Great Eastern Shipping Company

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Great Eastern Shipping Company

(08:31, 31 Jul 2021)

Consolidated sales of Great Eastern Shipping Company has declined 28% to Rs 769.18 crore with mixed trend in freight rates of tanker and dry-bulkers. Operating profit margin has slumped from 58.2% to 33.7%, leading to 58% decline in operating profit to Rs 259.36 crore. Other income fell 32% to Rs 34.86 crore. Provision for interest rose 30% to Rs 98.47 crore. Provision for depreciation fell 1% 4.86to Rs 179.43 crore. Profit before tax shrink 96% to Rs 16.32 crore. Profit on sale of ships was higher at Rs 12.34 crore compared to marginal Rs 0.13 crore in the corresponding previous period. Thus the PBT after profit on sales of ships was down 93% to Rs 28.66 crore. Forex loss was Rs 23.64 crore compared to a gain of Rs 60.52 crore in the corresponding previous period. Thus on inflated base, the PBT after forex was Rs 5.02 crore, a fall of 99%. The taxation was a write back of Rs 7.34 crore compared to a provision of Rs 8.42 crore. Thus the PAT was down 97% to Rs 12.36 crore. Share of profit/loss were nil in both the periods. Minority interest was nil in both the periods. Net profit attributable to owners of the company decreased 97% to Rs 12.36 crore.

Average TCY of crude tankers, product tankers and LPG Carriers for Q1FY21 stood lower by 44%QoQ, 3%QoQ and 4%QoQ respectively. Similarly on YoY comparison the average TCY of crude tankers, product tankers and LPG carriers stood lower by 78%, 61% and 8% respectively. However that of Dry bulkers was up by 79%QoQ and 236%YoY to USD 24238/day.

Sales of Shipping segment has gone down 29.09% to Rs 679.05 crore (accounting for 82.47% of total sales). Sales of Offshore segment has gone down 18.63% to Rs 144.32 crore (accounting for 17.53% of total sales). Inter-segment sales rose Rs 6.47 crore to Rs 6.99 crore.

Profit before interest, tax and other unallocable items (PBIT) has slumped 97.36% to Rs 12.36 crore. PBIT of Shipping segment fell 85.15% to Rs 67.87 crore (accounting for 549.11% of total PBIT). PBIT of Offshore reported loss of Rs 55.51 crore compared to profit of Rs 10.69 crore.

PBIT margin of Shipping segment fell from 47.73% to 9.99%. PBIT margin of Offshore segment fell from 6.03% to 38.46%. Overall PBIT margin fell from 41.21% to 1.50%.

Excluding the impact of the exchange rate on foreign currency loans and current assets and liabilities, including cash and bank balances as well as that of NCD/currency swap, the normalised sales (including other income was down 27% to Rs 816 crore. With EBITDA margin stand lower at 37.6% compared to 60.1%, the EBITDA was down 54% to Rs 307 crore. Eventually the normalized net profits for the quarter was Rs 85 crore, a fall of 80%.

Yearly performance

Net sales (including other operating income) of Great Eastern Shipping Company has declined 9.50% to Rs 3336.55 crore. Operating profit margin has expanded to 42.4% from 41.8% in corresponding previous period. Thus the OP was down by 8% to Rs 1413.30 crore. Other income rose 10% to Rs 231.82 crore. Provision for interest fell 46% to Rs 242.14 crore. Provision for depreciation fell 6% to Rs 700.43 crore. Thus the PBT was up 21% to Rs 616.71 crore. Profit from sale of ship was up 79% to Rs 85.84 crore and the forex gain was Rs 240.13 crore (compared to a loss of rs 322.45 crore in corresponding previous period). Thus the PBT after forex gain was up 301% to Rs 942.68 crore. Thus the PAT was up 343% to Rs 918.52 crore.

Sales of Shipping segment has gone down 5.24% to Rs 2,917.42 crore (accounting for 81.12% of total sales). Sales of Offshore segment has gone down 19.83% to Rs 678.84 crore (accounting for 18.88% of total sales). Inter-segment sales rose Rs 27.55 crore to Rs 27.89 crore. Profit before interest, tax and other unallocable items (PBIT) has jumped 343.43% to Rs 918.52 crore. PBIT of Shipping segment rose 317.72% to Rs 1,022.17 crore (accounting for 111.28% of total PBIT). PBIT of Offshore segment rose 175.96% to Rs -103.65 crore (accounting for -11.28% of total PBIT). PBIT margin of Shipping segment rose from 7.95% to 35.04%. PBIT margin of Offshore segment fell from negative 4.44% to negative 15.27%. Overall PBIT margin rose from 5.28% to 25.54%.

