GE Shipping shares sink 8% on mixed Q2 results; PAT down 3%, margins dip

Great Eastern Shipping shares declined 8 per cent on Friday (November 8) and registered an intraday low of Rs 1187.9 per share on BSE. The stock declined after the company's Q2 consolidated Earnings before interest, tax, depreciation, and amortisation (Ebitda) margins contracted along with profit after tax (PAT).

 

Around 9:57 AM, GE Shipping shares were down 6.89 per cent at Rs 1,201.95 per share on BSE. In comparison, the BSE Sensex was up 0.08 per cent at 79,603.27. The market capitalisation of the company stood at Rs 17,694.76 crore. The 52-week high of the stock was at Rs 1,542.8 per share on BSE and 52-week low of the stock was at Rs 728.1 per share.

 

 

Late evening on Thursday, GE Shipping reported a 3 per cent fall in consolidated net profit to Rs 576 crore in Q2 as compared to Rs 595 crore a year ago. 

 

The Earnings before interest, tax, depreciation, and amortisation (Ebitda) for the second quarter stood at Rs 654 crore as compared to Rs 643 crore a year ago which implies a rise of 2 per cent. 

 

The Ebitda margins of the company for the quarter under review stood at 48.3 per cent as compared to Rs 52.3 per cent, a contraction of 400 basis points (bps).

 

As per the company's filing, in Q2, crude tanker earnings experienced seasonal softness. Overall, seaborne crude trade declined by 3 per cent during this quarter, primarily driven by weak refinery margins. 

 

Meanwhile, spot earnings for capesizes witnessed significant growth of 86 per cent year-on-year (Y-o-Y) while Kamsarmax and Supramax earnings also grew by 17 per cent and 45 per cent Y-o-Y, respectively.

 

Capesize refers to a category of large bulk carrier ships used primarily for transporting heavy bulk commodities such as coal, iron ore, and grain across long distances.

 

Kamsarmax and Supramax are two popular vessel sizes in the dry bulk shipping sector, each serving distinct roles within the global shipping industry. 

GE Shipping dividend 

The company's board declared an interim dividend of Rs 7.2 per share.

 

The record date fixed for receiving an interim dividend is November 20, 2024. The interim dividend will be paid to the shareholders on or after December 4, 2024.

 

GE Shipping, or Great Eastern Shipping Company, is a private sector shipping company, with a significant presence in the global maritime industry. Founded in 1948, the company is involved in the transportation of a wide range of bulk commodities and provides services in both the tanker and dry bulk sectors. It also operates offshore oil and gas services.

 

In the past one year, GE Shipping shares have gained 68.8 per cent against Sensex's rise of 22.4 per cent