Freight Forward

April 12, 2013 Sector

Underweight

Shipping Monthly Report April 2013

6M 2 8 19 -23 177 14 1Yr. -19 8 -3 -12 12 -8 Change (%)

Freight Index Movement March 2013

Asset Class Dirty Tanker Index Clean Tanker Index Baltic Dry Index Capesize Index Panamax Index Supramax Index Current 661 691 910 1,249 1,176 944 1M -5 0 20 0 19 24

The Baltic Dry Index (BDI) gained significantly by 20% (on a lower base) post Chinese New Year holidays to 910. However, rates are expected to remain weak due to poor offtake in cargo. The Baltic Capesize Index remained flattish for the month but the average index declined~9% on an MoM basis. Smaller size vessel indices showed vigour with Baltic Panamax, Supramax and Handymax index gaining 18.8%, 23.6% and 25.5%, respectively The Clean Tanker Index (BCTI) remained flattish on an MoM basis at around 691. However, the Dirty Tanker Index (BDTI) declined ~5.2% in March 2013. VLCC charter rates (TCY) turned positive albeit at a significantly lower level of 357. Suezmax and Aframax levels also convalesced to 6472 and 9422 levels, up 43% and 19%, respectively, on an MoM basis LPG rates remained flattish for smaller segment vessels (up to MGC-TC 35000 cbm) but VLGC rates softened up to 2% MoM. LGC segment vessel rates firmed up ~1% MoM Utilisation levels for the offshore segment remained under pressure with drillship utilisation declining 2%, semi-sub 1% and jack-up remaining flattish

Freight Rates March 2013 VLCC Suezmax Aframax Capesize

Panamax

Supramax

Handysize

Analysts name
Bharat Chhoda bharat.chhoda@icicisecurities.com Soumojeet Kr Banerjee soumojeet.banerjee@icicisecurities.com

Outlook Dry bulkers The dry bulk segment continued to reel under pressure amid poor off-take of iron-ore from China. As iron-ore prices remain relatively high, steel mills in China remain deterrent to restocking putting further pressure on cargo demand. Chinese imports from top four major importers continue to decline dashing hopes of revival anytime soon. Large vessel charter rates persistently remain under pressure. However, the smaller segment continues to do well due to grain cargo from Brazil. In the near term, smaller vessel segment charter rates are expected to remain range bound whereas larger vessel rates will continue to remain stressed. On the capacity supply front, we see unprecedented capacity addition in the dry bulk segment to the tune of 6.3 million dwt or 29 Capesize over the past month for 2015 delivery, taking the total order book for dry bulk to 99 million dwt for 2015. This is expected to dash any hope of revival in the dry bulk segment post 2015 if the cargo demand remains muted. Tanker VLCC charter rates revived post plummeting in February 2013. The recovery was muted on the back of exacerbating demand from the US and lower production from Middle Eastern companies. However, Suezmax and Aframax rates held steady due to stable demand from Mediterranean and Caribbean region. LPG carriers VLGC rates snapped their gain and softened ~2% whereas the LGC segment gained ~1% MoM. However, lower segment vessels rates remained flattish. LPG carrier rates are expected to remain range bound in the near term. Offshore vessels Drill-ship utilisation in the offshore vessels segment declined 200 bps to 89% whereas Jack-up and semi-sub rates remained flattish at 86% and 91%, respectively. Charter rates in the segment are expected to remain flattish in the short to medium term.

