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Toshi

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PNSC -- Pakistan National Shipping Corporation
« Reply #-1 on: October 10, 2008, 01:22:48 PM »
All About Pakistan National Shipping Corporation
« Last Edit: January 26, 2012, 11:19:45 AM by M&M »

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PNSC -- Pakistan National Shipping Corporation
« Reply #-1 on: October 10, 2008, 01:22:48 PM »

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Re: PNSC -- Pakistan National Shipping Corporation
« on: September 20, 2009, 03:30:59 PM »
PNSC had performed much better,but no one on this for gave attention to it.

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Re: PNSC -- Pakistan National Shipping Corporation
« Reply #1 on: December 23, 2009, 10:19:54 AM »
Shipping: PAKISTAN NATIONAL SHIPPING CORPORATION - Analysis of Financial Statements Financial Year 2008 - 2001 Q 2010

OVERVIEW (December 23 2009): Pakistan National Shipping Corporation (PNSC) and its subsidiary companies were incorporated under the provision of Pakistan National Shipping Corporation Ordinance, 1979 and the Companies Ordinance, 1984 respectively.

The board of directors consists of five directors appointed by the federal government and two directors appointed by the shareholders. The group is principally engaged in the business of shipping, including the charter of vessels, transportation of cargo, and other related services.

It is also engaged in renting out its properties under the long-term lease agreements. Its registered office is situated at PNSC Building Moulvi Tamizuddin Khan Road, Karachi. PNSC is an autonomous body, which functions under the control of Ministry of Ports and Shipping, Government of Pakistan. It manages a fleet of 14 ships (consisting of bulk carriers, oil tankers and combi vessels), real estate, and a repair workshop.

THE GROUP CONSISTS OF A HOLDING COMPANY: Pakistan National Shipping Corporation and subsidiary companies:

Bolan Shipping (Private) Limited, Chitral Shipping (Private) Limited, Hyderabad Shipping (Private) Limited, Islamabad Shipping (Private) Limited, Khairpur Shipping (Private) Limited, Johar Shipping (Private) Limited, Lalazar Shipping (Private) Limited, Makran Shipping (Private) Limited, Malakand Shipping (Private) Limited, Multan Shipping (Private) Limited, Sargodha Shipping (Private) Limited, Sibi Shipping (Private) Limited, Swat Shipping (Private) Limited, Kaghan Shipping (Private) Limited, Pakistan Co-operative Ship Stores (Private) Limited, Lahore Shipping (Private) Limited, [Formerly Pak Nippon Car liner (Private) Limited], Karachi Shipping (Private) Limited [Formerly National Tanker Company (Private) Limited] and Quetta Shipping (Private) Limited.

The operations of PNSC include worldwide tramping and chartering operations. It also operates three AFRAMAX tankers on regional routes. The company manages the following fleet of 10 multi-purpose cargo ships, three oil tankers, and one bulk carrier. In FY06, MV Kaghan, a bulk carrier was added to its fleet making a total fleet size of 15 vessels.

The total capacity of the PNSC-managed vessels is 536,821 DWT (dead weight tonnage which is the displacement at any loaded condition minus the lightship weight), 325,254 G.R.T (gross register tonnage representing the total internal volume of a vessel) and 179,307 N.R.T (net register tonnage is the volume of cargo the vessel can carry; ie the gross register tonnage less the volume of spaces that do not hold cargo). PNSC operates on two major routes namely trade area west with regular calls at Karachi, Dubai, Dammam, Abu Dhabi, Kuwait, Bander Abbas, Genoa, Marseilles, Bremen, Antwerp, Tarragona, Casablanca, East/West Africa and Brazilian ports and the other route called trade area West with regular calls at Karachi, Colombo, Singapore, Xingiang, Shanghai, Yokohama, Osaka and Busan.

