The Shipping Corporation of India (SCI) Q4 04/05 earnings summary

Executive summary

• FY2004-05 gross earnings reached ₹3,662 crore; net profit rose to ₹1,419.91 crore from ₹626.99 crore, including a ₹295.48 crore deferred-tax writeback.

• Strong tanker and dry-bulk performance drove results; owned fleet ended the year at 83 vessels, down from 88.

Financial highlights

• Gross earnings were ₹3,662 crore versus ₹3,180 crore; operating earnings were ₹3,396.14 crore versus ₹2,932.90 crore.

• PBT was ₹1,147.19 crore versus ₹713.51 crore; PAT was ₹1,419.91 crore versus ₹626.99 crore, including the deferred-tax writeback.

• Operating expenses rose to ₹2,033.73 crore from ₹1,852.36 crore; repairs and maintenance increased to ₹409 crore from ₹263.86 crore.

• Operating cash flow was ₹1,343.51 crore; cash and bank balances closed at ₹1,885.74 crore versus ₹383.16 crore a year earlier.

Outlook and guidance

• Global oil demand was forecast to rise 2.4% in 2005; tanker rates were expected to soften as tanker and combi fleet supply expanded by more than 3%.

• Dry-bulk rates were expected to soften amid scheduled vessel deliveries and potential oversupply; BDI fell 15% from 4,532 in February to 3,908 in May 2005.

• Container trade growth was projected at 10.7% in 2005 and 8.2% in 2006; fleet growth was estimated at 12% and 15% by year-end 2005 and 2006, respectively.

• Six additional Handymax bulkers, two Cape-size bulkers, two VLCCs, two 4,300-TEU containerships and six LR-I product tankers were under acquisition consideration.