India: Essar Shipping In Talks with Charterers

Essar Shipping, integrated logistics solution provider, is engaged in finding new, both international and domestic clients and is eager to keep the existing ones, which enabled the company to calmly sail through the tumultuous times on the market, Business Standard informs.

According to the company’s managing director A. R. Ramakrishnan, Essar Shipping is preoccupied with negotiations on potential contract renewal with Bao Steel of China on affreightment.

Specifically, 45% of the Essar fleet capacity is on third-party charter, whereas the remaining 55% is reserved for captive cargo.

When it comes to the oil sector, the company is said to adhere to the recent developments in the industry, including those relating to the EU and UN imposed sanctions on Iran, concerning purchasing of oil.

Therefore, other possibilities for expanding must be looked at in order to keep up with the 57 % rise in oil exploiting sector, amounting to Rs 143.9 crore in the third quarter of 2011-12. In addition, in the same period a 20% growth of the company’s revenue has been recorded in the shipping field, the total revenue being Rs 317.4 crore.

The offshore and onshore drilling business adds considerable value to the overall income of the company especially since it won a $121-million contract to drill offshore wells for the US-based ConocoPhillips in Indonesia.

“We won among the deal a field of strong competitors such as Transocean and Maersk Drilling,” A.R. Ramakrishnan said on the ocassion.

“Crude oil prices are high, so the exploration and production activity is high. We are now working in Vietnam for a year and a half and in Indonesia,” said Ramakrishnan.

In respect to the shipping segment, the current capacity of the company equalling to 1.9 mn dead weight tonnage (DWT) is likely to be expanded with additional 350,000 DWT, with the arrival of the freshly procured 4 mini-cape vessels.

[mappress]

World Maritime News Staff, April 6, 2012