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BSC reports higher profits despite economic crisis

Niaz Mahmud
26 May 2023 00:00:00 | Update: 26 May 2023 01:13:56
BSC reports higher profits despite economic crisis

Defying all economic challenges, Bangladesh Shipping Corporation (BSC), the lone state-run oceangoing vessel management corporation, posted a 7.75 per cent year-on-year higher net profit in the first nine months of the current fiscal year.

The publicly traded enterprise reported Tk 190.4 crore in net profit in the July-March period of the fiscal year 2022-23, which was Tk 176.8 crore in the identical nine-month period of the last fiscal.

Commodore Md Ziaul Hoque, managing director at BSC, told The Business Post, “Because of our relentless hard working and sincere efforts, now there is no ship sitting idle on our fleet. Besides, our vessels were in good demand in the international market, helping us make a significant profit growth.”

“New ships were also added to our fleet during the period. And all these reasons helped us navigate the global economic storms, and subsequently register a growth in both revenue and profits,” he added.

The corporation’s net revenue grew by 10.11 cent to Tk 370 crore in the first nine months of the current fiscal year from Tk 336 crore in the July-March period of the last fiscal year, according to its unaudited third quarterly financial report.

The listed entity’s earnings per share (EPS) increased to Tk 12.49 for the July-March period of the fiscal 2022-23 from Tk 11.59 for the same period a year ago.

The 50-year-old shipping corporation also posted a Tk 62.23 crore in profit in the January-March quarter of FY23, an increase of over 23 per cent on a year-on-year basis.

The state-run enterprise clocked a profit of Tk 50.49 crore in the same third quarter of the fiscal 2021-22.

Its earnings per share rose to Tk 4.08 for the third quarter of FY23 from Tk 3.31 for the same quarter last fiscal year.

The state-run corporation’s consolidated net cash flow per share (NOCFPS) was Tk 19.48 for July 2022–March 2023, against Tk 17.76 for July 2021–March 2022.

Its net asset value (NAV) per share was Tk 83.01 as on March 31, this year, which was Tk 72.52 till June 30 last year.

The BSC provides shipping services to local exporters, importers, and business houses. The main income source of the corporation is chartered tankers.

Currently, the state-owned corporation has eight operational vessels on its fleet. The listed corporation reported a 12 per cent increase in its net profit in the October-December quarter of the current fiscal year.

Its net profit stood at Tk 67.5 crore in the second quarter of the fiscal year 2022–23, up from the profit of Tk 60 crore in the same period last fiscal.

In November last year, another listed company – Bangladesh Export Import Company (Beximco) Limited – joined the BSC’s board by acquiring a 5.25 per cent stake in the corporation.

EBL Securities Limited, a stockbroker, in an equity report prepared on the BSC, said the revenue contribution from the corporation’s time charter increased to 76.6 per cent so far in the current fiscal, while the year-on-year growth in revenue was 107.12 per cent.

The corporation’s freight revenue is expected to increase many times once it materialises its plan to add 16 more vessels, it said.

Currently, the BSC repairs vessels in a more speedy way and does not require employing foreign companies as much, thanks to the upgradation of its marine workshop.

As a result, the shipping corporation’s repair costs decreased and service revenue increased significantly, EBL Securities’ report stated.

The report also said the BSC will get priority as a national flag carrier to transport goods as per the government law.

According to the Bangladesh Flag Vessel Protection Act of 2019, at least 50 per cent of seaborne cargo relating to Bangladesh’s international trade will have to be transported by vessels carrying the Bangladeshi flag.

The BSC is planning to purchase two 80,000-tonne mother bulk carriers to transport coals. To lighten the load on the mother vessels, two more bulk carriers will also be bought, with capacities ranging from 10,000-15,000 tonnes.

As the LNG imports of Bangladesh government are on the rise, the BSC has already planned to purchase two 140,000 cm (cubic meter), two 174,000 cm, and two 180,000 cm capacity LNG vessels.

Incorporated in 1972, the shipping corporation is run through a board of directors with the minister for shipping as its chairman, and the involvement of other senior officials of the shipping and finance ministries.

It has been carrying out share trading since 1977. Its shares closed at Tk 134 each at the Dhaka bourse on Thursday.

With a paid-up capital of Tk 152 crore, the corporation has an authorised capital of Tk 1,000 crore, while its total number of securities is 15.25 crore.