Precious Shipping Public Co., Ltd. · SET:PSL
Precious Shipping Public — Q3 2021 Earnings Presentation
56 slides from Precious Shipping Public's earnings presentation, Nov 11, 2021
Slide 1: Analyst Meeting - 3rd Quarter 2021
Precious Shipping Public Company Limited Date Analyst Meeting - 3rd Quarter 2021 11 November 2021
Slide 2: Evolution Of The Baltic Dry Index Since 2016
Evolution Of The Baltic Dry Index Since 2016 6,000 13 Year high 5,500 5,650– 7 Oct 2021 5,000 4,500 4,000 3,500 3,000 3,519 - 29thOct 5 Year high 2021 2,500 2,518 – 4 Sep 2019 2,000 1,500 1,000 500 0 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 Source: C
Slide 3: Is China's Import Growth Sustainable?
Is China’s Import Growth Sustainable? Latest available Data points on China in 9M 2021 Vs 9M 2020. China’s Iron Ore imports in 9M 2021 was 843 MMT Vs 868.7 MMT 9M 2020 down 2.96%. China’s Coal imports in 9M 2021 was 230.7 MMT Vs 239.7 MMT 9M 2020 down by 3.77%. China’s Steel production in 9M 2
Slide 4: Historical Growth In Seaborne Drybulk Trade – Billion Tonne-Miles
Historical Growth In Seaborne Drybulk Trade – Billion Tonne-Miles Seaborne Drybulk Trade All Units In Billion Tonne-Miles 2016 2017 2018 2019 2020 2021F 2022F Iron Ore 7,936 8,190 8,195 8,029 8,424 8,612 8,718 Coal (includes Lignite) 4,641 4,870 5,175 5,090 4,594 4,899 4,999 Grains (includes Soybean
Slide 5: Historical Growth In Seaborne Minor Bulk Trade – Billion Tonne-Miles
Historical Growth In Seaborne Minor Bulk Trade – Billion Tonne-Miles Seaborne Minor Bulk Trade All Units In Billion Tonne-Miles 2016 2017 2018 2019 2020 2021F 2022F Steel Products 1,949 1,905 1,963 1,797 1,705 1,896 1,926 Forest Products 2,124 2,224 2,300 2,358 2,294 2,425 2,516 Other Minor Bulk 5,3
Slide 6: PSL Cargo Exposure: 2016 – 2020
PSL Cargo Exposure: 2016 – 2020 Bulk cargo in the aggregate amount of 12.3 MMT, 11.7 MMT, 12.7 MMT, 13.72 MMT, 12.4MMT was carried on PSL ships in 2016, 2017, 2018, 2019 and 2020 respectively. 3.5 3.0 2.5 MMT 2.0 1.5 1.0 0.5 0.0 Ore / Conc. Salt Scrap Steel Other cargoes Agri Prods Logs Limestone Pe
Slide 7: Commodities Share by Different Dry Bulk Sectors
Commodities Share by Different Dry Bulk Sectors COMMODITIES Capesize Panamax Supramax Handysize Iron Ore 74% 9% 7% 2% Coal 21% 49% 22% 10% Grains 0% 28% 17% 22% Minor Bulk 4% 13% 55% 65% 80% 74% 70% 65% 60% 55% 49% 50% 40% 28% 30% 22% 22% 21% 20% 17% 13% 10% 9% 7% 10% 4% 2% 0% 0% Capesize Panamax Su
Slide 8: Confirmed Orders As Of September 2021 (M DWT) – Dec 24
Confirmed Orders As Of 30 September 2021 (M DWT) – 31 Dec 2024 20 Total Confirmed Orders Until 2024 Year M DWT % of Fleet 2021 7.84 0.84% 16 2022 27.68 2.97% 2023 18.94 2.03% 2024 4.37 0.47% Total Orderbook 58.83 6.31% 12 11.27 Geared 16.06 4.89% Gearless 42.77 7.08% 8.66 7.7 7.35 8 6.53 4 3.58 2.89
Slide 9: Dry bulk Fleet As Of September 2021
Dry bulk Fleet As Of 30 September 2021 Fleet Overview Ship Type DWT Range (MT) Ships Av Age (yrs) Total DWT (m MT) Av DWT (MT) % of DWT Handysize 10,000 – 39,999 4,115 12.67 111.52 27,100 12% Supra/Ultramax 40,000 – 69,999 3,855 10.7 216.91 56,267 23.2% Panamax 70,000 – 89,999 2,524 10.59 200.59 79,
Slide 10: Putting Orderbook Figures In Context – The Overall Dry bulk Fleet