============================================================
Sector               2008-2009      2007-2008      2006-2007
============================================================
                  Freight Tons   Freight Tons   Freight Tons
============================================================
                       Million        Million        Million
============================================================
Liquid                   7.665          7.561          7.677
Dry Bulk                 0.273          0.959          0.343
Trade Area - East        0.314          0.398          0.470
Trade Area - West        0.432          0.533          0.470
Total                    8.684          9.451          8.960
============================================================
RECENT RESULTS 1Q10

The PNSC Group achieved a turnover of Rs 1,732.951 million (including Rs 585.349 million from PNSC as compared to Rs 3,562.810 million (including Rs 1,385 million from PNSC) for the similar period last year. The decline in freight earnings was as per expectations, due to global shipping crisis. Gross profit for the period ended September 30, 2009 was Rs 267.086 million as against Rs 535.55 million for the same period last year.

The chartering revenues fell down by 61.11% to Rs 703 million, while the freight revenues fell down by 41.1% to Rs 1013 million. As per decline in the revenue, the fleet expenditures also declined by nearly 50%. Despite this, the gross profit declined by 50% to Rs 267 million. Other administrative expenses showed an increasing trend due to the inflationary pressures, however, the financial charges declined substantially. PAT was recorded at Rs 141.5 million. The future outlook is fairly flat, as the international recession seems far from over with Dubai sending new waves of shocks in the slowly recovering global economy.

FINANCIAL PERFORMANCE

The consolidated revenue for PNSC group for the FY09 was 6.7% higher than FY08. It increased from Rs 10.753bn to Rs 11.474bn in FY09. This increase is credited to the increased voyages in the current year as well as, the enlarge freight tons for the current year. Total freight however decreased for FY09. It decreased by approximately 8.1% from 9451 million tons to 8684 million tons. Except the liquid sector, the other entire shipping sector showed some signs of decrease in freight tons.

Total expenditure, too, showed a considerable increase in FY09. It showed an increase of approximately 15.5%. This was attributed to a substantial increase of direct fleet expenses that inflated from Rs 7.25bn to Rs 8.39bn in FY09. Sub-category of expenses includes general and other expenses, operating expenses, which too showed an increasing trend for the current year, which affected the profitability of the company.

The current year showed an increase in the liquidity position of the company. The current ratio increased by 21% in FY09. It increased from 4.37x in FY08 to 5.29x in FY09. This has resulted because of a greater proportion increase of current assets with respect to current liabilities. The reason for this increase could be credited to the following. There was a considerable increase of Trade debts (receivables) in FY09, a 41% increase shown in FY09. Similarly other sub-category of current assets too showed a rising trend such as deposits and short-term payments showed a 123% increase in the current year, then short-term investments increased from Rs 3.113bn to Rs 5.11bn in FY09. Loan advances too showed an increase of approximately 95%.

Considering the other side of the balance sheet, the current liabilities has not shown a proportionate increase compared to current assets. There has been a decrease in provisions of the damage claims, which shows the effectiveness of the company's performance, as they are able to complete their voyages with incurring less claimable damages. However, if we see the industry average, PNSC has been able to manage their liquidity above the industry level, which ranges from 1.72-2.32x comparing different companies. This shows that PNSC has not-utilized their current assets up to the mark and has kept idle assets, which could be utilized in other areas to generate revenue.

Debt management has shown a declining trend for FY'09. Considering our first variable, which is Debt to Asset ratio. PNSC has maintained 0% gearing ratio. There has been no debt taken by PNSC in FY09. This shows that the investment made to the assets are purely equity-based, or the debt has been repaid. This has been a good performance compared to the industry average of other companies. The other variables such as long-term debt to equity also shows the same result as there is nil gearing, mentioned above. The similar result can be calculated for debt to equity section. The company is able to continue its declining trend of debt management and has able to achieve nil gearing in FY09.

However considering the TIE ratio, there has been an increase in TIE ratio (56.30 in FY09 from 20.93 in FY08). This has been because of the substantial decrease in financial costs or interest expense for the year FY09. It decreased by 69% in FY09. This has resulted due to ability of the company to pay off its debt in FY09 and has no outstanding debt in the current year. This also shows the conservative nature of the company. Now coming to the industry average, debt management of PNSC has been performing well compared to other companies. The gearing ratio for the industry would normally stand between 20-45%, however PNSC has nil gearing for the current year.

