The Great Eastern Shipping Company Ltd.

India’s premier Shipping and Offshore service provider

Forward looking information

This presentation contains certain forward looking information

through statements, which are based on management’s current

expectations and observations. The company does not guarantee the

accuracy of these assumptions.

There are a number of risks and uncertainties which may impact the

actual results to differ materially from these forward looking

statements. The company assumes no responsibility with regard to

publicly amending, modifying or revising the statements based on any

subsequent developments, information or events that may occur.

Business ProfileBusiness Profile

Tankers

Dry Bulk Carriers

Offshore Drilling Services

Marine Construction Projects and Services

Offshore Support and Logistics Services

Port Support and Terminal Services

ShippingDivision

OffshoreDivision

CrudeCrude ProductProduct LPGLPG

Shipping Division Fleet profile23 Tankers: 5 Crude oil carriers

17 Product carriers 1 LPG Carrier

9 Dry bulk carriers: 1 Panamax 3 Handymax 3 Handysize 2 MBC

GES fleet average age 12.6 yearsWorld fleet average age:12.2 yearsIndian fleet average age:16.5 years

Double hull tonnage World average 52%Double hull tonnage GES average 47%

32 ships aggregating 1.59 mn dwt

On order: 4 Tankers aggregating 0.47 mn dwt 1 Aframax crude carrier 1 MR product carrier

2 Suezmax crude carriers

Offshore division fleet profile2 exploratory drilling rigs

16 offshore support vessels ( of which 3 caterto deep water support services)

1 construction barge

11 Harbour tugs

Only Indian company to own PSVs and firstIndian Co. to operate in the North Sea

30 Offshore units catering to diverse offshore oil field services

On order 3 OSVs capable of deep water supportservices

2 Anchor Handling Tug Supply Vessels1 Platform Supply Vessel

Shipping IndustryShipping Industry

Earnings’ Drivers : Shipping businessEarnings’ Drivers : Shipping business

Supply DriversDemand Drivers

Ordering ScrappingTrade Growth Trade Patterns

Dry

World GDPgrowth

OPECprodn

Oilinventorylevels

Steelprodn

Crude sourcingareas

Refinerylocation

Regional grainprodn

Wet

Wet/Dry

New buildingprices

Shipbldg.capacity

Replacementdemand

Economic

Life

Marketdynamics

Regulations

Wet

Wet/Dry

Freight Markets Movement

0

10,000

20,000

30,000

40,000

50,000

60,000

Apr-02

May-02

Jun-02

Jul-02 Aug-02

Sep-02

Oct-02

Nov-02

Dec-02

Jan-03

Feb-03

Mar-03

Apr-03

May-03

Jun-03

Jul-03

$/da

y

Suezmax 90/91 Aframax 90/91 Handsize cln prod

•Pick up in winter demand

•Prolonged Venezuelan strike

• Sinking of ‘Prestige’

•Japan’s nuclear plant shut down

•Iraq factor

Global tanker market - spot earnings

S’max 10 yr av earnings: $20,300/day

A’max 10 yr av earning: $16,470/day

Cln prod 10 yr av earnings: $13,075/day

Source: Clarksons’ Research Studies, Marsoft

23.1

17.2

10

15.5

0

5

10

15

20

25

2002 Jun-03

mn

dwt

Total delivery Total scrapping

Tankers: Delivery and Scrapping

Source: Clarksons’ research studies

On March 31, 2003 Order book: 61.2 mn dwt equals 20% of fleet

Total fleet: 295 mn dwt

Total Fleet as on July 1, 03: 301 mn dwt

Global dry bulk market - spot earnings

5,000

7,000

9,000

11,000

13,000

15,000

Apr-02

May-02

Jun-02

Jul-02

Aug-02

Sep-02

Oct-02

Nov-02

Dec-02

Jan-03

Feb-03

Mar-03

Apr-03

May-03

Jun-03

Jul-03

$/da

y

Panamax 97/98 blt H'max avg trip charter

•Increased steel production in China and Japan

•Increased coal trade to Japan

•Limited tonnage growth

P’max10 yr av. Earnings: $9,100/day

H’max 10 yr av. Earnings: $8,800/day

Source: Clarksons’ research studies, Marsoft

13.7

5.85.8

1.7

0

2

4

6

8

10

12

14

16

2002 Jun-03

mn

dw

t

Total delivery Total scrapping

Dry Bulk Carriers: Delivery and Scrapping

Order book at end of FY03: 33.49 mn dwt equals 11% of fleet

Source: Clarksons’ Research Studies

Total fleet: 295 mn dwt

Total fleet as on July 1, 03:299 mn dwt

Scrapping guidelines for single hull tankers

International Maritime Org.

