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Global shipping: Riding the tide!

Mar 11, 2005

The year 2004 has been pretty volatile for the global shipping industry, including the Indian players, as freight rates were impacted by uncertain moods of the oil market and a natural disaster towards the end of the year. Rising global oil production and demand led to shipping companies ramping up capacities (especially tanker tonnage) on a fast footing. Consequently, tanker freight rates strengthened to their highest levels in the final quarter of the year (October-December 2004). Apart from t

GE Shipping: In smooth waters!

Nov 1, 2004

GE Shipping, India’s largest private sector shipping company, announced robust results for the quarter and half-year ended September 2004. Apart from strong growth in the topline, aided by rising global trade and buoyant freight rates, the company has managed to expand its operating margins for both the periods. This expansion could be attributed to firm freight rates in the global waters.

Global shipping: On high tide!

Aug 23, 2004

The year gone by, beginning July 2003, has been particularly rewarding for investors in shipping stocks. As can be seen from the graph below, domestic shipping major, Great Eastern Shipping (GESCO) and global major, Teekay Shipping, have grossly outperformed their respective benchmarks. While the run-up in these stocks started in the second half of 2002, the actual fillip came in middle of 2003, as global trade looked for a promising future ahead.

GE Shipping Vs Teekay Shipping

Jun 17, 2004

Unlike other sectors, shipping is a global industry i.e. freight rates, demand for tonnage and profitability are closely linked to the progress in global trade. In this article, we will discuss about the contemporary global shipping industry and see where two shipping majors, Great Eastern Shipping (or GE Shipping) and Teekay Shipping, stand among the whole scheme of things. As a matter of fact, while the former is the largest private sector shipping company in India, the latter shares its place

GE Shipping: On high waters!

Apr 20, 2004

The shipping industry has its fortunes highly correlated to those of the global trade. As such, companies from this sector usually have growth rates that are highly volatile, very much in line with the precariousness that characterises global trade in merchandise. Now, the last year has seen shipping companies benefit largely from a pickup in global trade and, consequently, freight rates. This has helped them not only in improving their topline performance but has also aided a better utilisation

Concor: An overview

Dec 22, 2003

Container Corporation of India (Concor) is a subsidiary of Indian Railways. The company provides logistic solutions through various terminals connected through railways (28), roadways (6) and ports (5). With more than 8,000 owned and leased containers, the company is one of the efficient logistic companies in India.

GE Shipping: 4QFY03 push

May 7, 2003

Though the first nine months performance of GE Shipping was disappointing in light of weakness in world economy and the consequent impact on freight earnings, the company has reaped the benefit of an upturn in 4QFY03. While revenues have increased by 4%, higher realisation and capacity utilisation have led to a noticeable improvement in operating margins in the same period. The better than expected 4QFY03 numbers have improved FY03 performance as well.

Shipping: Taken aback

Apr 3, 2003

Shipping companies saw a reversal in fortunes in the fiscal year 2003. After riding on the back of a sharp spurt in freight rates in 2001 that had a spillover effect on 2002, the impact of the September 11 has been significant on the shipping sector in 2003. Except for a brief period in the third quarter of 2003, there was not much in offer for Indian shipping majors.

SCI: Long way to go

Mar 31, 2003

Shipping stocks have been in the limelight on the bourses over the last one month or so amidst war concerns. The reason for the optimism seem to stem from the fact that freight rates have increased in conjunction with the rise in crude prices in the international markets. Shipping Corporation of India (SCI) has also moved up. However, things are not as rosy as they seem.

GE Shipping: Tougher times ahead

Aug 5, 2002

The downturn in the global economy and its consequent effect on world trade is clearly reflected in The Great Eastern Shipping Company's first quarter results for FY03. While revenues have declined by as much as 36%, there has been a marked fall in net profit as well in the same period. In contrast with last two fiscal years, FY03 is going to be a challenging year for shipping majors.

Shipping: Challenges galore

Mar 30, 2002

After a bumper year (FY01), slowdown in world economy and sluggish industrial sector has had bearing on the shipping sector. While expectations are ripe for recovery in the US economy in the second half of the current fiscal, prospects for FY03 remain challenging for this sector. Nevertheless Indian shipping majors are on an expansion spree to capitalize on any upturn in the world economy.

GE Shipping: A focussed approach

Mar 30, 2002

GE Shipping is the largest private sector shipping company in the India. The company had a fleet strength of 60 ships constituting 17 dry bulk carriers, 17 crude carriers (including product tankers) and 26 offshore vessels in its offshore division. The company sold three bulk carriers in the current fiscal and consequently, its aggregate capacity stands at around 1.4 million dead weight tonnage (mdwt). One of the key positive of the company is that it is backed by a management, which is reputed

Shipping: In choppy waters

Mar 15, 2002

Shipping companies have been in the limelight on the bourses over the last few months. The reason for this is the government's disinvestment programme of Shipping Corporation of India (SCI), for which all other private shipping companies have evinced interest. But the business prospects remain challenging in light of the slowdown in the world economy.

SCI: What is the fair value?

Feb 20, 2002

Post the divestment of VSNL and IBP, the next big ticket disinvestments are that of Maruti and Shipping Corporation of India (SCI). While the government has initiated discussions with Suzuki for a stake sale in the former, SCI has generated quite a bit of interest. A number of domestic as well as foreign shipping majors have evinced interest in SCI in light of its strong presence in the tanker segment. We place SCI one-on-one with the private sector shipping major, The Great Eastern Shipping Com

GE Shipping: Allround performance

Jan 30, 2002

Despite the slowdown in world trade, The Great Eastern Shipping Company (Gesco) has managed to post a sharp rise in profits in the third quarter ended December 31, 2001. Change in revenue mix, weak crude prices and cost saving initiatives have resulted in a higher than expected rise in operating profits.

Shipping: Weakening prospects

Jan 15, 2002

After an eventful 2001, thanks to historically high freight rates, the slowdown in the global economy and a weak global trade does not augur well for shipping companies. While revenue growth has been impressive for shipping companies in the first half of the current fiscal, it might not be the case in the coming quarters.

Shipping: Back to square one?

Aug 20, 2001

After having risen sharply in FY01, the stock prices of both Great Eastern Shipping and Shipping Corporation of India have fallen by 25% and 57% from their highs. Both the Indian shipping majors are concentrating on the tanker segment. But given the fall in freight rates over the last six months, a favorable environment is lacking.

Sun shines, but still miles to go...

Mar 10, 2001

The fiscal year 2000-01 has reversed fortunes for the shipping industry with freight rates touching their historically high levels. As a result, shipping companies are reaping the benefits in form of higher margins and profits. But, inadequate government reforms have been a drag on the Indian shipping companies. We take a closer look at the challenges and opportunities for the Indian companies.

SCI: The smooth sailing PSU

Mar 10, 2001

This company is one of those Public Sector Undertakings (PSUs), which has been valued at half of its actual book value by the markets. This company has a total asset base valued at Rs 29 billion with free reserves of Rs 16 billion. It is amongst the 27 PSUs, which is in the disinvestment list. This ‘Mini-Navratna’ is The Shipping Corporation of India (SCI).

“We may consider buy-back of shares at the right time…”

Sep 20, 2000

In an interview with Equitymaster.com, Mr. Sheth shared with us the prospects of the shipping industry in general and Great Eastern’s future plans in particular.


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