Great Eastern grabs marginal profit for Q3

India-based Great Eastern Shipping Company managed to snatch a marginal quarterly rise in net profit for the third quarter ended 31 December 2010. The Mumbai-listed firm posted net profit of Rs800m ($17.6m) for the third quarter compared to Rs750m for the corresponding quarter in 2009. Total revenue, however, dropped to Rs3.92bn in the quarter compared to Rs5.256bn in the previous quarter, the company announced. Great Eastern attributed the lower revenue to lower tanker and dry bulk rates in 2010 compared to 2009.


“Even though the winter season proved to be very severe, depressed demand for heating oil in US had a negative impact on the product tanker earnings. Return of ships from floating storage added to the pressure on the tanker earnings,” the company said.


In dry bulk, a slowdown in Brazilian iron ore exports to Asia was one of the main factors behind softer tonnage demand and hence weaker rates. It added that the Australian flood has continued to put pressure on dry bulk rates towards the end of its third quarter.
(Source:http://www.seatrade-asia.com)