Considering the profitability of PNSC in FY09, there has been a mixed trend in certain ratios calculated. First the Gross Profit Margin, there has been a decrease from 32.33% in FY08 to 26.69% in FY09. This is basically attributed to an increase in direct fleet expenses incurred by the company. This considerable increase has resulted in lower gross profit margin in FY09. Net profit margin also showing the same trend as it is for the gross profit margin. It decreased from 22.7% to 20.16% in FY09.

This again can be seen as the general and other expenses increased in a great proportion to the revenues earned. Though the financial costs were reduced, but couldn't play any role in increasing the net profit as the company incurred huge expenses. The major sub-category that showed an increase in the direct expenses was the fuel expenses which showed a 4.3% and the claims which showed a 33% increase in FY09. Then the next ratio is Return on Asset, which on the other hand showed an upward trend.

The ROA increased from 10.88% in FY08 to 12.59% in FY09. This shows how effectively company manages its assets employed and how much return do they get on the assets. Though it's low compared to the previous years, it has still shown a slight increase in the current year, mainly because of the net profit increase with a less proportionate increase in assets. ROE also showed an increase in FY09. It raised from 12.81% in FY08 to 14.61 in FY09. The increase in net profit superceded the growth in equity section. Hence the results showed an upward trend.

This also shows that the performance of the company has been on a decline for the past years, however they have shown signs of recovery this year, by effective management of their resources which have resulted in their ROA as well as ROE. Considering the industry average, PNSC more or less stayed on the line with industry when it comes to the profitability. Some companies even posted loss such as Maersk, however PNSC despite such turbulent economy conditions post a growth in sales. The only part where PNSC faltered where the expenses which it incurred heavily in FY09.

Considering the TATO ratio and Sales/Equity, we see an increasing trend for both ratios. TATO has increased from 48% in FY08 to 62% in FY09. And the Sales/Equity too showed an upward trend in FY09. It increased from 56% to 72% in FY09. This shows that PNSC has improved its asset management ability in the current year, as they are able to efficiently use their resources to generate volume revenues in FY09. Such performance has led to greater name for the company in the industry. The third ratio has also showed the same increasing trend as the previous two did. The ITO (Inventory Turnover Days): PNSC has shown a quite improvement in this area. The Inventory Turnover shows how much days does the company takes to sell off its inventory.

The ratio increased from 15.40 days in FY08 to 14.44 days in FY09. Though it has been a deteriorating trend for the past 3 years, it showed a sign of recovery in FY09. PNSC took extra days in selling off their inventory because of large inventory holding in previous years. This reduced, as there has been a decline in the holding of inventory by 6.5%. Such improvement can lead to the performance that was showed in previous years.

Marketability of PNSC showed a huge decline over the past year. The market price has nearly halved in FY09. This is because the company has been facing constrains in their profitability for past 2-3 years. Considering the earning per share, there has been an increase in this ratio from Rs 18.54 to Rs 19.54 in FY09, this is basically due to an increase in the net profit seen in the current year. Moreover dividend per share also witnessed a rise, as there was 30% cash dividend announced this year, this increased the total cash dividend paid out this year, hence DPS increased from Rs 3.10 to Rs 4.10.

However, the biggest slum could be seen in price-earning ratio, the traders are not ready to higher prices for the shares of PNSC in the market, because of severe effects in profitability and their expenses which constraints their growth in income. Therefore there was a decline of Rs 5 to Rs 2.4 in FY09. This is the one major concern for the company as it has reduced its market worth for 2 consecutive years, which has dented upon the reputation of the company. Moreover, investors are not ready to invest because of the reasons mentioned above; hence the company needs to revive the trust of the investors by effectively managing its resources and assets.

FUTURE OUTLOOK

The company has invested in new vessels and dispatched the old ones. This shows that the new vessels can be used effectively to show better performance in future and earn higher revenues. One of the concerns that still remain in light is the financial meltdown decreasing the demand for freight delivery. This has greatly dented the profitability of the company.

