The Shipping Corporation of India (SCI) Q4 01/02 earnings summary

Executive summary

• FY2001-02 earnings weakened as lower cargo liftings and freight realizations, vessel repairs and lay-ups, provisions, write-offs, and a one-time shore-staff settlement reduced profitability.

• The fleet closed the year at 92 vessels after disposal of eight, with no vessel deliveries during the year.

Financial highlights

• Operating earnings were Rs.2,784.67 crore vs Rs.2,994.76 crore; total earnings were Rs.2,906.21 crore vs Rs.3,132.23 crore.

• PBT was Rs.379.26 crore vs Rs.554.57 crore; PAT was Rs.241.56 crore vs Rs.382.56 crore.

• EPS was Rs.8.56 vs Rs.13.55; net interest and finance charges declined to Rs.22.59 crore from Rs.65.72 crore.

• Gross profit before interest, depreciation and tax was Rs.675 crore vs Rs.885 crore; depreciation was Rs.265 crore.

Outlook and guidance

• FY2002-03 MOU set a Rs.760 crore gross-margin target for an “Excellent” rating, ~18% above the prior-year target; financial targets carried 60% of total MOU weight.

• After APM dismantling, IOC chose Transchart; a BPCL-KRL crude COA was signed, while HPCL negotiations were at the final stage.

• LR-I tanker utilization could face delays and idling under the new crude procurement setup; alternatives in the open market were being explored.

• Clean-product movements were expected to rise; m.t. Homi Bhabha was being prepared for petroleum-product carriage.