Essar Shipping Q4 net loss narrows to Rs 159.69 cr

Essar Shipping (ESL) today reported a consolidated net loss of Rs 159.69 crore for the quarter ended March 31, 2015.

The company's consolidated net loss in the year-ago period was Rs 165.69 crore, Essar Shipping said in a regulatory filing.

The company's total income from operations declined to Rs 426.51 crore for the quarter under review as against Rs 479.83 crore in the corresponding period of the previous fiscal.

The total expenses of the company reduced to Rs 424.98 crore over Rs 584.42 crore in the year-ago period.

The consolidated financial results of Essar Shipping Ltd include the results of two Indian subsidiaries, three overseas subsidiaries and two associate companies.

The operations include fleet operating and charting, logistic services and oilfields services.

"The goodwill of Rs 5,720.55 crore on consolidation in the financial statements of the group pertains to the oilfield services business. The carrying amount of certain rigs...Which have generally not been deployed for extended period of time of the said business is Rs 349.52 crore as on March 31, 2015," ESL said.

In view of the recent volatility in crude oil prices, evaluation of possibility of upgradation and utilisation of rigs and the current economic scenario, 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 of impairment of the goodwill and rigs, if any, has not been recognised as on March 31, 2015...,"it said.

Essar Shipping shares were trading 1.89 per cent down at Rs 20.80 apiece during afternoon session on the BSE.