GE finds way to profit

Lower costs have propelled India’s Great Eastern to a higher first quarter profit despite tanker rates falling.

The owner said net earnings to 30 June were INR 1.71bn ($36.65m), compared to INR 1.54bn in the same three months of 2009.

Revenues dropped to INR 7.27bn, against INR 8.85bn the year before, with revenue days falling to 3,315, from 3,481.

But the company benefited from lower operating expenses and a smaller charter hire bill.

Crude tankers averaged earnings of $20,444 per day, well down on $23,819 in 2009, while products carriers and LPG vessels notched $15,485 per day, against $17,088 in the previous year.

Bulkers, however, recorded earnings of $24,484 per day, a jump from $19,489 in 2009, as Chinese demand spurred rates, but numbers fell in June as iron ore business fell away.

Looking ahead, it said early signs of a return to growth in US oil demand and better fortunes for US refiners has meant refinery throughput there has rapidly bounced back to mid-2007 levels and that crude imports are up by a “staggering” 1.6m barrels per day over the past six months.

Products imports should see 6% annual growth in Asia.

Turning to bulkers, it said the market was likely to struggle to absorb the high supply of new deliveries.

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