Shipping Corporation of India (SCI), a prominent player in the maritime industry, has announced a significant expansion of its fleet. The company has signed an agreement to acquire two large gas carriers, each boasting a substantial capacity of 82,000 CBM (Cubic Meters).

Fleet Expansion Details

• Acquisition: Two large gas carriers
• Capacity: 82,000 CBM each
• Expected Delivery: Fiscal year 2025-26

This strategic move by SCI is set to bolster its presence in the gas transportation sector. The addition of these high-capacity vessels underscores the company's commitment to growth and its ability to meet the increasing demand for gas transportation services.

Impact on SCI's Operations

The acquisition of these gas carriers is expected to have several implications for SCI:

1. Increased Capacity: The new vessels will significantly enhance SCI's gas transportation capabilities, allowing the company to take on larger contracts and serve more clients.

2. Modernization of Fleet: By adding new, large-capacity vessels, SCI is modernizing its fleet, which could lead to improved operational efficiency and potentially lower maintenance costs.

3. Market Positioning: This move may strengthen SCI's position in the global gas transportation market, particularly in handling liquefied petroleum gas (LPG) or liquefied natural gas (LNG).

4. Future-Ready Strategy: With the vessels set to join the fleet in FY 2025-26, SCI demonstrates a forward-looking approach, preparing for future market demands.

While the financial details of the agreement have not been disclosed, this acquisition represents a significant investment in SCI's future. As the global demand for cleaner energy sources continues to grow, SCI's expanded gas carrier fleet could position the company to capitalize on emerging opportunities in the energy transportation sector.

Stakeholders and industry observers will be keenly watching how this fleet expansion impacts SCI's market share and financial performance in the coming years, particularly as the new vessels become operational in FY 2025-26.

Shipping Corporation of India (SCI) has released its fourth-quarter financial results, revealing a mixed performance for the state-owned shipping company. The maritime transport giant reported a decline in profits year-over-year but showed improvement on a sequential basis.

Q4 Financial Highlights

• Net Profit: SCI reported a consolidated net profit of ₹185.10 crore for Q4, down from ₹307.30 crore in the same quarter last year, marking a 39.77% decrease. However, the company saw a significant improvement from the previous quarter's profit of ₹75.50 crore, representing a 145.17% increase quarter-over-quarter.

• Revenue: The company's Q4 revenue stood at ₹1,413.40 crore, compared to ₹1,525.60 crore in the corresponding quarter of the previous year, indicating a 7.35% decline.

• Sales: SCI's sales for the quarter were ₹1,325.20 crore, down 6.18% from ₹1,412.50 crore in the same period last year.

Operational Performance

• Operating Profit: The operating profit for Q4 was ₹364.60 crore, showing a 10.44% decrease from ₹407.10 crore in the year-ago quarter.

• Operating Profit Margin (OPM): The company maintained a healthy OPM of 27.52% in Q4, slightly lower than the 28.82% recorded in the same quarter of the previous year.

Other Financial Metrics

• EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for Q4 stood at ₹452.80 crore, down 12.96% from ₹520.20 crore in the year-ago period.

• Expenses: Total expenses for the quarter were ₹960.50 crore, showing a marginal decrease of 4.47% compared to ₹1,005.40 crore in the same quarter last year.

• Other Income: The company reported other income of ₹88.20 crore, down 22.02% from ₹113.10 crore in the corresponding quarter of the previous year.

Dividend Announcement

In a move that may please shareholders, Shipping Corporation of India has recommended a dividend of ₹6.59 per equity share for the financial year.

Annual Performance

For the full fiscal year 2023-24, SCI reported:

While Shipping Corporation of India faced challenges in maintaining year-over-year growth, the company's quarter-on-quarter improvement in net profit and the announcement of a dividend indicate resilience in a dynamic market environment. Investors and industry observers will be watching closely to see how SCI navigates the evolving global shipping landscape in the coming quarters.