Essar Shipping Ports & Logistics Limited - financial results quarter ended December 31, 2009.
January 29, 2010
Key Highlights
Completes financial closure of Rs 1210 crore for acquisition of two jack-up rigs
Concession agreement executed for coal berth at ParadipPort, financial closure achieved
ESPLL posts 400% rise in Net Profit at Rs 30 crore for 9 month period of FY 2010 (Y-o-Y)
Total Income and EBITDA also up by 14% and 47% respectively during the same period (Y-o-Y)
Significant contribution from Oilfields Services business
Highlights of financial performance:
9 month Y-o-Y basis
Cash Profit during this period also rose by 72% standing at Rs 392 crore as against Rs 229 crore during the last 9 month period.
On a quarterly basis
On a quarter-to-quarter basis, ESPLL has also shown a significant increase of 44% in Total Income at Rs 812 crore during Q3 of 2009-10 as against Rs 565 crore during the corresponding quarter of 2008-09. EBITDA during the same period rose 32% at Rs 279 crore as against Rs 211 crore while Net Profit rose 69% at Rs 22 crore as against Rs 13 crore. Cash Profit during the same period also rose by 41% to be at Rs 138 crore during Q3 of FY 2009-10 as against Rs 98 crore during Q3 of 2008-09.
The increase in EBITDA has been on account of significant contribution driven by the oilfields as well as the ports business of ESPLL.
Speaking on these results, Mr Sanjay Mehta, Managing Director, Essar Shipping Ports & Logistics Limited said, ESPLL has seen strong contribution from our ports and oilfields business towards the bottom line. The company hopes to generate consistent cash flows across all businesses as has been during the 9 month period. Going ahead we expect to build on our inherent strengths and invest in high growth areas to steer the company towards growth in the coming financial year and the years ahead.
Significant developments during the quarter:
The significant developments pertaining to the various divisions of ESPLL during the third quarter of 2009-10 are as follows:
Financial closure achieved for Rs 1210 crore for two new building jack up rigs contracted by Essar Oilfields Services Limited
Concessions Agreement has been executed for developing a Coal Berth on Build Operate Transfer basis (BOT) at ParadipPort, financial closure for the same achieved for Rs 550 crore
Financial closure achieved for Essar Bulk Terminal (Salaya) Limited for Rs 650 crore
Financial closure achieved for Vadinar Ports & Terminal Limited for Rs 600 crore
Oilfield Services business
Diversified fleet of 13 rigs to tap the growing markets
- Total investment of USD 1.10 billion in this sector over the next 2 years
- Rs 1210 crore debt financing tied up for the two jack up rigs, deliveries expected during April and September 2011
- Pursuing employment of the Land Rigs with prominent upstream players in the Gulf region and India
Ports & Terminals business
Current capacity of 54 MTPA, capacity projected to increase to 158 MTPA by FY 2013
Handled cargo of 10.26 MTPA during Q3 of FY 2010 and 27.78 MTPA during the 9 month period of FY 2010
Total investment of USD 1.80 billion over the next 3 years
Significant capacities in oil refining and power generation expected in western states
Pursuing port opportunities across the West and East coast of India
Sea Transportation & Logistics Business
Current fleet of 1.40 million dwt, fleet expanding to 2.36 million DWT by FY 2012
100% of the present fleet on long term contracts, no exposure to spot markets
Focus on long term contract ensured substantial protection from the industry downturn
A committed capital expenditure plan of 12 new building vessels comprising of six Supramax dry bulk carriers and six Minicape dry bulk carriers which would be backed by long term contracts
The above results were taken on record at the meeting of the Board of Directors of the company held on January 29, 2010
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