Home » Essar Shipping swings to profit in Apr-Sep 2012

Essar Shipping swings to profit in Apr-Sep 2012

Essar Shipping swings to profit in Apr-Sep 2012

During Apr-Sep 2012, Essar Shipping posted a net profit of Rs 18 crore compared to a loss of Rs 66.8 crore in the year-ago period.

The company is taking efforts to improve its finances and as part of it, the firm would reduce its debt of Rs 5,500 crore through a multi-pronged strategy.

For this, the company would convert some of its loans into dollars and pay some part of it through internal accruals. It would also try to reduce the interest rates on some part of its loans.

During the quarter ending September 2012, the firm posted a net loss of Rs 40 crore which is less than Rs 85.7 crore net loss in the corresponding period last year. Company’s total revenue increased by 31 per cent to Rs 798 crore for the quarter ended September.

The company sold two of its 1983 built ships MV Govind Prasad and MV Mahavir Prasad during the quarter. This has helped the company in bringing down the average age of the fleet to 13.5 years.

The company is expecting that the freight situation will improve in another six to nine months. Currently, 50 per cent of Essar Shipping’s fleet is employed in long-term contracts.

The company is also betting big on its oilfield services business, which increased by 394 per cent to Rs 165.65 crore in Q2FY13 from Rs 33.36 crore for Q2FY12, in revenue terms.

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