precious shipping public company limited · 2015-04-07 · precious shipping pcl corporate...

Precious Shipping PCL 1

CSR Awards 2014

27th August 2014Website: http://www.preciousshipping.com

E-Mail: [email protected]

[email protected]

PRECIOUS SHIPPING PUBLIC CO., LTD.

(“PSL”)

Precious Shipping PCL

COMPANY’S BRIEF PROFILE

Symbol: PSL

Founded: Dec 1989

Listed: Sep 1993

Authorized Capital: THB 1,039,520,600.00 (fully paid up)

Par Value: THB 1/share

Sector: Transportation & Logistics

Business: Shipowner (Dry Bulk Carrier) & Holding Company

Operations Area: International

Fleet size (as of 31 Jul 14): 43 ships of 1,503,940 DWT of 9.67 avg. years

Employees (as of 31 Jul 14): 1,276 persons (officers & crew members)

Shareholders (as of 31 Jul 14): 5,677 persons

Total Revenues (F/S end 30 Jun 14): THB 2,268.92 million

Net Profit (F/S end 30 Jun 14): THB 86.86 million

EPS (F/S end 30 Jun 14): THB 0.08

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PSL’S VESSELS TRADING AREAS

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MISSION STATEMENT & CORE VALUES

CORE VALUESWe will manage all our business affairs in accordance with the highest

principles of Good Governance. As a part of Good Governance, we have

outlined our Corporate Governance Policy which will be strictly followed

without any compromise.

We will provide efficient, reliable and professional service to all our customers.

We will comply with all rules and regulations and follow the highest safety

standards in operating our ships with a view to eliminating or at least

minimising human injury, loss of life and environmental damage.

We will strive to create, preserve and enhance long term value for our

shareholders.

We will carry out the Company's affairs in a transparent, honest and faithful

manner in the best interests of all stakeholders.

We will provide a stimulating and rewarding working environment for all our

employees with opportunities for self-development and growth.

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MISSION STATEMENT“To be the most respected Shipping Company in the world, providing

best services and solutions to facilitate International dry-bulk trade”


OUR CSR & SUSTAINABILITY

The Company is committed to conducting business under Good

Corporate Governance principles; doing business ethically and striving

for the betterment of the society and the environment.

The Company acknowledges that its unique character, of having all its

ships trade all over the world flying the Royal Thai Flag, obliges it to act

as the country’s ambassador to the world and the Company takes this

responsibility very seriously.

The Company places highest priority on Corporate Social Responsibility

(CSR) and has built it into the Company’s Mission Statement and Core

Values.

The Company allocates a budget of 0.50% of net profit every year

towards CSR activities. This budget is cumulative and is subject to a

minimum of Baht 1.75 million and a maximum of Baht 25 million per year.

The actual disbursements out of this budget are decided by the

Company’s senior management, which is periodically or at least once a

year reported to the Board of Directors.

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OUR STAKEHOLDERS

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Our Stakeholders

Shareholders

Customers

Employees

Community &

Society

Regulators

Brokers

Suppliers

Creditors


Economic Environment

Social

Fleet Rejuvenation

Growth

Compliance with Regulations & Conventions

Use of New Technology & Innovations

Protection & Conservation

of the Environment

Customer Relationship Management

Our Employees

Community & Society

PSL

OUR SUSTAINABILITY

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CORPORATE GOVERNANCE

Classified as one of the listed companies with “Excellent” Corporate

Governance conducted by IOD & National CG Committee for all four

consecutive years; 2010, 2011, 2012 and 2013.

Also, for the years 2012 - 2013, PSL has been ranked as one of listed

companies in the “Top Quartile” which means the best in CG among listed

companies with the market cap over THB 10,000 million.

Classified as one of the top 50 publicly listed Companies in Thailand from

ASEAN Corporate Governance Scorecard guidelines for 2013/2014.

“The Company is committed to conducting business under Good Corporate

Governance principles; doing business ethically and striving for the betterment of

society and the environment.”

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Economic Performance

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PSL’s Strategy for 2014/2015 - expand fleet, fix

ships on long term charters, sell older ships at a

profit.

