Essar Shipping Ltd (ESL) has declared a net profit of Rs 45.15 crore for the six month period ended March 31, 1998. The results announced yesterday were the consolidated results of the merged entity (South India Shipping Corporation with ESL).
Income stood at Rs 249.38 crore, 14 per cent higher on an annualised basis compared with the performance for the eighteen month ended September 1997. Net profit showed a 39 per cent increase on an annualised basis.
The company has declared a dividend of five per cent which is equivalent to 10 per cent on an annualised basis.
Shashi Ruia, chairman, ESL, said the company has emerged as one of largest shipping companies after the merger and also resulted in showing a considerable growth in profitability.
He also said that it has undertaken a new project consisting of a port and terminal at Vadinar.
This project, being set up at a cost of Rs 1,435 crore, will further enhance growth and stability to the operations of the company.
ESL has a capacity of 1.42 million dead weight tonne (DWT) with a fleet of 33 vessels consisting of six suezmax tankers, 19 bulk carriers, four product carriers, one bulk carrier and three offshore supply vessels.
Four of the suezmax tankers have been employed with international carriers like Ultramar Inc of Canada and Sun company Inc of the US.
ESLs foreign exchange earnings continued to increase with 62 per cent of its total income coming in terms of freight and charter hire earnings in dollars.
ESL's new project at Vadinar is an all-weather natural deep draft port and provides location advantages being situated on the west coast of the country.
