ISLAMABAD: Pakistan National Shipping Corporation (PNSC) made substantial growth of 45 percent and 24 percent in revenue from foreign tanker and slot charter business respectively, earning after tax profit of Rs 1381 million in nine months of outgoing fiscal year.
According to official sources, PNSC during nine month July- March 2016-17 period, significantly contributed to the economy.
After tax profit of Rs 1,381 million has been achieved during this period against Rs 1,364 million in the same period last year showing an increase of 1.25 percent.
Earnings per share for the group increased to Rs 10.46 from Rs 10.33 in the corresponding last period.
At present, Pakistan National Shipping Corporation (PNSC) fleet comprises of nine vessels of various type/size (five bulk Carriers and four Aframax tankers) with a total deadweight capacity of 681,806 metric tons being the highest ever carrying capacity since its inception.
Despite the pressure and major financial crunch faced by the global shipping industry with the fall in Average Freight Rate Assessment (AFRA), world scale and bulk freight rates internationally, 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.
Direct operating expenses decreased to Rs.6,607 million from Rs. 6,734 million.
PNSC's finance cost reduced to Rs 255 million from Rs 465 million in the same period last year as PNSC started reaping the benefit of swapping and negotiating the expensive loans acquired in 2010 and 2014 at three months KIBOR plus spread of 2.2 percent and 1.6 percent with significantly reduced level of spreads at 0.4 percent and 0.5 percent respectively.
These reduced level of spreads also enhanced the loan repayment capacity of the corporation.
In line with the domestic requirements of Pakistan, PNSC plans to add more oil tankers to its fleet.
The dry bulk market is showing signs of recovery and PNSC strives to keep vessels deployed at best available rates.
As a step forward in ferry service venture, PNSC has been granted a license by Ministry of Ports and Shipping and will soon start its service on commercially viable terms and upon clearance from all concerned.
PNSC is also exploring new opportunities like oil storage facilities to cater to the growing domestic needs and for improving operational efficiencies. PNSC plans to enter in new ventures with upcoming refineries.
Furthermore, under CPEC, many coal fired power plants are expected to be operated in coming next two years.
PNSC is aiming to venture for the transportation of the coal which is expected to be imported from foreign countries through PNSC's own bulk carriers.
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