GE Shipping Q4 net up 36%

BS 200 SCORECARD

GE Shipping's net profit has grown 36 per cent to Rs 251.68 crore in the last quarter (January-March, 2005). Total income is up 19 per cent to Rs 571.16 crore.

The company's board of directors has proposed a final dividend of Rs 3 per share, resulting in an outflow of Rs 65.11 crore (including tax). The company has grown in the last quarter primarily due to a 22 per cent rise in shipping tonnage and an eight per cent increase in revenue days from 3427 days in Q4 FY2003-04 to 3696 days in Q4 FY 2004-05.

During the last quarter, freight rates witnessed high volatility, especially in case of the VLCCs. Oil prices also continued to climb. The Baltic Clean Tanker Index and the Baltic Dirty Tanker Index, which were at 1588 and 1812 respectively on January 4, 2005 settled at 1285 and 1373 respectively on March 31, 2005.

Nevertheless, operating profit has grown 18.2 per cent to Rs 312.5 crore in the March quarter. The company has taken delivery of Jag Labh, a 1988-built Aframax crude carrier and Jag Lok, a newbuilding Suezmax crude carrier.

Going forward, the company is optimistic of higher freight rates, due to estimates of strong growth in oil demand.