Pacific Basin Shipping Limited · HKEX:2343
Pacific Basin Shipping — Q1 2008 Earnings Presentation
23 slides from Pacific Basin Shipping's earnings presentation, Apr 24, 2008
Slide 1: Pacific Basin Q108 Trading Update
Stock Code: 2343 Pacific Basin Q108 Trading Update As at 24 April 08
Slide 2: What is Pacific Basin?
What is Pacific Basin? World’s largest modern handysize vessel owner/operator 19 offices worldwide, 297 shore-based staff, 1,345 seafarers We carry the dry bulk commodities required for China’s and Asia’s growth Enjoying record high rate environment brought about by tight balance of ship supply and
Slide 3: Fleet Profile
Fleet Profile Fleet numbers as at 24 April 2008 Dry Bulk Fleet - 96 Other Ships - 19 Handysize: 75 Handymax: 18 RoRo: 4 Tugs: 14 Newbuilding 1 Chartered Chartered 14 14 Newbuilding 4 Newbuilding 6 Chartered Newbuilding 1 Owned Barge: 1 49 Operating Lease Chartered 6 33 Owned 3 4 Owned 1 Owned 2 Fina
Slide 4: Diversified Cargo
Diversified Cargo Total Handysize and Handymax Cargo Volume in 2007 Log & Forest Products 5% Fertilisers 11% Grains 10% Steel & Scrap 8% Cement 9% 29.1 Alumina 4% million tonnes Petcoke/Coal/Coke 16% Other Bulks* 12% Sugar 4% Ore 9% 2007 cargo volume grew Concentrates 6% by 38% over 2006 Salt 6% Div
Slide 5: Market & Business Review
Market & Market & Business Business Review Review
Slide 6: Baltic Exchange Indices
Baltic Exchange Indices The Baltic Dry Index (BDI) The Baltic Handysize Index (BHSI) 23 April 2008 $US/day 23 April 2008 8862 48,000 US$ 35,640 12000 42,000 10000 36,000 8000 30,000 6000 24,000 4000 2000 18,000 0 12,000 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 May-06 Aug-06 Nov
Slide 7: Dry Bulk – 1 Year Time-Charter Rate
Dry Bulk – 1 Year Time-Charter Rate US$/day 180,000 As at 18 April 2008 160,000 140,000 Capesize 120,000 $133,000 (Jan07: $59,138) 100,000 Panamax 80,000 $67,450 (Jan07: $29,450) Supramax 60,000 $54,150 (Jan07: $27,729) 40,000 Handysize 1-Year: $34,200 (Jan07: $18,169) 20,000 3-Year: $24,225 (Jan07:
Slide 8: China at Mid-Industrialization Stage
China at Mid-Industrialization Stage Steel Consumption Per Capita Same growth as Tons per Capita China (from 1990) historical trend in 1.0 Japan (from 1950) Korea (from 1970) Japan and Korea 0.9 India (from 2000) 0.8 0.7 Indicating long term 0.6 dry bulk strong 0.5 growth 0.4 0.3 Same trend for 0.2
Slide 9: Sustainable Growth of Bulk Cargo Volume
Sustainable Growth of Bulk Cargo Volume Seaborne Bulk Trade and Tonnage Demand Million Tonnes 7.2% Total cargo volumes 3000 2,517 2,699 grew by a healthy 2500 2,258 2,381 7% year on year 2,096 1,918 1,956 2000 1,881 1,739 1,757 Variety and volume 1500 of commodities 1000 needed by China have forced
Slide 10: High Tonnage Demand
High Tonnage Demand Changes in Tonnage Demand % change from Estimated year before 13.0% tonnage 14 11.4% demand 10.7% 12 growth of 13% 10 from 2006 to 2007 6.1% 8 6 4 Volume Demand growth: 2 3.6% 7.2% for ships 0 enhanced by -2 tonne miles, 2003 2004 2005 2006 2007 congestion International cargo vol
Slide 11: Lower Orderbook in Handysize
Lower Orderbook in Handysize Type of Vessels Orderbook as % of Existing Fleet (dwt) Record year for dry bulk Dry Bulk 60% ordering in 2007 Ave. Age Capesize 100K + 91% 11.3 Panamax 60-100K But still limited supply 45% 11.9 in 2008, particularly handysize Handymax 40K-60K 11.9 57% New capacity is Han
