| Press
Releases |
| Essar Shipping
Limited's consolidated profit increases by 124% to Rs.
155.78 Crore (USD 35.23 Million) For The Year Ended March
31, 2004 |
| May 19, 2001 |
|
|
| Consolidated Financial Highlights |
 |
Fleet Operating
Earnings for the year ended 31st March 2004 increased
to Rs. crore 718.84 crore (USD 162.56 million) as compared
to Rs. 497.37 crore (USD 104.20 million) in the previous
year, an increase of 45%. |
|
EBITDA at Rs 321.09
crore (USD 72.61 million) for the year ended 31st March
2004 as against Rs 205.69 crore (USD 41.97 million)
during the previous year, an increase of 56%. |
|
EBITDA margin on Time Charter Equivalent
(TCE) basis of 60% as against 53% in the previous year. |
|
Cash Profit of Rs 260.51 crore (USD
58.91 million), as against Rs. 137.87 crore (USD 28.89
million) in the previous year, an increase of 89%. |
|
Net Profit after Tax (including
provision for Deferred Tax) increased to Rs 155.78
crore (USD 35.23 million) for the year ended 31st March
2004, as against Rs 69.64 crore (USD 14.59 million)
in the previous year, an increase of 124%. |
|
EPS: (Annualized) |
|
As
at March 2004 |
As
at March 2003 |
Rs. 5.16 |
Rs. 2.31 |
|
|
| Highlights |
|
The Company,
as a part of its strategy to increase geographical
market share in the crude oil transportation segment,
has acquired one double hull double bottom VLCC during
the year. |
|
The Company has obtained
the ISPS (International Ship and Port Security) certification.
The entire fleet of the Company is expected to complete
this process by July 2004, which is the deadline for
completion of ISPS certification. |
|
The Company, as a part of its strategy
to focus on Crude Oil transportation and Logistics
services has sold off its Offshore Supply Division
with effect from 1st October 2003. |
|
| Analysis of the full financial Year 2003-04: |
The consolidated profit
for the year ended March 31, 2004 is Rs. 155.78 crore (USD
35.23 million) compared to Rs. 69.64 crore (USD 14.59 million)
in the last year. The total income has increased to Rs.
718.84 crore (USD 162.56 million) compared to Rs. 497.37
crore (USD 104.20 million) in the last year. The EBIDTA
margin for the year is 60% as compared to 53% in the last
year. The EBITDA for the year is Rs. 321.09 crore (USD
72.61 million) as against Rs. 205.69 crore (USD 43.09 million)
and the interest (net) and depreciation during the year
stood at Rs. 59.38 (USD 13.43 million) and Rs. 83.94 crore
(USD 18.98 million) respectively as against last year figures
of Rs 65.41 crore (USD 13.70 million) and Rs. 72.08 crore
(USD 15.10 million) respectively.
Profit on sale of shipping
assets / business (net) is Rs. 12.79 crore (USD 2.89 million)
for the year as compared to Rs. 5.77 crore (USD 1.21 million).
Dry-docking expenses were higher at Rs. 42.53 crore (USD
9.62 million) compared to Rs. 19.17 crore (USD 4.02 million)
in the previous year. |
| The above results were taken on record at
the meeting of the Board of Directors held on 19th May
2004. |
World
Markets
Crude
Transportation
Overall, the year under review has been a good year for
the tanker industry. Freight rates have seen an upswing
due to increased import of crude oil by China (30%),
falling oil inventories in the West, certain ad hoc
reasons such as congestion in certain key ports, waterways
and channels and random strikes in crude oil producing
nations such as Venezuela and Nigeria. The crude oil
production grew by 1.4 mn bpd (2%) which was driven
by cold weather, fuel switching and strong growth from
China. This coupled with demand for quality tonnage
has upped the demand for tankers.
Outlook
Global economic growth in the years 2004 and 2005 is
expected to be higher as compared to 2003. It is therefore
expected that in 2004, world seaborne trade will continue
to rise by 2%. Further, based on current delivery and
scrapping schedule of tankers, annual average growth
of tanker fleet is expected to be 2% from 2003 to 2004. |
Bulk Carriers:
The last year could easily be termed as one of the best
markets in terms for earnings for the Bulk carrier segment.
