PNSC H1 earnings rise 8pc to Rs793m

KARACHI: The Pakistan National Shipping Corporation (PNSC) posted consolidated earnings of Rs793 million for the first half of 2015, up eight percent on year-on-year basis, a statement said on Friday.
The improvement was visible during the second quarter of fiscal year 2015 with earnings up by 224 percent Q-o-Q, while the improvement was 30 percent Y-o-Y as compared to the second quarter of FY14 attributable to rising margins, lower finance cost and lower effective tax rate.
Gross profit margins expand to 21 percent in the second quarter of FY15.
Close scrutiny of the second quarter of FY15 reveals growth was majorly derived from falling crude, resulting in a slump (approximately 40 percent) in shipping fuel prices. Thus, the cost of sales dipped 11 percent Q-o-Q, which resulted in gross profit expansion by 38 percent Q-o-Q, lifting gross margins by 630bps to 21 percent during the period, it said.
However, administrative expenses (up 17 percent Q-o-Q) had a downward impact on operating profits. Nonetheless, with the finance costs falling by 85 percent during the quarter, the profit-after-tax increased to Rs606 million in the second quarter of FY15 against Rs187 million in the first quarter of FY15, reflecting earnings growth of 224 percent Q-o-Q.