Shipping Corporation’s profit goes up on higher freight rates

The state-owned Bangladesh Shipping Corporation (BSC) has reported 29% higher net profit in the third quarter of FY21 due to an increase in the bulk shipping rate.

On condition of anonymity, a BSC official said, "Our bulk shipping rate almost doubled in that quarter, which has boosted the company's profit." 

"Normally the company rents a bulk carrier for $10,000, which went down to $5,000 in the early stage of the Covid-19 pandemic. But this year, this rate has reached $20,000," he added. 

In the third quarter of the current fiscal year, the Shipping Corporation made Tk17.85 crore net profit while its earnings per share (EPS) stood at Tk1.17. Its net profit was Tk13.88 crore and its EPS was Tk0.91 in the same period of the previous year.

From July to March in FY21, the Shipping Corporation made Tk43.17 crore net profit while its earnings per share (EPS) stood at Tk2.83. 
As of 31 March, 2021, the company's net asset value was Tk58.38 crore. 

The BSC has recommended a 10% cash dividend to its shareholders for the FY20. The company's net profit was Tk41.47 crore in that year. 
The company is primarily engaged in shipping and ancillary business in international routes as the national flag carrier. It currently rents eight vessels.

The corporation started commercial operation on 5 February 1972.

The BSC was listed with the Dhaka Stock Exchange (DSE) in 1977. Its paid-up capital is Tk152.53 crore.

The company raised Tk313.70 crore through repeat public offering (RPO) in 2011 to buy a mother vessel and a cargo ship, but the company could not utilise this fund yet.

As of 31 May this year, the government held 52.10%, institutional investors had 24.30%, and general investors owned 23.60% shares of the company.
The closing price of each of the BSC's shares was Tk44.10 on Thursday at the DSE.