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Pakistan National Shipping Corporation (PNSC) has gained an operating profit of Rs 123.93 million in the first quarter ended September 30, 2004. According to Corporation's un-audited report, the national flag carrier's operating profit fell by Rs 104.76 million, as compared to Rs 228.69 million in the corresponding period last year.
The reduction in operating profit was mainly due to the assignment of revenue for crude oil transportation to the subsidiary companies.
The pressure on costs continued due to very high bunker prices, but the PNSC is expected to perform well in the second quarter of the year, under review. In the meantime, steps are being taken to implement the fleet enhancement plan.
However, the profit was earned with the help of good performance of the subsidiaries and the consequent higher share of profits in subsidiary companies and associates (Rs 310.33 million as compared with last year's Rs 179.76 million).
The profit before taxation for the quarter under review was at Rs 425.51 million, 9.2 percent higher than that of Rs 389.80 million for the corresponding period of last year. The PNSC Group, which owns 55 percent of the share capital of Pakistan Co-operative Ship Stores (Private) Limited and 100 percent share capital of remaining 15 subsidiary companies, achieved an operating profit of Rs 452.83 million for the same quarter, as against Rs 439.30 million for the corresponding period last year.
Similarly, the consolidated profit before taxation for the quarter was Rs 430.79 million, as against Rs 323.68 million for the corresponding period of last year.
The group is engaged in providing shipping as well as other related services and has also rented-out its property under lease-term arrangements.

Copyright Business Recorder, 2004

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