Great Eastern reports sale of 3 vessels, nets 2% profit

May 06, 2013, 3:10PM EST
Annual performance of Great Eastern Shipping Company Ltd., India’s largest private shipping company, indicates the company to be sailing through fair weather


Great Eastern Shipping Company Ltd (GE Shipping) signed a contract to sell Jag Leela, an Aframax crude carrier. The 1999 built vessel of about 105,000 dwt will be delivered to the buyers in Q1FY14. Earlier it had also contracted to sell its 1988 built General Purpose (GP) product carrier ‘Jag Parwar’ of about 29,900 dwt with delivery also in Q1FY14. During the past quarter the company had sold and delivered its 1995 built Panamax dry bulk carrier ‘Jag Arnav’ to the buyers. These developments were reported in the Audited Results for the financial year ended 31st March 2013 as approved by the Board of Directors today, indicating that the company was experiencing fair weather.

GE Shipping, India's largest private sector shipping company reported that for the audited full year, net profit rose 2.04% to $ 26.59 million in the year ended March 2013 as against $ 26.06 million during the previous year ended March 2012. Sales rose 1.37% to $ 311.18 million in the year ended March 2013.

However, the net profit of the Company declined 4.62% to $ 1.76 million in the quarter ended March 2013 as against $ 1.85 million during the previous quarter ended March 2012. Sales have declined 5.36% for the same quarter.

GE Shipping has two main businesses, shipping and offshore. The shipping business is involved in transportation of crude oil, petroleum products, gas and dry bulk commodities. The offshore business provides services to the oil companies in carrying out offshore exploration and production activities, through its wholly owned subsidiary Greatship (India) Limited.      

The Company’s fleet consists of 31 vessels including 22 tankers and 9 dry bulk carriers. The tanker fleets comprises of 9 crude carriers, 12 product carriers, 1 LPG carrier and the dry bulk carrier fleets includes 1 Capesize, 3 Kamsarmax, 4 Supramax, 1 Handymax. The average age of GE Shipping fleet is 9.6 years aggregating 2.50 mn dwt. 

Giving the market picture the spokesman of the company said that the crude tanker market continued to underperform in Q4FY13. Besides subdued demand from the western economies and seasonal refinery maintenance added to tonnage oversupply reflected in lower earnings.

“The product tanker market echoed showed some strength on back of robust demand of distillate cargos from US to South American countries. Steady product demand from Asia also resulted in healthy cargo movement and utilization,” he said. “But any meaningful rise in the charter rates was capped by new addition of vessels in the market.

He added that the charter rates for large asset classes in the dry bulk sector remained depressed throughout the quarter mainly due to lower iron ore imports from Brazil to Asia and lower coal shipments from Australia due to heavy floods. Improvement in the grains exports especially from South America supported utilization levels of smaller asset classes. Even though substantial scrapping of vessels was witnessed, the issue of new supply overhang loomed over the freight rates.






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