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Our Bureau

Mumbai, May 4

Great Eastern Shipping Company has reported a 31 per cent rise in fourth quarter net profit.

Net profit increased to Rs 240.92 crore for the quarter ended March 31, 2007 from Rs 183 crore in the year-ago period.

While the total income increased to Rs 592.87 crore from Rs 549.88 crore, total expenses were down due to lower outgo on account of drydocking. The bottomline was also boosted by a gain of Rs 18.18 crore from sale of ship.

Marginal fall in tanker rates was offset by substantial rise in drybulk rates, said a company official. "The average dry bulk rate per day was $21,600 this quarter as against $14,200 a year ago," said a spokesperson for the company.

Contributing factors

For the full year, the company has reported a net profit of Rs 883.31 crore as against Rs 838.60 crore, despite lower total income of Rs 2,251.11 (Rs 2,342.08 crore).

The improved capacity utilisation and freight earnings of drybulk fleet and higher treasury income helped the company to better its profit.

According to the company, during the fourth quarter, the growth in tanker capacity utilisation partly offset the softness in spot tanker rates; while in the case of drybulk carriers the combined effect of an increase in revenue days and a substantial increase in the spot markets helped an overall rise in performance. The operating profit margin for the quarter rose to 55 per cent from 51 per cent in the corresponding quarter.

Final dividend

Average time charter yield of crude carriers declined to around $30,551 per day as against $37,269 per day; while product carriers recorded an average rate of $21,261 per day for the quarter, as against around $21,355 per day.

The board of directors of the company has recommended a final dividend of Rs 4.50 per share. The outgo on account of this is Rs 80.17 crore including tax on dividend. Earlier, the company had paid two interim dividend totalling Rs 7 per share.

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