SCI moves up with its plan to expand Bulk & Tanker operations

Shipping Corporation of India is currently trading at Rs 121, up by 1.95 points or 1.64% from its previous closing of Rs 119.05 on the BSE.

The scrip opened at Rs 120 and has touched a high of Rs 121.70 with a low of Rs 119.05. So far 1,12,935 shares were traded on the counter.

The BSE group ‘A’ PSU sector stock of face value Rs 10 has touched a high of Rs 245.30 on August 8, 2008 and a 52 week low of Rs 67 on December 8,2008.

The BSE PSU index is currently trading at 7,869.46, marginally down by 0.06%.

The scrip price has witnessed corrections of 2.89% since last week and 6.82% since last month.

Shipping Corporation of India has drafted plans to enhance its Bulk & Tanker Operations by acquiring crude oil tankers to meet the growing requirement of crude oil import for the Indian refineries considering necessity of larger vessels for the Indian trade. The company said it would acquire product tankers to meet the transportation requirements along the Indian coast as well as to have a share in export of products from India.

Chasing further opportunities in LNG transportation for India and acquiring dry bulk carriers for replacement as well as growth are also on the priority list of the company. As far as liner operations are concerned, SCI intends to buy modern container carriers, plan for new services and exploring diversification opportunities in related areas.

Apart from this, SCI plans to expand its offshore operations by the way of acquiring state-of-the-art offshore supply vessels and raising participation particularly at the higher end of the offshore services by catering to the growing demand of oil exploration.

The company has posted a net profit of Rs 200.76 crore for the quarter ended March 31, 2009 against Rs 248.69 crore for the quarter ended March 31, 2008, down 19.27%. Total income has decreased to Rs 1,099.59 crore from Rs 1,177.44 crore in the previous corresponding quarter, a decline of 6.61%.

For entire fiscal the company has reported a net profit of Rs 940.67 crore, as compared to Rs 813.90 crore in the previous fiscal, up 15.57%. Total income has increased to Rs 4,561.83 crore, as against Rs 4,084.36 crore for the year ended March 31, 2008, a rise of 11.69%.

The company’s expected fleet additions in 2009-10 include one VLCC of 319000 dwt on June 25, 2009, one MR Product Tanker of 47000 dwt in October 2009 and one MR Product Tanker of 47000 dwt in December 2009.