Pacific Basin Shipping Limited · HKEX:2343
Pacific Basin Shipping — Deutsche Bank Access China Conference 2010
29 slides from Pacific Basin Shipping's conference presentation, Jan 5, 2010
Slide 1: Deutsche Bank – Access China Conference 2010
Deutsche Bank – Access China Conference 2010 Beijing January 2010 Beijing, P ifi B Pacific Basin i 5 Jan 2010
Slide 2: Pacific Basin Overview
Dry Bulk · Towage · RoRo Pacific Basin Pacific Basin Overview • World’s leading dry bulk owner/operator of modern handysize vessels and a top 10 handymax operator, principally operating in the Asia Pacific region • Major presence in Towage and RoRo businesses, with supporting Maritime Services • >16
Slide 3: Q309 Highlights
Dry Bulk · Towage · RoRo Pacific Basin Q309 Highlights • The dry bulk market performed better than expected due to stronger cargo demand, principally from China, and weaker than projected ship supply growth • We have become more optimistic for the remainder of 2009 but remain cautious for 2010 and e
Slide 4: Business Direction – Dry Bulk
Dry Bulk · Towage · RoRo Pacific Basin Business Direction – Dry Bulk • Handysize freight rates continued to rise during the third quarter: • increased Chinese imports of minor bulk cargoes; • growing inbalance dry bulk capacity in the Pacific and Atlantic oceans; • scrapping of older vessels; and •
Slide 5: Business Direction – Towage & Infrastructure
Dry Bulk · Towage · RoRo Pacific Basin Business Direction – Towage & Infrastructure Towage & Infrastructure PB T Towage FBSL P t&P Port Portt S Services i • FBSL began land reclamation APMIG project for the Municipality of • Focusing on the Nanjing Fujairah : Longtan Tianyu Terminal (45% holding JV)
Slide 6: Towage Development
Dry Bulk · Towage · RoRo Pacific Basin Towage Development • US$1.6m 1H09 net profit in towage division (FY2008: US$5.8m loss) • Profitable despite harbour towage operations in Australia being more affected by economic downturn than our offshore business • Strong oil price supporting oil and gas expl
Slide 7: Roll On Roll Off Development
Dry Bulk · Towage · RoRo Pacific Basin Roll On Roll Off Development • First RoRo vessel fixed to Norfolkline Shipping, a wholly-owned subsidiary of A.P.Moller-Maersk for 3 years since mid-Sep 2009 • 5 RoRo newbuildings on order including 2 chartered in vessels with purchase options • No RoRo market
Slide 8: Our first RoRo vessel has been chartered to Norfolkline Shipping
Dry Bulk · Towage · RoRo Pacific Basin Loading and discharging cargoes over a ramp Our first RoRo vessel has been chartered to Norfolkline Shipping. pp g It is now plying the seas between the Netherlands & UK. A wide range of goods on wheeled cargoes / trailers. Examples: Chilled salad Only the trai
Slide 9: Diversified Dry Bulk Cargo
Dry Bulk · Towage · RoRo Pacific Basin Diversified Dry Bulk Cargo Total Handysize and Handymax Cargo Volume Q1-Q3 2009 Log & Forestry Products 8% Fertilisers 8% Steel & Scrap 7% 21.3 21 3 Other Bulks* 6% Alumina 6% Million Cement & Tonnes Salt 6% Cement Clinker 7% Grains & Coal /Coke 10% Agriculture
Slide 10: Dry Bulk Market Information
Dry Bulk · Towage · RoRo Pacific Basin Dry Bulk Market Information Baltic Dry Index The Baltic Handysize Index (BHSI) $US/day 12000 4 Jan 2010 4 Jan 2010 48,000 10000 3 140 3,140 42,000 US$ 15,929 15 929 ((net) t) 8000 36,000 30,000 6000 24,000 4000 18,000 12 000 12,000 2000 6,000 0 0 Jan-04 Jan-05