FLEET REJUVENATION

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PSL Fleet

As of 31st Dec 2010 31st Dec 2011 31st Dec 2012 31st Dec 2013 30th Jun 2014 16th Jul 2014Expected

June 2016

Number of

Vessels 21 25 36 40 41 43 48

Average Age

(Simple Avg) 15.43 years 14.20 years 11.36 years 11.35 years 10.15 years 9.67 years 3.56

Insured

Value

USD 327.50

Million

USD 329.50

Million

USD 522.00

Million

USD 596.30

Million

USD 667.50

Million

USD 725.50

Million

Book ValueUSD 205.37

Million

USD 296.69

Million

USD 528.29

Million

USD 568.17

Million

USD 602.69

Million

USD 657.49

Million

Total DWT 522,925 704,258 1,156,109 1,351,583 1,376,956 1,503,940 2,312,500

Total LDT 117,978 157,146 261,343 305,169 314,622 338,041

Average

DWT

per Vessel

24,901 28,170 32,114 33,790 33,584 34,975 48,177

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PSL’s asset transition from 40 ships in 2013

to 48 young, economical, efficient ships in 2016

Source : CRS/Aries

•2 Cement ships still to arrive in 2014.

•13X64K + 4X38K brand new ships will arrive in 2015.

• up to 21older/non-economical existing ships will be sold in the second half of 2015.

•5X64K + 2X38K brand new ships will arrive in 2016.

43 ships plus 26 brand new ships less up to 21older/non-eco ships equals 48 young, eco, efficient ships.

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ECONOMIC PERFORMANCE

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FINANCIAL PROFILE

H1-2014 2013 2012 2011 2005

Funded Debt $307.15m $282.59m $296.00m $221.71m $80.00m

Equity $472.29m $476.36m $472.85m $484.57m $286.84m

Funded Debt/Equity 0.65 0.59 0.63 0.46 0.28

EBITDA $50.95m $59.30m $40.60m $51.95m $202.34m

Debt*/EBITDA** 6.03 4.77 6.19 2.48 0.40

Daily Earnings $8,972 $7,508 $8,221 $11,265 $14,449

Daily O pex $4,703 $4,535 $4,481 $4,613 $3,055

Total Assets $797.12m $777.41m $784.47m $722.39m $379.98m

Net Profit (Loss) $2.65m $17.49m $4.45m $23.64m $154.22m

Total Revenues $69.53m $156.72m $123.24m $112.19m $277.09m

*Excludes Pre-delivery debt ** H1-2014 Numbers are annualised where necessary

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Operating Expenses Comparison

OPEX Comparison with Industry compiled by Moore Stephens & Co.

OPEX excluding dry dock and special survey cost

-

1,000

2,000

3,000

4,000

5,000

6,000

Industry PSL Industry PSL Industry PSL Industry PSL Industry PSL PSL

2008 2009 2010 2011 2012 2013

5,139

3,785

5,115

4,011

5,278

3,850

5,342

3,923

5,271

3,939 4,013

US

$ (

Pe

r D

ay)

Total Operating Costs

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Environmental Performance

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COMPLIANCE WITH REGULATIONS & CONVENTIONS

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In order to have the Company’s ships sailing in international waters,

the Company is legally required to be fully compliant with various

rules and regulations.


Four pillars of the international maritime industries regulatory frame work:

1) Safety of Life at Sea (SOLAS);

2) Maritime Regulations for Prevention of Pollution (MARPOL) deal with various types of

pollution:

a. Regulations for the Prevention of Pollution by Oil.

b. Regulations for the Control of Pollution by Noxious liquid substances in bulk.

c. Regulations for the Prevention of Pollution by harmful substances carried by sea in

packed forms, or in freight containers, portable tanks or road and rail tank wagons.

d. Regulations for the Prevention of Pollution by Sewage from ships.

e. Regulations for the Prevention of Pollution by Garbage from ships.

f. Regulations for the Prevention of Pollution by Air from ships.

3) Standards for Training Certification and Watchkeeping (STCW);

4) Maritime Labour Convention (ILO MLC 2006). This new convention takes care of employees

benefits and comforts under the 5 titles below:

Title 1: Minimum requirements for seafarers to work on a ship.

Title 2: Conditions of employment.