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Category wise average tanker freight rates

40 35 30 25 20 15 10 5 VLCC Suezmax Aframax

26.7

23.3 15.9

The VLCC TCY rates recovered marginally in March 2013. VLCC demand was muted due to a decline in tonnage-mile demand on account of maintenance in US refineries and pick-up in domestic production. China is expected to ramp up its refining capacity and is anticipated to be a prime mover for crude demand in future. However, in the short-term, the VLCC segment is expected to be in pain. Smaller vessels demand and supply are well poised and rates are expected to be range bound. On the capacity front, 3 million dwt was added to the global fleet in March 2013 taking the total order-book to 46.6 million dwt. Scrapping in the segment remained slightly muted with ~0.6 million tonnes (MT) going for scrapping in March 2013. Softening of crude demand coupled with fairly strong addition of capacity acts as a double whammy for the segment culling scope for any significant rate hike in the near term. Exhibit 1: Tankers TCY (US$ per day)
Asset class Nov-12 VLCC 11276 Suezmax 5600 Aframax 8927 Source: Bloomberg, ICICIdirect.com Research Dec-12 11630 5733 7457 Jan-13 5199 8678 9200 Feb-13 -1525 4518 7925 Mar-13 357 6472 9422

US$/day Thousands

Eight year average

Exhibit 2: LPG T/C (US$ per day)

Feb-13
LPG carrier rates for the segment VLGC declined ~2% on an MoM basis. However, LGC (57000 cbm) segment gained ~1% in March 2013. Other vessel categories rates remained flattish on an MoM basis

Mar-13 Daily 27,796 29,770 26,480 20,066 20,066 27,632 Monthly 830,000 915,000 800,000 610,000 610,000 840,000 Daily 27,303 30,099 26,316 20,066 20,066 27,632

Asset class VLGC-TC 78,000 cbm LGC-TC 57,000 cbm MGC-TC 35,000 cbm MGC-TC 30,000 cbm MGC- TC 28,000 cbm MGC- TC 24,000 cbm Source: Bloomberg, ICICIdirect.com Research

Monthly 845,000 905,000 805,000 610,000 610,000 840,000

Exhibit 3: China's monthly iron ore inventory

111 91 mln tonnes 71 50 30 Sep-10 Sep-11 Mar-10 Mar-11 Mar-12 Sep-12 Mar-13

Iron ore inventory in China continued its decline remaining below the critical level of 70 MT for three straight months. With iron ore price at around $136/tonne, steel plants are keeping away from restocking. Consequently, cargo offtake is muted putting pressure on charter rates

Source: Bloomberg, ICICIdirect.com Research

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Exhibit 4: Asia Pacific Iron Ore Index

The Asia Pacific Iron Ore Index declined 8% on an MoM basis due to continued muted activity in the month

600 500 400 Index 300 200 100 0 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13

Source: Bloomberg, ICICIdirect.com Research

Chinese import of iron-ore from four major importers declined 14% on an MoM basis During the month, Australia saw the highest decline in terms of absolute volume, followed by South Africa. Total Chinese imports from major importers remained at 56.4 MT against 65.5 MT a month ago

Exhibit 5: China iron ore import trend analysis

40 35 30 mln tonnes 25 20 15 10 5 0 Oct-10 Oct-11 Jun-11 Jun-12 Oct-12 Feb-11 Feb-12 Feb-13

Australia

Brazil

India

S. Africa

Source: Bloomberg, ICICIdirect.com Research

Chinese monthly steel output declined ~3% MoM on the back of a slump in global demand

Exhibit 6: Chinas monthly steel production

60 50 mln tonnes 40 30 20 10 0 Feb-10 Aug-10 Feb-11 Aug-11 Feb-12 Aug-12 Feb-13

Source: Bloomberg, ICICIdirect.com Research

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Both the World Coal Index and Asia Pacific Coal Index declined 6.2% and 7%, respectively, on an MoM basis

Exhibit 7: Coal Index

1400 1200 1000 Index 800 600 400 200 0 Mar-11 Sep-11 BWCOAL Index Mar-12 Sep-12 Mar-13

BPRCOAL Index

Source: Bloomberg, ICICIdirect.com Research

Rising from a low base, all three indices BDI, BCI and BPI showed a rebound in their segment on a week-on-week basis. The rates improved on an average by 6% on a WoW basis for BDI and BPI.

