The Shipping Corporation of India (SCI) Q4 02/03 earnings summary

Executive summary

• FY2002-03 operating earnings were ₹2,376.51 crore versus ₹2,784.67 crore; PBT fell to ₹188.82 crore from ₹379.26 crore, while PAT rose to ₹274.78 crore from ₹241.56 crore, supported by tax provision write-backs.

• Fleet renewal, tanker cross-trades and improving dry-bulk conditions supported operations, while loss of crude-transport nodal status and weak liner freight markets remained headwinds.

Financial highlights

• Operating earnings were ₹2,376.51 crore, down from ₹2,784.67 crore; total earnings were ₹2,443.42 crore versus ₹2,895.93 crore.

• Operating expenses fell to ₹1,826.15 crore from ₹1,982.28 crore; net interest and finance charges were ₹13.77 crore versus ₹22.59 crore.

• PBT was ₹188.82 crore versus ₹368.98 crore; prior-year adjustments added ₹3.08 crore versus a ₹7.58 crore deduction.

• PAT was ₹274.78 crore versus ₹241.56 crore; the FY03 tax line included ₹105.24 crore of excess provisions written back, alongside current and deferred tax provisions.

• EPS was ₹9.73 versus ₹8.56; interim dividend was 30%, with no additional FY03 dividend recommended.

Outlook and guidance

• FY04 indicative crude sourcing was 10 mmt for BPCL-KRL and 7.2 mmt for HPCL; negotiations on more favourable COAs were near completion.

• Clean petroleum product coastal movements were expected to remain steady, and SCI expected to secure acceptance for more vessels in the new oil-industry tender.

• World Bank tankers were scheduled to phase out from November 2003 through October 2004; four Aframax deliveries were completed by August 2003.

• The first Petronet LNG tanker was scheduled for December 2003 delivery and the second for December 2004; first LNG cargoes were expected in January 2004.