Karachi February 29 2024: Pakistan National Shipping Corporation profit fall 20.8 percent in first half of 2024 due to major dry-docking and repair and maintenance activity of ageing fleet, according to company’s financials.
During the first half FY2024, the pivotal financial macroeconomic indicators USD PKR parity and interest rate (KIBOR) showed upward movement by 27% and 4% respectively. The decline in bulk carrier time charter rates approximately by 54% in import and export business of the country have also had significant impact on maritime sector of Pakistan” states company in its financials.
Under the influence of global and local economic conditions and trend, the PNSC Group has recorded a profit after tax of Rs.9.49 billion as against Rs.11.99 billion in the corresponding period last year. The Groups net profit margin declined slightly from 41% in the corresponding period last year to 40%. Cumulatively, the Group achieved a turnover of Rs.23.93 billion (PNSC: Rs.6.42 billion) as compared to Rs.29.12 billion (PNSC: Rs.8.10 billion) for the corresponding period last year.
The reason for decrease in revenue is decline in dry cargo segment revenue by Rs.2.47 billion, owned tankers segment by Rs.2.01 billion and foreign chartering revenue by Rs.0.72 billion respectively. The main factors affecting revenue from oil transportation of the Group as a whole is decrease in average AFRA rate from 219 to 155. However, upward trend in the average exchange rate negated the financial impact of decline in AFRA.
Additionally, the fact that the Group has an ageing fleet necessitated major dry-docking and repair and maintenance activity.
Group earnings per share declined to Rs.71.86 as against Rs.90.74 in the corresponding period last year. The PNSC standalone results reflect a profit after tax of Rs.2.40 billion as compared to profit after tax of Rs.1.49 billion in the corresponding period of the last year. PNSC was able to effectively utilize the funds available during the period.
Thus, was able to derive income from its investments amounting to Rs.3.26 billion as compared to Rs.0.62 billion is the corresponding period last year. During the current period, PNSC was able to pay in full the loans obtained for Bolan and Khairpur in September 2023. Thus, resulting in saving of Finance Cost.