Exhibit 8: Weekly dry bulk indices movement

2000 1700 1400 1100 800 500 7-Mar-13 Baltic Dry Index 14-Mar-13 21-Mar-13 28-Mar-13 Baltic Panamax Index

Index

Baltic Capesize Index

Source: Bloomberg, ICICIdirect.com Research

BDI rates recovered in March 2013 to 910 levels post recovery from New Year holidays. However, the demand situation still remains muted capping significant upsides The Capesize index continues to sink down ~9% MoM in March 2013 The Baltic Panamax Index (BPI) rates firmed up further by ~ 19% on a MoM basis The Supramax index improved 23.6% MoM whereas Handymax rates firmed up by ~25.5% on an MoM basis

Exhibit 9: Dry bulk indices

8000 6000 Index 4000 2000 0

In the dry bulk segment, around 106 million dwt was added in CY12 and approximately 62 million dwt is expected to join the world fleet in the rest of CY13. As significant tonnage addition is expected in the forthcoming months, rates are expected to remain subdued

Mar-09

Mar-10

Mar-11

Mar-12

BDI

BCI

BPI

Source: Bloomberg, ICICIdirect.com Research

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Mar-13

Sep-09

Sep-10

Sep-11

Sep-12

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Average crude price for March 2013 stood at $109.2 against an average price of $116.5/barrel in February 2013. Crude prices on an average declined ~6% for the month

Exhibit 10: International crude oil prices

140 120 100 $/barrel 80 60 40 20 0 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13

Source: Bloomberg, ICICIdirect.com Research

The Baltic Clean Tanker Index remained flattish whereas the Baltic Dirty Tanker Index declined by 5.2% on MoM basis

Exhibit 11: Baltic clean and dirty tanker index

1400 1200 1000 Index 800 600 400 200 Sep-10 Sep-11 Mar-10 Mar-11 Mar-12 Sep-12

Average VLCC TCY rates recovered marginally to 357 levels in March 2013. However, Suezmax and Aframax rates recovered significantly by ~43% and 19%, respectively, for March 2013

Baltic clean tanker index

Baltic dirty tanker index

Source: Bloomberg, ICICIdirect.com Research

Tanker rates trend -Yearly average

70 60 50 40 30 20 10 CY05 CY06 CY07 CY08 CY09 CY10 CY11 CY12 CY13

Exhibit 12: Tanker rates trend

45000 30000 15000 0 Mar-11 -15000 Sep-11 Mar-12 Sep-12 Mar-13

Thousands

US$/day

VLCC Aframax

Suezmax

US$/day

VLCC

Suezmax

Aframax

Source: Bloomberg, ICICIdirect.com Research

Average TCY rates in the tanker segment on a YTD basis remain high compared to the corresponding period in the previous year. However, the average TCY rate is still significantly lower than their historical highs

Source: Bloomberg, ICICIdirect.com Research

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Mar-13

Utilisation levels for drill ships declined 2% to 89% whereas semi-subs and jack-ups remained mostly flattish at 91% and 86%, respectively, in March 2013 Utilisation levels for drill ships, semi-sub and jack-up remained flattish post their ramp up in January 2013. However, average utilisation level for drill ship, semi-subs and Jack-up remains around 91%, 91% & 86%, respectively, for YTD CY13 Higher average utilisation of vessels in the offshore segment provides stability to rates in this segment

Exhibit 13: Offshore vessel utilisation levels

100 90 80 70 60 50 40 30 20 10 0 90 90 87 89 90 85 90 90 86 89 89 85 91 92 89 91 86

86

Nov-12

Oct-12

Jan-13

Feb-13

CY11 Drillship Semisub Jack up 80 86 80

CY12 87 88 84

CY13 91 91 86

Drillship

Semisub

Jack up

Source: Bloomberg, ICICIdirect.com Research

Exhibit 14: BPR Asia Pacific Shipbuilding Index

1000
The Shipbuilding index declined significantly by 7.5% MoM. The Chinese government in an attempt to boost the segment has released a slew of measures to revive the sector right from liberal credit facility to extending incentive for scrapping

