Precious Shipping Public Co., Ltd. · SET:PSL
Precious Shipping Public — Q4 2022 Earnings Presentation
57 slides from Precious Shipping Public's earnings presentation, Feb 13, 2023
Slide 1: PSL Analyst Meeting 13 February 2023
Precious Shipping Public Company Limited PSL Analyst Meeting 13 February 2023
Slide 2: Dry Bulk Freight Markets
Dry Bulk Freight Markets Precious Shipping PCL 2
Slide 3: The BDI since start of 2016
The BDI since start of 2016 6,000 5,500 13 Year high 5,650 – 7 Oct 2021 5,000 4,500 4,000 3,500 3,000 2,500 5 Year high 2,518 – 4 Sep 2019 2,000 1,500 1,000 500 1,130 – 6 Jan 2023 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 Jul-22 Jan-23 Source: Clark
Slide 4: China's 2022 data versus 2021
Despite China’s faltering growth in 2022 has been very good! Latest available Data points on China in 2022 Vs 2021. China’s Iron Ore imports in 2022 was 1,107.8 MMT Vs 1,125.6 MMT in 2021 down by 1.6%. China’s Coal imports in 2022 was 293.3 MMT Vs 323.6 MMT in 2021 down by 9.4%. China’s Steel
Slide 5: Growth in seaborne dry bulk trade – billion tonne-miles
Growth in seaborne dry bulk trade – billion tonne-miles Seaborne Dry bulk Trade All Units In Billion Tonne-Miles 2017 2018 2019 2020 2021 2022E 2023F Iron Ore 8,190 8,190 7,990 8,366 8,494 8,261 8,296 Coal (includes Lignite) 4,881 5,204 5,137 4,635 4,856 4,989 5,189 Grains (includes Soybeans) 3,272
Slide 6: Growth in seaborne minor bulk trade – billion tonne-miles
Growth in seaborne minor bulk trade – billion tonne-miles Seaborne Minor Bulk Trade All Units In Billion Tonne-Miles 2017 2018 2019 2020 2021 2022E 2023F Steel Products 1,906 1,978 1,832 1,678 1,966 1,847 1,803 Forest Products 2,223 2,298 2,347 2,285 2,384 2,235 2,216 Other Minor Bulk 6,403 6,693 6,
Slide 7: PSL cargo exposure: 2016 – 2022
PSL cargo exposure: 2016 – 2022 Bulk cargo in the aggregate amount of 12.3MMT, 11.7MMT, 12.7MMT, 13.7MMT, 12.4MMT, 12.6MMT, and 11.6MMT was carried on PSL ships in 2016, 2017, 2018, 2019, 2020, 2021 and 2022 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
Slide 8: Commodities share by different dry bulk sectors
Commodities share by different dry bulk sectors Commodities Capesize Panamax Supramax Handysize Iron Ore 74% 8% 4% 3% Coal 19% 52% 26% 10% Grains - 25% 15% 19% Minor Bulk 7% 15% 54% 66% Others - - 1% 2% 80% 74% 66% 60% 52% 54% 40% 25% 26% 19% 19% 20% 15% 15% 7% 8% 10% 4% 1% 3% 2% 0% 0% 0% 0% Capesiz
Slide 9: Dry bulk fleet at the start of Q1 2023
Dry bulk fleet at the start of Q1 2023 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 4,292 13.44 115.14 26,827 11.92% Supra/Ultramax 40,000 – 69,999 4,009 11.48 225.59 56,271 23.35% Panamax 70,000 – 89,999 2,648 11.35 210.8
Slide 10: Confirmed orders as of Jan 2023 (MDWT) – Dec 2025
Confirmed orders as of 1 Jan 2023 (MDWT) – 31 Dec 2025 20 Total Confirmed Orders Until 2025 Year M DWT % of Fleet 2023 36.42 3.77% 16 2024 24.56 2.54% 2025 8.16 0.84% Total Orderbook 69.14 7.16% 12.89 Geared 25.77 7.56% 11.99 12 Gearless 43.37 6.94% 9.66 9.08 8 6.89 6.51 4 3.29 2.45 2.83 1.49 1.8 0.
