net deBt/equity & total Capital employed USD Mn (ConSolidated) 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 Total Capital Employed Net Debt/Equity (RHS) 12
Slide 13: Shipping fleet number vs. asset prices
Shipping fleet numBer (finanCial year) vS. aSSet priCeS Fleet No. USD Mn 50 47 110 45 46 44 45 42 41 100 40 39 38 37 90 35 33 34 34 32 80 30 29 31 30 28 29 70 25 60 20 50 15 10 40 5 30 0 20 End of year Fleet 5 yr old combined value 13
Slide 14: ROCE & ROE
roCe & roe 50% 45% 40% Average ROE: 19% 35% Average ROCE: 13% 30% 25% 20% 15% 10% 5% 0% ROCE (Consolidated) ROE (Consolidated) Average ROCE Average ROE 14
Slide 15: Sale & Purchase Strategy
Sale & purChaSe Strategy 15
Slide 16: Timing the Sales & Purchase of Vessels
timing the SaleS & purChaSe of veSSelS Sales & Purchase (Crude Oil Tankers) vs Suezmax 5 year old 110.00 100.00 90.00 80.00 70.00 60.00 50.00 40.00 Invested $247 Mn for 12 Crude Oil Tankers Invested $144 Mn for 5 Crude Oil Tankers 30.00 Apr-02 Apr-03 Apr-04 Apr-05 Apr-06 Apr-07 Apr-08 Apr-09 Apr-10
Slide 17: Timing the Sales & Purchase of Vessels
timing the SaleS & purChaSe of veSSelS Sale & Purchase (Product Tankers) Vs MR 5 year old 55.00 $104 Mn realized on sale of 3 GP and 2 MR Tankers 50.00 45.00 40.00 35.00 30.00 25.00 20.00 Apr-02 Apr-03 Apr-04 Apr-05 Apr-06 Apr-07 Apr-08 Apr-09 Apr-10 Apr-11 Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17
Slide 18: Timing the Sales & Purchase of Vessels
timing the SaleS & purChaSe of veSSelS Sale & Purchase (DryBulk) Vs Capesize 5 year old 100.00 85.00 70.00 55.00 40.00 Invested $85 Mn for 5 Dry Bulk Carriers 25.00 10.00 Apr-02 Apr-03 Apr-04 Apr-05 Apr-06 Apr-07 Apr-08 Apr-09 Apr-10 Apr-11 Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 Apr-18 Panamax Dr
Slide 19: Greatship (India) Limited
Greatship (India) Limited A 100% subsidiary operating in the Offshore Oilfield Services sector 19
Slide 20: Fleet profile (Offshore)
fleet profile (offShore) Offshore Fleet Number of Units Average Age Jack-Up Rigs 4 6.34 Platform Supply Vessels 4 8.51 Anchor handling Tug Cum Supply Vessels 8 8.36 Multipurpose Platform Supply & Support Vessels 2 7.82 ROV Support Vessels 5 6.53 Total 23 20
Slide 21: Offshore highlights
offShore highlightS Investment Positives for Offshore Fleet Utilization Extent of coverage of • Current fleet consists of all Category fleet's operating days modern assets (FY19) PSV 76% • Market leading position in high- spec assets in Indian Offshore – ROVSV 35% a steady and growing market AHTSV
Slide 22: Q3 FY2018 Financial Highlights
FINANCIAL : HIGHLIGHTS 7.
Slide 23: Q3 FY18 Financial Highlights
q3 fy18 finanCial highlightS USD 1 = INR 63.87 (31st Dec 2017) Standalone Key Figures Consolidated Q3 FY'18 Q3 FY'17 9M FY'18 (Amount in Rs. crs) Q3 FY'18 Q3 FY'17 9M FY'18 Income Statement 676.98 511.87 1808.37 Revenue (including other income) 920.31 853.06 2576.77 271.40 338.24 793.75 EBITDA (incl
Slide 24: Q3 FY18 Financial Highlights
q3 fy18 finanCial highlightS Standalone Key Figures Consolidated Q3 FY18 Q3 FY17 9M FY18 Q3 FY18 Q3 FY17 9M FY18 Key financial figures 40.09% 66.08% 43.89% EBITDA Margin 45.07% 64.19% 48.46% 4.23% 13.82% 4.45% Return on Equity (ROE) 5.40% 13.10% 3.83% Return on Capital Employed 5.59% 11.04% 5.80% 5.
Slide 25: Q3 FY18 Financial Highlights
q3 fy18 finanCial highlightS Breakup of Revenue Days Revenue Days Q3 FY18 Q3 FY17 Owned Tonnage 4,329 3,339 Inchartered Tonnage 141 89 Total Revenue Days 4,470 3,428 Total Owned Tonnage (mn.dwt) 3.92 3.23 Average TCY Details Mix of Spot & Time Average (TCY $ per day) Q3’FY18 Q3’FY17 % Change Days (i
Slide 26: Company History
Company hiStory 26
Slide 27: A humble beginning…
a humBle Beginning… August 3rd, 1948 Period: 1948…World War II end. US Maritime Commission decides to auction some of its Liberty Ships. On August 3rd , 1948, “The Great Eastern Shipping Company Ltd” was born !!!! First Ship bought was ‘S S Fort Ellice’, renamed ‘Jag Vijay’ … and the Voyage continue
Slide 28: Many firsts to our credit
many firStS to our Credit First Indian First Indian shipping First Indian shipping company to shipping company in the obtain the ISO company to private sector to 9002 certification purchase a motor institute a Cadet for its shipping oil tanker in 1956 Training Academy and offshore in 1975 business i
Slide 29: Management
management GE Shipping – Board of Directors Mr. K. M. Sheth – Chairman Mr. Bharat K. Sheth – Dy. Chairman and Managing Director Mr. Ravi K. Sheth – Director Mr. Tapas Icot – Executive Director & President – Shipping Mr. G Shivakumar – Executive Director and CFO Mr. Berjis Desai – Independent Directo
Slide 30: Investment Case
inveStment CaSe Long term history of reading the cycles along with proven capability to time the cycles Low leverage, strong liquidity gives the ability to ride out bad markets Cost of debt among the lowest in the industry Maintain profitability through cycles We are in the top 10th percentile of wo
Slide 31: Thank you
thanK you Visit us at www.greatship.com Email: corp_comm@greatship.com Contact us @ +91 22 6661 3000 31
The Great Eastern Shipping — Investor Presentation (April 2018) on 6ix