800 600 400 200 0

Index

Sep-10

Sep-11

Mar-10

Mar-11

Mar-12

Sep-12

Source: Bloomberg, ICICIdirect.com Research

Exhibit 15: Global order book size

To be delivered in 2013 Category wise order book Tankers VLCC Suezmax Aframax Smaller Total Dry Bulk Capesize Post panamax Panamax/Kamsarmax Handy/Supramax handysize 187 52 359 289 312 38.7 5.1 28.5 16.2 10.5 110 39 232 189 174 744 23 4 18 11 6 62 41 10 101 86 95 333 9 1 8 5 3 25.7 36 3 26 14 43 122 7 0 2 1 2 12 60 67 35 303 465 19 9.9 3.9 13.8 46.6 33 35 12 130 210 11 5 1 5 23 22 11 23 112 168 7 2 3 5 16.5 5 21 0 61 87 2 3 0 3 8 No of vessels dwt (Mln) No of vessels dwt (Mln) 2014 2015

No of No of vessels dwt (Mln) vessels dwt (Mln)

Total 1199 99.0 Source: RS Platou, Bloomberg, ICICIdirect.com Research

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Mar-13

Page 6

Mar-13

Dec-12

Average utilisation levels (%)

% utilisation

Exhibit 16: Order book & deliveries

500 450 400 350 300 250 200 150 100 50 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013#

Total Deliveries (Tankers & Drybulk) Total Orderbook (Tankers & Drybulk)

Total Neworders (Tankers & Drybulk)

Source: RS Platou, ICICIdirect.com Research

The table shows the rise in total deliveries vis--vis decline in new orders and depletion of pending order book Column B shows the trend of new orders during 2001-11. Average new orders during 2001-05 were ~52 million dwt, which got ramped up significantly to 159 million dwt over 2006-08 Column A displays the trend of total deliveries over 200111. The average delivery during 2001-06 in the tanker and dry bulk segment was 43 million dwt, which increased significantly to 97 million dwt in 2007-11 due to the enormous ordering that was done over 2006-08 (dotted box) However, subsequently with the global economic slump in late 2008 and consequent decline in demand and day charter rates, fresh enquiries and ordering declined considerably. The shipbuilding industry is currently battling dual issues of drying order book and delay/cancellations of pending orders On the deliveries front; 141 million dwt has been added to the world fleet in CY12 with dry bulk absorbing 106 million dwt and tankers 35 million dwt. For the rest of CY13, ~85 million dwt is expected to join the global fleet. Of this, dry bulk is expected to add 62 million dwt and tanker 23 million dwt. For March 2013, 6.3 million dwt in the dry bulk segment and 3 million dwt in the tanker segment have been added to the world fleet Cumulative new order to the tune of 12 million dwt was recorded in tankers and dry bulk till February 2013 with break-up of 6 million dwt in dry bulk and 6 million dwt in tanker Total pending order book (till CY15) is still strong with ~146 million dwt yet to be delivered. The order book break up at the end of February 2013 stands at 99.0 million dwt for dry bulk carriers and 46.6 million dwt for tankers

Years 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Total Deliveries (Tankers & Drybulk) 34 37 42 46 52 51 60 69 96 121 141 141

Total Neworders (Tankers & Drybulk) 36 41 77 65 42 120 214 142 45 124 38 31

Total Orderbook (Tankers & Drybulk) 83 75 86 124 144 141 219 383 469 403 370 149 146

2013# 28 12 Deliveries, new orders & order book in million dwt # YTD Source: RS Platou, ICICIdirect.com Research

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Exhibit 17: GE Shipping price movement

500 400 300 | 200 100 0 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 BDI Sep-12 GE Shipping

10000 8000 Index

2500 2000 Index 1500 1000 500 0 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13 GE Shipping Dirty Tanker Index

6000 4000 2000 0 Mar-13

Source: Bloomberg, ICICIdirect.com Research

500.00 400.00 300.00 | 200.00 100.00 0.00 Mar-10

Source: Bloomberg, ICICIdirect.com Research

Exhibit 18: Mercator Ltd price movement

120 100 80 60 40 20 0 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Mercator Lines BDI |