However global recovery is on the rise and the Pakistan economy has also shown a sign of recovery, which is a good sign for the company and the company can assure themselves of better business opportunities in future. Global recovery can also mean the use of Gwadar port in future. PNSC can capitalize on this opportunity for their business activity.

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Re: PNSC -- Pakistan National Shipping Corporation
« Reply #2 on: December 25, 2009, 09:11:10 AM »
Fleet upgradation: PNSC urged to borrow $300 million from world market

ZAFAR BHUTTA
ISLAMABAD (December 25 2009): The Planning Commission has opposed extending government funds and/or public guarantees to Pakistan National Shipping Corporation (PNSC), and urged it to borrow 300 million dollars from the international market to upgrade its fleet, Business Recorder learnt here on Thursday.

According to the report, the PNSC Group achieved a turnover of Rs 1,732.951 million with Rs 585.349 million contribution from the PNSC during the first quarter (July-September 2009-10) against a total group turnover of Rs 3,562.810 million and Rs 1,385 million PNSC contribution in the corresponding period last year.

The decline in freight earnings was due to global shipping crisis, the report said, adding the gross profit for the period ending on September 30, 2009 was Rs 267.086 million as against Rs 535.55 million during the same period last year.

"With its contracts of affreightment for fuel and as the preferred carrier for Pakistani cargo (coal, wheat etc), the PNSC is in a position to borrow 300 million dollars from the world market on commercial basis, leveraging its unencumbered floating assets worth over 100 million dollars," the Panning Commission's Task Force on Maritime Industry said in its report. The PNSC is currently seeking assistance from the government to upgrade its fleet.

According to the report, no ship has been registered under Pakistan flag and the Task Force has recommended amendment to the Shipping Ordinance 2001 to facilitate private sector ship owning. After scrapping four ships, the corporation presently owns only 11 ships and is planning to induct more ships in the PNSC fleet.

According to officials, owing to ageing fleet, more ships would be scrapped and the PNSC would be allowed to purchase new ships to continue its operations. Due to global recession, the number of PNSC ships declined from 15 to 11 from March 2009 onwards.
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Toshi

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Re: PNSC -- Pakistan National Shipping Corporation
« Reply #3 on: January 14, 2010, 02:42:55 PM »
strong buy PNSC with stoploss at 49.30,
Looking attractive,early signals of buulish trend.

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Re: PNSC -- Pakistan National Shipping Corporation
« Reply #4 on: January 20, 2010, 05:56:53 PM »
purchased 2 aframax double hull crude oil tankers

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Re: PNSC -- Pakistan National Shipping Corporation
« Reply #5 on: February 26, 2010, 09:45:20 AM »
Pakistan acquires two $78 million Japanese-built oil tankers

ISMAIL DILAWAR
KARACHI (February 26 2010): Pakistan has acquired two more twin-hull Aframax oil tankers at a cost of $78 million, Business Recorder learnt on Thursday. According to officials in Pakistan National Shipping Corporation, a two-member team of the PNSC had finalised a deal with the Greek owner of an oil tanker, which is anchored at the Turkish port of Ali Agha at present.

"Yes! We have taken possession of the oil tanker which is presently anchored at Ali Agha port," Commodore Ubaidullah (Retd), PNSC's Executive Director for Special Project and Plan, told Business Recorder from Greece. Ubaidullah, who is leading a 28-member team in Greece comprising an official and 26 crew for the newly-acquired vessel, said the Japanese-built vessel had been named as M/T Lahore.

"We have hoisted Pakistani flag on the ship which would start employment from here (Ali Agha) taking cargo from the Black Sea to Singapore," he added. Ubaidullah said the PNSC had finalised a deal with the ship sellers for two oil tankers at a cost of $78 million.

He said the delivery of the second oil tanker, which would be named as M/T Karachi, would be made in April this year. Ubaidullah said at least 26 members of his team would embark on M/T Karachi and the rest would return home. According to the PNSC official, the national flag-carrier had a plan to make at least five more acquisitions that would be a mixed bag of new and second-hand vessels.

