GE Shipping (GE) has reported a 25% drop in profits at the end of Q3 with a net profit of INR874.6m, down from INR1.17bn in the same period last year.
However for the same quarter, revenue had improved from INR6.44bn last year to INR8.27bn, as did the company’s average time-charter equivalent earnings for crude carriers, which increased to $18,664 per day from $18,000 per day a year ago.
"While slippages and scrapping activities are expected to increase going forward, the steady fleet growth coupled with high bunker costs is likely to suppress any improvement in earnings," the company said.
GE Shipping, India’s largest private shipping group, said that steady imports from China in the last couple of months meant the demand for drybulk commodities remained strong, "however, excessive supply of tonnage is expected to worsen the demand-supply gap, which will add pressure on freight rates."
Daily earnings from dry bulk vessels also dropped 20% to $16,114 per day and "it is therefore expected that dry bulk earnings may be lower than in recent years," said the company.
