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Essar Shipping Q3 Profit Jumps 43% to Rs48.6 Crore

  • Revenues of Essar Shipping increased by 11% to Rs729.2 crore in Q3 as against Rs658.8 crore for the corresponding quarter last yearEssar Shipping registered a PAT (profit after tax) increase of 43% to Rs48.6 crore for the quarter ended 31 December 2011 as against Rs33.9 crore for the corresponding quarter last year. EBITDA of the company increased by over 39% to Rs242.3 crore as against Rs173.6 crore for the corresponding quarter last year.Revenues of Essar Shipping increased by 11% to Rs729.2 crore in Q3 as against Rs658.8 crore for the corresponding quarter last year.
  • Speaking on the results, AR Ramakrishnan, managing director, Essar Shipping said, “Despite tough market conditions such strong performance is primarily because of the company’s strategy to enter into long-term charter of vessels, which provides a natural hedge against the cyclical nature of the industry and ensures long-term visibility of revenues and profitability.”The Sea Transportation business registered revenue of Rs317.4 crore in Q3 FY11-12 as compared to Rs264.3 crore for the corresponding period in the previous year. The EBITDA for Q3 FY11-12 stood at Rs135.5 crore as compared to Rs113.2 crore in Q3 FY10-11.
  • The Oilfields Services revenues have increased by 56.9% to Rs143.9 crore as compared to Rs91.7 crore for the corresponding period in the previous year. The EBITDA for Oilfield Services increased by 102% and stood at Rs96.4 crore as compared to Rs47.8 crore for the corresponding period in the previous year.The Logistics business registered revenue of Rs283.9 crore for Q3 FY 2012 as compared to Rs338.5 crore for the corresponding period in the previous year. The EBITDA for Q3 FY11-12 stood at Rs 21 crore as compared to Rs31.9 crore for the corresponding period in the previous year.
  • The company took delivery of two new mini-capesize vessels recently. Essar Wildcat deployed for an 18 month contract with Conoco Philips starting from September 2011 at a day rate of $285,000. Most of the fleet are on long-term contracts with minimal exposure to spot markets.In the early afternoon, Essar Shipping was trading at around Rs34.25 per share on the Bombay Stock Exchange, 9.42% up from the previous close.

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