Slide 11: PSL dry bulk supply side forecast
PSL dry bulk supply side forecast Actual data for 2022. PSL forecasts net fleet growth for 2023 at 2.75%, assuming 5% slippage and 8.00 MDWT of scrapping in 2023. FY 2022 Net Fleet Growth = 26.88 MDWT, +2.86%. FY 2023 Net Fleet Growth = 26.60 MDWT, +2.75% 36.42 966.03 projected 992.63 939.15 966.03
Slide 12: Putting orderbook figures in context – overall dry bulk fleet
Putting orderbook figures in context – overall dry bulk fleet 1000 966 100% Dry Bulk Fleet 939 907 All Figures In M DWT Unless 873 Otherwise Indicated (31 Dec 2022) 841 78.14% 814 Total Fleet 966.03 790 800 754 772 80% Total Orderbook to end 2025 69.14 719 Orderbook % Fleet 7.16% 677 % Fleet Over 20
Slide 13: Putting orderbook figures in context – geared vessels only
Putting orderbook figures in context – geared vessels only 80% 80% 60% 60% 40% 18.75% 40% 20% 15.10% 20% 0% 0% 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 Orderbook % of Fleet (Handy) Orderbook % of Fleet (Supras/Ultras) % of Fleet Over 20y (Supras/Ultras) % of Fleet Over 20y (Handy)
Slide 14: Differences in 2003-2009, 2010-2020, 2021, 2022 and the future
Differences in 2003-2009, 2010-2020, 2021, 2022 and the future Daily average Time Charter rate 2003 – 2009 2010 – 2020 2021 2022 Capesize 67,101* 14,924*** 33,333** 16,177** Panamax 32,793* 10,965*** 26,898** 20,736** Supramax 28,013^^ 10,765*** 26,768** 22,152** Handysize 18,753^^ 8,789*** 25,702**
Slide 15: Difference between 2021, 2022 and beyond
Difference between 2021, 2022 and beyond During 2021 Supply-Demand balance was reached in 2021; upward momentum in freight markets continued during 2021; speed of the freight market rise took everyone by surprise. GDP growth rates in China, and the ROW, started to rise sharply. Congestion peak
Slide 16: Average speed
Average speed (Knots) 11.6 11.54 11.52 11.50 11.50 11.39 11.38 11.4 11.35 11.32 11.26 11.23 11.2 11.12 11.0 10.94 10.8 Capesize Panamax Supramax Handysize 2012-2020 Avg 2021 Avg 2022 Avg Source: Clarksons Speed Timeseries as on 31 Dec 2022 Precious Shipping PCL 16
Slide 17: Port congestion
Port congestion Bulkcarrier (Capesize & Panamax) Port Congestion as % of Capesize & Panamax Fleet 36% Data basis vessels 33.2% 33.1% in a defined port or 31.1% 31.6% 32% 30.3% anchorage location 29.9% 28.8% based on vessel’s 28% closest to midday AIS signal. 24% 2016 2017 2018 2019 2020 2021 2022
Slide 18: DWT of dry bulk ships ordered in 2022 versus prior years
DWT of dry bulk ships ordered in 2022 versus 2019, 2020 and 2021 % Change New Orders in % Change Year Avg. BDI in 2022 MDWT in 2022 2019 1,353 +43% 40.55 -22% 2020 1,066 +81% 48.66 -35% 2021 2,943 -34% 37.62 -16% 2022 1,934 - 31.64 - Source: Clarksons Index Timeseries and Clarksons World Fleet Regis
Slide 19: Key Industry Takeaways
Key Industry Takeaways The good news in 2021 Dry bulk supply-demand balance was finally reached in 2021. China’s $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
Slide 20: Catalysts to watch out for
Catalysts to watch out for Precious Shipping PCL 20
Slide 21: Catalysts to watch out for
Catalysts to watch out for 1. Ukraine’s ~22 MMT of grain lying in silos at their ports, prior to the start of the war, of which almost 18 MMT has already been shipped out by the middle of January 2023. 2. Ukraine’s unharvested grain in the fields of ~20 MMT moves into the empty Port silos. 3. Cargoe
Slide 22: New Regulations – EEXI and CII
New Regulations – EEXI and CII Precious Shipping PCL 22
Slide 23: Energy Efficiency Existing Ship Index or EEXI
Energy Efficiency Existing Ship Index or EEXI 1. What is EEXI? It is a 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 installed engine
Slide 24: 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 carbon emissions per unit of ‘transport work’ or the operating mileage each year. CII is expressed in grams of
Slide 25: Impact of CII on the bulk carrier fleet
