The shares of India’s largest private-sector shipping service provider gained 9% to ₹1,173 per share on Friday’s early trade after the company contracted to buy a medium-range product tanker to transport liquid, gas, and solid bulk products.
At 10:50 a.m., on Friday’s trade, Great Eastern Shipping (NS:GESC) Company Ltd shares were trading at ₹1,173 per share, up 9 percent from the previous close price on the stock exchange. The company has a market capitalization of ₹15,651 crore.
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According to the company’s exchange filing, The Great Eastern Shipping Company Limited (G E Shipping) contracted on June 6, 2024, to purchase a medium-range product tanker of approximately 49,990 dwt mainly to transport liquid, gas, and solid bulk products. The vessel, built in 2013, is expected to join the company’s fleet by Q2 FY25.
Currently, the company operates a fleet of 43 vessels, including 29 tankers (6 crude carriers, 19 product tankers, and 4 LPG carriers) and 14 dry bulk carriers, with a total capacity of 3.41 million dwt. The company’s capacity utilization is close to 100%.
The new ship will be financed entirely from internal accruals and is part of the company’s strategy to modernize and expand its fleet.
In addition, the company contracted to sell one MR product tanker in May 2024, which is scheduled for delivery in H1 FY25. After the delivery of both vessels, the company will maintain a fleet of 43 vessels with a combined capacity of 3.41 million dwt.
The Great Eastern Shipping Company Limited (GE Shipping) is an Indian shipping company primarily involved in the transportation of liquid, gas, and solid bulk products.
Great Eastern Shipping Company Ltd, along with its subsidiaries is a major player in the Indian shipping and Oil drilling services industry. As of FY24, the Company is India’s largest private-sector shipping company, owning and operating 43 ships and 23 offshore assets.
The company saw substantial growth in its annual revenue, with a 2.8 percent increase from ₹1,456 crores in Q3 FY23 to ₹1,497 crores in Q3 FY24. Additionally, net profit experienced a remarkable 25 percent rise, climbing from ₹722 crores to ₹905 crores during the same period.
Great Eastern Shipping Company shares have surged by 53 percent over the past year and a 22 percent increase in the last six months.
Written by Omkar Chitnis
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