The fresh acquisitions are part of PNSC's drive to upgrade its ageing, therefore, fast-depleting shipping fleet that comprises vessels with a 28-year average age, except the recently acquired 2005-built oil tanker, M/T Quetta. The new induction would take the number of PNSC fleet to 11, which comprises five dry cargo ships, three oil tankers and panamax bulk carrier. Other three oil tankers possessed by Pakistan are M/T Quetta, M/T Swat and M/T Jauhar
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Re: PNSC -- Pakistan National Shipping Corporation
« Reply #6 on: May 14, 2010, 09:32:52 AM »
Shipping: PAKISTAN NATIONAL SHIPPING CORPORATION - Analysis of Financial Statements Financial Year 2008 - 2001 H 2010
OVERVIEW (May 14 2010): Pakistan National Shipping Corporation and its subsidiary companies were incorporated under the provision of Pakistan National Shipping Corporation Ordinance, 1979 and the Companies Ordinance, 1984 respectively.

The board of directors consists of five directors appointed by the federal government and two directors appointed by the shareholders. The group is principally engaged in the business of shipping, including charter of vessels, transportation of cargo, and other related services. The group is also engaged in renting out its properties under the long-term lease agreements. Its registered office is situated in PNSC Building Moulvi Tamizuddin Khan Road, Karachi.

Pakistan National Shipping Corporation (PNSC) is an autonomous corporation, which functions under the control of Ministry of Ports and Shipping, Government of Pakistan. It manages a fleet of 14 ships (consisting of bulk carriers, oil tankers, and combi vessels), real estate, and a repair workshop.

The group consists of a holding company: Pakistan National Shipping Corporation and subsidiary companies:

-- Bolan Shipping (Private) Limited

-- Chitral Shipping (Private) Limited

-- Hyderabad Shipping (Private) Limited

-- Islamabad Shipping (Private) Limited

-- Khairpur Shipping (Private) Limited

-- Johar Shipping (Private) Limited

-- Lalazar Shipping (Private) Limited

-- Makran Shipping (Private) Limited

-- Malakand Shipping (Private) Limited

-- Multan Shipping (Private) Limited

-- Sargodha Shipping (Private) Limited

-- Sibi Shipping (Private) Limited

-- Swat Shipping (Private) Limited

-- Kaghan Shipping (Private) Limited

-- Pakistan Co-operative Ship Stores (Private) Limited

-- Lahore Shipping (Private) Limited [Formerly Pak Nippon Car liner (Private) Limited]

-- Karachi Shipping (Private) Limited [Formerly National Tanker Company (Private) Limited]

-- Quetta Shipping (Private) Limited

-- The operations of PNSC include worldwide tramping and chartering operations. It also operates three AFRAMAX tankers on regional routes. The company manages the following fleet of 10 multi-purpose cargo ships, 3 oil tankers, and one bulk carrier.

In FY06, MV Kaghan, a bulk carrier was added to the fleet making the total fleet size of 15 vessels. The total capacity of the PNSC-managed vessels is 536,821 DWT (Dead weight tonnage which is the displacement at any loaded condition minus the lightship weight), 325,254 GRT (gross register tonnage representing the total internal volume of a vessel) and 179,307 NRT (net register tonnage is the volume of cargo the vessel can carry; ie the gross register tonnage less the volume of spaces that will not hold cargo). PNSC operates on two major routes namely trade area west with regular calls at Karachi, Dubai, Dammam, Abu Dhabi, Kuwait, Bander Abbas, Genoa, Marseilles, Bremen, Antwerp, Tarragona, Casablanca, East/West Africa and Brazilian ports and the other route called trade area West with regular calls at Karachi, Colombo, Singapore, Xingiang, Shanghai, Yokohama, Osaka and Busan.

