Bangladesh Shipping Corporation (BSC) has posted notable growth in revenue and profit during the first nine months of the current fiscal year 2024-25, buoyed by rising international charter fares.
Despite losing one vessel from its fleet amid the Russia-Ukraine war, the state-owned company continued to grow its profitability with a leaner fleet of five oceangoing ships, capitalising on strong demand in the global shipping market.
According to a Shipping Corporation statement, the revenue of the ocean-going vessel management authority grew around 24.09% with a 23.23% growth in freight and 28.71% in service revenue, totalling Tk429.96 crore over the same period of the previous fiscal year.
Meanwhile, its net profit surged by 30.10% to Tk219.33 crore, with earnings per share (EPS) rising to Tk14.38, up from Tk168.58 crore and EPS of Tk11.05 during the July to March period last year.
Keep updated, follow The Business Standard’s Google news channelWith the five vessels, it earned Tk360.70 crore as freight revenue or renting its vessels and Tk69.26 crore earned as service revenue.
Its other income basically interest income, exchange gain and other sources increased by 105% to Tk137 crore, according to the statement.
On Wednesday, its share price increased by 1.12% to Tk90.20 each on the Dhaka Stock Exchange (DSE).
Commodore Mahmudul Malek, managing director of Shipping Corporation, told TBS, “Although chartering fares in the global market have recently begun to decline slightly, the earlier surge of around 20% to 25% significantly boosted the company’s profit and revenue.”
He also attributed the company’s ability to operate vessels on international routes to good management and operational efficiency.
Shipping Corporation has sold two of its oil tankers—MV Banglar Sourav and MV Banglar Jyoti—which were damaged by fire in September and October last year. The vessels were used to transport petroleum products for the Bangladesh Petroleum Corporation.
According to Shipping Corporation sources, MV Banglar Sourav and MV Banglar Jyoti—two oil tankers used to transport petroleum products for the Bangladesh Petroleum Corporation—were severely damaged by fire on 30 September and 5 October, respectively.
Commodore Malek also said that capital gains from the sale of the two damaged tankers contributed to boosting the company’s profitability. Shipping Corporation sold both ships for Tk55 crore and, after paying government taxes, retained Tk45 crore as capital gain.
“To increase Bangladesh’s stake in the international shipping industry, we plan to procure more ships using both our own funds and government financing,” he said. “We are in the process of immediately purchasing two vessels with our own funding, while another four will be procured from China under a G2G (government-to-government) agreement. Later, we also plan to acquire four more ships from South Korea.”
Established in 1972, Bangladesh Shipping Corporation procured 44 ships, but now it has five ocean-going ships.
Lastly, it procured six ships in 2018 and 2019 from China with around Tk1,500 crore investment.
Of the vessels, Banglar Samriddhi, a bulk carrier, was badly damaged in 2022 by a missile attack while anchored at Alvia port in Ukraine.
The Bangladeshi ship was hit by a missile at the port on 2 March 2022, killing Hadisur Rahman, the third engineer of the ship, and leaving all navigation tools, including the bridge room completely damaged.
Shipping Corporation got compensation for the damaged vessels from the insurer, and scrapped the vessels after receiving compensation.
Not only did it report revenue and profit growth in the first nine months of the current fiscal year, but it also earned a record profit in FY24, riding on the increasing chartering fares and pricy dollar in its history with Tk249.96 crore first time.
Riding on the profit, it paid a 25% cash dividend to its shareholders, and owing to such hefty profit, it had decided to procure two vessels on its own funding for the first time in its history also.
https://www.tbsnews.net/economy/stocks/shipping-corp-profit-swells-rising-global-fares-1148491