Impact of CII on the bulk carrier fleet DWT of existing ships* DWT of ships above 10 years / %* DWT of new buildings till 2025 / %* Handysize 115.14 73.59 / 64% 4.19 / 4% Supra/Ultramax 225.59 123.24 / 55% 21.57 / 10% Panamax 210.86 111.14 / 53% 20.68 / 10% Capesize 414.44 226.94 / 55% 22.69 / 5% To
Slide 26: PSL's Strategy
PSL’s Strategy Precious Shipping PCL 26
Slide 27: PSL Fleet
PSL Fleet As of 31st Dec 2018 31st Dec 2019 31st Dec 2020 31st Dec 2021 31st Dec 2022 Number of 36 36 36 36 38 Vessels Average Age 7.3 years 8.3 years 9.3 years 10.3 years 11.0 years (Simple Avg) Insured Value 700.3 650.0 650.0 747.6 765.4 (US$ million) Book Value 689.4 664.9 634.8 605.0 635.8 (US$
Slide 28: Market segmentation 2022
Market segmentation 2022 Index PSL Avg 2022 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: 17 Handysize 12K/18T 12K/20T BHSI & USD USD 38,000 31,010* 1,185 -17.88% (Handysiz
Slide 29: Current and rolling 4-year forward book until 2026
Current and rolling 4-year forward book until 2026 Contract Total USD 107.12 m USD 63.69 m USD 28.47 m USD 27.95 m USD 27.95 m value USD 255.18 m 25,000 100% 19,858 20,000 80% 15,222 15,316 15,316 15,000 13,870 60% 13,501 13,908 13,870 13,870 11,752 10,000 40% 40% 39% 5,000 13% 13% 13% 20% 5,394 5,4
Slide 30: Financials
Financials Precious Shipping PCL 30
Slide 31: 2022 highlights
2022 highlights 2022 Highlights • Net profit of Baht 4,850.79 million (USD 138.61 million), or Baht 3.11 (USD 0.0889) per share Annual Results • EBITDA of Baht 6,320.40 million (USD 180.33 million) • PSL declared an interim dividend (No.1) of 50 Satang which was paid on 8 June 2022. Dividend • PSL d
Slide 32: Q4 2022 highlights
Q4 2022 highlights Q4’2022 Highlights • Net profit of Baht 549.18 million (USD 15.26 million), or Baht 0.35 (USD 0.0098) Quarterly Results per share • EBITDA of Baht 1,003.55 million (USD 27.89 million) • PSL declared an interim dividend (No.3) of 50 Satang which was paid on 9 Dividend December 2022
Slide 33: 2022 Key figures
2022 Key figures 2022 2021 Revenue ($ million) 260.5 37 272.1 Net Profit ($ million) 138.6 0.30 137.0 Earning per Share (Baht) 3.11 2.87 Return on Equity * 30.6% 34.6% Net Debt / Equity Ratio 0.34 0.40 Number of Ships 38 36 * Excluding exchange gain (loss) and non-recurring items Precious Shipping P
Slide 34: Q4 2022 Key figures
Q4 2022 Key figures Q4 2022 Q3 2022 Revenue ($ million) 46.5 37 68.8 Net Profit ($ million) 0.30 15.3 36.4 Earning per Share (Baht) 0.35 0.86 Return on Equity * 30.6% 35.6% Net Debt / Equity Ratio 0.34 0.35 Number of Ships 38 38 * Excluding exchange gain (loss) and non-recurring items Precious Shipp
Slide 35: Earnings and liquidity
Earnings and liquidity TC Rate/Day in $ Historical EBITDA ($ million) 30,000 26,429 24,722 23,901 90 25,000 21,995 19,840 70 62 20,000 17,841 57 57 14,343 49 46 15,000 12,157 50 10,022 35 8,398 8,786 10,000 6,099 30 28 20 5,000 11 14 9 10 3 0 -10 Dividend (Baht Million) Cash Balance ($ million) 1,17
Slide 36: Statement of financial position ($ million)
Statement of financial position ($ million) 800 Liability Liability Assets & Equity Assets & Equity 700 23 34 600 500 430 476 400 607 638 300 28 200 33 246 100 194 74 0 31 31-Dec-22 31-Dec-22 31-Dec-21 31-Dec-21 Cash Vessels & Equipments Other Assets Loans Other Liabilities Shareholder's Equity Prec
Slide 37: Cash movement in 2022 ($ million)
Cash movement in 2022 ($ million) Precious Shipping PCL 37
Slide 38: Cash movement in Q4'2022 ($ million)
Cash movement in Q4’2022 ($ million) Precious Shipping PCL 38
Slide 39: Operating expense analysis ($/Day)
Operating expense analysis ($/Day) 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 2021 and 2022 were USD 5,090 and 4,895 respectively. Precious Shipping PCL 39
Slide 40: Operating expense analysis ($/Day)
Operating expense analysis ($/Day) 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 Q3’2022 and Q4’2022 were USD 5,061 and 4,815 respectively. Precious Shipping PCL 40
Slide 41: Operating expenses industry comparison ($/day)
Operating expenses industry comparison ($/day) OPEX Comparison with Industry compiled by BDO LLP OPEX excluding dry dock and special survey cost Industry OPEX for 2022 will be published in November 2023 6,000 5,238 5,152 5,020 4,892 4,903 4,969 5,000 4,529 4,442 4,086 4,036 4,142 4,181 4,095 4
