Essar Shipping
Reports Profit Of Rs. 52.36 Crore (Usd 10.81 Million) For
The Nine Months Ended December 31, 2001
January 25, 2002
Essar Shipping Limited (ESL)
has registered stable net profit at Rs. 52.36 crore (USD
10.81 million) for the nine months ended on December 31,
2001 as compared to Rs. 50.54 crore (USD 10.44 million)
in the corresponding period of the last year. Consequently
earnings per share (not annualized) has gone up to Rs.2.68
from Rs.2.57 for the period as compared to the corresponding
period of the previous year.
Total income at Rs.367.75 crore (USD 75.95 million) for
the nine months ended December 31, 2001 is higher by 18%
compared to Rs. 311.63 crore (USD 64.36 million) for the
corresponding period of last year. After providing for
interest at Rs. 37.85 crore (USD 7.82 million), depreciation
at Rs. 54.80 crore (USD 11.32 million) and taxes at Rs.
4.16 crore (USD 0.86 million), the company posted a net
profit of Rs. 52.36 crore (USD 10.81 million). During the
corresponding period of the last year the company had posted
a net profit of Rs. 50.54 crore (USD 10.44 million) after
providing interest Rs. 45.73 crore (USD 9.44 million),
depreciation Rs. 51.04 crore (USD 10.54 million) and taxes
Rs. 4.31 crore (USD 0.89 million).
The above results were taken on record at the meeting of
the Board of Directors held on Friday, January 25, 2002.
Commenting on the results,
Sanjay Mehta, Managing Director & CEO, Essar Shipping
Limited said, " As projected in the last quarter,
despite a general downtrend in the market, especially in
the crude transportation markets, we have been able to
increase the net TCE earnings by Rs 4.10 crore (USD 0.85
million) for the current quarter as compared to the quarter
ended 30th September, 2001. This was achieved primarily
due to our strategy of locking into long term period charters
for some of the vessels in our fleet".
Highlights
Foresight
in tying up period charters for some vessels when the
markets were good, enabled the company to increase
its TCE earnings from Rs 89.01 crore (USD 18.38 million)
to Rs 93.11 crore (USD 19.23 million) for the quarter
as compared to the previous quarter.
Cash Profit of Rs 111.32
crore (USD 22.99 million), an increase of 5.14% over
the corresponding period of the previous year.
Increase in net operating earnings
(TC yield basis) by Rs 18.92 crore (USD 3.91 million).
The company has taken a prudent
decision to dry-dock maximum number of vessels in these
lean earning periods so that the vessels are in good
operating condition and will have minimum technical
downtime when markets improve.
Thirteen vessels were dry-docked
as compared to five in the corresponding period of
the previous year.
EBITDA margin of 49% as against
54% due to increase in dry-docking cost for the corresponding
period of the previous year.
Sale of one Handysize bulk carrier,
Nand Rati, was made during the period under review
earning a profit of Rs 7.89 crore (USD 1.63 million).
EPS (in Rs.)
For The Half year
Annualised
Dec 2001
2.68
3.57
Dec 2000
2.57
3.43
Markets
Crude
Transportation: Markets weakened further during the quarter. World
Scale for the WAF- US sector fell from WS 80 in September
to WS 67 by end December, with the economic recession
taking its toll. The daily average earnings fell to
about $18,000/day. Rates are expected to remain steady
or may even go down as OPEC effects a cut of around
1.5 mbpd starting January and the non-OPEC producers
chip in with a cut of 500,000 bpd.
Bulk
Carriers: Markets
continued to soften across all segments with decrease
in spot as well as period charter markets. Average
one year TC rates for 1980s built Capesizes fell further
to USD 4,500/day from already depressed USD 5000 per
day and for modern vessels to USD 9,5000 per day from
USD 10,000 per day. One-year TC rates for modern Handymaxes
continued to earn a steady USD 6,600 per day. Markets
are expected to remain soft over the next two quarters.
Fleet
As of December 31, 2001
the Essar fleet consisted of 35 vessels. The following
is a summary of the Essar fleet:
Type
Number
DWT
Suezmax Carriers
6
919,080
Product Tankers
4
76,289
Dry cargo bulk
carriers
7
461,981
Mini-bulk carriers
11
24,200
OSVs
3
5,253
Tugs
4
1,600
Total
35
1,488,403
Summarised Consolidated
Statements Of Income
Nine
months ended Dec 31
Nine
months ended Dec 31
2001
2000
2001
2000
(
Rs. Crore)
(
Rs. Crore)
(million
USD)
(million
USD)
Net Voyage
Revenues
Voyage Revenues
355.44
306.17
73.41
63.23
Voyage Expenses
63.18
32.84
13.05
6.78
Net Voyage Revenues
292.26
273.33
60.36
56.45
Operating
Expenses
Vessel Operating
Expenses
115.89
89.74
23.93
18.53
General & Administrative
16.77
14.09
3.46
2.91
Depreciation
54.80
51.04
11.32
10.54
Lease rentals
22.74
23.35
4.70
4.82
210.20
178.22
43.41
36.81
Income from vessel
operations
82.06
95.11
16.95
19.64
Other items
Interest expense
-37.85
-45.72
-7.82
-9.44
Profit on sale of
ships
7.89
0.54
1.63
0.11
Other income
4.42
4.92
0.91
1.02
-25.54
-40.26
-5.27
-8.31
Income before
tax
56.52
54.85
11.67
11.33
MAT
4.16
4.31
0.86
0.89
Net Income
52.36
50.54
10.81
10.44
USD figures are converted
basis closing rate as of 31st December 2001, USD1/ Rs.48.42.
For information on the Earnings report or on Essar Shipping Limited: Mr. Suresh Iyer Tel: 91-22-460 1225
Fax: 91-22-4954312/ 4954330 Email: siyer@essar.com
CORPORATE
