Emirates Ship Investment net profit trebles on new charter contracts

Emirates Ship Investment Company (Eships), formerly Combined Cargo UAE, earned a net profit of $19.11 million (Dh70.13 million) in 2004, against $6.4 million (Dh23.48 million) in 2003.

The strong net profit came on the back of higher revenues last year that totalled $41.45 million (Dh152.12 million).

"The revenues were up on account of new time charter contracts and a general firming of the shipping market," Eships chairman Ahmad Al Saeed Calily told Gulf News.

Net assets grew to $50.06 million (Dh183.72 million) in 2004 from $21.32 million (Dh78.24 million) the previous year. The return on assets jumped from seven per cent in 2003 to 19 per cent and the asset turnover was 0.41 compared to 0.33 in 2003.

Despite the highly volatile and cyclical nature of the shipping business, Eships is upbeat for the medium term. "The supply-demand balance is very tight at the moment. But the long-term, say three years ahead, will be good despite the ups and downs in the business," Calily said.

Eships will continue to focus on its core business of tankers and dry bulk trades but will increasingly move into the LNG sector.

Last month, Eships signed a $124 million (Dh 455.08 million) contract with Korea's Hyundai Mipco Dockyard for five chemical tankers.

It plans to build a large fleet of small, medium range IMO type II/III coated product and chemical tankers to carry contract of affreightment cargoes within Europe, the Arabian Gulf and the Middle East. It has a fleet of 10 vessels and will add at least nine more in the short term, Calily said.