State-run Shipping Corporation of India (SCI) Ltd has reported more than three times rise in net profit for the quarter ended 30 June on account of higher earnings from running oil tankers and lower bunker (ship fuel) prices.
Its June-quarter net profit is 1.64 billion rupees versus 494.9 million rupees year ago. Its June-quarter income from operations is 10.46billion rupees versus 10.58 billion rupees last year.
The company’s board, which met in Mumbai on Wednesday, approved a proposal to buy three so-called anchor handling tug-cum-supply used in supporting offshore oil exploration support activities from Cochin Shipyard Ltd. This will be the first ship purchase for the firm in more than three years.
“From our side, we are ready. The contract for constructing the three ships will be signed once Cochin Shipyard confirms acceptance,” a spokesman for the company said.
Last week, SCI mandated Boston Consulting Group to prepare a corporate strategy named Vision 2030 for the company, the spokesman said.
"Further, the company, while calculating the depreciation for the quarter, has adopted the residual value of all the vessels at 5 per cent of initial cost of vessels as against Rs 1 considered earlier, keeping in view the actual realization in the past...consequent to the change, the depreciation of the quarter ended June 30, 2015 is lower and profit for the quarter is higher by (Rs) 5,036 lakh," SCI said.