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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.
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First Published: Fri, November 25 2022. 15:28 IST