Essar Shipping June qtr net loss at Rs 116 crore

Essar Shipping Ltd (ESL) today reported a consolidated net loss of Rs 115.71 crore for quarter ended June 30, 2015.
The company's consolidated net loss in the corresponding period of the previous fiscal was Rs 140.16 crore, Essar Shipping said in a regulatory filing.
Its total income declined to Rs 425.88 crore, over Rs 496.47 crore in the year-ago period.
Total expenses declined to Rs 481.40 crore, over Rs 594.60 crore in the corresponding quarter of FY'15.
The revenues from fleet operating and charting during the quarter dropped to Rs 204.33 crore, over Rs 214.25 crore in the year-ago period.

"Goodwill of Rs 5,826.95 crore on consolidation in the financial statements of the group pertains to the Oilfields Service business. The carrying amount of certain rigs...Which have been generally not been deployed for the extended period of time of the said business is Rs 338.29 crore as at June 30, 2015."

The management has initiated the exercise of assessing the valuation of the oilfields services business during 2013-14 "in terms of Accounting Standard.."Impairment of Assets".
In view of the recent volatility in crude oil prices, current economic scenario and evaluation of possible upgradation and utilisation of rigs, various operational assumptions for long-term projections are being assessed in detail by the management, it added.

"Pending conclusion of the said assessment, the recoverable amounts of the goodwill and rigs are not yet estimated and accordingly, provision for impairment of the goodwill and rigs, if any, has not been recognised as on June 30, 2015...,"it said.
Shares of the company closed at Rs 20.20 apiece on the BSE, down 0.98 per cent from the previous close.