Bangladesh Shipping Corporation yet to recover Covid-19 losses

Highlights: 

• Bangladesh Shipping Corporation's performance in the first half of FY2020-2021:

• Revenue: Tk118.90 crore 

• Net profit: Tk25.34 crore

• Revenue declined by 10% 

• Earnings per share: Tk1.66.

• In Q4 of FY2019-2020, the company posted Tk14.05 crore loss.

• It paid a 10% cash dividend to shareholders for FY2019-2020.

• The closing price of its share was Tk40.9 at the Dhaka Stock Exchange on Wednesday

Bangladesh Shipping Corporation's revenue declined by 10% in the first half of the current fiscal year compared to the same time period of last fiscal year.

A senior official of the state-owned company said the corporation did not reach its revenue target as imports have declined, at the government level, due to the novel coronavirus pandemic. However, they are gradually recovering the losses caused by the Covid-19 crisis.

In the first half of this fiscal year, the company reported revenue of Tk118.90 crore and net profit of 25.34 crore; which was Tk131.73 crore and Tk41.66 crore, respectively, during the same time last fiscal year.

The company's earnings per share stood at Tk1.66 at the end of the first half of the current fiscal year on 31 December, 2020.

In the fourth quarter of the last fiscal year, the company incurred a loss of Tk14.05 crore due to a 66-day general holiday declared by the government to curb the novel coronavirus pandemic.

The company was formed in 1972 with only one ship, but currently it has eight ships. Six new vessels were added to the company's fleet in 2018 and 2019. 

"The company is going to procure eight more vessels, including six large tankers for transporting liquid natural gas [LNG], in a move to increase the capacity of the state in managing the vital energy," said State Minister for Shipping Khalid Mahmud Chowdhury, who chaired the 42nd annual general meeting of the company.

The state-owned organisation has adopted a plan to purchase ships at an initial estimated cost of Tk10,602 crore. 

The state minister for shipping also said the government has taken steps to set up several coal-based power projects for the overall development of the power sector and has decided to import LNG to alleviate the country's energy crisis. 

Apart from using the shipping corporation to transport coal, LNG and Bangladesh Petroleum Corporation's refined and crude oil, plans have been made to procure ships of different sizes and types considering the needs and financial viability of the country, he stated. 

Furthermore, the Bangladesh Flag Vessels (Protection) Bill 2019 was passed in the Parliament.  As a result, the Bangladesh Shipping Corporation will be given priority in maritime transport for import and export of government goods, said the state minister.

The company was listed on the stock exchanges in 1977. 

It paid a 10% cash dividend to its shareholders for the fiscal year 2019-2020.

The closing price of the Bangladesh Shipping Corporation's share was Tk40.9 at the Dhaka Stock Exchange on Wednesday. 

The government holds 52.10% of the shares of the company which has a paid-up capital of Tk153 crore. Various institutions and individuals own 24.30% and 23.60% of the company's shares, respectively.