Great Eastern Shipping reported a strong performance in Q3 FY26 with a consolidated net profit of INR 813 crores. The company’s net asset value (NAV) has increased due to operating earnings, and a 16th consecutive quarterly dividend was declared. Crude tanker markets were strong, and product tanker markets recovered. The company maintains a net cash position of over $500 million and is focused on timing investments effectively.
Financial Performance
Great Eastern Shipping announced its results for the 3rd Quarter of FY26, reporting a consolidated net profit of INR 813 crores and a standalone net profit of INR 650 crores. The company’s net asset value has increased, driven by operating earnings.
Dividend Declaration
The company has declared its 16th consecutive quarterly dividend, demonstrating its commitment to shareholder returns.
Market Overview
Crude tanker markets showed strength during the quarter, supported by increased production from OPEC and South America. Product tanker markets also recovered from previous quarters. The company noted that asset prices were up by about 5%.
Order Book and Fleet
The order book for crude tankers is currently at approximately 17% for crude and 19% for product tankers. Scrapping activity has been minimal over the last 10 years, leading to a high proportion of older fleet vessels. The order book for LPG continues to be very high at 29%.
Offshore Business (Greatship)
Markets are showing some recovery, with Saudi Aramco calling back some rigs that were previously off-hired. Greatship has one rig with a contract ending in February and is seeking new contracts. The company is focused on repricing its vessel contracts.
Strategy and Outlook
The company has been net cash positive since mid-FY23, with over $500 million in net cash. While the company sees decent returns on current yields, they are hesitant to invest at today’s high prices. The company aims to deploy its cash in a market downturn and sees FY26 outperformance in the crude sector.
Q&A Highlights
The company discussed the offshore vessel segment, noting that utilization rates are relatively healthy at approximately 65%-66%. They also addressed the impact of Russian oil sanctions, stating that tighter sanctions have led to increased demand from other sources. Great Eastern Shipping also clarified they are not planning to invest in LNG fleet at this time.
Regarding a potential increased dividend distribution, the company stated they have already increased it and they have been modernizing their fleet without capacity expansion, selling older vessels and buying more modern vessels.
Responding to a question about a potential move to a mixture of Indian plus other flags, it was noted that the company has flown different flags for operational reasons but its base fleet will continue to be Indian flag.
The company noted that they are better off in the spot market, and that is their general strategy.
Source: BSE
