Mumbai: Great Eastern Shipping company today announced that it has seen a 46% increase in net profits to Rs342.79 crore ($86.1m) for the quarter ended September 30 up from the Rs235.48 crore in 2006. Although profits were boosted by $12.2m as a result of new accounting systems, the company stated that it also saw "a strong growth in operating profits."
In a statement to the press, GE Shipping said that as a result of having "a large part of its fleet on period charters", it managed to minimise the impact of "a sharp correction in the tanker freight rates during the quarter." The company also credited an increase in the revenue days and the doubling of dry bulk rates as contributing factors in its rising profits that balanced out challenges such as increased dry docking costs (Rs42 crores), lay up days (181 days) and unfavourable currency exchange rates.
The India-based shipper retains a positive outlook for the tanker markets in the next few months, anticipating a rate increase as oil refineries replenish their stocks before the winter heating season begins as well as an 500,000 barrel per day increase in production by OPEC members. It also expects the dry bulk segment to remain strong in the medium term on the back of strong growth in global gross domestic production as well as demand for commodities from Chinese and Indian markets. [19/10/07]
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