Slide 11: Major Bulk Import to China
Dry Bulk · Towage · RoRo Pacific Basin Major Bulk Import to China Iron Ore Import Growth in China Coal Import to China Million Tonnes Millions (annualised) Tonnes YTD total t t l coall import i t 984 18.0 to China: 97.6mil 1,000 Imported Thermal coal 900 Domestic 16.0 Metallurgical coal 800 Total re
Slide 12: China at Mid-Industrialization Stage
Pacific Basin China at Mid-Industrialization Mid Industrialization Stage Steel Consumption Per Capita Tons per Capita China (from 1990) Same growth as 1.0 Japan (from 1950) Korea (from 1970) India (from 2000) historical trend in 0.9 08 0.8 Japan and Korea 0.7 0.6 Suggesting long term 0.5 strong grow
Slide 13: Dry Bulk Demand
Dry Bulk · Towage · RoRo Pacific Basin Dry Bulk Demand Changes in Tonnage Demand % change YOY Implied demand improvement from 1Q09 to 15 10.7 3Q09 supported by reports 9.4 10 5.6 of significantly increased dry bulk trade volumes 5 0 -5 5 -0.2 0.2 Tonnage g imbalance between the Pacific and -4.9 -10
Slide 14: Dry Bulk Orderbook
Dry Bulk · Towage · RoRo Pacific Basin Dry Bulk Orderbook Orderbook as % Average of Existing Fleet Age Orderbook by Year Total Dry Bulk >10,000 >10 000 Dwt 61% Mil Dwt Capesize 96% 11.2 120 Jan-Nov09 24% Scheduled Panamax 49% 12.2 orderbook: 100 13% 20% Handymax (35,000-59,9996 Dwt) 53% 15.4 80 Hand
Slide 15: Dry Bulk Fleet Changes
Dry Bulk · Towage · RoRo Pacific Basin Dry Bulk Fleet Changes Dry Bulk Scrapping versus BDI Bulk Carrier Deliveries 2009 Mil Dwt Jan - Nov 2009 total scrapping: 9.6 mil tonnes 80 Dwt/mil BDI Actual Delivery 71 mil 0.0 5,000 70 Scheduled Orderbook ^ 0.3 0.3 0.4 60 0.5 0.5 0.4 0.4 4,000 0.5 50 1.0 0.8
Slide 16: Dry Bulk Orderbook – Sector Analysis
Dry Bulk · Towage · RoRo Pacific Basin Dry Bulk Orderbook – Sector Analysis Capesize 167 Existing Fleet 144 Remaining 2009 Orderbook P Panamax 121 2010 Orderbook 58 2011 Orderbook 2012+ Orderbook Handymax 109 (35,000-59,999 Dwt) 57 Handysize 38 (25,000-34,999 Dwt) 16 0 50 100 150 200 Million Dwt Han
Slide 17: Handysize Vessel Values
Dry Bulk · Towage · RoRo Pacific Basin Handysize Vessel Values Sales and purchase activity 5 Year Old 28,000 Dwt Values continues to be relatively y US$ mil US$ 54m stagnant 55 50 Slight g strengthening g g in 45 sentiment in half year 40 since January Oct08: 35 US$44m, Last published 30 by Clarkson
Slide 18: 2009 Financial Highlights
Dry Bulk · Towage · RoRo Pacific Basin As at 30 June 2009 2009 Financial Highlights 1H09 1H08 Revenue (US$m) 425.9 909.9 Net Profit (US$m) 74.8 337.6 Basic EPS (HK¢) 32 162 Return on average shareholders’ equity 12% 68% Dividends (HK¢ per share) 8.0 76.0 S Segment t Net N tPProfit fit versus Net N t
Slide 19: Segment Result – Handysize
Dry Bulk · Towage · RoRo Pacific Basin As at 30 June 2009 Segment Result – Handysize 1H09 1H08 % Change 2008 Revenue days (days) 12,460 12,480 - 24,890 TCE earnings (US$/day) 13,610 32,580 -58% 58% 29,600 Owned + chartered cost (US$/day) 9,380 14,470 -35% 14,960 S Segment t nett profits fit (US$m) (
Slide 20: Segment Result – Handymax
