The Shipping Corporation of India (SCI) has more than tripled its net profit for the quarter ended June 30 due to the rally in tanker markets aided by the continued slide in world crude oil prices.
SCI posted a net profit of INR 163.54 crore (USD 25.2m) for the quarter ended June 30, as against a net profit of INR 49.50 crore during the quarter ended June 30, 2014, and a net profit of INR 101.49 crore during the quarter ended March 2015.
The company managed to triple its net profit despite a slight decrease in the quarterly income, which dipped to INR 1,090 crore (USD 167.8m) from INR 1,200.33 crore recorded a year ago.
The slide in revenue was offset by lower operating costs, mostly due to bunker costs dropping from INR 385.67 crore recorded in April-June 2014, to INR 181.11 crore in the quarter ended June 30, 2015.
During the quarter ended June 30, the company also increased the calculation of a useful life for its tankers and offshore vessels from 20 to 25 years.
SCI currently owns 69 vessels corresponding to 5.89 million dead weight tonnes and 3.29 million gross tonnes, including 35 tankers.