Title 3: Accommodation, recreational facilities, food and catering.

Title 4: Health protection, medical care, welfare and social security protection.

Title 5: Compliance and enforcement - on board complaint procedures.



Two other important regulatory requirements applicable to ship operations are:

International Safety Management Code (ISM Code) and,

International Ship and Port facility Security (ISPS) Code

International Safety Management Code (ISM Code): Learning from

various marine casualties over the years, “International Safety Management

Code” (ISM Code) was introduced by the International Maritime Organization, to

enhance the safe operation of ships and pollution prevention. The ISM Code

became mandatory on 1st July, 1998, for passenger ships including passenger

high-speed crafts, oil tankers, chemical tankers, gas carriers, bulk carriers and

cargo high-speed crafts of 500 gt and upwards, but the Company implemented

this in 1995 itself after obtaining due certification.

The Code is implemented on board the vessels and offices ashore in order to

provide an international standard for the following objectives:

1. Ensure safety at sea

2. Prevent human injury or loss of life

3. Avoid damage to the environment



International Ship and Port facility Security (ISPS) Code:

International Ship and Port Safety: ISPS Code, The code is an amendment to

the Safety of Life At Sea (SOLAS) Convention that encompasses a greater level

of security arrangements for ships and ports.

In implementing the ISPS Code the Company has developed standard operating

procedures for vessels entering ports prone to drug smuggling, and

stowaways. This includes employing sniffer dogs and armed guards where

appropriate.

Annual internal reviews are conducted on preventative measures including the

performance of the companies providing the sniffer dogs and guards.

Annual internal audits are conducted on board by a dedicated team of qualified

and experienced ship auditors reporting directly to the Managing Director.

All incidents of non-compliances, accidents and near misses are thoroughly

investigated and analyzed, after which procedures are reviewed immediately.



Some of the other regulatory enactments are:

International Convention for the Control and Management of Ships’

Ballast Water and Sediments, 2004.

International Convention on the Control of Harmful Anti-Fouling

Systems, 2001.

International Convention on Civil Liability for Bunker Oil Pollution

Damage, 2001.

International Maritime Dangerous Goods Code.

International Maritime Solid Bulk Cargo Code

National, Regional and Local regulations are more stringent than the

international requirements, like US environment protection acts,

European Union air pollution directives, etcetera.



ON A VOLUNTORY BASIS ALL COMPANY VESSELS TAKE PART IN

SEARCH AND RESCUE PROGRAMS WORLD WIDE

“Automated Mutual assistance Vessel Rescue System” (AMVER) : Sponsored by

the United States Coast Guard (“USCG”), AMVER is a unique, computer-based, and

voluntary global ship reporting system used worldwide by search and rescue

authorities to arrange for assistance to persons in distress at sea. The Company

continues to be involved in the AMVER program and its good performance is

recognized by the USCG in the form of AMVER awards given to the Company every

year through their representative at the United States Embassy in Bangkok. A

quote from the USCG citation letter would perhaps reflect what this award is all

about: “…you can take pride in the voluntary commitment of your officers and

crew to the safety of life at sea.”



The Company targets to have

ZERO ISM, ISPS & MARPOL violations in 2014.



USE OF NEW TECHNOLOGY & INNOVATIONS

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The Company has acquired larger ships, of 54,000 – 64,000 DWT; these ships can

carry almost twice the amount of cargo, i.e. 100% more, compared to smaller

ships in the fleet.

However, more importantly, the larger ships burn just about 40-45% more fuel

than the smaller ships per day of sailing. On this basis, the fuel burnt per unit

load of cargo reduces drastically and this is yet another example of the

Company’s efforts towards sustainability and to reduce the carbon footprint.

A few significant developments in respect of new ship-design and construction

are outlined below. As far as practically possible, the Company will take these

into consideration while acquiring new ships in the future.

• Eco-friendly ships

• Ballast Water Treatment

• Carbon Footprint and Waste Generation

• Maintain Inventory of Hazardous Material (Ship Recycling convention)


PROTECTION & CONSERVATION OF ENVIRONMENT

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The Company has established an “Environment Protection Policy” In addition to

minimum requirements based on international conventions and regulations.

