InvestorQ : Why was there sudden positive action in Shipping Corp stock on 10 August?
Anu Biswas made post

Why was there sudden positive action in Shipping Corp stock on 10 August?

Answer
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Neelam Naik answered.
2 months ago


Shipping Corporation of India or SCI reported net profits of Rs.317.48 crore for the Jun-20 quarter. This is the highest profit that SCI has reported in the last 14 years. There was tremendous demand for tankers as oil refiners and traders aggressively stored oil in the high seas.

This led to higher rates and a sharp spurt in revenues. It may be recollected that SCI had reported loss of Rs.39.36 crore in the Jun-19 quarter. Operating revenues of SCI were up nearly 25% on a YOY basis at Rs.1143 crore for the Jun-20 quarter. As stated earlier, there was a surge in demand for crude tankers as traders tried to take advantage of low oil prices and create inventory.

It was only the tanker segment that did very well for SCI with the other segments like bulk carrier, liners and offshore segment showing negative growth. However, the stock has reacted positively, although the short to medium term outlook for the non-tanker business remains hazy.