The Board of Directors of Pakistan National Shipping Corporation (PNSC) in its meeting held on 27th April 2016 has approved the financial results for last nine months. It has achieved Group after Tax Profit of Rs 1,364 million during nine months period ended March 31, 2016 against Rs 1,051 million in the same period last year.
Earnings per share for the Group increased to Rs 10.33 from Rs 7.96 in the corresponding last period.
Despite the pressure and major financial crunch faced by global shipping industry due to drastic reduction in Bulk freight rates internationally, evident by the significant reduction in BDI index at a lowest of 290 points, PNSC achieved better results by focusing on more profitable ventures besides retaining its repute as one of the major contributors to sea borne trade in Pakistan. However, adjacent to the best possible combination of foreign charter and our own fleet, PNSC made a substantial growth in revenue of 49% and 16.2% in the area of slot charter and own vessel oil business respectively, thereby offsetting losses incurred on Dry Bulk segment and maintaining its turnover at competitive level. Though reduction in revenue by 16% the corresponding direct operating expenses reduced by 28% to Rs 6,700 million from Rs 9,298 million, thereby resulting an improvement in Gross Profit to Rs 2,917 million as against Rs 2,126 million for the same period last year.
PNSC also took the initiative by swapping its expensive loans and prepayment of Rs. 700 million in order to reduce high Mark-up, the loans were acquired in 2010 & 2014 at three months Kibor plus spread of 2.2% and 1.6% respectively, and achieved a milestone with significant reduction in spreads to the level of 0.4% and 0.5% respectively, that will result in substantial reduction in Finance Costs over the remaining period of loan.”