Shipping & Shipowners Business Financial Projection 3-Statement Model (Excel XLSX)

A 3-Statement Financial Projection Model is essential for Shipping/Shipowners businesses. It forecasts income, expenses, and cash flows, enabling strategic planning, cost control, and performance assessment. It supports decision-making related to fleet management, fuel costs, and pricing strategies. Accurate projections empower shipowners to adapt to market dynamics, secure financing, and ensure profitability. It enhances financial stability, attracts investors, and supports long-term growth by aligning financial strategies with business objectives. This model is indispensable for both established shipping companies and startups, ensuring their viability, competitiveness, and ability to seize opportunities in the maritime industry.

PURPOSE OF MODEL
Highly versatile and user-friendly Excel model for the preparation of a 3-statement (Income Statement, Balance Sheet and Cash flow Statement) financial projection with a yearly timeline for a new or existing business owning and chartering commercial shipping vessels.

The model allows the user to model up to 20 new or existing commercial shipping vessels at different lifetime stages across a 50-year annual timeline. The model includes assumptions and calculations for all stages in the lifetime of a shipping vessel including purchase, operation, sale before end of life and scrappage at end of life. The model allows for calculation on both real and nominal basis (including and excluding inflation impact).

In terms of purchase the model includes assumptions and calculations for part or full loan financing with amortising loan. In terms of operation stage the model includes assumptions and calculations for part or full year chartering, vessel operating expenses, admin expenses, sales tax, depreciation, interest calculation. In terms of selling/scrappage stage the model allows for the calculation of gains/losses on disposal and transaction fees.

The model follows good practice financial modelling principles and includes instructions, line item explanations, checks and input validations. It includes a 50-year rolling timeline (mix of actual and forecast years), discounted cash flow valuation using the projected cash flows and a dashboard with output tables and charts.

KEY OUTPUTS
The key outputs include:
•  Projected full financial statements (Income Statement, Balance Sheet and Cash flow Statement) presented on a yearly basis up to 50 years.
•  Dashboard with:
Summarised projected Income Statement and Balance Sheet;
Compounded Annual Growth Rate (CAGR) for each summarised income statement and balance sheet line item;
List of key ratios including average revenue growth, average profit margins, average return on assets and equity and average Debt to Equity ratio;
Bar charts summarising income statement and balance sheet projections;
Tables and charts showing revenue and cost splits by shipping vessel
•  Discounted cash flow valuation using the projected cash flow output.

KEY INPUTS
Inputs are split into income statement and balance sheet Inputs. Most inputs include user-friendly line item explanations and input validations to help users understand what the input is for and populate correctly.

Setup Inputs:
•  Name of business;
•  Currency;
•  Timeline starting year;
•  First projection year;
•  Choice for nominal or real projection (including or excluding inflation)
•  Naming for shipping vessels, vessel types, age bands, operating expenses and administrative costs;
•  Sales tax applicability for the revenue and cost categories.

Projection Inputs:
•  Vessel type, deadweight tonnage, purchase details, projected sale details (if applicable), scrappage details and loan details (if applicable);
•  Inflation rate assumptions for costs, revenues and vessel purchases;
•  Charter revenue details including rates per day, operating days per annum and credit terms offered (if applicable);
•  Operating cost inputs and average credit terms received;
•  Administrative costs inputs;
•  Sales and corporate tax inputs including rate and payment periods;
•  Dividend inputs including amount (percentage of retained earnings) and frequency;
•  Share capital additions;
•  Discount rate inputs (for valuation calculation).

MODEL STRUCTURE
The model comprises of 9 tabs split into input ('i_'), calculation ('c_'), output ('o_') and system tabs. The tabs to be populated by the user are the input tabs ('i_Setup' and 'i_Assumptions'). The calculation tab uses the user-defined inputs to calculate and produce the projection outputs which are presented in 'o_Fin Stats', ‘o_Dashboard' and ‘o_DCF'.

System tabs include:
•  A 'Front Sheet' containing a disclaimer, instructions and contents;
•  A checks dashboard containing a summary of checks by tab.

KEY FEATURES
Other key features of this model include the following:
•  The model follows good practice financial modelling guidelines and includes instructions, line item explanations, checks and input validations;
•  The model contains a flexible 50-year timeline with mix of actual and forecast periods which be easily rolled forward from one projection period to the next;
•  The model allows the user to model up to 20 new or existing shipping vessels each with their own separate lifetime details, purchase details, sale details (if applicable), revenue and operating cost and financing loan details (if applicable);
•  The model is not password protected and can be modified as required following download;
•  The model is reviewed using specialised model audit software to help reduce risk of formula inconsistencies;
•  The model allows for the following number of underlying categories for each line item (these can be easily expanded if required):
Shipping Vessels – 20 vessels;
Ship types – 10 types;
Ship age bands – 5 age bands;
Vessel operating expenses – 6 categories;
Administrative costs – 15 categories;
•  Apart from projecting revenue and costs the tool includes the possibility to model receivables and payables, fixed assets, borrowings, dividends and corporate tax;
•  Business name, currency, starting projection period are fully customisable;
•  Revenue, cost, fixed asset and borrowing descriptions are fully customisable;
•  The model included an integrated discounted cash flow valuation using the projected cash flow outputs;
•  The model includes instructions, line item explanations, checks and input validations to help ensure input fields are populated accurately;
•  The model includes a checks dashboard which summarises all the checks included in the various tabs making it easier to identify any errors.