The Hindu Business Line : GE Shipping Q4 operating profit up by 12 pc

Great Eastern Shipping has reported a 12 per cent increase in its operating profit for the fourth quarter of last fiscal to touch Rs 350 crore, as against Rs 312.50 crore in the corresponding quarter of the previous fiscal. During the quarter, the company's income was Rs 660 crore, as against Rs 571.16 crore in the corresponding quarter of the previous fiscal, representing a 16 per cent increase.

In the last fiscal, the company's operating profit was Rs 1,171 crore, as against Rs 1,134 crore in the previous fiscal, representing a 3 per cent increase.

The Board of Directors of the company proposed a third interim equity dividend of Rs 3.50 per share.

The company's current fleet stands at 74 vessels, comprising 41 ships and 33 offshore vessels. The new building order is seven tankers involving an expenditure of $355 million.

According to a company official, the tanker freight rates fell sharply across various asset classes due to a combination of factors such as lower oil demand in northern hemisphere, loss of production due to Nigerian unrest and increased fleet supply. The Baltic Clean Tanker Index, which was 1574 on January 4, 2006, fell to 816 on March 31, 2006.

The company expects the market to be weaker than the previous year in the wake of rise in fleet supply and low scrapping.

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GE Shipping Q4 operating profit up by 12 pc