Pakistan National Shipping Corp’s Financial Results Improve Despite Pressure

Pakistan National Ship­ping Corpo­ration’s (PNSC) profit-after-tax jumped 6.62 per cent to Rs. 2.47 billion during the fiscal year ending June 2017, up from Rs. 2.32 billion in the same period last year.

The earnings per share increased to Rs. 18.75 from Rs. 17.59 for the same time period last year. The PNSC achieved better results despite the pressure and major financial crunch faced by the global shipping industry. The company also announced a cash dividend of Rs. 2.00 i.e. 20% per share.

However, substantial revenue for the year remained flat to just Rs. 12 billion which was the same as of last year.

The direct operating expenses increased by 8.76% to Rs. 1 billion, against Rs. 900.25 million, thereby resulting in a decrease of 1.13% gross profit to Rs. 3.51 billion as against Rs. 3.55 billion for the same period last year.

At the close of Friday’s trading session, PNSC’s script closed at Rs. 126.45 and is now being traded at Rs. 127.50 (+Rs. 1.05) with a turnover of 40,300 shares at the time of writing.

Recently, a local newspaper reported that Pakistan Nat­io­nal Shipping Corporation (PNSC) is looking to enter the marine services business. The national flag carrier has bid for two 75-tonne bollard pull tugs and two pilot boats that Karachi Port Trust (KPT) requires on charter and hire bases for a three-year period.

PNSC currently has 19 subsidiaries that run different entities owned by the holding company.

One of the company’s officials reported that the corporation is also planning to go into the business of dredging, which involves the removal of sediments from the harbour. He said foreign companies do most of the dredging at the country’s different ports, which causes a huge outflow of foreign exchange every year. “It will save the country millions of dollars once PNSC enters this business,” he said.

PNSC can set up a new subsidiary to handle the marine services business, the official added.