 "GE Shipping hits new high on healthy outlook; zooms 126% thus far in 2022")
Shares of GE Shipping hit a new high of Rs 672, as they surged 5 per cent on the BSE in Friday’s intra-day trade on healthy business outlook. The stock surpassed its previous high of Rs 647.50, touched on Wednesday, November 23. Thus far in the calendar year, it has zoomed 126 per cent, as compared to 5 per cent rise in the benchmark index.
In the past one month, the stock price of GE Shipping has jumped 26 per cent after the company reported an over three-fold jump in its consolidated net profit at Rs 731 crore, on back of strong operational income. It had posted net profit of Rs 206 crore in Q2FY22. Total revenue during the quarter grew 78 per cent to Rs 1,700 crore against Rs 953 crore in a year ago quarter.
During the quarter under review, the crude and product tanker freight markets became even stronger, which more than compensated for lower dry bulk rates. This enabled the company to post its best ever quarterly profit. With the very strong cash flows for the quarter, the company’s net debt turned negative for the first time, the management of GE Shipping said.
Asset values reflected the trend in freight market sentiment, with tanker prices continuing to rise and dry bulk prices falling by approximately 15 to 20 per cent. The continuing strengthening in oil prices coupled with low level of inventory has supported the offshore business and here too the asset values are on the rise, the management said.
They continue to believe that the worst in this sector is behind us, however, with continuing high inflation and high interest rates, a global recession is possible. This would impact demand for multiple commodities, threatening our market, the management said.
Thus far for the financial year 2022-23 (FY23), GE Shipping had paid total interim dividend of Rs 12.60 per share on a face value of Rs 10 each.
In the past one month, the stock price of GE Shipping has jumped 26 per cent after the company reported an over three-fold jump in its consolidated net profit at Rs 731 crore, on back of strong operational income. It had posted net profit of Rs 206 crore in Q2FY22. Total revenue during the quarter grew 78 per cent to Rs 1,700 crore against Rs 953 crore in a year ago quarter.
During the quarter under review, the crude and product tanker freight markets became even stronger, which more than compensated for lower dry bulk rates. This enabled the company to post its best ever quarterly profit. With the very strong cash flows for the quarter, the company’s net debt turned negative for the first time, the management of GE Shipping said.
Asset values reflected the trend in freight market sentiment, with tanker prices continuing to rise and dry bulk prices falling by approximately 15 to 20 per cent. The continuing strengthening in oil prices coupled with low level of inventory has supported the offshore business and here too the asset values are on the rise, the management said.
They continue to believe that the worst in this sector is behind us, however, with continuing high inflation and high interest rates, a global recession is possible. This would impact demand for multiple commodities, threatening our market, the management said.
Thus far for the financial year 2022-23 (FY23), GE Shipping had paid total interim dividend of Rs 12.60 per share on a face value of Rs 10 each.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%