The shipping companies will be established as subsidiaries under the full ownership of the MI Cement
The MI Cement Factory Ltd is going to establish three shipping companies for commercially transporting goods using oceangoing vessels.
The names of the companies will be Ocean Voyager Shipping Lines Ltd, Ocean Victory Shipping Lines Ltd and Ocean Vision Shipping Lines Ltd. The decision came from the factory's board meeting on Tuesday.
The shipping companies will be established as subsidiaries under the full ownership of the MI Cement. Those subsidiary companies will be given three mother vessels which are currently under the authority of the MI Cement.
Adviser to the MI Cement Masud Khan told The Business Standard, "At present, we are facing some difficulties in keeping a record of profit and loss for our oceangoing vessel business under the management of the MI Cement.
"Making separate companies for running the business will ensure transparency and accountability in the accounts. This decision will help our ships involved in the goods transportation business to make good profits."
When asked about three separate companies for three different ships, he said, "If a ship of a particular company in the international shipping business gets blacklisted, all the ships under that company fall under the embargo.
"For this reason we are establishing three separate companies."
In the first quarter (July-September) of the current fiscal year, the net profit of the MI Cement rose by 21 percent to Tk8 crore and the earnings per share (EPS) stood at Tk.0.57. In the previous fiscal year, the company's net profit was Tk7 crore and the EPS was Tk0.47.
Till fiscal year 2018-2019, the company's net profits decreased by 66 percent to Tk25 crore, from Tk74 crore in the fiscal year 2016-2017.
While talking about this decrease in profits, MI Cement Adviser Masud Khan said the cement production cost went up in the past three years because of the high prices of raw material. Hence, the profits dropped despite an increase in sales.
In the fiscal year 2018-19 the company's EPS was Tk1.69, while in the previous fiscal year the profit was Tk32 crore and the EPS was Tk2.13.
For the previous financial year, the MI Cement proposed 10 percent in cash dividend for its shareholders and the record date is November 18. The company will hold its annual general meeting on December 19.
As of Wednesday, the company's share price was Tk43.60. In the past one year, the highest price of the company's share was Tk87.