Essar Shipping Q2 net loss narrows to Rs 11.20 cr

Company reported net loss of Rs 35.99 crore for the second quarter of 2012-13 fiscal

Essar Shipping today said its net loss narrowed to Rs 11.20 crore for the quarter ended September 30 in the 2013-14 fiscal.

It had reported net loss of Rs 35.99 crore for the second quarter of 2012-13 fiscal, Essar Shipping said in a statement.

The company registered a sharp drop in consolidated revenue at Rs 516.08 crore during Q2, 2013-14 compared to Rs 797.95 crore in the year-ago period.

"The reduction in revenue was mainly due to scale down of logistics services done through Essar Logistics Limited," the statement said.

The shipping business in Q2 registered net loss of Rs 29 crore as against Rs 62 crore loss in the July-September period of the previous fiscal.

"Shipping industry is still facing pressure on freight rates, though there is some increase in the Capesize dry bulk sector. The tanker segment continues to be under pressure," said Anoop Sharma, Director & CEO of Sea Transportation Business.

During Q2, the oilfields services business registered a turnover of Rs 191 crore and net profit of Rs 8 crore as against a turnover of Rs 165 crore and net profit of Rs 19 crore in the year-ago period.

"The Oilfields Services business has been consistently enhancing its performance by operating its rig assets at very high efficiency levels. We are actively pursuing opportunities for deployment of various assets in international geographies to increase our asset utilisation," Ankur Gupta, CEO of Essars Oilfield Services Business, said.

Essar Shipping scrip closed at Rs 17.45, up 0.58% on the BSE.