November 17, 2023 (MLN):Taking a bold move to optimize maritime operations, Pakistan National Shipping Corporation (PNSC) is diligently working on an expansive fleet development plan.
Accordingly, the company will acquire a diverse array of vessels, signalling a strategic leap forward for PNSC’s operational competence, management of the company unfolded today during a Corporate Briefing Session (CBS).
Approved by the board, this visionary plan allows the company to procure two vessels each from Aframax tankers, MR tankers, Kamsarmax bulk carriers, Edible oil tankers, and Container feeders.
To align this plan with the company’s goals for an optimized futuristic fleet, the team of experts has performed a comprehensive assessment of various vessel aspects, including the age of the vessel, technological advancements, and cost-effectiveness.
To reduce its maintenance cost, the company’s major focus is to buy ships with having age of under 5 years except edible tanker oil which has a life of under 10 years.
The financing aspect of such a visionary blueprint raised concerns from the shareholders but the management clarified to leverage internal equity. However, they remain open to carefully using debt financing.
During the briefing, the management further informed that they have signed MoUs with local manufacturers as the company is planning to diversify into the edible oil business.
PNSC’s management also highlighted the record profit that has been earned in FY23 which turned out to be financially sound for PNSC (Group). The group has achieved the highest ever profit after tax amounting to Rs.29.9 billion, an increase of 5.3x YoY as compared to the corresponding period last year’s profit after tax of Rs5.65 million.
In the first quarter of FY24, the group managed to achieve a 16% increase in profit after tax to Rs6.26bn as against Rs5.38bn in the corresponding period last year.
The factors leading to improved financial performance include the average growth in freight rate from 11.79/MT to 12.08/MT and World scale from 5.29 to 6.57.
Additionally, the average exchange rate against USD during the period was Rs293 as compared to Rs229 In the corresponding period last year. Further, the group was able to increase its income from deposits and short-term investments by Rs1.22bn during the current period.
The management also informed the house that PNSC repaid the entire remaining borrowing amount of Rs3.7bn to the bank obtained for the procurement of M.T Bolan and M.T Khairpur.
The company has a total deadweight tonnage (DWT) capacity of 938,876 metric tons and lifted cargo of about 10.83 million tons during FY23, which is equivalent to about 13.06% of the country’s total 82.95 million tons of seaborne trade by volume.
A total of 27 voyages occurred this year, contributing to a charter out of 350 more days. Meanwhile, the company also sold one of its vessels after exploiting its full potential.
Discussing the business operation, the management mentioned that the company has two business operations, dry bulk cargo and liquid bulk cargo.
Under dry bulk, PNSC has a Fleet of five bulk carriers. It is tramping worldwide, calling on major ports around the world.
Meanwhile, liquid bulk cargo has a fleet of seven double-hull tankers.
PNSC has the capability to transport dirty products including crude oil through its five Aframax Crude Oil tankers as well as the ability to transport clean products such as MoGas through its two, LR-1 Product tankers.
Responding to a query pertaining to the impact of the recent oil price decline on freight charges, the management clarified that there will not be any short-term impact of such a decrease in oil prices on freight charges.
Copyright Mettis Link News
Posted on: 2023-11-17T15:37:04+05:00