Putting Orderbook Figures In Context – The Overall Dry bulk Fleet 1000 944 100% Drybulk Fleet 907 900 All Figures In M DWT Unless 873 90% Otherwise Indicated (30 Sep 2021) 841 78.14% 814 Total Fleet 932.73 772 790 800 754 80% Total Orderbook to end 2024 58.83 719 700 Orderbook % Fleet 6.31% 677 70%
Slide 11: Putting Orderbook Figures In Context – Geared Vessels Only
Putting Orderbook Figures In Context – Geared Vessels Only 80% 80% 60% 60% 40% 17.63% 40% 14.06% 20% 20% 0% 0% 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 Orderbook % of Fleet (Handy) Orderbook % of Fleet (Supras/Ultras) % of Fleet Over 20y (Supras/Ultras) % of Fleet Over 20y (Handy) % 20
Slide 12: PSL's Strategy
PSL’s Strategy Precious Shipping PCL 12
Slide 13: Current and Rolling Year Forward Book
Current and Rolling 4 Year Forward Book Contract Total USD 37.21 m USD 42.89 m USD 27.95 m USD 28.03 m USD 27.95 m value USD 164.03 m 20,000 18,762 100% 16,459 15,316 15,316 15,316 16,000 80% 12,000 13,140 13,140 13,140 13,176 13,140 60% 8,000 40% 17% 17% 4,000 14% 14% 14% 20% 2,261 2,286 1,825 1,83
Slide 14: Difference Between the 2003/2009 Super Cycle and Today
Difference Between the 2003/2009 Super Cycle and Today Precious Shipping PCL 14
Slide 15: Difference Between the 2003/2009 Super Cycle and Today
Difference Between the 2003/2009 Super Cycle and Today 2003-2009 Super Cycle China entered the WTO in 2001 and soon became the manufacturing hub of the world. Commodity prices rose by 320%! China’s GDP growth rates were off the charts during this period! China’s import growth rate was explosiv
Slide 16: Difference Between the 2003/2009 Super Cycle and Today
Difference Between the 2003/2009 Super Cycle and Today Daily average Time Charter rate 2003 – 2009 2010 – 2020 2021 (31st October) Capes 67,101* 14,924*** 33,762** Panamax 32,793* 10,965*** 27,166** Supras 28,013^^ 10,765*** 26,817** Handy Size 18,753^^ 8,789*** 25,121** +4.6% Demand Billion Ton-mil
Slide 17: Difference Between the start of 2021 and Today
Difference Between the start of 2021 and Today Period Date Capesize Panamax Supramax Handysize Start of year 04-Jan-2021 16,656 12,272 11,305 12,040 End of Q1 31-Mar-2021 18,327 23,188 20,578 20,999 Start of Q2 01-Apr-2021 19,853 22,354 20,241 20,461 End of Q2 30-Jun-2021 32,604 37,074 32,226 27,742
Slide 18: Current Market Situation
Current Market Situation Precious Shipping PCL 18
Slide 19: Average Benchmark Time Charter YOY Change
Average Benchmark Time Charter YOY Change (Q1 ‘21, Q2 ‘21, Q3 ‘21 & Q4 ‘21) Q4’ 21 Q1’21 YOY Q2 ’21 YOY Q3’ 21 YOY YOY Category In USD In USD Change In USD Change In USD Change Change (5th Nov) Cape size TC Avg Daily 17,126 275 % 31,120 213% 42,379 104% 57,883 159% (180K) Panamax TC Avg Daily 18,493
Slide 20: Average Quarterly 2021 Benchmark Time Charter Rates versus Ten-Year Average
Average Quarterly 2021 Benchmark Time Charter Rates versus Ten-Year Average Avg 10 Avg 10 Avg 10 Avg 10 Q1 ‘21 Change Q2 ‘21 Change Q3 ‘21 Change Q4 ‘21 Change Vessel type Yr Q1 Yr Q2 Yr Q3 Yr Q4 In USD in % In USD in % In USD in % In USD in % In USD In USD In USD In USD Cape size (180K) 8,428 17,12
Slide 21: Average Benchmark Time Charter Rates versus Ten-Year Averages
Average Q1- Q4 Benchmark Time Charter Rates versus Ten-Year Averages Average of Average of Average of Average of Period %Change %Change %Change %Change Cape BPI BSI BHSI Qtr1 8,428 - 8,477 - 8,626 - 7,436 - Qtr2 9,474 12% 8,679 2% 9,079 5% 7,684 3% Qtr3 16,219 71% 10,230 18% 10,247 13% 8,160 6% Qtr4
