Lower vessel fair erodes Shipping Corp's profit by 17%

The Bangladesh Shipping Corporation, a publicly listed state-owned shipping line, has reported a 17% year-on-year decline in its profit for the July to September quarter of the ongoing 2023-34 fiscal year.

In the first quarter of FY24, the company's earnings per share (EPS) stood at Tk3.3, which was Tk3.98 in the same quarter of FY23.

Vessel fair in the international shipping sector decreased compared to the same period last year, and that was the reason behind the decline in net profits for the quarter, the company informed its shareholders.

According to the latest financial statement, the state-owned shipping line's quarterly revenue from both freight and services declined year-on year.

In the July-September quarter, its total revenue dropped to Tk101 crore from Tk116 crore a year ago.

On the other hand, its operating expenses increased to over Tk46 crore from less than Tk40 crore.

Earlier, in the 2022-23 fiscal year that ended in June, the company posted Tk16.14 in annual EPS, up from Tk14.8 in the previous year. Prior to the sea freight spike during the pandemic, the annual EPS was less than Tk5.

With the surge in profits, Shipping Corporation increased its dividend payout gradually.

In the 2021-22 fiscal year, it paid Tk2 in cash dividend per share having the face value of Tk10, and for the 2022-23 fiscal year, the recommended cash dividend increased to Tk2.5 per share.

The company's shares closed 0.4% lower at Tk107.5 on the Dhaka Stock Exchange on Monday.