The Great Eastern Shipping Company (500620) Q4 02/03 earnings summary

Executive summary

• Record profit after tax adjustments of Rs. 227.29 crore marked a third consecutive annual profit high; EPS rose to Rs. 11.40 from Rs. 8.80, with an 18.70% return on shareholder funds.

• Fleet diversification and a mix of period charters and spot exposure supported results amid weak global economic growth and volatile shipping and offshore markets.

Financial highlights

• Total income was Rs. 101,564 lakh, down from Rs. 119,635 lakh; PAT increased to Rs. 21,651 lakh from Rs. 20,750 lakh.

• Operating profit (PBIDT) was Rs. 45,273 lakh versus Rs. 50,478 lakh; PBT was Rs. 24,575 lakh versus Rs. 25,278 lakh.

• EPS was Rs. 11.40 versus Rs. 8.80; cash earnings per share was Rs. 20.13 versus Rs. 19.92.

Outlook and guidance

• Priorities are fleet modernisation and expansion to meet customer and environmental requirements and support long-term profitability.

• Tanker demand outlook was supported by expected world economic growth of 3.2% and IEA oil-demand growth of 1.3% in 2003; Iraq remained a near-term uncertainty.

• Offshore prospects in India were tied to new exploration blocks, deep-water activity, field redevelopment and expected growth in port and LNG-terminal infrastructure.