Essar Shipping inducts two mini cape vessels
Essar Shipping Ltd which has embarked on a robust expansion course, inducted its last two mini cape bulk carriers this morning
Essar Shipping Limited (ESL) today reported having taken delivery of two mini cape bulk carriers, m v Kishore and m v Ashok. These new builds are the last two mini cape vessels out of six that have been on order with STX (Dalian) Shipbuilding Co. Ltd., China. With these latest additions to ESL, which is part of the Essar Group, the company’s shipping tonnage has risen to two million tones.
When m. v. Kamlesh, the first ship in the series called at Hazira port in Gujarat, it became the first mini cape vessel to come to India. With it ESL had also created a new segment of 1,05,000 dead weight tonnage (DWT).
Speaking about the new additions to Essar fleet A R Ramakrishnan, Managing Director of Essar Shipping Limited said, “Essar Shipping has taken delivery of the last two mini capes from the total of six ordered with STX shipyard under the expansion program. With the induction of these two vessels, we will now consolidate operations to achieve the planned growth in revenues and scale of operations.”
The company has four supramaxes on order with the ABG shipyard, India each of 55,000 DWT informed Jatin Aggarwal, Deputy General Manager of Essar. The two mini cape vessels inducted into ESL fleet are 253 metre long, 43 metre wide and have a cargo capacity of 105000 DWT.
With its uniquely designed hull to ensure larger carrying capacity with minimal draft requirements, ESL is confident that these mini cape vessels will make trade to the Indian coast more economical and cost effective for clients in the power, steel and other core sectors.
ESL continues to serve its customers efficiently with a fleet comprising VLCC tankers, capesize vessels, supramaxes, mini bulk carriers and other lighterage and trans-shipment assets.
Last week on the business front, ESL reported a sharp turnaround in its net profit earning in the first half of April to September 2012 – 13. Compared to the same period last year when it suffered a loss of $ 12.15 million it achieved a remarkable performance in this half with profits being registered at $ 3.26 million despite the economic downturn. Its revenue for the same period (H1FY13) rose by 35% to $ 313.3 million in H1FY13 as against $ 232.75 million in H1FY12.
EBITDA increased to $ 85.5 million in H1FY13 as against $ 47.6 million H1FY12, registering an increase of 80%.
The Shipping business registered revenue of $ 67.03 million in Q2FY13, up 24 % from $ 53.87 million for the Q2FY12. For half year, the business registered revenue of $ 150.4 million in H1FY13, up 38 % from $ 108.9 million in H1FY12.
ESL operates a diversified fleet of 25 vessels having an average age of 15 years. These include VLCCs, capesizes, mini capes, supramaxes, mini bulk carriers and tugs. A sizeable part of the capacity is deployed on long-term contracts and COAs, insulating the company from the volatility of spot markets.
The oilfields services business provides contract drilling services to oil & gas companies across the globe. This business owns one semi-submersible rig and 12 land rigs. The company has two new jack-up rigs on order.
The Logistics business provides end-to-end logistics services, including intermodal transportation. It manages a fleet of over 4,200 trucks.