Fleet expansion pays off as Shipping Corporation sees growth in revenue and profit
2 China-made ships were purchased from US firm at $77m last year
With the expansion of its fleet, Bangladesh Shipping Corporation (BSC), a state-owned ocean-going vessel management authority, witnessed a year-on-year 21% jumps in revenue, and 7% in profit in the second quarter (Q2) of the current fiscal year.
The corporation's board approved its quarterly and half-yearly financial statements for the July-December period today (8 February).
According to its price-sensitive information, in Q2, Shipping Corp's revenue surged to Tk176.91 crore while its profit grew to Tk57.81 crore with an earnings per share (EPS) of Tk3.79. It, in the first quarter of the fiscal year, witnessed a slump by 13% in its profit as its income tax expenses surged significantly.
Regarding the growth in its financials, the corporation said its revenue for the second quarter of 2025-26 increased due to the increase in freight rate in the international shipping sector.
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In this context, BSC's net earnings per share increased compared to the previous year, it said.
In a strategic move to grow its presence in the shipping sector and boost government revenue income, the corporation, for the first time, purchased two new ocean-going vessels entirely with its own funds, investing approximately Tk900 crore.
The two China-made ships were purchased from an American company named Helenic Dry Bulk LLC at $77 million last year through an international tender
Of these, one vessel, Banglar Progoti, began its commercial operations in October last year, and the revenue generated from it was reflected in the half-yearly financial. The second, Banglar Nabojatra, ship joined its fleet in early February as the corporation received it from its supplier on 29 January.
BSC Managing Director Commodore Mahmudul Malek told the Business Standard, "Revenue and profit grew due to starting commercial operation of new ships at the fleet of the corporation as well as increasing the chartering fares."
Profit dips 5.42% in H1 as FRDs encashment
Despite growth in profit in Q2, Shipping Corp's profit in the first half declined by 5.42% but its revenue continued to grow by 11%, its financial statement showed.
During the July to December period, its profit grew to Tk136.23 crore with an EPS of Tk8.93 and its revenue grew to Tk330 crore. At the same time of the previous fiscal year, its revenue in H1 was Tk196.8 crore and profit Tk144.04 crore.
When asked about the decline in H1 profit, Commodore Mahmudul Malek told TBS that year-on-year profit in the half-year dipped mainly due to the encashment of FDRs to acquire new ships. Both vessels have joined the fleet and are generating revenue.
"We previously earned interest income from FDRs, but we encashed them to invest Tk900 crore in acquiring ships. As a result, interest income declined, which reduced overall profit," he said.
He expressed hope that the company's profitability will increase in the coming quarters as the new ships continue operating in the fleet.
Earlier, in FY25, the corporation reported its highest-ever net profit since its inception in 1972 in its 54-year history, with a profit of Tk306.56 crore – up 23% year-on-year – and revenue of Tk798.28 crore, up 33.39%.
Seeing growth opportunities in the global shipping industry, it decided to expand its fleet by acquiring one new ship per year until 2030 using its own funds, supported by record profits and a strengthened financial base.
Historically, the corporation acquired a total of 44 ships; now it owns seven ships in its fleet, with the addition of two new ships. Of the six ships, five were acquired in 2018 and 2019 from China under government-to-government contracts for Tk1,500 crore.
One ship, Banglar Samriddhi, was hit by a rocket while anchored in the Alvia port channel of Ukraine on 2 March 2022 during the Russia-Ukraine war. After getting an insurance claim, the corporation abandoned the ship.