============================================================
Sector             2008 - 2009    2007 - 2008    2006 - 2007
============================================================
                  Freight Tons   Freight Tons   Freight Tons
============================================================
                       Million        Million        Million
============================================================
Liquid                   7.665          7.561          7.677
Dry Bulk                 0.273          0.959          0.343
Trade Area - East        0.314          0.398          0.470
Trade Area - West        0.432          0.533          0.470
------------------------------------------------------------
Total                    8.684          9.451          8.960
============================================================
RECENT RESULTS 1H10

The consolidated revenues of the group for the quarter ended December 31, 2009 were Rs 1,833 million (including Rs 595 million from PNSC), making a total of Rs 3,566 million (including Rs 1,133 million from PNSC) for the half-year under review as against Rs 6,767 million for the half-year ended December 31, 2008. The earnings per share for the 6 months period ended December 31, 2009 were Rs 2.54 as against Rs 9.77 last period. Net After tax Profit was Rs 336 million as against Rs 1,291 million last year. The decline in Revenues and profitability was as expected, due to downturn in global shipping activities.

The chartering revenues fell down by 61.11% to be Rs 1,093 million from Rs 1,872 million. Total revenues declined to Rs 1,229 million from 2,104 million. Fleet expenses declined massively to Rs 569 million from Rs 1,257 million. Gross profit registered a decline and was recorded at Rs 660 million as compared to Rs 846 million in the same period last year. Financial charges have reduced substantially to Rs 5 million as compared to Rs 47 million in the same period last year. PAT for PNSC is Rs 537 million as compared to Rs 619 million with an EPS of Rs, 4.07 as compared to EPS of Rs 4.69 million in the SPLY.

FINANCIAL PERFORMANCE

The consolidated revenue for PNSC group for FY09 was 6.7% higher than FY08. It increased from Rs 10.753bn to Rs 11.474bn in FY09. This increase is credited to the increased voyages in the current year as well as the enlarge freight tons for the current year.

Total freight however decreased for FY09. It decreased by approximately 8.1% from 9451 millions to 8684 million tons. Except the liquid sector, the other entire shipping sector showed some signs of decrease in freight tons.

Total expenditure too, showed a considerable increase in FY09. It showed an increase of approximately 15.5%. This was attributed to a substantial increase of direct fleet expenses that inflated from Rs 7.25bn to Rs 8.39bn in FY09.

Sub-category of expenses includes general and other expenses, operating expenses, which too showed an increasing trend for the current year, which affected the profitability of the company. The current year showed an increase in the liquidity position of the company. The current ratio increased by 21% in FY09. It increased from 4.37x in FY08 to 5.29x in FY09. This has resulted because of a greater proportion increase of current assets with respect to current liabilities.

The reason for this increase could be credited to the following: There was a considerable increase in trade debts (receivables) in FY09, 41% increase shown in FY09. Similarly other sub-category of current assets too showed a rising trend such as Deposits and Short term payments showed a 123% increase in the current year, then short-term investments increased from Rs 3.113bn to Rs 5.11bn in FY09. Loan advances too showed an increase of approximately 95%.

Considering the other side of the balance sheet, the current liabilities has not shown a proportionate increase compared to current assets. There has been a decrease in the provisions of damage claims, which shows the effectiveness of the company's performance, as they are able to complete their voyages with incurring less claimable damages.

However, if we see the industry average, PNSC has been able to manage their liquidity above the industry level, which ranges from 1.72-2.32x comparing different companies. This shows that PNSC has not utilized their current assets up to the mark and has kept idle assets, which could be utilized in other areas to generate revenue.

Debt management has shown a declining trend for FY09. Considering our first variable, which is Debt to Asset ratio. PNSC has maintained 0% gearing ratio. There has been no debt taken by PNSC in FY09. This shows that investment made to the assets, are purely equity-based or the debt has been repaid. This has been a good performance compared to the industry average of other companies. The other variables such as long-term debt to equity also shows the same result as there is nil gearing, mentioned above. The similar result can be calculated for debt to equity section. The company is able to continue its declining trend of debt management and has able to achieve nil gearing in FY09.

However considering the TIE ratio, there has been an increase in TIE ratio (56.30 in FY09 from 20.93 in FY08). This has been because of the substantial decrease in financial costs or interest expense for the year FY09. It decreased by 69% in FY09. This has resulted due to ability of the company to pay off its debt in FY09 and has no outstanding debt in the current year. This also shows the conservative nature of the company.

Now coming to the industry average, Debt management of PNSC has been performing well compared to other companies. The gearing ratio for the industry would normally stand between 20-45%, however PNSC has nil gearing for the current year.

