Bangladesh Shipping Corporation’s revenue up by 1000pc in 5 years

The state-owned Bangladesh Shipping Corporation reported a 1000 percent jump in profit over the last five years. The corporation posted only Tk5 crore net profit in the 2014-15 accounting year, and this has reached Tk55 crore in 2018-19 accounting year.

Six new vessels joined the company's fleet in 2018. When the company was first formed, it had only one ship. Bangladesh Shipping Corporation's Company Secretary Khaled Mahmud told The Business Standard that these new vessels have contributed to profit growth.

"We are planning to bring in six more ships by 2021, which will increase our profit even further," said Khaled. The corporation has recommended giving 10 percent cash dividend in the 2018-19 accounting year to its shareholders. The record date has been fixed for

November 6 this year while the annual general meeting will be held on 24 November next.

The shipping corporation has also maintained the jump in profit in the first quarter (July-September) of the 2019-20 accounting year. The profit increased by 283 percent to Tk23 crore compared to that in the first quarter of the previous accounting year. The earning per share of the company has reached Tk1.46.

Bangladesh and Sri Lanka recently signed a memorandum of understanding to transport containers and operate feeder services from Chattogram to Sri Lanka. Company secretary Khaled said they are preparing for this shipping service.

In the meantime, shipping corporation officials said they are planning to buy two mother bulk carriers with a capacity of 80,000 metric tonnes each, and 10 bulk carriers with a capacity of 10,000-15,000 metric tonnes each.

These vessels will carry imported coal for the Rampal, Payra and Matarbari power plants.

Since the capacity of Eastern Refinery Limited to refine crude oil will be doubled by 2020, the shipping corporation intends to buy two more mother tanker vessels to meet this demand.

The purchase of another two product oil tankers with a capacity of 80,000 metric tonnes each is also on the cards. The oil tankers will be used for transporting imported diesel and jet fuel of the Bangladesh Petroleum Corporation.

Company Secretary Khaled Mahmud said rented foreign freighters are currently transporting the goods.

"It is possible to save a lot foreign currency if the government allows the shipping corporation to build its own maritime infrastructure. And since Bangladesh is importing

Liquefied Natural Gas (LNG), the company plans to buy two LNG carrying vessels as well," said the company secretary.

The closing price of the shipping corporation's share was Tk52 at the Dhaka Stock Exchange on Wednesday. The maximum price of the shipping corporation's share was Tk62 while the minimum was Tk34.90 last year.

The government holds 52.10 percent share of the company which has a paid-up capital of Tk153 crore. Various institutions and individuals own 13.09 percent and 34.81 percent shares of the respectively.