GE Shipping expects profits to continue on firmer rates

Written by fe Bureau | Mumbai | Updated: Aug 1 2010, 05:29am hrs
Great Eastern (GE) Shipping expects profits to improve due to improvement in charter rates in spot market for the tanker segment.

We see improvement in the spot charter rate for the tanker segment in the future. We will look at cashing on that opportunity, said CFO, G Shivakumar in a conference call on Friday.

The company has a fleet of 35 vessels with a dead weight tonnage of 2.66 million. Of this, 80% are tankers. The company has 47% of its tanker fleet in the spot market.

While announcing its results on Thursday, the company mentioned Rs 467 crore as the revenue visibility for the remaining of this fiscal.

Crude tankers and product carriers (including gas carrier) are covered to the extent of around 43% and 72% of their operating days, respectively. For dry bulk carriers, they are covered to the extent of around 46% of the fleets operating days.

It has a total capex commitment of around Rs 2,634 crores. This will result in addition to the tonnage of about 1.31 million dwt (3 tankers and 5 dry bulk carriers). GE Shipping's average time charter yield (TCY) for crude carriers and product carriers (including gas) for the June quarter has been $20,444 and $15,485 per day, respectively. The company observes refinery throughout in the US is at mid-2007 levels.