Essar Shipping Ports & Logistics Limited registers a 71% growth in EBITDA and over 198% rise in Cash Profit for quarter ended 30th September, 2009

Mumbai, October 30, 2009

Essar Shipping Ports & Logistics Limited (ESPLL) has announced a 71% rise in its EBITDA and over a 198% rise in Cash Profit for the second quarter of financial year 2009-10 as compared to the corresponding quarter of the previous financial year.

The EBITDA for Q2 FY 2010 stood at Rs 245 crore compared to Rs 143 crore during Q2 of FY 2009. The Cash profit during the same period stood at Rs 112 crore as compared to Rs 38 crore.

The company recorded a gross turnover of Rs 1371 crore during H1 of FY 2010 as compared to Rs 1347 crore during H1 of FY 2009. EBITDA during the same period stood at Rs 536 crore as compared to Rs 343 crore. ESPLL had a gross turnover of Rs 2,646 crore and a EBITDA of Rs 906 crore for financial year 2008-09.

It is notable that the Oilfields Services Division of the company has contributed significantly to the earnings of ESPLL with a net revenue of Rs 135 crore during Q2 of FY 2010.

The significant developments during the quarter are as follows:

• The cargo handled by the Ports & Terminals business was 7.62 mmt during the quarter as compared to 7.23 mmt in the corresponding period of the previous year.
• Essar Bulk Terminal Limited (Hazira) has taken over O&M activities for jetty operations at Hazira. Debt has been tied up for Essar Bulk Terminal (Salaya) Limited and debt for Vadinar Ports & Terminals Limited is expected to be tied up by Nov 2009.
• There has been a drop in the earnings as well as the EBITDA of the Sea Transportation Business due to reduced earnings in the crude oil segment, in chartering of vessels at lower spot rates as well as deferment of cargoes by certain clients.
• The company’s semi-submersible rig, Essar Wildcat has successfully completed drilling of the first well for Gujarat State Petroleum Corporation with a depth of 5400 metres and completed 4000 meters of drilling for the second well ahead of schedule. In addition Essar Oilfield Services Limited expects the financial closure for the two jack-up rigs on order to be achieved during Q3 of FY 2010.

Speaking on these results, Mr Sanjay Mehta, Managing Director, Essar Shipping Ports & Logistics Limited said, “ESPLL has consolidated its operations and is generating consistent cash flows across all businesses. Going ahead we expect to build on our inherent strengths and core competence to steer the company towards growth during the current financial year”.

The above results were taken on record at the meeting of the Board of Directors of the company held on October 30, 2009.

About ESPLL
Essar Shipping Ports & Logistics (ESPLL, NSE: ESSARSHIP) is a comprehensive sea logistics company with presence in sea transportation, ports & terminals, logistics and oilfields services and is part of the Essar Group.

Essar Shipping Ports & Logistics Limited