Silver Lining in Shipping

Silver Lining in Shipping Hansavivek GREAT EASTERN SHIPPING COMPANY has shown improved performance during 1984-85 and has returned to the dividend list, after an absence of two years, with a 7 per cent distribution. Although operating earnings marginally lower at Rs 65.88 crore against Rs 66.49 crore in the previous year, gross profit increased from Rs 8.38 crore to Rs 15.16 crore. After providing for depreciation, there was a net profit of Rs 190 lakh against a net loss of Rs 428 lakh. The pro- posed dividend is just covered by net earnings. What is more significant is that the company was able to generate adequate cash to make all repayments of instalments due on its loans and also pay a modest dividend. Commenting on the future outlook the directors observe that although the international shipping scene has been very weak some long-term improvements are now beginning to take place. Both banks and shipowners are taking a realistic view of the future and have stopped needless expansion. The result is increased rate of scrapping and yards have very few new orders on hand.