Essar Shipping Net Zooms 107% To Rs 100.27 Crore

Private sector shipping major Essar Shipping has registered a 107 per cent rise in net profit. The company's net profit increased to Rs 100.27 crore in 2000-01 from Rs 48.44 crore for 1999-2000.

The company's total income increased by five per cent to Rs 472.39 crore from Rs 449.92 crore. Essar's interest costs rose to Rs 59.24 crore from Rs 56.29 crore earlier. Depreciation charges fell marginally to Rs 69.38 crore from Rs 69.53 crore.

Essar Shipping chairman Shashi Ruia has said in a press release, "The exercise undertaken by the management during the last financial year of streamlining its business focus has borne fruit. The tanker market upswing will allow the company to focus on providing the value-added sea logistic services. The company with its investments and experience in crude oil transportation, dry bulk transportation and oil terminals, is uniquely poised to gain significant market share worldwide in this segment. The management will keep its commitment to derive maximum profits through excellence in operations, reduction of costs, to maximise the value of the company's shareholders."

Outlining the industry scenario, Essar has said that the crude transportation market remained strong for a large part of the previous year. However, the fourth quarter of the last financial year saw softer rates in the wake of Organisation of Petroleum Exporting Countries (Opec) production cuts and the fall in Iraqi oil exports.

The dry bulk market showed a mixed trend. Rates firmed up during the first two quarters and softened thereafter. On the whole, these rates showed an upturn compared with the last year. However, towards the end of the year rates had fallen below the average of the last year, the release added.