ABG Shipyard net soars 99 % at Rs 20.12 cr

BS 200 SCORECARD

ABG Shipyard has reported 99.7 per cent rise in net profit to Rs 20.12 crore for the third quarter ended December 31, 2005, as compared with Rs 10.07 crore in the corresponding quarter last year.

Total income grew by 42.5 per cent to Rs 134.29 crore against Rs 94.19 crore. Earnings per share for the quarter stood at Rs 5.10.

The company has posted a 62.1 per cent rise in net profit at Rs 52.75 crore for the nine month period ended December 31, 2005, compared with Rs 32.55 crore recorded in the year-ago period. Total income increased by 39.1 per cent to Rs 352.87 crore compared with Rs 253.60 crore.

The company has also secured a contract for construction of two 18,800 DWT (dead weight tonne) geared bulk carriers from Finland-based ESL Shipping OY.

The vessels are valued at $30.8 million each, aggregating $ 61.6 million. Delivery of these carriers has to be made in 28 months and 37 months respectively for each of the vessels from the date of payment of the first instalment.

Meanwhile, the company has decided to acquire a ship repair unit at Fujairah, UAE, for an undisclosed amount. With this, the company would have a presence in UAE and cater to ship repair demands from there.

ABG Shipyard was listed on the Bombay Stock Exchange on December 13, 2005, with an initial public offering (IPO) of 85 lakh equity shares of Rs 10 each for cash at a premium of Rs 175.

The IPO proceeds would be utilised to fund a Rs 450-crore project involving setting up of the company's second shipyard at Dahej.

The new yard, which is likely to be completed in two years, will be capable of building bigger vessels of up to 1.2-lakh DWT Aframax and Panamax tankers.