GE Shipping to invest $589-mn for expansion

Mumbai: Great Eastern Shipping would be investing Rs 2,385 crore ($589 million) over the next three years to acquire ships and upscale operation of its subsidiary company.

This will add to about 0.85 million DWT to the company’s tonnage.

The company plans to fund the investments by way of 30 per cent equity and rest from debt, company’s Executive Chairman, Mr K.M. Sheth, said in a conference call.

Higher yields from dry bulk segment, increased number of revenue days and profit on sale of ships led Great Eastern to record a growth of 24 per cent in net profit at Rs 299 crore for the fourth quarter ended March 31, 2008, against Rs 241 crore in the corresponding period last year,
The total income rose by 32 per cent to Rs 783 crore from Rs 593 crore.

Gains from sale of ships stood at Rs 45 crore for the fourth quarter against Rs 18 crore last year. However, the company suffered an exchange loss of Rs 40.96 crore against a gain of Rs 6 crore last year under Accounting Standard 11. The net impact of this in the other income is only Rs 28 crore.

For the year ended March 31, 2008, the company’s net profit has gone up by 54 per cent to Rs 1,357 crore against Rs 883 crore reported in the corresponding period last year. Total income increased by 42 per cent to Rs 3,203 crore (Rs 2,251 crore). For the full year, the company had a forex gain of Rs 145 crore.