Considering the profitability of PNSC in FY09, there has been a mixed trend in certain ratios calculated. First the Gross Profit Margin, there has been a decrease from 32.33% in FY08 to 26.69% in FY09. This is basically attributed to an increase in direct fleet expenses incurred by the company. This considerable increase has resulted in lower gross profit margin in FY09.

Coming to the net profit margin, we can see the same trend as it is for gross profit margin. It decreased from 22.7% to 20.16% in FY09. This again can be seen as the general and other expenses increased in a great proportion to the revenues earned. Though the financial costs were reduced, it couldn't play a considerable role in increasing the net profit as huge expenses were incurred. The major sub-category that showed an increase in the direct expenses was the fuel expenses which showed a 4.3% and claims which showed a 33% increase in FY09.

Then the next ratio is return on asset, which on the other hand, showed an upward trend. The ROA increased from 10.88% in FY08 to 12.59% in FY09. This shows how effectively the company manages its assets employed and how much return do they get on the assets. Though its low compared to previous years, it has still showed a slight increase in the current year, mainly because of the net-profit increase with a less proportionate increase in assets.

ROE also showed an increase in FY09. It raised from 12.81% in FY'08 to 14.61 in FY09. The increase in net profit superceded the growth in equity section. Hence the results showed an upward trend. This also shows that the performance of the company has been on a decline for the past years, however, they have shown signs of recovery this year, by effective management of their resources which have resulted in their ROA as well as ROE.

Considering the industry average, PNSC more or less stayed on the line with industry when it comes to the profitability. Some companies even posted loss such as Maersk, however, PNSC despite such turbulent economy conditions post a growth in sales. The only part where PNSC faltered where the expenses which it incurred heavily in FY09.

Considering the TATO ratio and sales/equity, we see an increasing trend for both ratios. TATO has increased from 48% in FY08 to 62% in FY09. And the sales/equity too showed an upward trend in FY09. It increased from 56% to 72% in FY09. This shows that PNSC has improved its asset management ability in the current year, as they are able to efficiently use their resources to generate volume revenues in the FY09. Such performance has led to greater name for the company in the industry.

The third ratio has also showed the same increasing trend as the previous two did. The ITO (Inventory Turnover Days). PNSC has shown a quite improvement in this area. The Inventory Turnover shows how much days does the company takes to sell off its inventory.

The ratio increased from 15.40 days in FY08 to 14.44 days in FY09. Though it has been a deteriorating trend for the past 3 years, it showed a sign of recovery in FY09. PNSC took extra days in selling off their inventory because of large inventory holding in previous years. This reduced, as there has been a decline in the holding of inventory by 6.5%. Such improvement can lead to the performance that was showed in previous years.

Marketability of PNSC showed a huge decline over the past year. The market price has nearly halved in FY09. This is because the company has been facing constrains in their profitability for past 2-3 years. Considering the earning per share, there has been an increase in this ratio from Rs 18.54 to Rs 19.54 in FY09, basically due to an increase in the net-profit seen in the current year. Moreover, dividend per share also saw a rise as the company was announced a 30% cash dividend this year, this increased the total cash dividend paid out this year, hence DPS increased from Rs 3.10 to Rs 4.10.

However, the biggest slum could be seen in price-earning ratio, the traders are not ready to higher prices for the shares of PNSC in the market, because of severe effects in profitability and their expenses which constraints their growth in income. Therefore there was a decline of Rs 5 to Rs 2.4 in FY09.

This is one major concern for the company as it has reduced its market worth for 2 consecutive years, which has dented upon the reputation of the company. Moreover, investors are not ready to invest because of the reasons mentioned above; hence the company needs to revive the trust of the investors by effectively managing its resources and assets.

FUTURE OUTLOOK

The company has invested in new vessels and dispatched the old ones. This shows that the new vessels can be used effectively to show better performance in future and earn higher revenues.

One of the concerns that still remain in light is the financial meltdown decreasing the demand of freight delivery. This has greatly dented the profitability of the company. However, global recovery is on the rise and Pakistan's economy has also shown a sign of recovery, which is a good sign and it can assure the company of better business opportunities in future.

