The Shipping Corporation of India (SCI) Q4 99/00 earnings summary

Executive summary

• Gross earnings rose to ₹2,608 crore from ₹2,582 crore in FY1998-99, while profit after tax fell to ₹161.61 crore from ₹201.33 crore.

• Crude transportation remained a major activity, moving 26.9 MMT of imported crude for Indian oil companies; the year-end fleet comprised 112 vessels.

• Results reflected lower gross profit, higher depreciation and operating costs; a 16% dividend was recommended.

Financial highlights

• Gross earnings were ₹2,607.98 crore versus ₹2,582.27 crore; operating earnings were ₹2,542.76 crore versus ₹2,520.84 crore.

• Gross profit before interest, depreciation and tax was ₹543 crore versus ₹605 crore; net interest and finance charges were ₹72 crore versus ₹101 crore.

• Profit before tax was ₹202.63 crore versus ₹248.35 crore; profit after tax was ₹161.61 crore versus ₹201.33 crore.

• Depreciation was ₹274.81 crore versus ₹258.92 crore; operating expenses rose to ₹1,908.13 crore from ₹1,799.42 crore.

• A ₹102 crore transfer to the Section 33AC Special Reserve was made; proposed dividend was ₹45.17 crore, at 16%, plus ₹9.94 crore dividend tax.

Outlook and guidance

• Crude freight markets were moving upward in 2000-01; overall crude operational results were expected to exceed FY1999-2000.

• Orders were placed for four Aframax tankers, with deliveries expected from Q1 2003, and one LR-II tanker from Cochin Shipyard.

• The revised 9th Plan target called for 21 vessels totaling ~1.68 million DWT, with investment of ~US$710 million, after the original acquisition programme fell behind schedule.

• The 2000-01 MOU set challenging financial targets despite depressed markets and emphasized cost control, safety certification and disposal of uneconomic tonnage.