The year saw the Baltic Dry index increasing more than
two fold from 1,977 in the beginning of the year to 5,099
by the end of the year. The upsurge in the freight rates
can be attributed to factors such as, growth in global
trade of coal and iron ore, short supply of tonnage to
cope with the increased demand, insatiable appetite of
China for iron ore, coal, steel, etc.
ESL's Outlook 2004-05:
In the coming year, the Company will continue to focus
on leveraging its presence in crude oil transportation
and crude oil transportation management services.
With stringent regulations proposed to be enforced
by the IMO and the EU, the quality of tonnage has
become an important determinant of profitability.
The impending regulations give a competitive advantage
to ESL's modern and young double hull crude tanker
fleet in the international markets and enable it
to realize higher utilization rates and generate
higher charter rates as compared to the average rates
in the industry. |
The Company continues to
focus on increasing its market share in the US and European
crude oil transportation / logistics market. The Company
will be constantly looking at opportunities to acquire
vessels to increase its presence in the Crude Oil Transportation
Business.
In the Bulk carrier sector, the tonnage demand
is estimated to grow by an average of 6-7% in the year
2004, whereas the fleet is expected to grow by 4%. Utilisation
rates are thereby expected to improve further by 2-3% over
the 94% utilization rates recorded in 2003. This is expected
to result in firming up of freight rates. The factors
that are likely to play an important role in the dry
bulk market in 2004 are China's investment growth, improved
fleet productivity and China's possible suspension of
coal exports. |
Essar Group
ESL is a part of Rs 17000 crore
(USD 4.50 billion) Essar Group. Essar's businesses are
at the heart of Indian economy - steel, electricity generation,
construction, oil & gas and lately the sun rise sector
of telecom services, to continue the Group's rapid growth.
The revenue of the Group for the financial year ended
March 2003 was approximately Rs. 5325 crore (USD 1115.67
million) with a EBIDTA of Rs. 1677 cr. (USD 351.41 million). |
Summarised Consolidated
Statements Of Income
|
|
Year
Ended
31st March |
Year
Ended
31st March |
2004 |
2003 |
2004 |
2003 |
(
Rs. Cr) |
(
USD mn) |
Income |
|
|
|
|
a) Fleet Operating &
Chartering earnings |
718.84 |
497.37 |
162.56 |
104.20 |
b) Profit/(Loss)
on sale of Fleet |
(11.61) |
5.77 |
(2.63) |
1.21 |
Income from Investments |
3.18 |
- |
0.72 |
- |
Profit on sale
of OSV Business |
24.40 |
- |
5.52 |
- |
Other Income |
3.08 |
3.58 |
0.70 |
0.75 |
Total Income |
737.89 |
506.72 |
166.87 |
106.16 |
Expenditure |
|
|
|
|
Fleet Operating
Expenditure |
319.85 |
213.04 |
72.33 |
44.63 |
Staff Cost |
64.54 |
63.07 |
14.60 |
13.21 |
Other Expenditure |
32.41 |
24.92 |
7.33 |
5.22 |
Total Expenditure |
416.80 |
301.03 |
94.26 |
63.07 |
EBITDA |
321.09 |
205.69 |
72.61 |
43.09 |
EBITDA Margin
(TCE Basis) |
60% |
53% |
60% |
53% |
Depreciation |
83.94 |
72.08 |
18.98 |
15.10 |
Interest expense
(net) |
59.38 |
65.41 |
13.43 |
13.70 |
Income before
tax |
177.77 |
68.20 |
40.20 |
14.29 |
Provision for
Taxation (net) |
(21.99) |
1.44 |
(4.97) |
0.30 |
Net Income |
155.78 |
69.64 |
35.23 |
14.59 |
|
|
For 2003-04 figures, 1 USD
= Rs.44.22
For 2002-03 figures, 1 USD = Rs.47.73 |
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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