Pakistan’s national shipping company to expand fleet with USD 500M investment

Pakistan National Shipping Corporation (PNSC), the national flag carrier, has announced a major fleet expansion backed by a $500 million investment and new agreements with the two seaports in Karachi, the biggest city of Pakistan.

During a corporate briefing on its fiscal year 2025 results, the state-run carrier said it aims to increase its fleet to 20 vessels by the end of fiscal year 2026.

The management said the authorities of the Karachi Port Trust and Port Qasim have issued letters of intent and pledged financial assistance for the growth plan, management said.

PNSC reported cumulative cash and short-term investments of PKR 68 billion, or PKR 343 per share. Executives said the expansion will push financial and fixed costs higher in the short term — including depreciation and tanker insurance — but will boost shareholder value over time.

The company also announced it has signed a memorandum of understanding with China’s Shandong Xinxu Group to broaden maritime cooperation and explore additional investment opportunities.

The management told investors that dividend payouts will be smoothed to protect long-term shareholder interests. In a peer comparison shared during the briefing, PNSC said it leads key regional competitors with a net margin of 43.5%, return on equity of 22.85% and return on assets of 20.2%.

PNSC posted net earnings of PKR 20.46 billion for FY25, compared with PKR 20.55 billion a year earlier. Earnings per share rose to PKR 103.23 from PKR 101.87.

Revenue fell 19% from last year, and gross profit dropped 40%, largely due to the sale of three revenue-generating tankers in the second half of FY25. The disposals generated PKR 13.2 billion in other income, helping the company maintain bottom-line results. Of the year’s PKR 37.6 billion in revenue, liquid cargo accounted for 73% and dry cargo 17%.

The carrier recently purchased three tankers — two Aframax and one MR1 — with average vessel ages of 15 and 16.5 years. The new Aframax ships consume 27-28 metric tons of fuel per day, compared with 38–40 tons for older vessels, and offer lower operating and maintenance costs and higher revenue potential, management said.

PNSC’s current liquid bulk fleet includes three Aframax and two LR-1 tankers. Its dry bulk operations include five carriers with a combined deadweight exceeding 250,000 tons.

Executives said they expect a slight reduction in liquid-cargo freight rates ahead. For bulk carriers, the rates are likely to remain stable but could soften if tensions in the Red Sea or the Russia-Ukraine conflict ease.