10000 8000 Index 6000 4000 2000 0 Sep-12 Mar-13

Source: Bloomberg, ICICIdirect.com Research

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120 100 80 60 40 20 0 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mercator Lines Dirty Tanker Index |

2,500 2,000 Index Index 1,500 1,000 500 0 Mar-13

Source: Bloomberg, ICICIdirect.com Research

Exhibit 19: Shipping Corporation of India price movement

250 200 150 | 100 50 0 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 SCI BDI

10000 8000 Index 6000 4000 2000 0 Sep-12 Mar-13

Source: Bloomberg, ICICIdirect.com Research

250 200 150 | 100 50 0 Mar-10 Sep-10 Mar-11 SCI Sep-11 Mar-12 Sep-12 Dirty Tanker Index

2500 2000 1500 1000 500 0 Mar-13

Source: Bloomberg, ICICIdirect.com Research

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Exhibit 20: Aban Offshore price movement

150 1800 1500 1200 | 900 600 300 0 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 30 0 Mar-13 120 $ per day $ per day
800 700 600 500 400 ` 300 200 100 0 Sep-11 Mar-12 Sep-12 Shipbuilding Index Mar-13 Index

90 60

Aban Offshore

Crude Oil Prices

Source: Bloomberg, ICICIdirect.com Research

Exhibit 21: Global Offshore price movement

250 200 150 | 100 50 0 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12

150 120 90 60 30 0 Mar-13

Global Offshore

Crude Oil Prices

Source: Bloomberg, ICICIdirect.com Research

Exhibit 22: Pipavav Defence & Offshore price movement

120 100 80 60 40 20 0 Mar-11 |

Pipavav Defence & Offshore

Source: Bloomberg, ICICIdirect.com Research

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Exhibit 23: ABG Shipyard price movement

500 450 400 350 300 250 200 150 100 50 0 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12

