| Press
Releases |
| Essar Shipping
Limited revenue up by 24.16% for the Quarter ended 30th
September 2003 |
| October 30, 2003 |
|
|
Essar Shipping Limited (ESL)
recorded an increase in its net profit to Rs. 21.10 crore
(USD 4.59 million) for the quarter ended September 30,
2003 compared to Rs. 7.12 crore (USD 1.47 million) for
the corresponding period of the previous year. ESL has
achieved an EBIDTA margin of 59% for the quarter ended
September 30, 2003 as against 40% for the corresponding
period of the previous year .The EBIDTA was Rs. 53.55 crore
(USD 11.64 million) compared to Rs. 32.47 crore (USD 6.68
million), representing an increase of 64.92%.
Total income
was Rs. 132.52 crore (USD 28.80 million) as against Rs.
106.73 crore (USD 21.97 million) for the corresponding
period of the previous year, representing an increase of
24.16%. Fleet operations & charter
revenues (TCE Basis) have been higher at Rs.89.42 crore
(USD 19.43 million) compared to Rs. 79.81 crore (USD
16.43 million) for the corresponding period of the previous
year. |
Interest and Depreciation
were Rs. 14.56 crore (USD 3.16 million) and Rs. 16.58 crore
(USD 3.60 million) respectively, for the quarter ended
September 30, 2003. Provision of tax including deferred
tax resulted in a net liability of Rs. 1.31 crore (USD
0.28 million). During the corresponding period of the previous
year, interest, depreciation and deferred tax credit (net)
were Rs. 9.87 crore (USD 2.03 million), Rs. 15.69 crore
(USD 3.23 million) and Rs. 0.21 crore (USD 0.04 million)
respectively.
The above results were taken on record at
the meeting of the Board of Directors held on 30th October
2003. |
Markets
At the start of
the second quarter, the suezmax rates eased off due to
greater competition from the VLCCs. As the quarter progressed,
developments in the Former Soviet Union (FSU) continued
to dominate the suezmax markets as freight rates touched
the high fourties only to retract back to levels of around
USD 20,000 per day by the end of July. In the latter half
of the second quarter, there was higher fixture activity
across key load areas with the market rate averaging
at around USD 17,500 per day. Towards the end of the
quarter, tanker markets improved with suezmax rates benefiting
from the strength of the VLCC market.
The dry bulk market
showed lesser amount of volatility and remained steady
almost throughout the first quarter with the high level
of activity in the beginning of the quarter in the Capesize
market despite fewer Chinese enquiries. The start of
the second quarter saw the Capesize markets at a steady
level as in the first quarter. But this proved to be
temporary as the rest of the quarter saw Capesize rates
rise across all the Bulk carrier segments due to increased
Dry bulk imports by China. Towards the end of the second
quarter, the Modern Capesize earnings averaged around
USD 35,000 per day with the highest rates on some routes
at as high as USD 50,000 per day due to healthy iron
ore trade and steel trades by Japan and China. |
Outlook
Despite the closure of the Kirkurk-Ceyhan pipeline the
outlook for the suezmaxes is positive for the coming
months. FSU exports are likely to recover, while the
expanding Angolan capacity expected to offset the reduction
of cargo from Nigeria due to the quota cuts by OPEC.The
suezmax market is likely to be firm over the next few
months.
Global steel production is set to cross the 950
Mt mark in the year 2003.The current boom in the market
is underpinned by China which is providing a market
for the excess production from the various parts of
the globe. Although in the Short term the outlook is
positive, continued expansion of Chinese steel production
will reduce import requirements and impact production
in other regions of the globe in the longer term. On
the supply front the Capesize fleet is expected to
expand by 2 Mn Dwt over the next 6 months. But the
continued strength in Asian Iron ore and coal imports
is likely to absorb this tonnage and the rates are
expected to settle down in the high twenties for modern
Capesize vessels.
Key Financial Highlights for the quarter ended September
30,2003 |
 |
Net income
on TCE yield basis for the quarter ended 30th September
2003 increased to Rs. 89.42 crore (USD 19.43 million)
as compared to Rs. 79.81 (USD 16.43 million) in the
corresponding period of the previous year. |
|
EBIDTA at Rs. 53.55
crore (USD 11.64 million) for the quarter ended 30th
September 2003 as against Rs 32.47 crore (USD 6.68
million) during the corresponding period of the previous
year representing an increase of 64.92% |
|
EBIDTA margin of 59% as against
40% in the corresponding period of the previous year. |
|
Cash Profit of Rs 38.99
crore (USD 8.47 million), as against Rs. 22.60 crore
(USD 4.65 million) for the corresponding period of
the previous year, an increase of 65.19% |
|
Profit after Tax increased
to Rs 21.10 crore (USD 4.59 million) for the quarter
ended 30.09.2003, as against Rs 7.12 crore (USD 1.47
million) for the corresponding period of the previous
year representing an increase of 196.34% |
|
EPS: (annualized) |
|
As at 30th
September 2003 |
As at 30th
September 2002 |
Rs. 3.41 |
Rs. 0.70 |
|
|
| Fleet |
| As on October 30, 2003
the Essar fleet consisted of 34 vessels as follows: |
Type |
Number |
DWT |
Suezmax Carriers |
6 |
919,080 |
Product Tankers |
3 |
45,824 |
Dry cargo bulk carriers |
5 |
354,777 |
Mini-bulk carriers |
11 |
24,200 |
OSVs |
3 |
5,253 |
Tugs & Dumb
Barges |
6 |
3600 |
| Total |
34 |
1,352,734 |
|
|
| Summary Consolidated
Statements of Income |
|
Quarter
Ended
(Rs crore) |
Quarter
Ended
(USD million) |
30.09.2003 |
30.09.2002 |
30.09.2003 |
30.09.2002 |
Income
from operations |
Fleet Operating earnings |
131.14 |
105.32 |
28.50 |
21.68 |
Other Income |
1.38 |
1.41 |
0.30 |
0.29 |
Profit/(Loss) on Sale of
Fleet |
|
|
|
|
Total Income |
132.52 |
106.73 |
28.80 |
21.97 |
Operating
Expenses |
Fleet Operating Expenses
including Dry dock |
72.14 |
67.83 |
15.68 |
13.96 |
Establishment & Other
expenses |
6.83 |
6.43 |
1.48 |
1.32 |
Total Operating Expenses |
78.97 |
74.26 |
17.16 |
15.28 |
EBIDTA |
53.55 |
32.47 |
11.64 |
6.68 |
EBIDTA Margin ( TCE
Basis) |
58.98% |
39.98% |
|
|
Net Interest |
14.56 |
9.87 |
3.16 |
2.03 |
Depreciation |
16.58 |
15.69 |
3.60 |
3.23 |
Income before tax |
22.41 |
6.91 |
4.87 |
1.42 |
Provision for Taxation (
MAT) / Deferred Tax |
1.31 |
(0.21) |
0.28 |
(0.04) |
Net Profit |
21.10 |
7.12 |
4.59 |
1.47 |
|
|
For 2003 figures, 1 USD =
Rs.46.01
For 2002 figures, 1USD = Rs.48.59 |
For
more information on Essar Shipping Limited contact:
Essar Group
Corporate Communications
corporatecommunications@essar.com
Tel : 91-22- 2495-0606 / 6660-1100 |
| Note: |
| This earning release contains
forward looking statements regarding prospects for the
Company's business, including outlook for the markets.
Investors should make their investment judgements based
on their own analysis. This earnings release is for information
only and must not be construed as an invitation to acquire
the shares of the Company. |
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