The Hindu Business Line : GE Shipping Q1 net down 8%

Mumbai, July 18 Great Eastern Shipping Company’s net profit for the first quarter ended June 30, 2008 was down eight per cent to Rs 387.59 crore against Rs 421 crore for the same period last year because of a negative impact of Rs 138.57 crore under exceptional item as per Accounting Standard 11.

In a note to Bombay Stock Exchange, the company said pursuant to AS 11, the gains and losses arising from the effect of changes in the foreign exchange rates on repayments of loans and revaluation of the outstanding foreign currency loans including currency swaps relating to ships acquired from a country outside India are included under exceptional item.

However, total income of the company was up 14 per cent to Rs 992 crore (Rs 869.69 crore). According to the statement, the freight and charter hire income was higher by 10 per cent. Average earnings from crude carrier were up 38 per cent, while dry bulk earnings increased by 78 per cent. Profit booked from sales of some of the older ships was also significantly higher at Rs 253.92 crore.

Meanwhile, in the annual general meeting held by the shipping major on Friday, its Executive Chairman, Mr K.M Sheth, said, “The company has signed a contract to build two new Suezmax vessels with Hyundai Heavy Industries. These ships will be delivered in 2011.”

He added that with the view to focus on larger ships the company will be taking delivery of four Long Range product tankers of about 74,500 DWT each over the next nine months. The total capex of the company is about $779 million or Rs 3,350 crore as per current exchange rates. This includes 14 building new vessels aggregating 1.17 million DWT (4 LR product tankers, 2 Suezmax crude carriers and 8 dry bulk carriers).

“Based on this committed expansion, the company’s fleet will be about 3.77 million DWT with an average age of 8.8 years by the end of 2011 as against a fleet of 2.85 million DWT with an average age of 10.6 years today,” said Mr Sheth.

Related Stories:
GE Shipping net grows 46% on higher freight earnings
GE Shipping Q4 net rises 31%
GE Shipping Q2 net rises by 50 pc
GE Shipping net dips 22 pc

More Stories on : Financial Performance | Shipping | Outlook

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
AI Express plans engineering base in Thiruvananthapuram

Ministry relooking at ban on old foreign ships

Karnataka move to set up maritime board welcomed

GE Shipping Q1 net down 8%

Howrah-Chennai special train

Kolkata ban on 15-year old public vehicles

Kerala to begin work on hill highway soon

Connecting highway