KARACHI: Pakistan National Shipping Corporation Limited (PNSC) has received cabinet approval to expand its business, with plans to invest US$500 million in fleet modernization and growth, targeting a 20% return on capital employed (ROCE) from new projects. According to the company’s corporate briefing, addition of new vessels is expected to take three to four years to reach break-even.
PNSC has already awarded contracts for two Aframax tankers (110–111k DWT at US$74.5 million each) and one MR tanker (50k DWT at US$44.5 million), totaling US$193 million, with 20–25% financed via equity and the remainder through local currency debt. Deliveries are expected by January 2026. The company is also exploring further fleet additions, including vessels equipped with fuel-efficient tier-3 engines.
Management highlighted challenges including a 20% sales tax on vessel imports, although deferment in installments is under consideration. Freight revenues remain under pressure due to geopolitical unrest in the Red Sea, the Russia-Ukraine conflict, Iran tensions, and US tariffs, though the new vessels are expected to improve revenues, reduce fuel and maintenance costs.
During FY25, PNSC reported a profit after tax of Rs6.6 billion (EPS Rs33.72) on revenues of Rs6.9 billion, despite a 25% year-on-year decline in sales, driven by gains on vessel sales and impairment reversals. Early FY26 performance shows an 11% rise in sales and a 3 percentage point improvement in gross margins.
The company reaffirmed its commitment to stable dividend payouts while balancing capital expenditure requirements.