G E Shipping contracts to buy a secondhand long range 2 product carrier

The Great Eastern Shipping Company (G E Shipping) on Friday (9 October) said it signed a contract to buy a secondhand LR2 product carrier of about 105,258 deadweight tonnage (dwt).

The 2012 South Korean built vessel is expected to join the company's fleet in Q3 FY21.

G E Shipping's current fleet stands at 46 vessels, comprising 33 tankers (11 crude carriers, 17 product tankers, 5 LPG carrier) and 13 dry bulk carriers with an average age of 12.39 years aggregating 3.70 million dwt.

The company said it has already contracted to sell its 1996 built very large gas carrier Jag Vidhi which will be delivered to buyers in Q3 FY21. The company has also contracted to buy a very large gas carrier which is expected to be delivered in Q3FY21.

On a consolidated basis, G E Shipping reported a net profit of Rs 467.74 crore in Q1 June 2020 compared with a net loss of Rs 53.96 crore in Q1 June 2019. Net sales rose 36.5% to Rs 1,068.37 crore in Q1 June 2020 over Q1 June 2019.

G E Shipping is India's largest private sector shipping service provider. The shipping business operates under two main businesses: dry bulk carriers and tankers.

On Friday, shares of G E Shipping fell 1.47% to Rs 227.85 on BSE. The stock has risen 34.86% from its 52-week low of Rs 168.95 hit on 23 March 2020.

On the technical front, the stock's RSI (relative strength index) stood at 32.185 on Friday. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading below its 50-day moving average (DMA) placed at 255.78 and its 200-day moving average (DMA) placed at 245.83.

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