Essar Shipping Limited (ESL) recorded an increase in its Operating Revenues to Rs. 196.77 crore for the quarter ended December 31, 2004 compared to Rs. 147.86 crore for the corresponding period in the previous year registering an increase of 33%. The net profit of ESL increased to Rs 107.24 crore for the quarter ended December 31, 2004 as compared to Rs 36.84 crore for the corresponding period in the previous year registering an increase of 191%. The EBITDA was Rs. 134.72 crore compared to Rs. 69.57 crore, representing an increase of 94%.

Net Interest and Depreciation were Rs. 6.08 crore and Rs. 18.49 crore respectively, for the quarter ended December 31, 2004. Provision of tax net of deferred tax liability resulted in a net liability of Rs. 2.91 crore. During the corresponding period of the previous year, Interest, Depreciation and Taxes (net) were Rs. 15.06 crore, Rs. 16.26 crore and a net tax of Rs. 1.41 crore respectively.

The above results were taken on record at the meeting of the Board of Directors held on 24th January 2005.
Markets
Crude Transportation: Tanker freight rates saw their all time peaks during the last quarter of 2004. The main driver behind the strong market conditions was, growth in Chinese oil consumption, increased crude oil prices, increased crude oil production by OPEC, shutdown of the nuclear power plants in Japan among other factors. The VLCCs average at USD 158,000 per day and Suezmax tankers averaged at USD 88,000 per day during the quarter.

Bulk Carrier: In the Bulk Carrier segment, the freight rates were steady during the beginning of the quarter with a little upward movement during the first two months and a sudden dip by the end of December 2004. The is evident from the movement in the Baltic Dry Index which was at 4105 during the beginning of the quarter, reaching 6100 by the beginning of December and closing at 4598 by end of the quarter.

The dry bulk market was driven by strong growth in the mineral trades. Heavy port congestion in Australia, Brazil, India and China also contributed to the strong growth in tonnage demand.

Source: Platou / Clarksons .

Unaudited Financial Results (provisional) for the quarter ended 31st December , 2004