In its third quarter, the State-owned Shipping Corp of India (SCI) reported a decrease in earnings, largely attributed to weaker performance in its tanker and liner sectors. Despite this, the company's share price has been on the rise following updates on its ongoing privatization efforts.
Net earnings for the three months ending on December 31st plummeted to INR 1.32 billion ($15.9 million), compared to INR 2.4 billion in the same period last year. Revenue also saw a decline, dropping to INR 13.4 billion from INR 14.9 billion.
Tanker pre-tax profits fell sharply from INR 3.5 billion to INR 1 billion, while bulkers remained stable at INR 263 million. However, container shipping experienced a larger loss, increasing to INR 942 million from INR 713 million in 2022.
Despite these challenges, SCI's share price surged to an all-time high of INR 291 last week after reports emerged regarding the completion of a listing for its Shipping Corporation of India Land and Assets (SCILA) spin-off within a month. This divestment of non-core assets is a significant step towards the government's plan to sell off its 63.75% stake in SCI.
Additionally, SCI is preparing to rejuvenate its fleet through a planned sale-and-purchase drive. The company intends to acquire five vessels, including a VLGC, an MR tanker, a container ship exceeding 9,000 teu, a platform supply vessel, and an anchor-handling tug supply vessel, signaling the end of an informal freeze on acquisitions during the privatization process.
With approval from the state for these purchases to be completed by March 31st, SCI is poised to enhance its fleet and navigate the evolving maritime landscape.