ISO 14001:2004 provides a framework for a holistic, strategic approach to the

Company’s environmental policy, plans and actions, and demonstrates that

the Company is an environmentally responsible organization.

The Company implements an Environment Management System (EMS)

complying with the ISO 14001 standards.

The EMS supplements the Quality Management System, meeting ISO 9001

standard, and the ISM code. This integrated Management System is known

as Safety Quality and Environment Management System (SQEMS).

Through periodic review and continual improvement of our SQEMS, the

Company hopes to elevate environmental performance over the coming years

and make significant contribution to conservation of the environment and

reducing the Company’s carbon footprint. Another tangible effort being made by

the Company to reduce the environmental impact of the business is the

adoption of new environment friendly technology on new ships acquired.


COMMITMENT FROM TOP MANAGEMENT

With ocean sustainability issues increasing & affecting future of

shipping, shipping industries should demonstrate “CORPORATE OCEAN

RESPONSIBILITY”

Our industry being of a global nature we need to preserve the Oceans.

We conduct periodic reviews to improve our SQEMS and the Company

hopes to elevate environmental performance over the coming years and

make significant contribution to conservation of the environment and

reducing the Company’s carbon footprint.

Another tangible effort being made by the Company to reduce the

environmental impact of the business is the adoption of new

environment friendly technology on new ships acquired.

Each member of the Crew is trained to stress on the importance of

adopting best practices for conservation of the environment



COMMITMENT FROM TOP MANAGEMENT

Environmental Management System (EMS) based on ISO 14001:2004

standard was developed and integrated into the existing Quality

Management System (QMS) based on ISO 9001 standard.

The new system is now being called Safety Quality and Environment

Management System (SQEMS).

After successful completion of Company audit and Shipboard audit, we

were awarded compliance certificate for ISO 14001:2004 in December

2009.



Our Achievements & Environmental performance

Reduced fuel consumption

Reduced Environmental incidents

/complaints

Increased sludge disposal ashore

Reduced garbage and plastics

generated

Reduced Electricity consumption

Reduced Paper consumption



Saving of fuel is achieved by implementing company and vessel

specific Ship Energy Efficiency Management Plan (SEEMP) on all

vessels:

Improved voyage planning with reduced Minimize ballast passage

Weather routing

Speed Optimization

Optimized ship handling by Trim, Ballast

Hull Maintenance

Use of improved Hull coatings like the Silicon based fouling

release which does not release biocides like other anti fouling

paints.

Improved cargo handling

Good Engine Maintenance





Minimum incineration of Waste oil and Oil Sludge. Disposal ashore

has been encouraged on our vessels where ever suitable reception

facilities are available.

Data collected from the last year (2013) show that our vessels have

disposed to shore facilities 1,247 Tons of sludge (1,247,000 Liters)

That amounts to 3,741 tons of carbon dioxide NOT being emitted into

the atmosphere!

Empirical research suggests that every liter of oil burnt generates

approximately 3 kg of CO2. Waste oil or sludge generated on each

ship is about 1% of all fuel burnt.

Over the past 4 years since implementation of the environmental

objectives, CO2 emission due to oil sludge was reduced by 40% per

vessel per year.

Vessels are also encouraged to Minimize Garbage generated and

maximize disposal of Garbage ashore.




Engine Efficiency Operational

Indicator (EEOI): An index of

the amount of Carbon dioxide

produced for every Ton-Mile of

cargo carried is being

implemented through a

software to enable measure our

carbon foot print.



CONCLUSION

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Conclusion and Environmental Objectives and Goals

“We have had no major contingency situations

causing significant environmental damage.”

The Future Possibilities:

Use of Greener fuel like

Natural gas, Use of Fuel cells

& Sail assisted ships.


Social Performance

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CUSTOMER RELATIONSHIP MANAGEMENT

The Company recognizes that it is in the sea transportation industry and its

success depends on adding value to customers by way of transporting

goods from place of production to the place of consumption

The Company is committed to provide substantive reply to any query from a

Customer promptly, but in any event within 24 hours including weekends and

national/international holidays.

Further, whilst operating within the scope of the agreed contract, the Company

tries to provide solutions to any situation/problem the Customer may face,

even if any of our vessels are not involved at that moment.