Slide 22: DWT of Dry Bulk ships ordered in 9M '21 versus 9M '19 and 9M '20
DWT of Dry Bulk ships ordered in 9M ‘21 versus 9M ‘19 and 9M ‘20 Change Change Change Change Change Change Change Change Avg. Geared Gearless Year 2021 vs. 2021 vs. MDWT 2021 vs. 2021 vs. 2021 vs. 2021 vs. 2021 vs. 2021 vs. BDI MDWT MDWT 2020 2019 2020 2019 2020 2019 2020 2019 2019 1285 - - 20.96 -
Slide 23: Market Segmentation Q3 2021
Market Segmentation Q3 2021 Index PSL Avg Q3 2021 Market PSL Performance Index PSL Avg PSL Ship Index Speed/Con Speed/Con Average Av. TC Av. TC vs Ship DWT Ship DWT Number (1) (1) Index Rate (2) Rate Benchmark Laden: Laden: 15 Handysize 12K/18T 12K/20T BHSI & USD USD 38,000 30,496* 1,789 -31% (Handy
Slide 24: Main Reasons for our Q3 underperformance
3 Main Reasons for our Q3 underperformance 1. Our ships are ‘different’ from the index ships. On an apples-to-apples comparison, our Handy ships are ranked 25% below and the Supras are 10% below the index ship TC rates. 2. If we see the way the market has gone up, virtually in a straight line during
Slide 25: Reasons for Q3 Underperformance
Reasons for Q3 Underperformance 1. PSL ship at discount compared to Index ship 2. If Vessels are fixed on 1st day of the quarter. Performance Q3 Avg. Index PSL Ship at Index rate Index TC rate Q3 Avg Index Vessel Vessel VS rate Discount after discount 01.07.21 TC Benchmark BHSI 32,194 -25%* 24,146 B
Slide 26: PSL True Performance versus Benchmark
PSL True Performance versus Benchmark PSL long Q3 average PSL average PSL ship Difference if term time PSL true PSL true Index time time charter difference vessel fixed charter time Type of {A*(C+D+E)} performance charter rate in Rate in Q3 from Index on 1st day ships charter rate vessel = (F) in $
Slide 27: Key Industry Takeaways
Key Industry Takeaways The Good News in 2021 China’s USD 667b steel intensive fiscal stimulus announced on 22 May 2020 pushed the BDI to 5,650 on 7th October from 1,374 points at the start of 2021! Material improvement in dry bulk demand and rates took place from SH 2020 onwards and likely to la
Slide 28: COVID-19's Impact
COVID-19’s Impact Precious Shipping PCL 28
Slide 29: Impact On Shipping – Container Lines
Impact On Shipping – Container Lines Drewry forecast container shipping may have an annual profit of about $150bn. (Seatrade – 7 Oct 21) Maersk has hiked its full-year 2021 EBITDA forecast to $22bn to $23bn. (TradeWinds – 16 Sep 21) Hapag-Lloyd raised its 2021 earnings outlook with Ebitda fore
Slide 30: Impact On Shipping – Dry bulk
Impact On Shipping – Dry bulk Drybulk was adversely affected in FH 2020 due to Covid-19. Freight rates moved upwards as the ROW opened from the end of May 2020. BDI to date in 2021 is the highest in the last decade indicating a V shaped recovery! 6,000 13 year high 5,650– 7 Oct 2021 5,000 4,00
Slide 31: Dry Bulk Supply Side Forecast Changes
Dry Bulk Supply Side Forecast Changes Based on 2021 data (annualized), PSL projects net fleet growth for 2021 at 3.19%. 9M 2021 Net Fleet Growth = 25.74 MDWT, +2.83% FY 2021 Net Fleet Growth = 28.96 MDWT, +3.19% 7.84 935.95 32.30 932.73 projected 906.99 projected 932.73 deliveries deliveries Slippag
Slide 32: The Recovery – Amazing Policy Response By Governments
