Shares of Great Eastern Shipping (GE Shipping) were falling on Friday after the company posted a drop in both EBITDA margins and profit after tax in the second quarter.

What Happened: In its earnings report released on Thursday evening, GE Shipping posted a 3% decline in consolidated net profit, amounting to ₹576 crore for Q2 FY25, compared with ₹595 crore in the same period last year.

The company’s EBITDA for the quarter rose 2% to ₹654 crore, up from ₹643 crore a year earlier. However, EBITDA margins contracted by 400 basis points, dropping to 48.3% from 52.3% in the previous year.

Earnings from crude tankers saw seasonal weakness in Q2, as overall seaborne crude trade fell by 3%, influenced by soft refinery margins, the company said.

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Meanwhile, spot earnings for capesize vessels saw substantial growth of 86% year on year, while Kamsarmax and Supramax earnings also increased by 17% and 45%, respectively.

Capesize vessels are large bulk carriers used for transporting heavy commodities like coal and iron ore. Kamsarmax and Supramax are other vessel types commonly used in the dry bulk shipping market.

The company's board declared an interim dividend of ₹7.2 per share. The record date for this interim dividend is set for November 20, with payments to be made on or after December 4.

Price Action: GE Shipping’s share price was down 6.4% at ₹1,208.95 in morning trade on Friday. The stock has gained just under 25% so far this year.

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