New computer-based Management Information System: The Company has

implemented a new Computer Program which covers all the operations at the

Company and also links all the vessels in the fleet. This software gives real-

time information on vessel operations, costs, etc. and keeps the Company in

close contact with the Master of each and every vessel; and assists in effective

decision making on all issues. This System has enhanced the Company’s

ability to better serve its Customers, and to provide support to its employees

serving onboard the ships.

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OUR EMPLOYEES

• Employee Recruitment

• Training & Development

• Employees Benefits & Welfare

• Safety & Occupational Health

• Implementation of ILO Maritime Labour Convention

(MLC 2006)

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Employee Recruitment:

The Company recognizes that employees are one more key success factor

for the Company’s operations. The Company provides equal opportunities

in employment, job security, and career advancement, as well as adhering

to other good principles related to employees and employment.

The Company also ensures that employees are adequately

knowledgeable and skillful to perform their jobs for the Company’s

business, and understand relevant code of conduct and practice and

are encouraged to gain knowledge and ability and keep them updated

following Industry trends.

OUR EMPLOYEES

36


OUR EMPLOYEES

Training & Development:

It is the Company’s policy to encourage and support competent and efficient

seafarers and give them the opportunity to grow within the Organization.

The Company is introducing a mechanism whereby the officers and crew

serving onboard our ships can send in their complaints and/or suggestions to

the office. This, we expect will encourage the ship-staff to make effective

contribution to the shipboard operations, and help us further improve the

Company’s performance.

In order to motivate the junior officers and also keep up with the process of

learning while on board, senior officers are asked to actively interact with them.

In order to measure their levels of competency, computer based competency test

facility is provided on board. Based on the results of these tests, officers are

able to determine their weaknesses and work to improve upon on weak areas.

Maritime Training Center & Bridge Navigation Simulator : The Company has set

up a full-fledged Maritime Training Center at its Head Office in Bangkok which

includes a state-of-the-art Bridge Navigation Simulator.

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OUR EMPLOYEES

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Our Training Center

Bridge Navigation Simulator


Employee Benefits & Welfare:

Provide provident fund on a voluntary basis

Provide health insurance for all staff

Provide the medical checkup for crews

Provide medical care for any sickness or injury to all crews

Provide provision of recreational facilities and communication

services, such as television and radio facilities, films, gym,

library, telephone and internet services among others

Internet access & e-mail are offered, crews can send emails to

their families and friends

OUR EMPLOYEES

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Facilities on board:

OUR EMPLOYEES

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Facilities on board:

OUR EMPLOYEES

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OUR EMPLOYEES

Safety & Occupational Health:

It is the Company’s policy to conduct its activities in a manner that

promotes the health and safety of its employees so that the actions of the

Company, and its employees, promote the health and safety of others

too.

The Company’s Safety Management System (SMS) is intended to affirm

that the Company achieves its purpose in this area and is based on the

philosophy that accidents can be prevented by the identification and

management of risk

The Company’s medical fitness requirements are higher than the

standards set by International Labour Organization (ILO) and other

regulatory bodies. As a result, the Company finds very few cases of

fitness or sickness related problems amongst its seafarers.

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Safety on board:

OUR EMPLOYEES

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OUR EMPLOYEES

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Blood Donation Award:


SOCIAL & COMMUNITY DEVELOPMENT

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The Company recognizes that a solid community and society is a

significant factor to support the Company’s business.

The Company fully recognizes its responsibility to the Community and is

attentive to the consequences of the Company’s conduct that affect the

people around more than what the laws require, including making efforts

to gradually absorb social accountability.

The creation and expansion of the Company’s CSR Fund will provide a

permanent and formal framework to enhance the Company’s CSR

activities.

The Company employs most of the cadets passing out from the Merchant

Marine Training Center, Thailand and thus contributes to the

development of qualified Thai officers. This pool of officers is available to

any/all Thai ship-owners and not just restricted to the Company.

NASIC Dormitory project, scholarship, periodic blood donation drive


Thank You!

A

PRECIOUS SHIPPING

PRESENTATION

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precious shipping public company limited · 2015-04-07 · precious shipping pcl corporate...

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