GE Shipping profits decline

The Great Eastern Shipping Company (GE Shipping) has recorded lower revenue and net profit for the financial year ended 31 March 2011 due to pressures from depressed freight rates especially during its fourth quarter. The India-based firm registered net profit of Rs4.69bn ($105.22m) for the year compared to IRs5.13bn in the previous year, it announced.


Revenue decreased to Rs27.41bn compared to Rs33.22bn a year ago. GE Shipping blamed a poor fourth quarter results on muted demand from the western countries, unwinding of floating storages and steady supply of new vessels that put tanker rates under pressure. The last quarter also saw the after effects of the Australian floods that caused a sharp drop in the coal trade, in addition to excessive dry bulk fleet growth.


Toward the end of its last quarter, the earthquake and tsunami in Japan brought an abrupt suspension in coal and iron ore shipments, further depressing dry bulk demand, GE Shipping explained. The company said the tanker and dry bulk markets going forward will continue to come under pressure from weak charter rates.
(Source:http://www.seatrade-asia.com)