Pakistan National Shipping Corporation Faces Revenue Challenges
The Pakistan National Shipping Corporation (PNSC) is navigating turbulent waters as it reports a significant decline in revenue for the fiscal year 2025. The national carrier, which operates under the Ministry of Maritime Affairs, has seen its revenue drop by 18.82% to Rs. 37.64 billion. This downturn follows a period of impressive growth, raising concerns about the company’s future performance amidst ongoing geopolitical tensions and operational challenges.
Financial Performance Overview
PNSC’s financial journey over the past few years has been marked by volatility. In 2020, the company experienced a robust growth of 21.20%, driven primarily by its oil tanker segment. However, this upward trend was not sustained, as revenue fell by 7.35% in 2021 and again by 15% in 2024. The decline in 2024 was attributed to a high-base effect following exceptional demand during the Russia-Ukraine crisis, which had significantly boosted shipping services.
In 2025, PNSC’s revenue continued its downward trajectory, dropping to Rs. 37.64 billion. The company faced challenges in its shipping business and other operating activities, which saw declines of 13.20% and 28.50%, respectively. Despite these setbacks, rental income provided a silver lining, increasing by 8.48%. The company’s operational expenses remained relatively stable, but the overall profitability was impacted by the sale of two vessels, which contributed to a 40.35% decrease in gross profit.
Moreover, PNSC’s administrative expenses rose by 3.47% due to increased amortization and other costs. However, a notable reversal of Rs. 1.83 billion in impairment losses on financial assets provided some relief. The company’s operating profit margin reached an impressive 63%, reflecting its ability to manage costs effectively despite revenue challenges.
Recent Developments and Future Outlook
In the first quarter of FY26, PNSC reported a 5.28% decline in revenue, amounting to Rs. 10.27 billion. This drop was primarily due to the previous year’s vessel sales. The company’s total expenses surged by 14.67%, driven by the deployment of charter vessels. Consequently, gross profit fell by 30.71%, with the gross profit margin decreasing to 32.16% compared to the previous year.
Looking ahead, PNSC is poised to face both risks and opportunities stemming from ongoing geopolitical tensions, particularly related to the Russia-Ukraine conflict. The company has recently signed a memorandum of understanding with China’s Shandong Xinxu Group, aimed at enhancing regional trade and connectivity. This partnership could potentially strengthen PNSC’s position in the global maritime industry and improve its financial performance in the long run.
As PNSC navigates these challenges, its ability to adapt to changing market conditions and leverage strategic partnerships will be crucial for its future success.
