Essar Shipping reports R55-cr net profit in Q4

Written by fe Bureau | Mumbai | Updated: May 18 2012, 07:07am hrs
Essar Shipping reported a net profit of R54.98 crore for the quarter ended March 31, against a loss of R67 lakh year ago, as it deployed ships on long term charters and did better in its drilling business.

This quarter has shown a strong performance based on our strategy of deploying the vessels on long-term charters together with the drilling business contributing significantly to the financial performance of the company, AR Ramakrishnan, the managing director, Essar Shipping said.

Revenues increased by 24% to R845.20 crore as against R683.92 crore a year ago.

Revenues from oilfield services, which include drilling services, increased 60% year-on-year to R147 crore in the March quarter from R92 crore for the corresponding period in the previous year.

The sea transportation business, including shipping services, registered revenues of R391 crore in the quarter, up 64% from R239 crore earlier. The logistics business, meanwhile, had revenues of R308 crore comapred with R353 crore a year ago.

At present, Essar Shipping operates a fleet of 27 vessels and owns one semi-submersible rig and 12 land rigs.

The company has a net debt of R5,400 crore of which 70% dollar debt and rest is rupee. Essar Shipping is considering to convert maximum into dollar loan. Essar Shipping is looking to reduce its dependence on business from group companies, which at present contributes 60% of its revenues.