Date:28/10/2006 URL: http://www.thehindubusinessline.com/2006/10/28/stories/2006102805110400.htm

Back GE Shipping Q2 net rises by 50 pc

Our Bureau

Declares interim dividend of Rs 4 per equity share

Mumbai , Oct 27

Great Eastern Shipping Co Ltd has reported 50 per cent increase in net profit for the second quarter of the current fiscal to Rs 235 crore from Rs 156 crore in the corresponding previous period.

Income rose 26 per cent to Rs 593 crore. The board, which met on Friday, has declared an interim dividend of Rs 4 per equity share on the reduced equity share capital, post demerger of the offshore business.

Mr Bharat Sheth, Deputy Chairman and Managing Director, said that higher earnings were primarily driven by increased tanker earnings, higher profits from in-chartered tonnage and lower dry-docking and repair costs.

Crude tankers earned an average yield of $32,015 per day ($19,847).

However, the product tanker market was virtually flat, with an average yield of $20,834 per day. In the dry bulk segment, earnings stood at $15,231 per day.

The Baltic Clean Tanker Index, which was at 1,076 on July 3, moved up to 1,116 on September 29, before falling to 903 on October 26.

Mr Sheth said that the crude tanker freight rates may soften in the wake of OPEC's decision to cut production, slowdown in the US and a probable mild winter, coupled with comfortable inventory of heating oil in the US. The dry bulk market, on the other hand, is expected to firm up, especially with the shift in trade pattern.

The company has a fleet of 39 vessels, including 30 tankers and nine dry bulk carriers.

Its new building order book consists of nine product tankers and two second-hand acquisitions, with a committed capital expenditure programme of about $505 million.

"This will be invested in the course of the next three years. Out of the capex, we have already funded $71 million," Mr Sheth said.