GE SHIPPING
Great Eastern Shipping or GE Shipping as it is more popularly recognized posted a good set of numbers for Q4FY15. Rise in topline and other income helped the company end the quarter with a huge 104% (YoY) jump in consolidated net profit at Rs.137 crore. Net sales was up 10% at Rs.876 crore and other income was up at Rs.55 crore of which Rs.10 crore was forex gain. Costs rose 26% - employee cost comprises the biggest chunk of the cost at 26% and it was up 8%. Consequently, EBITDA for the quarter was down 9% at Rs.318 crore and margins came in at 35.97%, which was a huge drop from 56.32%.
The good performance can be attributed to the shipping segment which contributes 56% to total income and it posted a whopping 191% jump in EBIT on a 31% rise in revenue. Offshore, which contributes balance 44%, showed a 5% drop in EBIT. The company ended FY15 with a consolidated net profit of Rs.748 crore, up 30%.
Its average Time Charter Yield (TCY) earned over past 12 months for crude carriers was up 32% at $30,324/day, product carrier including gas was up 56% at $23,034.per day and dry bulk fell 49% at $7717/per day. At end of FY15, the company has a fleet of 29 ships with an average year of 9.9. The company is already covered for the rest of year in terms of cargo booking – crude at 27%, product at 34% and dry bulk at 15%.
This is India’s largest private sector shipping company. The company has two main business: shipping and offshore. The shipping business is involved in transportation of crude oil, petroleum products, gas and dry bulk commodities. The offshore business; services the oil companies in carrying out offshore exploration and production activities through its wholly owned subsidiary Greatship (India) Limited. The main promoter was Vijay Seth who created Great Offshore as a division of Great Eastern Shipping Co. but he lost control over the company after it was taken over by Bharati Shipyard. In 2009, when the value of shares he had pledged with financial institutions plunged below the value of the loans he had taken, there was no financial backing from his cousins and Bharati Shipyard bought the shares pledged by Sheth, 14.89% stake at Rs.315/share. Bharati Shipyard currently owns a 49.73% stake in Great Offshore.