AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: Pakistan National Shipping Corp Limited (PNSC) held a corporate briefing outlining its financial performance and future plans. The company revealed a profit after tax of Rs6.6 billion for FY25, despite a 25% drop in revenue. An ambitious $500 million investment plan for fleet expansion was also announced, aimed at modernizing operations and enhancing profitability.
PNSC’s revenue for FY25 stood at Rs6.9 billion, marking a significant year-over-year decline. The reduction was largely attributed to decreased freight and voyage income, which also led to a gross margin drop to 8%. Nonetheless, the company achieved a 34% increase in profit after tax, largely due to gains from vessel sales and reversal of previous impairments.
In the first quarter of FY26, PNSC reported an 11% increase in sales revenue and a 3 percentage point rise in gross margins, indicating a positive start to the fiscal year.
During FY25, PNSC sold two vessels, MT Karachi and MT Quetta, generating a net inflow of Rs15.8 billion and Rs15.4 billion, respectively. These sales have bolstered the company’s financial position, enabling its strategic expansion plans.
With government approval, PNSC is set to invest $500 million in fleet expansion and modernization. The company aims for a 20% return on capital employed from these projects, with new vessels expected to break even in 3-4 years.
Contracts have already been awarded for two Aframax tankers and one MR Tanker, totaling $193 million in investment. A portion of this will be financed through equity, with the remainder covered by local currency debt. The new vessels are scheduled for delivery by January 2026.
Apart from expanding its chartered fleet, PNSC plans to introduce tier-3 engines for improved fuel efficiency. However, the company faces challenges with a 20% sales tax on vessel imports, contrary to global practices of tax exemption. Management anticipates potential deferment of this tax into installments.
The global freight outlook remains weak due to geopolitical unrest and US tariffs. Despite this, PNSC expects its new vessels to help recover revenues and reduce costs associated with fuel, repairs, and maintenance.
Regarding dividends, PNSC management reaffirmed its commitment to stable payouts, balancing this with capital expenditure needs.