Indian owned Great Eastern Shipping has reported a 45% surge in net profit of INR3.2 billion (USD49 million) on the back of a higher revenue of INR10.2 billion. Revenue amounted to INR9.06 billion during 1Q16.
In response to a query by IHS Maritime during an earnings conference call from Mumbai today, chief financial officer G Shivakumar attributed the rise in revenue and profits mainly to a resurgent tanker freight rate market. “Our profits rose primarily because of an increase in tanker rates,” he cautioned, however, “We don’t expect the trend to continue. Already rates have started flattening out.”
The tanker fleet comprises 21 ships including eight crude carriers, 12 product tankers and a gas carrier. Average time charter yield (TCY) per day earned by Great Eastern during the quarter for crude carriers was USD32,485 compared to USD16,477 for 1Q15. For product carriers (including gas) average TCY per day was USD22,402 against USD15,554 for 1Q15.
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Average earnings from dry bulk carriers, however, slumped to USD7,423 TCY per day from USD12,878 during 1Q15. The company operates nine bulk carriers including an 81,600 dwt (Kamsarmax) newbuild acquired in June this year. Shivakumar indicated that the company aims to gradually decrease its exposure to dry bulk where freight rates continue to languish. The company has already finalised the sale of a Kamsarmax vessel this month.
“We are closely monitoring the impact of China’s decision to devalue the yuan on international trade and consequently on shipping,” said Shivakumar in response to a question by IHS Maritime. “We may expect an increase in exports from China because they would become cheaper due to the devaluation, but importing countries could slap duties. But these are early days. We have to wait and watch.”
Great Eastern also provides offshore support and drilling services through its subsidiary Greatship (India) Limited or GIL.
This post was sourced from IHS Maritime 360: View the original article here.