The Recovery – Amazing Policy Response By Governments Countries across the globe have engaged in a Global Stimulus combination of monetary and fiscal stimulus. All Figures In USD bn Countries Stimulus Amount Policies are aimed at protecting household US 8,584 consumption and ensuring businesses
Slide 33: Financials
Financials Precious Shipping PCL 33
Slide 34: Highlights for Q3'2021
Highlights for Q3’2021 CA-CIB Loan amounting to USD 38.35 million was signed on 21st June 2021. The proceeds were used to redeem THB 1,163.16 million of PSL211A’s outstanding on 22nd July 2021. IFC, EXIM and TTB Loan amounting to USD 85.00 million was signed on 29th June 2021. The proceeds were
Slide 35: Financial Profile
Financial Profile Jan-Sep 2021 2020 2019 2018 2017 2016 Cash & Cash Equivalents $59.6m $36.6m $39.2m $56.8m $56.7m $74.7m Total Assets $690.9m $712.3m $831.1m $857.9m $882.3m $901.9m Gross Debt $264.2m $318.3m $391.7m $432.8m $469.4m $482.1m Net Debt $204.6m $281.7m $352.5m $376.0m $412.6m $407.4m E
Slide 36: Operating Expenses
Operating Expenses These are the fixed costs required to run a ship and are evenly spread over 365 days. Our operating costs per ship per day for 2020 and Jan-Sep 2021 were USD 4,705 and 5,038 respectively. Breakdown of costs: 2020 Jan-Sep 2021 Particulars USD % USD % Crew costs 2,302 48.93% 2,3
Slide 37: Operating Expenses Comparison
Operating Expenses Comparison OPEX Comparison with Industry compiled by BDO LLP OPEX excluding dry dock and special survey cost For Years 2015 2016 2017 2018 2019 2020 Particulars Industry PSL Industry PSL Industry PSL Industry PSL Industry PSL Industry PSL US$ (per day) Crew Cost 2,698 2,769 2,
Slide 38: Financial Highlights – Income Statement
Financial Highlights – Income Statement Particulars Jan-Sep 2021 Jan-Sep 2020 Q3-2021 Q2-2021 Q3-2020 Total Revenues - USD Million 187.62 85.49 80.53 62.58 30.55 Gross Profit - USD Million 131.35 36.94 64.36 42.36 15.55 Net Profit (loss) - USD Million 83.94 (41.70) 45.40 26.23 (0.71) Gain (loss) on
Slide 39: Financial Highlights – Balance Sheet Items
Financial Highlights – Balance Sheet Items Particulars 30-Sep-2021 31-Dec-2020 Liquidity (Cash & Cash Equivalents + Undrawn Commitments) - USD Million 59.58 36.64 Cash & Cash Equivalents - USD Million 59.58 36.64 Total Current Assets - USD Million 68.41 64.52 Ships Net - USD Million 611.30 634.77 Fi
Slide 40: Average OPEX / TC Rates
Average OPEX / TC Rates Year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Sep-21 Avg Age 16.0 16.2 14.2 14.6 15.6 15.6 15.7 15.8 16.6 17.4 19.0 20.0 19.6 20.6 17.1 15.4 14.2 11.4 11.4 10.5 9.8 5.8 6.3 7.3 8.3 9.3 10
Slide 41: Debt & Debt / Equity Ratio
Ratio 0.0 0.8 1.6 2.4 3.2 4.0 1995 226 2.5 1996 227 2.4 1997 257 3.8 1998 211 1999 185 2.9 3.0 2000 133 1.5 2001 110 1.3 2002 106 1.2 2003 86 0.9 2004 240 1.1 Debt & Debt / Equity Ratio 2005 157 0.3 Debt (Million USD) 2006 44 2007 0 2008 0.0 0.0 0.1 21 Year 2009 128 2010 163 0.3 0.3 Precious Shippin
Slide 42: Debt / EBITDA
Debt / EBITDA 24 20 20.3 16.9 16 Ratio 12 8 8.3 8.5 8.3 8.4 6.5 6.4 6.2 6.1 5.9 4.7 4.3 4.8 4 3.6 3.4 3.3 2.5 2.2 1.9 1.3 1.0 0 0.4 0.0 0.0 0.0 0.3 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Sep-2021 Year Debt/EBI
Slide 43: Net Profit / Cash Profit
