Essar Shipping
maintains EBIDTA margin and revenue despite depressed market
October 25, 2002
Despite the depressed market
conditions, Essar Shipping Limited (ESL) continues to maintain
its EBITDA margin at a level of 41%. ESL registered a net
profit at Rs. 7.12 crore (USD 1.47 million) for the quarter
ended September 30, 2002 as compared to Rs. 12.65 crore
(USD 2.82 million) for the corresponding period in the
previous year. Earning per share (not annualized) was Rs
0.24 as against Rs. 0.64 for the corresponding period in
the previous year. The reduction in the EPS is due to the
increase in the paid up share capital of the company. Total
income at Rs. 106.73 crore (USD 21.96 million) compared
to Rs. 108.56 crore (USD 24.17 million) for the corresponding
period of the previous year.
Fleet Operating & Chartering revenue has been almost
maintained at Rs 105.32 crore (USD 21.67 million) compared
to Rs. 107.06 crore (USD 23.84) in the corresponding period
last year.
After providing for interest
at Rs. 9.87 crore (USD 2.03 million), depreciation at Rs.
15.69 crore (USD 3.23 million) and write back of taxes
at Rs. (0.21) crore (USD 0.04 million) the company posted
a Net Profit of Rs. 7.12 crore (USD 1.47 million) for the
quarter ended 30th September 2002. During the corresponding
period of the previous year, the company had posted a Net
Profit of Rs. 12.65 crore (USD 2.82 million) after providing
interest Rs. 5.00 crore (USD 1.11 million), depreciation
Rs. 18.21 crore (USD 4.05 million) and taxes Rs. 0.99 crore
(USD 0.22 million).
The earnings of the shipping companies world over have
been severely affected by the sluggish shipping markets
in the second quarter of 2002-03. The delay in the much-anticipated
economic revival, OPEC production cutbacks, Iraq’s
suspension of its crude oil exports for a month, the Venezuelan
general strike & negative consumer sentiments in the
US have contributed to the continued weakness in all sectors
of shipping.
The above results were taken on record at the meeting of
the Board of Directors held on 25th October 2002.
Highlights
Cash Profit
of Rs 22.60 crore (USD 4.65 million), as against Rs.31.85
crore (USD 7.09 million) for the previous year.
EBIDTA margin maintained
at 41%
Three vessels underwent
dry-docking in the quarter.
EPS (not annualized)
September 2002
September
2001
Rs. 0.24
Rs. 0.64
Markets
Crude
Transportation: All
types of tanker rates remained extremely weak during
the Half Year ended 30th September 2002. Weak market
sentiments, slow economic growth coupled with OPEC
production cutbacks, Iraq’s suspension of its
crude oil exports for a month & the threat of
US attack on Iraq were the main contributors to the
depressed state of the tanker markets the world over.
The average TC earnings per day for the Suezmax Fleet
of ESL is at USD 17,936 per day which is higher than
the average market earnings of USD 13,563 per day
(Source: Clarkson).
Bulk
Carriers: The dry bulk market woes continued
unabated during the first quarter. Starting from
an average daily earnings of about USD 12,963, the
market had slumped to USD 8,644 per day. The second
quarter witnessed the freight rates firming up slightly
to the levels of USD 9,000 due to the sporadic shortage
of quality tonnage. But overall the markets remained
weak. The hope for economic recovery has been slow
to materialize, the only hope was the expected increase
in the Chinese steel production.
ESSAR Fleet
As of October 25, 2002,
2002 the Essar fleet consisted of 33 vessels. The following
is a summary of the Essar fleet:
Type
Number
DWT
Suezmax Carriers
6
919,080
Product Tankers
3
45,824
Dry cargo bulk
carriers
6
396,906
Mini-bulk carriers
11
24,200
OSVs
3
5,253
Tugs
4
1,600
Total
33
1,392,863
Summarised Consolidated
Statements Of Income
Quarter
Ended
30th Sep
Quarter
Ended
30th Sep
2002
2001
2002
2001
(
Rs. Crore)
(
Rs. Crore)
(
USD million)
(
USD million)
Income
from operations
Fleet
Operating & Chartering earnings
105.32
107.06
21.67
23.84
Profit
on sale of Shipping Assets
-
-
-
-
Other
Income
1.41
1.50
0.29
0.33
Total
Income
106.73
108.56
21.96
24.17
Operating
Expenses
Fleet
Operating Expenses
51.62
39.63
10.62
8.83
General & Administrative
Expenses
8.08
7.87
1.66
1.75
Dry
Docking Expenses
7.54
16.33
1.55
3.64
Lease
rentals
7.02
7.88
1.45
1.75
Total
Operating Expenses
74.26
71.71
15.28
15.97
EBITDA
32.47
36.85
6.68
8.20
EBITDA
Margin
41%
41%
Depreciation
15.69
18.21
3.23
4.05
Interest
expense (net)
9.87
5.00
2.03
1.11
Income
before tax
6.91
13.64
1.42
3.04
Provision
for Taxation (net)
(0.21)
0.99
(0.04)
0.22
Net
Income
7.12
12.65
1.47
2.82
Summarised Consolidated
Balance Sheets
As
at Sept. 30, 2001
As
at March 31, 2001
As
at Sept. 30, 2001
As
at March 31, 2001
(
Rs. Crore)
(
Rs. Crore )
(
million USD )
(
million USD )
Assets
Cash & short
term securities
4.37
10.33
0.91
2.14
Other current assets
157.21
151.10
32.62
31.35
Marketable securities
- long term
848.73
842.35
176.09
174.76
Vessels & equipment
981.96
1001.99
203.73
207.88
Other assets
11.20
9.18
2.32
1.90
Total Assets
2,003.47
2,014.95
415.66
418.04
Liabilities & Stockholders'
Equity
Accounts payable & liabilities
115.26
99.35
23.91
20.61
Long-term debt
694.55
751.07
144.10
155.82
Stockholders' Equity
1,193.66
1,164.53
247.65
241.60
Total Liabilities & Stockholders'
Equity
2,003.47
2,014.95
415.66
418.04
For 2002 figures, 1 USD
= Rs.49.03
For 2001 figures, 1USD =Rs.44.90
For information on the Earnings report or on Essar Shipping Limited: Mr. Vikram Gupta Tel: 91-22-460 1214
Fax: 91-22-4954312/ 4954330 Email: vikramg@essar.com
CORPORATE