• Cut off date 2015

• No trading exclusions

European Union

• Cut off date 2010

• Restrictions in carrying heavyoil (less than 25.7 API) insingle hull tankers in EUwaters from September 1, 2003

One crude carrier may lose hereconomic life basis scrapping at23 years

One crude carrier will lose hereconomic life basis scrapping at18 years

Impact on GE Shipping’s fleet

Offshore Oil field services

Characteristics of the industry

• Activities conducted within the EEZ of each country

• Influenced by government regulations

• Dependent on oil & gas prices and global E&P activities

Earnings’ drivers

• Geological prospects

• Success ratio in the recent past

• Price of oil & gas

• Demand supply gap of twin hydrocarbons

Exploration

• Demand supply gap of twin hydrocarbons

• Price of oil and gas

• Accretion of proven reserves

Production

Global developments in 2002– Disconnect between rising oil and gas prices and fresh E&P

investments

– Thrust in developmental drilling– Deepwater exploratory drilling slowed down

Global Developments in 2003

• Environment conducive for E&P activities

• World economies also seem to mend

• Oil majors initiated increased E&P investments

Developments in India

Increased Government emphasis on E&P activities

• Discoveries in West coast and KG basin

• Redevelopment efforts in Bombay High South & North fields

• ONGC finalised deepwater contracts worth $ 760 mn spreadover three years commencing Q1 FY04

NELP IV (Blocks currently due for offer)

14

17

1

Deep Water Shallow Water Onshore

Developments in the port and terminal sector:India

• 12 major ports handling around 360 mn metric tons• Labour intensive• Privatisation process tardy and time consuming• Government considering change in regulations• Emerging competition from private sector/ joint sector

ports

• Capital intensity

- around 90% of capital employed is in fixed assets alone- each asset is “ SBU”

• Earnings variability- within markets- within trades- within asset class- within operations

• Asset liquidity

• Global regulatory compliance

Industry characteristics

Great Eastern’s

BUSINESS STRATEGY

Focus on

• Energy businesses– Wide array of business opportunities

– Superior long term return

• Fleet expansion and modernisation

We manage our business through:

• broad based research

• continuous evaluation of fleet through judicioussale/purchase activities

• benchmarking with global standards

• derisking– through diverse asset base

– long term employment

Benchmarking with Global Standards

47% 52%

53% 48%

0%

20%

40%

60%

80%

100%

GE Shpp 03 Global 03

Double hull tankers Single hull tankers

51504850

1000

2000

3000

4000

5000

GE Shpp 03 Global 03

Suezmax Opex ($/day)

0

10

20

30

40

GE Shpp 03 Global 03

Crew per tanker

22--24 19--22

Source: Clarksons’ database

Source: MSI

Benchmarked with Global Standards

0.62

0.37

0.02

0.12

0.22

0.32

0.42

0.52

0.62

GE Shpp 03 Global 03

LTI: Rigs

Source: IADC, ASP

0.005

0.022

0.002

0.012

0.022

GE Shpp Globally Permisible

Jack up rigs downtime

Source: ISOA

0.18

0.12

0.02

0.05

0.08

0.11

0.14

0.17

0.2

GE Shpp Global

LTI: OSV

Source: IADC

Enhancing customer base

International48%

Domestic52%

FY 2002-03

Financial Highlights (year ended March 31, 2003)

• EPS of Rs. 11.40 per share an increase of 29 %

• Cash EPS of Rs. 20.10 per share an increase of 10 %

• Equity dividend 40%, dividend payout ratio 38%

• Book value of Rs. 61 per share an increase of 17 %

• Return on average capital employed 12.25 %• Return on average net worth 20.40 %

Income Statement: Quarterly Comparison

Q1 FY04 Q1 FY03 % Change

Total Income 304.10 231.33 31

EBDIT 161.54 93.34 73

Interest 10.37 9.37 10

PBT 109.66 38.22 187

Net Profit * 96.23 29.37 227

Basic and DilutedEPS (in Rs.)

4.9 1.3 -

* includes prior period adjustments

(in Rs. Crores)

Crude carriers

37.78% 62.22%

Product carriers

36.63%63.37%

Dry Bulk carriers

88.81%11.19%

Shipping Division’s: Revenue Visibilityfor balance three quarters of FY 2003-04

Operating days coverage as represented by Period Charters

Rs 56.1 cr$12.14mn

Rs 152 cr$ 32.90 mn

Rs 11.0 cr$ 2.39 mn

LPG carrier68.38%31.62%

Covered Open

Rs 14.7 cr$ 3.19 mn

Revenue of Rs. 234 crores covered

Offshore Division’s: Revenue Visibility for balance three quarters of FY 2003-04

Operating days coverage as per firm contracts

Support Vessels

41%59%

Drilling Rigs

Port & Terminal Services

72%

28%

Construction Barge

62%

38%

Covered Open

Rs. 85.91 cr Rs. 53.69 cr

Rs. 22.34 crRs. 9.20 cr

100%

Revenue of Rs. 171 crores covered

Investment Positives

• Focussed on core areas of Shipping & Offshore with diverse

stack of asset portfolio

• Modernisation and expansion in core business

• Committed capex of Rs.880 crores

• Revenue of around Rs. 405 crores covered for the balance

quarters of FY 2003-04

• Strong financials backed by investor friendly approach

Earnings OutlookEarnings Outlook

• Healthy tanker earnings likely to continue– global oil inventories at low levels

– winter demand

• Improved freight rates in the dry bulk sector– driven by Asia

• Improved rigs and OSV utilisation– increased Govt.’s emphasis on E & P– increased interest/participation of operators

(domestic & foreign)

• Project income expected to grow

– increased marine construction activities

Visit us at: www.greatship.com

Committed to value creation