India’s Great Eastern Shipping has logged a fall in earnings as tanker rates weakened in the final three months of last year.
The Mumbai-listed owner said net profit in its third quarter was INR 5.38bn ($64.8m), down from INR 6.27bn in the same period of 2022.
Revenue dipped to INR 12.45bn against INR 14.2bn.
Shipping profit, comprising tankers, gas carriers and bulkers, came in at INR 5.34bn versus INR 6.53bn the year before.
Offshore vessel earnings from the Greatship unit were INR 33m, down from INR 281m.
Average crude tanker rates dropped to $45,556 per day in the quarter, against $60,143 in 2022.
The company blamed this on a fall in Middle East exports.
But North and South American crude exports grew, it said.
Product carriers slipped to $28,566 per day from $36,423 per day, while dry bulk numbers dropped to $16,478 per day compared with $17,020 per day a year earlier.
Great Eastern said clean rates were down east of Suez, led by a drop in Middle East and China exports, but western numbers were strong, aided by Panama Canal disruption and healthy shipments from the US.
VLGC rates a bright spot
LPG carriers were better, reaching $31,255 per day, up from $29,803 per day in the previous year.
VLGC trades increased by 5% over 2022 as US LPG exports jumped 17%.
Reduced transit slots at the drought-hit Panama Canal meant a large number of vessels had to reroute transits for Asian voyages, “thereby stretching the VLGC fleet”, Great Eastern said.
Record freight rates in 2023 have enabled VLGC asset prices to remain firm, it added.
Great Eastern has 100% of days covered for its VLGCs in the 2024 financial year ending 31 March.
Crude vessels stand at 40% coverage, with product tankers on 41% and bulkers at 68%.
