Great Eastern Shipping Company Ltd

- The tanker market, especially crude tankers, is expected to strengthen in the second half of the financial year due to seasonal factors and inventory adjustments linked to OPEC and Saudi cuts. - Crude tanker rates have already risen significantly (e.g., Suezmax/Aframax rates increased from $25,000 to $55,000 per day in three weeks). - Product tankers (MR segment) are currently weaker but anticipated to strengthen seasonally in H2. - Dry bulk market shows moderate fleet growth (~3%), with normalization of congestion expected to influence capacity utilization positively. - The offshore business outlook is strong, though subject to risks like global economic downturns or unexpected shocks (e.g., COVID). - CAPEX for fleet expansion is cautious. Investment likely to be incremental, focused on fleet renewals, with dry bulk assets nearing attractive price points. - Overall, revenue/volume growth is expected from improving tanker markets and selective fleet additions, but no aggressive CAPEX expansion is planned.

- Market outlook for crude tankers is seasonally strong in the second half, with current rates rising significantly (e.g., Suezmax/Aframax from $25,000 to $55,000/day in 3 weeks). - Product tankers (MR) currently weaker but expected to strengthen due to seasonality. - Dry bulk sector nearing attractive asset price levels ($95-$100 million) for fleet additions, indicating cautious optimism on investment. - Offshore rig and vessel markets show robust demand with contract rates rising 12%-15%, indicating strong earnings potential. - Company adopting a cautious CAPEX approach; focus on fleet renewal and value investing rather than aggressive expansion or high leverage bets. - Emission regulations and technology evolution (2030 norms) under review; impact on costs and future earnings still uncertain. - Earnings growth driven by actual cash profits, fleet repricing, and market recovery; sustained dividend payout signals stable profitability.

- Order book as a percentage of fleet: - Crude tankers: 4% - Bulk carriers: 8% - Product tankers: 10% - Recent increase in order book primarily due to new ordering, not fleet reduction by scrapping. - No scrapping of crude tankers generally, though a few 25-year-old crude tankers have been scrapped recently. - Offshore supply vessels and rigs order book remains high, but many deliveries are delayed due to earlier lack of business. - New orders are primarily for rigs and vessels ordered years ago; no recent new orders in last 4-5 years. - Market tightness leading to strong demand and pricing, with limited new supply entering the market.

- There is no indication of plans for new fundraising through equity in the near term. - The company currently holds a significant cash reserve (over $600 million) and prefers a cautious CAPEX approach. - Intention is to refinance offshore debt repayments due next year rather than use existing cash reserves to repay. - No mention of aggressive leverage or large-scale debt raising; focus is on maintaining a strong, deleveraged balance sheet. - The company is cautious about large investments or CAPEX amid high asset prices and market uncertainties; prefers incremental investments. - Overall, the strategy is to avoid outsized bets or large-scale funding through debt or equity in the current cycle.

- The company has completed one small transaction recently (an MR tanker purchase), viewed as incremental rather than a large CAPEX. - They are cautious about making large CAPEX commitments at current high asset prices, preferring to wait for further price drops. - Dry bulk market asset prices are closer to levels acceptable for investment compared to high tanker asset prices, so incremental investment in dry bulk is possible. - Future CAPEX will focus more on fleet renewal rather than expansion, given the current market conditions. - The company is monitoring evolving technologies related to 2030 emission norms but expects any large CAPEX cycle triggered by new technologies to take 3-5 years to materialize. - They emphasize value investing over momentum and avoid outsized bets in high markets.