Slide 12: Ageing Handysize Fleet
Ageing Handysize Fleet Orderbook 25-35K dwt (39%) 16% Total handysize 25-35k dwt fleet More than 13.5% (April 2008) 12.6% 35% older 12% than 25 years 7.6% 8% 5.6% 30 yrs or above 0-4 yrs 4% 20% 13% 5-9 yrs Uncertainty over 14% 0% ‘real’ deliveries 2008 2009 2010 2011+ 25 -30 yrs from 2009/2010 15% 1
Slide 13: Dry Bulk Carrier Sale & Purchase Market
Dry Bulk Carrier Sale & Purchase Market 2nd-hand 5-year old handysize vessel price (25K-35K dwt) US$ million April 08: 55 US$ 50.5 mil Second hand vessel 50 +17% price continues 45 to stay high 40 Jan 08: US$ 43.0 mil 35 30 25 Our asset value moves in line with 20 market values 15 10 Jan-00 Jan-01 J
Slide 14: Earnings Coverage
Earnings Coverage Earnings Coverage As at Q108 Trading Update Handysize Handymax Revenue Day Unfixed 25,000 22,800 days 13% Fixed More revenue days, 20,100 days and rate 23% higher 20,000 than 2007 full year 33% average rate 15,000 10,000 31% of 2009 US$23,200 US$28,500* 2 5,260 days 2 handysize 4,8
Slide 15: New Developments
JNS Hull 101 – Silver Lake New Developments New Developments JNS Hull 102 – Port Phillip JNS Hull 103 – Diamond Harbour Jiangmen Nanyang Shipyard
Slide 16: Business Development
Business Development July 2007, US$17m capital investment in Nanjing Longtan Tianyu APMIG - Ports Terminal JV Company 3 post panamax newbuildings will deliver in 2011 China - other Pacific Time Shipping, the JV with China Huaneng Group November 2007, acquisition of Australian Maritime Services PB To
Slide 17: Roll On Roll Off (RoRo)
Roll On Roll Off (RoRo) Pacific Basin entered RoRo sector with four newbuildings acquired for approx. US$375m in Feb 08, scheduled to be delivered 2009-2011 Used for transportation of wheeled cargoes (mostly trucks) which are loaded over a ramp Proven design, suitable for the common short sea trades
Slide 18: Ports and Towage
Ports and Towage APMIG - Ports Pacific Basin holds a 45% interest in a Chinese bulk cargo terminal - Nanjing Port Longtan Terminal 2007 trial operations handled 160,000 tonnes of general cargo Steady growth in terminal’s throughput is expected once formal operations begin, later in 2008 PB Towage Pa
Slide 19: Financial Review
Financial Financial Review Review
Slide 20: Daily Vessel Costs - Handysize
Daily Vessel Costs - Handysize Opex Owned Chartered US$/day Depreciation $12,850 Blended US$10,240 (2006: US$8,880) Finance cost 12,000 620 Direct Overhead $10,040 Charter-hire 10,000 570 $8,480 $8,640 8,000 960 1,080 Contracted Charter-hire 2,000 1,720 6,000 2008: US$14,800 12,230 9,470 2009: US$14
Slide 21: Balance Sheet
Balance Sheet 31 Dec 07 31 Dec 06 US$mil Net book value of fixed assets 1 755.9 741.0 Gross borrowings 660.2 350.5 Cash 649.5 63.2 Net borrowings 10.7 287.3 Shareholder's equity 867.6 485.0 Net borrowings / Fixed assets 1.4% 38.1% Net borrowings / Shareholder's equity 1.2% 59.2% Note 1 Insured value
Slide 22: Vessel Capital commitments
Vessel Capital commitments At 31 December 2007 2008 2009 2010 2011 Total US$mil 11 Handysize 137.6 49.3 - - 186.9 1 Handymax 32.1 - - - 32.1 1 Post Panamax - - 21.7 22.1 43.8 2 Tugs 11.4 - - - 11.4 181.1 49.3 21.7 22.1 274.2 Recent Vessel Commitments 4 Roll on roll off 92.2 119.0 137.7 25.9 374.8 4
Slide 23: Disclaimer
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 unknown risks,
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