Slide 42: Supramax/Ultramax sector peer analysis for Q3 2022
Supramax/Ultramax sector peer analysis for Q3 2022 For Q3 2022: PSL’s Supramax/Ultramax average daily OPEX* + G&A came in at $4,996 per vessel per day 7,975 8,000 7,351 1,409 7,000 1,256 6,000 5,383 4,996 4,925 5,000 567 638 1,161 4,000 6,566 3,000 6,095 4,816 4,358^ 2,000 3,764 1,000 - PSL Peer A
Slide 43: Debt maturity profile ($ million)
Debt maturity profile ($ million) 80 70 60 31 50 40 14 13 30 11 20 38 34 11 26 25 23 10 13 8 12 4 0 2022 2023 2024 2025 2026 2027 2028 2029 Loan repayment Balloon payment Prepayment Precious Shipping PCL 43
Slide 44: Net debt & net debt / equity ratio
Net debt & net debt / equity ratio 1.5 500 407 412 397 1.2 376 400 345 1.1 353 1.1 1.0 281 0.9 0.9 300 0.9 0.8 Ratio 234 0.7 193 0.6 172 200 163 0.5 0.4 0.4 0.3 0.3 100 0.0 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Year Net Debt (Million USD) Net Debt/Equity Ratio Precious Shipping PC
Slide 45: Average OPEX / TC rates
Average OPEX / TC rates Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Avg Age 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 10.3 11.0 45,000 42,812 44,050 43,621 36,187 40,0
Slide 46: Dividends
Dividends 2.1 2.0 420% 1.8 360% 350% 1.6 1.5 1.5 Dividends as % of EPS 1.5 1.5 300% 286% Dividends Baht 1.2 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 0.4 120% 0.4 70% 80% 80% 0.3 0.3 78% 0.3 0.3 0.3 56% 59% 61% 0.2 0.2 0.2 61% 56% 60% 42% 0.1 0.1 28% 25% 0.0 0% 2007* 2003 2004 2005 2
Slide 47: Financial highlights – Income statement
Financial highlights – Income statement Particulars 2022 2021 Q4-2022 Q3-2022 Q4-2021 Total Revenues - USD Million 260.45 272.09 46.52 68.80 84.47 Net Profit (loss) - USD Million 138.61 136.96 15.26 36.37 53.01 Gain (loss) on derivatives - USD Million (0.04) (2.09) 0.00 (0.02) 0.03 Exchange gain (lo
Slide 48: Financial profile
Financial profile 2022 2021 2020 2019 2018 2017 Cash & Cash Equivalents $30.5m $73.9m $36.6m $39.2m $56.8m $56.7m Total Assets $703.1m $704.1m $712.3m $831.1m $857.9m $882.3m Gross Debt $194.1m $245.9m $318.3m $391.7m $432.8m $469.4m Net Debt $163.6m $172.0m $281.7m $352.5m $376.0m $412.6m Equity $4
Slide 49: PSL ranked 10th in Marine Money's 2021 ranking
Marine Money International Ranking - Shipping PSL ranked 10th overall in Marine Money's 2021 ranking of financial performance among 83 shipping companies. Within the dry-bulk sector, PSL ranked 2nd among 22 companies. Source: Marine Money Precious Shipping PCL 49
Slide 50: PSL and ESG
PSL and ESG Precious Shipping PCL 50
Slide 51: PSL's ESG footprint
PSL’s ESG footprint 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 a reduction of CO2 emissions. The PSL fleet's average gm CO2/ton*nm has reduced from 12.
Slide 52: Investor Relations
Investor Relations Precious Shipping PCL 52
Slide 53: Investor relations activities
Investor relations activities 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 2022 are enumerated herein as under: Analyst Mee
Slide 54: Shareholder's returns
Shareholder’s returns Precious Shipping PCL 54
Slide 55: Total return to shareholders: 1993 to Feb 2023
Total return to shareholders: 1993 to 10 Feb 2023 640 635 635 75 496 512 520 500 480 458 480 60 423.2 440 351.2 320 45 Baht 239.2 160 149.2 135 30 72 60 25 6 67 90 112 35 22 16 16 4 6 9 6 8 0 0 51 61 82.2 15 -85 -10 -45 -70 -85 -81 -75 -85 -76 -80 -160 0 Inflow/Outflow Net Cash Position before sale
Slide 56: Final food for thought
Final food for thought Demand is expected to grow, over the next couple of years. PSL is a Thai Corporate, but we have zero business out of Thailand. The weaker the Thai Baht, the stronger our EPS in Thai Baht as all our income is in USD! We are a Thai stock that is unconnected with the Thai e
Slide 57: Thank You !
Thank You ! Precious Shipping Public Company Limited Website: www.preciousshipping.com | E-mail: [email protected], [email protected]
Precious Shipping Public Company — Q4 2022 Earnings Presentation on 6ix