State-owned Shipping Corporation of India lost $1.3 million in the fiscal first quarter ending June 30, compared with a net profit of $42.5 million a year earlier.
SCI’s revenue increased 3.2 percent in the April-June quarter from the same period last fiscal year to $231 million.
“The loss was attributable largely to rising bunker costs, which accounted for 32 percent of the company’s total operating expenses during the quarter,” officials said.
The national carrier’s liner segment lost $14 million in the April-June quarter after reporting a $6 million operating profit in the year-ago period, despite a marginal increase in revenue.
Profit from SCI’s core bulk shipping business tumbled 76 percent to $6.7 million from $28 million a year earlier. Operating income from bulk operations was almost flat at $148 million within the same period.
The company’s operating expenses for the first quarter amounted to $221 million, up from $174 million a year earlier.
SCI, India’s largest shipping line, currently operates a fleet of 79 vessels with a total cargo-carrying capacity of about 5.7 million deadweight tons. It also manages 69 vessels for various government agencies.
SCI earlier announced plans to spend an estimated $4 billion on fleet expansion over the next five years.
For fiscal 2010-11 ended March 31, the company reported net profit of $126 million, up 50 percent from $84 million the previous fiscal year.