COURTESY: Economics and Finance Department, Institute of Business Administration, Karachi,
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Offline Abdul Qadir

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Re: PNSC -- Pakistan National Shipping Corporation
« Reply #7 on: January 13, 2011, 06:57:39 PM »
Foreign companies have expressed interest in direct investment and joint ventures in the Pakistan National Shipping Corporation (PNSC). The finance ministry has also appreciated recom-mendations forwarded by the federal ministry of ports and shipping for considering PNSC as the official shipping company for all public sec-tor organizations. The final decision will be taken by the Economic Coordination Committee (ECC). (The Express Tribune)

Offline STOCK.DEPENDENT

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Re: PNSC -- Pakistan National Shipping Corporation
« Reply #8 on: March 04, 2011, 04:26:33 PM »
it was looking me attractive, it is being neglected in this bullish market. should i buy at current rates to hold till its annual result? its record shows that it gives some payout regularly. seniors plz comment
« Last Edit: June 28, 2011, 01:02:53 AM by STOCK.DEPENDENT »

Offline STOCK.DEPENDENT

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Re: PNSC -- Pakistan National Shipping Corporation
« Reply #9 on: March 08, 2011, 11:31:47 PM »
hey man learn the english please its an insult to the language!

correct yourself before advising others and dont spam here n there :smilestar:.

Offline EIJAZ khan

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Re: PNSC -- Pakistan National Shipping Corporation
« Reply #10 on: June 27, 2011, 12:34:56 PM »
buy PNSC

FIRST SUPPORT AT 25

SECOND VERY IMPORTANT SUPPORT IS 23.80 and it is also the stop loss

fundamentally strong with good EPS and annual dividend too...

Offline Abbas

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Re: PNSC -- Pakistan National Shipping Corporation
« Reply #11 on: September 21, 2011, 09:16:46 PM »
PNSC board meeting is on 28 Sept 2011, i am expecting good earning due to the induction of two dry cargo vessels. what does the panel thinks?
 

Offline Abbas

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Re: PNSC -- Pakistan National Shipping Corporation
« Reply #12 on: September 28, 2011, 01:59:01 PM »
Touching upper lock  :clap1:

Offline investment.guru

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Re: PNSC -- Pakistan National Shipping Corporation
« Reply #13 on: September 28, 2011, 02:12:54 PM »
EPS 4.64 previous 5.39
Dividend 10% i.e 1 Rs

last year dividend was 15%

Offline Abbas

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Re: PNSC -- Pakistan National Shipping Corporation
« Reply #14 on: October 14, 2011, 03:21:05 AM »
KARACHI: Pakistan National Shipping Corporation (PNSC) will add four more ships to its existing fleet in the next few years, said Federal Minister for Ports and Shipping, Babar Khan Ghouri here on Thursday.

http://www.dawn.com/2011/10/13/pnsc-to-acquire-four-more-ships-babar-ghouri.html

Offline Abbas

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Re: PNSC -- Pakistan National Shipping Corporation
« Reply #15 on: January 25, 2012, 03:19:30 PM »
upper capped :biggrin:

Offline Irfankhan

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Re: PNSC -- Pakistan National Shipping Corporation
« Reply #16 on: January 25, 2012, 06:40:25 PM »
Hello Abbas bhai, i made loss in this share bought at 25 few months back and its 15 still. what you expect it tobe in this year end? give me hope or should i sell?

Offline Abbas

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Re: PNSC -- Pakistan National Shipping Corporation
« Reply #17 on: January 26, 2012, 02:47:57 PM »
Hello Abbas bhai, i made loss in this share bought at 25 few months back and its 15 still. what you expect it tobe in this year end? give me hope or should i sell?

sell on strength by  June you can hope for a 25.

Offline Valueestimator

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Re: PNSC -- Pakistan National Shipping Corporation
« Reply #18 on: February 26, 2012, 11:07:31 AM »
hazraat es elephant par bhi koi nazrain karam farmain. book value 140 say uper hay.
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