PNSC Group has declared a profit after tax of Rs. 2,265 million, a decrease of 6% compared to the last year’s profit after tax of Rs. 2,414 million. A significant reason for the decline in profitability is a decrease in group revenue from managed vessels by 18% (Rs. 8,414 million v/s Rs. 10,278 million last year). At the same time, there is an increase of Rs. 474 million (Rs. 736 million v/s Rs. 263 million last year) in revenue from the chartered segment.

The total cargo transported in FY 2021 increased to 11.09 Million MT compared to 8.437 Million MT in FY 2019-20, reflecting a significant increase of 31.4%. In addition, aggressive cost-cutting measures were adopted across all segments of the business. As a result, despite an annual CPI of 8.9%, the administrative expenses declined by 7.6%, rental expenses by 15.2% & other costs by 22.3%

PNSC having a total DWT capacity of 831,711 metric tons, lifted cargo of about 11.09 million tons (FY 2020: 8.437 million tons) during the year under review, which is equivalent to approximately 10.06% (FY 2020: 9.34%) of the country’s total 110.271 million tons (FY 2020: 94.321 million tons) seaborne trade by volume.

Future Outlook

The company remains optimistic about the performance of the PNSC group in the future. The tanker freights have shown signs of recovery-albeit gradually. The BDI is currently hovering at ten years high, which is expected to yield strong results for our bulk carriers. The fleet expansion delayed due to market volatility will be pursued aggressively in FY 22. Materialization of the transaction will positively impact the revenues as well the bottom line of PNSC. Business diversification & entry into the marine services business is also being followed vigorously. Persistence of Delta variant & outbreak of newer variants of Covid remains the key risk to the recovery of tanker freight rates. The rising global container shipping freight also remains an area of concern. Tightening of environmental regulations by IMO is another risk to profitability in years to come. All efforts will be made to mitigate the adverse impact of the risks emanating from volatility in freight markets and tightening of regulatory framework & the associated cost pressures.

Dividend Announcement

The Board of Directors is pleased to recommend a cash dividend for the year ended June 30, 2021, on ordinary shares at 30%, i.e. Rs. 3.00 per share for the approval of the members in the upcoming 43rd Annual General Meeting.

PNSC is a shipping company that undertakes international operations by transporting petroleum products from the Middle East to seaports in Pakistan for domestic consumption and through the global carriage of dry bulk commodities on international routes. The majority of PNSC’s revenue streams are pegged to international freight indices, inextricably linking the Corporation and creating a dependency on the global economy’s health. (Abstract from PNSC annual report for 2021)