Shipping Corporation’s half-yearly profits exceed Tk100cr for the first time

The profit of the Bangladesh Shipping Corporation – the state-owned oceangoing vessels management authority – have surpassed Tk100 crore in the first half of the current fiscal year, for the first time.

The profit grew by 400% to Tk126 crore, and the earnings per share (EPS) rose to Tk8.28.

It is the highest profit compared to the first half of any financial year since the inception of the corporation. It has also surpassed the nearly Tk72 crore annual profit for fiscal 2020-21.

On Wednesday, the Shipping Corporation disclosed the information after its board meeting at its Dhaka office.

About the profit galore, the corporation said hikes in shipping fares internationally on a large scale helped it post a higher revenue, and profit than the previous fiscal year.

In FY21, the corporation had reported a 73.67% profit increase to Tk71.99 crore, which was the highest for the previous six years, bolstered by a surge in shipping fares, and a decrease in ship operating costs.

Following the disclosure of its annual financials, the share price skyrocketed and almost tripled in one and half months.

The share price, which was Tk49.4 on 23 December last year, closed at Tk143.4 on 9 February.

According to the company, the autonomous institution owns several ships and oil tankers and also charters seagoing vessels from other operators.

The vessels carry readymade garments and other export items, and also imported crude oil.

At present, the corporation has eight oceangoing ships – six new ships and two lighterage tankers – in its fleet. Three ships were added in 2018, and the rest in 2019.

Considered commercially unprofitable due to old age, 36 ships have been sold.

Sources in the corporation said it earns from two major segments – freight revenue and service revenue.

It also earns from other income segments, which include interest income from FDR, service charge from its Dhaka building, and income investment as a dividend.

Sources in the corporation said the new six vessels, and income from its new building in Dhaka, have been helping the company to earn robustly like the previous year.

The Bangladesh Shipping Corporation went into commercial operation in February 1972 and got listed on the Dhaka Stock Exchange (DSE) in 1977.

Its paid-up capital is Tk152.53 crore. It has Tk1,566.78 crore as long-term loans and Tk3.67 crore as short-term loans.

The government-owned agency raised Tk313.70 crore through a repeat public offering in 2011 to buy a mother vessel and a cargo ship.

As of 31 January 2022, the government held 52.10%, institutional investors 24.30%, and general investors 23.60% shares in the corporation.