Great Eastern Shipping Company Limited (GE Shipping) has reported a decline in its financial performance for the first quarter, while simultaneously announcing an interim dividend for shareholders.

Financial Performance

The company's consolidated net profit for Q1 dropped to Rs. 504.50 crore, compared to Rs. 811.94 crore in the same period last year, marking a significant year-over-year decrease of 37.9%. The total income for the quarter stood at Rs. 1,336.88 crore, down from Rs. 1,703.11 crore in Q1 of the previous year, representing a 21.5% decline.

Key financial metrics for Q1 include:

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) decreased to Rs. 778.18 crore from Rs. 1,105.63 crore in the corresponding quarter of the previous year.

Segment Performance

GE Shipping's two main business segments showed mixed results:

1. Shipping: Revenue declined to Rs. 994.21 crore from Rs. 1,375.19 crore in Q1 of the previous year.
2. Offshore: Revenue increased to Rs. 350.41 crore from Rs. 336.96 crore in the same quarter last year.

Dividend Announcement

Despite the earnings decline, the Board of Directors has declared an interim dividend of Rs. 7.20 per equity share. The record date for determining shareholders eligible for the dividend is set as August 06, with the payment scheduled on or after August 22.

Other Developments

• The company has contracted to purchase a Kamsarmax Dry Bulk Carrier, built in 2015, for delivery in the third quarter.
• GE Shipping's Board has approved granting a term loan of up to Rs. 425 crore to its wholly-owned subsidiary, Greatship (India) Limited (GIL). This loan will enable GIL to prepay its existing External Commercial Borrowing facility of USD 70.9 million.
• One of the subsidiary companies, Great Eastern Services Limited, has initiated voluntary liquidation under the Insolvency and Bankruptcy Code, 2016 and the Companies Act, 2013.

Financial Position

As of June 30, GE Shipping's consolidated balance sheet showed:

• Total Assets: Rs. 17,695.21 crore
• Total Equity: Rs. 14,693.11 crore
• Net Debt to Equity Ratio: -0.41

The negative net debt to equity ratio indicates a strong liquidity position, with cash and investments exceeding the company's debt obligations.

Despite the challenging quarter, GE Shipping maintains a robust financial position with a focus on strategic investments and shareholder returns. The company's decision to declare a dividend and invest in new vessels suggests confidence in its long-term prospects, even as it navigates through a period of reduced profitability.

Great Eastern Shipping Company Limited (GE Shipping), one of India's leading shipping companies, has reported its financial results for the first quarter, showing a decline in performance compared to the same period last year. Despite the downturn, the company has declared an interim dividend, showcasing its commitment to shareholder returns.

Financial Performance

The company's consolidated financial results for Q1 reveal:

Segment-wise Performance

The company experienced reduced revenue days across its segments:

Average Time Charter Yields showed mixed performance across vessel categories:

• LPG carriers improved by 19% year-over-year
• Crude carriers declined by 27%
• Product carriers declined by 33%

Interim Dividend

Despite the lower financial performance, GE Shipping's Board of Directors has declared its 14th consecutive quarterly interim dividend of INR 7.20 per equity share.

Financial Position

As of the end of the quarter, GE Shipping maintains a strong financial position:

• Consolidated Net Asset Value stands at INR 1,431.00 per share

Market Outlook

While the company faced challenges in Q1, the mixed performance in Time Charter Yields across different vessel categories suggests varying market conditions in different shipping segments. The improvement in LPG carrier yields provides a bright spot amidst the overall decline in financial metrics.

Despite the challenging quarter, GE Shipping continues to maintain a robust financial position and remains committed to creating value for its shareholders. The company's ability to sustain its dividend payout in the face of reduced profits demonstrates confidence in its long-term prospects and financial stability.