Shipping Corporation posts highest profit in six years

Bangladesh Shipping Corporation reported a 73.67% increase in profit in fiscal year 2020-2021 thanks to higher freight rates and lower costs of operating vessels.

State-owned ocean-going vessel management authority profit reached Tk 71.99 crore, the highest in six years since fiscal year 2015-16, according to its financial data.

In fiscal year 2019-2020, the company recorded a profit of Tk 41.46 crore.

In fiscal year 16, its net profit was Tk 6.72 crore, and the profit has since increased gradually.

The autonomous institution owns several ships and tankers, and also charters seagoing vessels from other operators.

Ships carry ready-made clothing and other export items, as well as imported crude oil.

Currently, the company has eight ocean-going vessels – six new ships and two light tankers – in its fleet. Considered commercially uneconomic due to their old age, 36 vessels were sold.

Revenues rebound in the second half of fiscal year 21

As a result of the coronavirus outbreak in early 2020, Bangladesh Shipping Corporation’s revenue declined as foreign trade using ships was hampered.

In the first half of fiscal year 21, its net profit fell by 39% compared to the same period of the previous fiscal year.

The company’s business began to rebound from the third quarter of last year, as its bulk shipping rate nearly doubled.

In the January-March quarter, it posted a 29% increase in profit to Tk 17.77 crore, compared to Tk 14.04 crore in the corresponding period last year.

The upward trend in profits continued over the April-June period.

According to its financial data, about 40% of total profit was from the fourth quarter, when profit was Tk 28.88 crore.

Due to an increase in profits, the company offered a 12% cash dividend – 2% more than the previous year – to its shareholders at its board meeting on December 23.

In fiscal year 21, earnings per share (EPS) amounted to Tk 4.72, compared to Tk 2.72 a year ago.

The company will hold an annual general meeting (AGM) on January 27, 2022. It has set January 16 as the registration date to identify its shareholders.

The Bangladesh Shipping Corporation started trading in February 1972 and was listed on the Dhaka Stock Exchange (DSE) in 1977. Its paid-up capital is Tk 152.53 crore.

He has Tk 1,566.78 crore in long term loans and Tk 3.67 crore in short term loans.

The government agency raised Tk 313.70 crore through a repeated public offering (RPO) in 2011 to purchase a mother ship and freighter.

Until November 31, 2021, the government held 52.10%, institutional investors 24.30% and general investors 23.60% of the company’s shares.

The closing price of each of its shares was Tk 49.40 on Thursday, down 3.89% from the previous trading session at DSE.

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