GE Shipping net jumps 75 per cent

An increase in total revenue days of owned and in-chartered ships has helped Mumbai-based Great Eastern Shipping Co (GE Shipping) to report a 74.7 per cent rise in net profit at Rs 421.04 crore for the quarter ended June 30 compared with Rs 241.06 crore for the quarter ended June 30, 2006.

Total income from operations grew by 58.9 per cent to Rs 869.69 crore (Rs 547.40 crore).

For the quarter, revenue days (of owned tonnage) were 3,978 compared with 3,612 in the corresponding quarter of the previous year, while revenue days on in-chartered vessels were significantly higher at 349 (88).

Therefore, total revenue days were 4,327 (3,700 days), an increase of 16.95 per cent. Owned tonnage increased by 12 per cent to 3.22 million dead weight tonne (DWT).GE Shipping executives said the company would continue to examine possibilities in in-chartering vessels according to the market condition.

Operating profit grew by 57.3 per cent at Rs 545.25 crore (Rs 346.69 crore). The strengthening of the rupee had a negative impact on the company's net profit to the tune of approximately Rs 13 crore.

Significantly, the company has adopted revised accounting standard AS11 as issued by the ministry of company affairs. Pursuant to this, the effects of changes in foreign exchange rates in respect of all outstanding foreign currency loans relating to ships acquired from other countries amounting to Rs 115.37 crore have been credited to the profit & loss account during the current quarter and included in income-others as against the earlier practice of adjusting against the carrying cost of the ship.