Shipping Corporation posts the highest profit in six years

The Bangladesh Shipping Corporation reported a 73.67% increase in profit during the 2020-2021 fiscal year thanks to a surge in shipping fares, and a decrease in ship operating costs.

The profit of the state-owned ocean-going vessels management authority has risen to Tk71.99 crore – the highest in the last six years since fiscal 2015-2016, according to its financials.

In fiscal 2019-2020, the corporation posted a profit of Tk41.46 crore.

In FY16, its net profit was Tk6.72 crore, and the profit has since increased gradually.

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

The vessels carry readymade garments and other export items, and also imported crude oil.

At present, the corporation has eight ocean-going ships – six new ships and two lighterage tankers – in its fleet. Considered commercially unprofitable due to old age, 36 ships have been sold.

Revenue bounces back in the FY21 second half 

Following the coronavirus outbreak in early 2020, the Bangladesh Shipping Corporation's revenue declined as foreign trade using ships was hampered.

In the first half of FY21, its net profit dropped 39% compared to the same period of the previous fiscal year.

The business of the corporation has started bouncing back from the third quarter of the last fiscal year as its bulk shipping rate almost doubled.

In the January-March quarter, it posted a 29% increase in profit to Tk17.77 crore, from Tk14.04 crore in the corresponding period of the previous fiscal year.

The upward trend in profit continued in the April-June period.

According to its financials, around 40% of the total profit came from the fourth quarter, when the profit stood at Tk28.88 crore.

Owing to an increase in profit, the corporation proposed a 12% cash dividend – 2% higher than the previous fiscal year – for its shareholders at its board meeting on 23 December.

In FY21, the earnings per share (EPS) stood at Tk4.72, which was Tk2.72 a year ago.

The corporation will hold an annual general meeting (AGM) on 27 January 2022. It has fixed 16 January as the record date to identify its shareholders.

The Bangladesh Shipping Corporation went into commercial operation in February 1972 and got listed on the Dhaka Stock Exchange (DSE) in 1977. Its paid-up capital is Tk152.53 crore.

It has Tk1,566.78 crore as long-term loans and Tk3.67 crore as short-term loans.

The government-owned agency raised Tk313.70 crore through a repeat public offering (RPO) in 2011 to buy a mother vessel and a cargo ship.

Till 31 November 2021, the government held 52.10%, institutional investors held 24.30%, and general investors 23.60% shares in the corporation.

The closing price of each of its shares was Tk49.40 on Thursday – a 3.89% decrease compared to the previous trading session at the DSE.