BackShipping Corp. posts first full-year profit in four years
A more than sevenfold jump in March quarter profits was aided by lower bunker prices and higher rates for crude oil tankers
Premium
Bangalore: Shipping Corp. of India Ltd (SCI) reported a more than seven-fold jump in net profit during the March quarter of the last financial year at ₹ 101.49 crore from ₹ 13.24 crore a year ago.
In the year to March 2015, India’s biggest ocean carrier posted a net profit of ₹ 200.93 crore from a loss of ₹ 274.66 crore a year earlier. This is its first full-year net profit in four years.
The state-owned SCI had reported losses of ₹ 428.2 crore and ₹ 114.3 crore respectively in 2011-12 and 2012-13.
“The big jump in the March quarterly profits was aided by lower bunker (ship fuel) prices and higher rates for crude oil tankers," a spokesman for the Mumbai-based firm said after the board meeting.
The company’s total income, though, fell during the fourth quarter and for the full year when compared to the previous year.
During the March quarter, SCI’s total income slipped to ₹ 1,076.96 crore from ₹ 1,281.94 crore a year ago.
For the full year, total income dropped to ₹ 4,310.97 crore from ₹ 4,405.17 crore a year ago.
With the offshore market holding steady, SCI has ordered five new ships—three anchor handling tug cum supply vessels and two platform supply vessels used to support offshore oil exploration activities—at Cochin Shipyard Ltd, also state-owned.
The new ship purchases will be part-funded by a ₹ 330.65 crore of refund money received from shipyards on order cancellations which were originally part of the proceeds of the follow-on public offer of shares in November 2010. This money can only be used for buying ships because that was the one of the purposes of the follow-on public offer.
Since April 2013, the firm had cancelled orders for 12 new ships after shipyards jumped delivery dates.
SCI is also scouting the market for buying two used liquefied petroleum gas (LPG) tankers, the spokesman added.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