Dry Bulk · Towage · RoRo Pacific Basin As at 30 June 2009 Segment Result – Handymax 1H09 1H08 % Change 2008 Revenue days (days) 5,150 5,210 -1% 11,050 TCE earnings (US$/day) 19,840 49,150 -60% 60% 44,610 Owned + chartered cost (US$/day) 17,580 41,980 -58% 40,070 S Segment t nett profits fit (US$m) (
Slide 21: Daily Vessel Costs - Handysize
Dry Bulk · Towage · RoRo Pacific Basin As at 30 June 2009 Daily Vessel Costs - Handysize Owned Chartered Charter-hire days & rates 2009-2011 US$/day Blended US$9,380 US$9 380 (FY2008: US$14,960) US$14 960) 13 100 d 13,100 days Opex $19,420 US$9,798 US$9,900 Depreciation 530 2H09 US$9,300 Finance cos
Slide 22: Impact of Financial Instruments
Dry Bulk · Towage · RoRo Pacific Basin Impact of Financial Instruments Period ended 30 June US$ m Realised Unrealised 2009 2008 Net Gains / (Losses) Interest rate swap contracts (1.5) 2.9 1.4 (0.6) Bunker swap contracts (10.4) 43.4 33.0 54.9 Forward freight agreements 19.0 (31.3) (12.3) (11.7) 7.1 1
Slide 23: Balance Sheet
Dry Bulk · Towage · RoRo Pacific Basin As at 30 June 2009 Balance Sheet US$m Dry bulk Towage RoRo Treasury 30 Jun 09 31 Dec 08 Vessels & other fixed assets 594 121 181 - 912 861 Total assets 744 156 222 1,097 2,406 2,331 Long term borrowings 207 39 - 581 827 848 Total liabilities 324 50 - 586 983 1,
Slide 24: Borrowings and Capex
Dry Bulk · Towage · RoRo Pacific Basin As at 30 June 2009 Borrowings and Capex US$ m 350 Funded from 314 US$1 141 million cash, US$1,141 cash 300 new loans, and 253 future operating cashflows 250 200 150 114 92 100 72 52 69 17 34 44 44 50 34 31 18 16 20 26 15 17 7 0 2H09 2010 2011 2012 2013 2014 201
Slide 25: Capex and Combined Value by Vessel Types
Dry Bulk · Towage · RoRo Pacific Basin Capex and Combined Value by Vessel Types As at 30 June 2009 A Combined View of Vessels Commitments Vessel Carrying Values and Commitments US$ m Total US$439m US$ m Total US$1,345m 350 750 681 300 76 600 62 250 253 496 15 200 450 150 543 315 114 216 300 100 33 7
Slide 26: Cashflow
Dry Bulk · Towage · RoRo Pacific Basin As at 30 June 2009 Cashflow US$ m 1H09 1H08 Operating cash inflows 61 284 Investing cash in / (out) flows 13 (218) - Vessels & other fixed assets related payments (171) (201) - Sales of vessels 105 81 - Jointly controlled entities related payments and receipts
Slide 27: Earnings Coverage
Dry Bulk · Towage · RoRo Pacific Basin Earnings Coverage Earnings coverage as at 22 Oct 2009 Revenue Day Handysize Handymax 30,000 Covered 25 580 d 25,580 days Uncovered 25,000 19,510 days 20,000 15,000 10,180 days^ 10,000 5,000 US$14,210 US$14,260 2,110 days ^ 97% 49% US$19,640 US$27,780 100% 108%
Slide 28: Outlook
Dry Bulk · Towage · RoRo Pacific Basin Outlook • Focus on three core segments: Dry Bulk Towage RoRo • Robust balance sheet as at 30 June 2009 : US$1.1 billion cash, h and d shareholders’ h h ld ’ equity it off US$1.4 US$1 4 billion billi • 97% of 2009 handysize days covered at US$14,210 per day. 200
Slide 29: Disclaimer
Pacific Basin Disclaimer This presentation contains certain forward looking statements with respect to the financial condition, results of operations and business of Pacific Basin and certain plans and objectives of the management of Pacific Basin. Such forward looking statements involve known and u
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