During the quarter under review, the shipping division contributed around 71 per cent of the revenues and 60.3 per cent of the profit, a GE Shipping release said.
The growth in turnover coupled with a decline in expenditure costs by 9.4 per cent over the corresponding quarter last year resulted in the operating margin improving to 48.8 per cent from 40.4 per cent last year. The decline in the expenditure was on account of more time charter and less voyage charters, company officials said.
Despite the softening of the freight and charter rates in the tanker segment, the company was able to counter it on account of entering into long term period charter early in the year when the charter market was at its peak.
The softening of the charter rates was attributed to the significant cuts in OPEC supply and growth in shorter haul non-OPEC oil cargoes which reduced the tonne-mile demand impacting tanker earnings. The quarter also witnessed continued softening of dry bulk rates, the release said.