The Great Eastern Shipping Company (500620) Q4 98/99 earnings summary

Executive summary

• FY1998-99 revenue Rs9,808m vs Rs9,641m; PBT Rs1,544m vs Rs1,912m and PAT Rs1,264m vs Rs1,642m.

• Proposed dividend Rs2/share, subject to shareholder approval.

Financial highlights

• Operating PBIDT Rs3,913m vs Rs4,206m; PBIDT as a share of revenue 39.89% vs 43.62%.

• Cash profit before tax Rs3,241m vs Rs3,555m; revenue Rs9,808m vs Rs9,641m.

• Profit included Rs200m compensation for vacating tenanted office premises; additional vessel depreciation was Rs53.6m.

Outlook and guidance

• Dry-bulk freight rates expected to improve gradually if trade demand revives; fleet commitments and period charters helped cushion weak markets.

• Administrative costs expected to fall substantially after process-reengineering work; property strategy to expand business centres, service apartments and project-management services.

• New private refineries and proposed pipelines expected to reshape Indian crude/product imports and coastal product movements.

• Potential fleet additions, particularly in dry bulk, are under review; newbuilding opportunities are being explored in South Korea and Japan.