GE Shipping gains after signing contract to buy 2 Suezmax Crude Carriers

Great Eastern Shipping Company rose 0.94% to Rs 370.75 at 12:09 IST on BSE after the company signed contract to buy 2 Suezmax Crude Carriers of about 1.57 lakh deadweight tonnage each.

The announcement was made after market hours yesterday, 2 January 2017.

Meanwhile, the S&P BSE Sensex was up 70.36 points or 0.26% at 26,665.81.

On the BSE, 3,143 shares were traded on the counter so far as against the average daily volumes of 19,922 shares in the past one quarter. The stock had hit a high of Rs 375 and a low of Rs 368.55 so far during the day.

The stock had hit a 52-week high of Rs 397.60 on 1 November 2016 and a 52-week low of Rs 275 on 2 March 2016. The stock had outperformed the market over the past one month till 2 January 2017, advancing 2.74% compared with the Sensex's 1.39% rise. The scrip also outperformed the market over the past one quarter rising 4.38% as against the Sensex's 4.56% fall.

The mid-cap company has equity capital of Rs 150.78 crore. Face value per share is Rs 10.

GE Shipping Company said that the company has signed contract to buy 2 Suezmax Crude Carriers of about 1.57 lakh deadweight tonnage (dwt) each. The 2010 and 2011 vessels are expected to join the company's fleet in Q4 March 2017.

The company's current fleet stands at 38 vessels, comprising 24 tankers (7 crude carriers, 15 product tankers, 2 LPG carriers) and 14 dry bulk carriers (1 Capesize, 7 Kamsarmaxes, 6 Supramaxes) with an average age of 9.89 years aggregating 2.94 million dwt. It also has 2 secondhand Aframaxes, 1 secondhand Suezmax and l newbuilding Kamsarmax on order. After delivery of these 6 contracted vessels, the company will have a fleet of 44 vessels.

On a consolidated basis, G E Shipping's net profit fell 23.99% to Rs 268.75 crore on 21.12% decline in net sales to Rs 794.51 crore in Q2 September 2016 over Q2 September 2015.

G E Shipping has two main business: shipping and offshore. The shipping business is involved in transportation of crude oil, petroleum products, gas and dry bulk commodities. The offshore business services to the oil companies in carrying out offshore exploration and production activities, through its subsidiary Greatship (India).

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