| Press
Releases |
| Essar Shipping
Limited Total Income Up By 38.3% |
| July 30, 2004 |
|
|
Essar Shipping Limited (ESL)
has registered a growth 38.3% in its total income at Rs.
193.82 crore (USD 41.92 million) for the quarter ended
June 30, 2004 as compared to Rs. 140.15 crore (USD 30.08
million) for the corresponding period of the previous year.
Fleet Operating & Chartering Revenues (TCE Basis) have
been higher at Rs.142.11 crore (USD 30.73 million) compared
to Rs. 122.50 crore (USD 26.29 million) in the corresponding
period last year.
The net profit increased marginally to
Rs 30.37 crore (USD 6.57 million) for the quarter ended
June 30, 2004 as compared to Rs 30.28 crore (USD 6.50 million)
for the corresponding period in the previous year. This
was mainly on account of higher number of vessels on drydock
during the quarter, higher drydock expenditure and reduced
available earning days. The drydock expenditure for the
quarter stood at Rs 20.05 crore (USD 4.34 million) for
the quarter ended June 30, 2004 compared to Rs. 13.47
crore (USD 2.89 million) for the corresponding period
in the previous year. ESL has achieved an EBITDA margin
(TCE Basis) of 58.60% for the quarter ended June 30,
2004 as against 53.20% in the corresponding period of
the previous year .The EBITDA was Rs. 83.49 crore (USD
18.06 million) compared to Rs. 59.07 crore (USD 12.68
million), representing an increase of 41%. |
| Net Interest and Depreciation
were Rs. 28.80 crore (USD 6.23 million) and Rs. 21.93 crore
(USD 4.74 million) respectively, for the quarter ended
June 30, 2004. Provision of tax and deferred tax Liability
amounted to Rs. 2.39 crore (USD 0.52 million). During the
corresponding period of the previous year, Interest, Depreciation
and Taxes (net) were Rs. 12.22 crore (USD 2.62 million),
Rs. 17.17 crore (USD 3.69 million) and a net tax credit
of Rs. (0.60) crore (USD (0.13) million) respectively. |
| The above results were
taken on record at the meeting of the Board of Directors
held on 30th July 2004. |
| Key Financial Highlights
for the quarter ended June 30,2004 |
 |
Fleet Operating & Chartering
earnings increased to Rs. 193.46 crore (USD 41.84 million)
as against Rs.151.64 (USD 32.55 million) in the corresponding
quarter in the previous year, translating into a 27.58%
growth. |
|
Cash Profit of Rs.
54.56 crore (USD 11.80 million), as against Rs. 46.72
crore (USD 10.03 million) for the corresponding quarter
in the previous year, an increase of 16.78% |
|
EBITDA at Rs 83.49 crore (USD 18.06
million) as against Rs. 59.07 crore (USD 12.68 million)
during the previous year, translating into a 41.34
% growth. |
|
EBITDA margin of 58.60%
as against 53.20% in the last corresponding period
last year. |
|
Net Profit after Tax
at Rs 30.37crore (USD 6.57 million) as against Rs 30.28
crore (USD 6.50 million) for the corresponding period
of the previous year. |
|
EPS: (Annualized) |
|
As at June 2004 |
As at June
2003 |
Rs. 4.03 |
Rs. 4.00 |
|
|
Markets
The year started on a weaker note for the Crude Carrier
segment. This was on account of increase in the tonnage
availability, declining enquiry levels, reduced imports
by China and decrease in crude oil production by OPEC
in light of treat of reduction of crude oil prices. The
rates dropped further through May, following the typical
fall in the summer season. The month of June saw the
charter rates firming up again for the VLCC and Suezmax
tankers. This increase was backed by resumption of crude
oil production from Basra in Iraq, more healthy demand
from India and China and increased demand for gasoline
in USA.
As witnessed in the Crude Carrier segment, the
Dry Bulk carrier segment also showed a decline in the
freight rates. This is evident from the Baltic Dry Bulk
Index falling from 5110 points in the beginning of April
2004 to 2876 points by the end of June 2004. The main
reason for the steep decline in the freight rates for
the Dry Bulk Carriers was reduced imports and enquiries
from China and increased prices of coal. However when
compared to corresponding period in the earlier year,
the rates are still much firmer. The rates started
picking up again during June 2004, backed by enquiries
from China, Japan, India and Europe. |
| Outlook |
| The Crude Carrier segment
is expected to remain firm on account of the following
factors: |
|
Increased
import of crude oil by China with the Chinese Government
expects imports to reach 110m tonnes this year. |
|
The demand for gasoline
for transportation requirements in US is expected to
increase in the coming quarter. Moreover, Chevron and
Shell have announced plans to increase the output from
Nigeria by 9%. |
|
The International Energy Agency
(IEA) has raised oil demand forecasts six times in
2004 and the latest increase suggests global oil demand
growth at 2.49m barrels/day, the greatest demand expansion
in 20 years. |
|
| In the Dry Bulk Carrier
segment, the Coal shortage in Asia and Europe will continue
to drive the Dry Bulk market with seaborne coal trade expected
to increase further, despite an expected decrease in Chinese
exports of 10 million tons to a total of 80 million tons.
The new Chinese power plants are expected to require an
additional 50 million tons of thermal coal in 2004. The
new Japanese power plants combined with ongoing, but decreasing,
nuclear generating capacity problems and low coal stockpiles
in Japan are leading to a large and almost desperate Japanese
demand for thermal coal. The Chinese steel boom leads to
increasing demand of hard coking coal. Australian exports
to China are expected to increase. Moreover Canadian coal
exports to China are expected to increase by 2 mn tonnes.
All these factors will enable to keep the Dry Bulk segment
firm. |
| Fleet |
| As on July 30, 2004 the
Essar fleet consisted of 30 vessels as follows: |
Type |
Number |
DWT |
| Very Large Crude
Carrier |
1 |
301,428 |
| Suezmax Carriers |
6 |
919,080 |
| Product Tankers |
3 |
45,824 |
| Dry cargo bulk carriers |
5 |
354,777 |
| Mini-bulk carriers |
11 |
24,200 |
| Tugs |
4 |
1,600 |
| Total |
|
1,646,909 |
|
|
| Unaudited
Financial Results (Provisional) for the quarter ended
30th June, 2004 |
For 2004 figures,
1 USD = Rs.46.24
For 2002 figures, 1 USD = Rs.46.59 |
For more information on
Essar Shipping Limited contact:
Essar Group
Corporate Communications
corporatecommunications@essar.com
Tel : 91-22- 2495-0606 / 6660-1100 |
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