800 700 600 500 400 300 200 100 0 Mar-13 Index Index

ABG Shipyard

Shipbuilding Index

Source: Bloomberg, ICICIdirect.com Research

Exhibit 24: Bharati Shipyard price movement

400 300 200 100 0 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12

800 700 600 500 400 300 200 100 0 Mar-13

Bharati Shipyard

Shipbuilding Index

Source: Bloomberg, ICICIdirect.com Research

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Page 11

Global Valuations
Company Dry Bulk Diana Shipping* DryShips* Genco Shipping* Mercator # Tanker Frontline Ltd* Overseas Shipholding Group* Teekay Corp.* GE Shipping# SCI# LPG/LNG Exmar* Varun Shipping# Offshore Diamond Offshore* ENSCO* Hercules Offshore* Transocean* Aban Offshore# Global Offshore# Great Offshore# SEAMEC# Shipbuilding Daewoo Shipbuilding* Hyundai Heavy Industries* Keppel Corp. Ltd* Samsung Heavy Industries* Sembcorp Marine* ABG Shipyard# Bharati Shipyard# Port and Terminal DP World* Adani Port*# Conglomerate A P Moller - Maersk A/S* China COSCO* Kawasaki Kisen*# Mitsui OSK Lines*# Nippon Yusen*# Country USA USA USA India Norway USA USA India India Belgium India USA USA USA USA India India India India South Korea South Korea Singapore South Korea Singapore India India Dubai India Denmark China Japan Japan Japan CY12E 0.5 0.2 0.1 0.2 2.0 0.0 1.7 0.6 0.4 1.6 NA 2.2 1.2 1.1 1.2 0.9 0.6 0.3 NA 1.1 0.9 2.3 1.6 3.6 1.6 NA 1.4 4.6 1.0 1.4 0.5 0.5 0.6 P/BV (x) CY13E 0.5 0.2 0.2 0.2 2.0 0.0 1.8 0.6 0.4 1.5 NA 2.1 1.1 1.1 1.1 0.6 0.5 0.3 NA 1.1 0.8 2.1 1.4 3.9 1.3 NA 1.4 3.7 0.9 1.4 0.5 0.5 0.6 CY14E 0.6 0.2 0.2 0.2 1.9 0.0 2.0 0.6 0.4 1.4 NA 1.8 1.0 1.0 1.0 0.6 0.4 0.3 NA 1.0 0.8 2.0 1.2 3.5 1.3 NA 1.3 3.0 0.8 1.3 0.5 0.5 0.6 CY12E 12.2 NA NA 23.5 118.7 8.1 29.0 NA 15.4 11.5 15.6 4.8 6.2 NA 14.5 9.5 10.4 10.0 12.8 10.3 NA 21.2 22.4 10.8 NA 43.8 NA 185.3 P/E (x) CY13E NA 18.8 NA 10.1 206.1 11.9 11.9 NA 14.0 8.7 20.6 11.3 8.9 2.8 NA 11.8 8.3 13.0 9.9 16.1 10.8 NA 20 15.8 9.7 NA 14.7 163.1 15.3 CY14E 64.7 2.0 NA 5.5 23.1 30.1 7.1 14.1 NA 9.6 7.5 13.1 8.9 5.9 3.1 NA 9.1 7.4 12.7 9.0 14.1 13.2 NA 18 13.0 7.7 15.7 7.9 21.4 9.8 EV/EBITDA (x) CY12E CY13E CY14E 5.7 12.2 23.0 5.0 NA 34.3 12.6 6.1 282.4 10.7 NA 7.7 8.9 11.0 8.4 6.9 7.1 7.8 NA 11.5 8.1 10.2 6.4 10.0 4.4 NA 11.3 16.1 4.0 NA 8.2 17.7 10.9 11.3 7.7 18.3 4.3 NA 16.7 11.5 5.6 26.2 10.1 NA 7.0 7.0 5.0 6.9 6.0 4.6 6.6 NA 10.6 7.3 12.2 6.4 11.4 4.3 NA 10.4 12.6 3.7 27.6 7.2 12.8 8.9 8.1 4.8 10.1 3.8 NA 10.9 10.5 4.8 30.2 10.9 NA 5.1 6.4 4.6 6.0 5.7 5.8 5.3 NA 8.9 6.6 11.7 6.0 9.6 4.5 NA 9.3 10.9 3.4 12.9 6.1 10.8 7.9 CY12E 4.7 -4.0 -11.7 0.8 2.0 -12.9 -2.9 7.8 -6.4 11.0 NA 15.2 10.6 -12.8 3.7 11.5 9.0 -4.0 NA 8.0 9.1 23.4 20.6 17.0 15.3 NA 6.5 23.0 9.7 -20.1 1.2 -3.5 1.1 ROE (%) CY13E -0.1 0.5 -11.9 2.0 -1.3 -8.8 2.5 5.3 -0.4 9.4 NA 17.0 14.1 5.1 10.4 5.5 17.1 -6.9 NA 9.3 10.0 16.8 16.3 14.9 12.7 NA 6.6 26.0 9.9 -3.1 3.1 0.4 3.8 CY14E 0.9 7.2 -6.8 3.5 5.9 -2.8 6.0 8.0 -4.5 7.6 NA 19.9 13.3 6.7 12.2 8.1 13.5 -6.4 NA 11.0 11.0 16.2 15.5 14.4 9.8 NA 7.1 24.1 10.7 8.0 6.2 2.8 6.0

Source: Bloomberg, ICICIdirect.com Research # With regards to Indian companies and Mitsui, three year data represents FY12, FY13 and FY14 (financial year ending in March)

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ICICIdirect.com coverage universe (Shipping)