Other developments

Shipping fleet as on July 29, 2021 comprise 46 vessels (14 drybulker, 5 gas carriers, 18 product tankers and 9 crude carriers) with an aggregate tonnage of 3679745 DWT. The Offshore fleet comprise 4 jackup rigs, 4 PSVs, 8 AHTSV, 2 MPSV and 5 ROV support vessels.

The company during quarter ended June 2021 took delivery of 1) a second-hand Midsize Gas Carrier built in 2006, renamed as Jag Vikram; 2) a second-hand Second-hand Supramax Bulk Carrier built in 2013, renamed as Jag Rajiv as well as contracted to sell and delivered a 1996 built Midsize Gas Carrier Jag Vayu.

The standalone net asset value (NAV) for the quarter ended June 2021 was Rs 540 compared to Rs 456 in Q1FY21 and Rs 489 for FY21. On consolidated basis the NAV for quarter ended June 2021 was Rs 567-616 compared to Rs 494-536 in Q1FY21 and Rs 514-562 in FY21.

Currently the company has 13% of its crude carriers (fleet operating days), 15% of its product carriers, 71% of its LPG Carriers and 28% of dry bulk on time/period Charter with balance on spot market. The period charter gives a revenue visibility of Rs 454 crore for balance period of FY22.

Similarly for offshore about 75% of operating days in case of Jackup Rigs, 38% of AHTSV, 11% of MPSVV and 100% of PSV/ROVSV are under period charter. This gives a visibility of Rs 396 crore for balance period of FY22.

Promoters’ stake was 29.22% as of 30 June 2021, compared to 29.13% as of 30 June 2020.

Great Eastern Shipping: Consolidated Results
	2106 (3)	2006 (3)	Var. (%)	2103 (12)	2003 (12)	Var. (%)
Sales	769.18	1068.37	-28	3336.55	3686.73	-9
OPM (%)	33.7	58.2		42.4	41.8
OP	259.36	621.29	-58	1413.30	1539.41	-8
Other inc.	34.86	50.92	-32	145.98	163.05	-10
PBIDT	294.22	672.21	-56	1559.28	1702.46	-8
Interest	98.47	75.79	30	242.14	450.24	-46
PBDT	195.75	596.42	-67	1317.14	1252.22	5
Dep.	179.43	180.91	-1	700.43	742.81	-6
PBT before P/(L) on sale of ship	16.32	415.51	-96	616.71	509.41	21
Profit on Sales of Ships/Other Assets	12.34	0.13	999	85.84	48.07	79
PBT before Forex Gain/(L)	28.66	415.64	-93	702.55	557.48	26
Forex Gain/ (loss)	-23.64	60.52	PL	240.13	-322.45	LP
PBT	5.02	476.16	-99	942.68	235.03	301
Taxation	-7.34	8.42	LP	24.16	27.89	-13
PAT	12.36	467.74	-97	918.52	207.14	343
EPS (Rs)*	#	#		62.5	14.1
* EPS is on current equity of Rs 146.97 crore, Face value of Rs 10
# EPS is not annualised due to seasonality of business
Figures in Rs crore
Source: Capitaline Corporate Database

Great Eastern Shipping Company : Consolidated Segment Results

	Quarter ended				Year ended
	% of (Total)	202106	202006	Var.(%)	% of (Total)	202103	202003	Var.(%)
Sales
Shipping	82.47	679.05	957.60	-29.09	81.12	2,917.42	3,078.60	-5.24
Offshore	17.53	144.32	177.36	-18.63	18.88	678.84	846.80	-19.83
Total Reported Sales	100.00	823.37	1,134.96	-27.45	100.00	3,596.26	3,925.40	-8.38
Less: Inter segment revenues		6.99	6.47	8.04		27.89	27.55	1.23
Net Sales	100.00	816.38	1,128.49	-27.66	100.00	3,568.37	3,897.85	-8.45
PBIT
Shipping	549.11	67.87	457.05	-85.15	111.28	1,022.17	244.70	317.72
Offshore	-449.11	-55.51	10.69	PL	-11.28	-103.65	-37.56	175.96
Total PBIT	100.00	12.36	467.74	-97.36	100.00	918.52	207.14	343.43
Less : Interest		0.00	0.00	-		0.00	0.00	-
Add: Other un-allcoable		0.00	0.00	-		0.00	0.00	-
PBIT Margin(%)
Shipping		9.99	47.73	-3,773.39		35.04	7.95	2,708.84
Offshore		-38.46	6.03	-4,449.04		-15.27	-4.44	-1,083.32
PBT	100.00	12.36	467.74	-97.36	100.00	918.52	207.14	343.43

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