The Shipping Corporation of India (SCI) Q4 03/04 earnings summary

Executive summary

• FY2003-04 delivered record earnings, led by strong tanker and bulk performance; net profit reached Rs. 626.99 crore versus Rs. 274.78 crore in FY2002-03.

• Fleet expansion, cross-trade employment and new LNG operations supported growth, while special interim dividend of 170% was paid during the year.

Financial highlights

• Gross earnings were Rs. 3,179.82 crore versus Rs. 2,443.42 crore; operating earnings were Rs. 3,100.34 crore versus Rs. 2,376.51 crore.

• Profit before tax was Rs. 713.51 crore versus Rs. 188.82 crore; profit after tax was Rs. 626.99 crore versus Rs. 274.78 crore.

• EPS rose to Rs. 22.21 from Rs. 9.73; net interest was a credit of Rs. 4.96 crore versus expense of Rs. 12.96 crore.

• Cash from operating activities was Rs. 980.87 crore; net cash used in investing and financing was Rs. 672.63 crore and Rs. 286.45 crore, respectively.

Outlook and guidance

• Two VLCCs on order were scheduled for delivery in January and September 2005, enabling participation in larger IOCL cargo parcels.

• Global container trade was projected to grow 8.7% in 2004 and 9.2% in 2005; container freight and charter markets were expected to remain strong into 2005.

• Dry-bulk rates were expected to remain firm until early 2005, supported by steel production and tonnage demand, despite higher vessel supply.

• Crude sourcing plans anticipated 10 mmt for BPCL-KRL and 7.2 mmt for HPCL; continued COA arrangements were expected for FY2004-05.