Net Profit / Cash Profit 200 196 160 163 163 154 145 148 135 120 125 107 110 102 93 88 84 Million USD 80 49 46 44 40 37 36 42 39 31 36 25 28 25 24 27 29 27 23 21 19 18 17 17 14 7 14 6 1 7 4 0 0 -3 -3 -2 -4 -6 -7 -15 -40 -41 -69 -80 -76 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Slide 44: Dividends
Dividends 2.1 2.0 420% 1.8 360% 350% 1.6 1.5 Dividends as % of EPS 1.5 300% 286% 1.2 Dividends Baht 1.2 240% 1.0 0.9 0.8 0.8 0.8 0.8 0.8 180% 0.6 0.7 0.6 0.5 0.4 0.5 120% 0.4 70% 80% 80% 0.3 0.3 78% 0.3 56% 59% 61% 0.2 0.2 0.2 60% 42% 0.1 0.1 28% 25% 29% 0.0 0% 2007* 2003 2004 2005 2006 2008 2009 20
Slide 45: New Regulations – EEXI and CII
New Regulations – EEXI and CII Precious Shipping PCL 45
Slide 46: Energy Efficiency Existing Ship Index or EEXI
Energy Efficiency Existing Ship Index or EEXI 1. What is EEXI? It is a technical or design efficiency index and requires a one-time technical adjustment for non-compliant existing vessels. It describes the CO2 emissions per cargo ton-mile, by determining the standardized CO2 emissions related to ins
Slide 47: Carbon Intensity Indicator or CII
Carbon Intensity Indicator or CII 1. What is CII? It is an operational efficiency index, which aims to ensure continuous improvement in a vessel's emissions. The CII framework regulates the operational carbon intensity of a vessel (i.e., the carbon emissions per unit of ‘transport work’ or the opera
Slide 48: PSL and ESG
PSL and ESG Precious Shipping PCL 48
Slide 49: PSL's ESG Footprint
PSL’s ESG Footprint Environment: PSL is always reducing its environmental impact via new technologies and innovations. We replaced older and less fuel-efficient vessels between 2013 and 2017 with “eco-vessels” resulting in reduction of CO2 emissions. The PSL fleet's average gm CO2/ton*nm has reduc
Slide 50: Investor Relations
Investor Relations Precious Shipping PCL 50
Slide 51: SET Awards 2021- Outstanding Investor Relations Awards
SET Awards 2021- Outstanding Investor Relations Awards Precious Shipping PCL 51
Slide 52: Investor Relations Activities – 9M 2021
Investor Relations Activities – 9M 2021 The Company has joined many events for press/analyst briefings, which are attended personally by the Managing Director, the Executive Directors and/or IR team. Some of the major events in which the Company participated in 9M 2021 are enumerated herein as under
Slide 53: Shareholder's returns
Shareholder’s returns Precious Shipping PCL 53
Slide 54: Total Return to Shareholders: 1993 to November 2021
Total Return to Shareholders: 1993 to 10 November 2021 600 75 496 512 520 470 458 480 450 423.2 60 440440 440 440440 440 351.2 300 239.2 45 Baht 150 149.2 30 67 72 4 6 9 6 25 6 82.2 90 112 35 22 16 16 8 30 61 0 0 0 0 0 0 51 15 -85 -10 -45 -70 -85 -81 -75 -85 -76 -80 -150 0 Inflow/Outflow Net Cash Po
Slide 55: Final Food For Thought
Final Food For Thought As described in the Industry section – Demand is growing faster than Supply growth, and this should be good for the next couple of years. Minor bulks, cargoes that PSL carries, are growing faster than other cargoes and certainly faster than supply growth in the geared sector
Slide 56: Thank You !
Thank You ! Precious Shipping Public Company Limited Website: www.preciousshipping.com | E-mail: psl@preciousshipping.com, ir@preciousshipping.com
Precious Shipping Public Company — Q3 2021 Earnings Presentation on 6ix