EPS (|) P/E (x) EV/EBITDA (x) RoCE (%) RoE (%) CMP (|) TP (|) Rating Mcap (| Cr) FY12E FY13E FY14E FY12E FY13E FY14E FY12E FY13E FY14E FY12E FY13E FY14E FY12E FY13E FY14E Aban Offshore 256 386 BUY 1,392.0 40.2 60.4 65.5 8.9 5.9 5.4 6.0 5.7 5.3 10.4 10.5 11.0 5.5 8.1 8.5 ABG Shipyard 325 349 HOLD 2,005.5 22.2 25.6 26.5 16.6 14.4 13.9 4.4 4.0 3.6 19.4 20.6 21.8 11.1 11.6 11.1 G.E Shipping 225 280 BUY 3,739.2 35.1 38.6 44.6 7.1 6.4 5.6 4.8 3.5 2.3 4.6 5.5 5.9 8.0 8.2 8.8 Global Offshore 60 85 BUY 142.8 21.8 19.8 21.1 2.8 3.1 2.9 4.6 5.8 5.6 9.0 8.7 8.3 17.1 13.5 12.6 Pipavav Defence 75 89 BUY 5,944.3 0.3 0.4 0.6 260.8 187.5 130.5 19.1 16.4 15.3 8.5 8.5 8.8 1.1 1.4 2.0 Guj Pipavav port 50 59 BUY 2,221.8 1.8 2.2 2.8 25.2 20.6 16.4 12.3 10.6 9.2 7.1 7.0 7.2 6.8 7.7 8.9 SCI 43 48 BUY 2,496.7 1.7 -6.3 -3.6 28.3 -7.8 -13.5 18.1 14.9 11.2 -2.4 -2.0 -1.1 1.2 -4.5 -2.7 Source: ICICIdirect.com Research

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Glossary Tankers VLCC Suezmax Aframax Small Tankers Bulkers Capesize Panamax Handymax Handysize Offshore Drill ship Offshore drilling vessel capable to drill in water depths up to 6000 meter. (Deepwater drilling) Capacity 80000 to 200000 DWT Capacity 60000 to 100000 DWT Capacity 40000 to 60000 DWT Capacity 10000 to 40000 DWT Very large crude carrier - capacity 300000 DWT Capacity 120000 to 200000 DWT Capacity 80000 and 120000 in DWT Capacity 10000 to 60000 DWT

Semi submersible rig Offshore drilling vessel capable to drill in water depths up to 2000 meter. (Deepwater drilling) Jack up rig AHTS PSV LPG VLGC LGC MGC Very large gas carrier capacity 70000+ CBM Large sized gas carrier capacity 50000 - 70000 CBM Mid sized gas carrier capacity 20000 - 50000 CBM Offshore drilling vessel capable to drill in water depths up to 350 meter. (Shallow water drilling) Anchor handling tag supply vessel used for positioning of jack up rigs. Platform support vessel used for transport of men and material to oil platform and jack up rigs.

Miscellaneous DWT LDT TCY Dead weight tonne Light displacement tonne Time Charter Yield measures the operating profit of a ship on a daily basis.

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RATING RATIONALE ICICIdirect.com endeavours to provide objective opinions and recommendations. ICICIdirect.com assigns ratings to its stocks according to their notional target price vs. current market price and then categorises them as Strong Buy, Buy, Hold and Sell. The performance horizon is two years unless specified and the notional target price is defined as the analysts' valuation for a stock. Sector view: Over weight compared to index Equal weight compared to index Under weight compared to index Index here refers to BSE 200

Pankaj Pandey

Head - Research ICICIdirect.com Research Desk, ICICI Securities Limited, 1st Floor, Akruti Trade Centre, Road No. 7, MIDC Andheri (East) Mumbai 400 093 research@icicidirect.com

pankaj.pandey@icicisecurities.com

ANALYST CERTIFICATION

We /I, Bharat Chhoda MBA (Finance), Soumojeet Kr Banerjee MBA (Finance), research analyst and the author of this report, hereby certify that all of the views expressed in this research report accurately reflect our personal views about any and all of the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report. Analysts aren't registered as research analysts by FINRA and might not be an associated person of ICICI Securities Inc.

Disclosures:

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