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Mumbai, Jan 29 Higher operating income and forex gains have led Great Eastern Shipping to post a 77 per cent growth in net profit at Rs 293.57 crore for the quarter ended December 31, 2007 against Rs 165.8 crore last year. The total income of the company has risen 43 per cent at Rs 744 crore (Rs 519.85 crore).

Foreign exchange gains in respect of loan repayments and revaluation of outstanding foreign currency loans relating to acquisition of ships amounting to Rs 22.42 crore have been included under other income, as against the earlier practice of adjusting against the carrying cost of ships.

Operating income stood at Rs 604 crore (Rs 490.7 crore). According to Mr K.M. Sheth, Executive Chairman, the company’s operating profit has been 50 per cent higher exclusive of gain on sale of ships. “The improvement in earnings can be attributed to the higher time charter yields averaged in the dry bulk segment.”

Expenses on account of drydocking were also lower at Rs 23 crore compared with Rs 30 crore in the same quarter last year.

Commenting on the freight market, Mr Sheth said, “The dry bulk market maintained its upward spiral for much of the quarter. However, post December there has been a sharp correction which should get ironed out in the short term. On the tanker market we remain quite positive for the fourth quarter. Key drivers for tanker rates in the short term will be the inventory levels and seasonal winter demand.

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