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MUMBAI: Great Eastern Shipping Company Ltd has reported a 53 per cent drop in net profit at Rs 29.54 crore in the first quarter ended June 30, 2002, against Rs 63.44 crore in the year-ago period. Total income also slipped by 32.5 per cent to Rs 231.33 crore from Rs 342.83 crore.

Earnings in both sectors — dry bulk and tankers — of the shipping division came under pressure with a major setback being felt by the dry bulk segment, said, Mr Bharat Sheth, Managing Director, Great Eastern Shipping Company.

Continuing uncertainties in the global economic scenario have impacted the overall business sentiment. The freight market has been sluggish and the trend is expected to continue at least till end of the current year, said Mr Sheth.

During the later part of the year, tanker and dry bulk markets may stabilise as some of the leading economies such as the US are expected to strengthen.

He said the shipping division contributed to around 73.6 per cent of the revenues and 81.5 per cent of the profits before tax and interest. The offshore division contributed to around 23.2 per cent of the revenues and 10.7 per cent of the profit before tax and interest.

The company could bring down the interest outgo at Rs 9.37 crore from Rs 14.36 crore in the year ago period.

GE Shipping is among the parties bidding for the 51 per cent Government stake in the Shipping Corporation of India. Mr Vijay Sheth, Managing Director, said GE Shipping would not have any partner in bidding for SCI. "We will go in for a combination of debt and equity," he said, when asked how the company would be raising the fund.

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