Essar Shipping second quarter loss narrows to Rs 11.20 crore

MUMBAI: Essar Shipping’s second quarter net loss narrowed to Rs 11.20 crore from a loss of Rs 35.99 crore in the same quarter last year.

However, net operating income fell 37% to Rs 491.52 crore during the quarter mainly due to the scaling down of its logistics business and weaker sea transportation business.

The Mumbai-headquartered Essar Shipping has been focusing on its high margin oilfields and sea transportation business. The EBITDA margins jumped to 41% during the quarter, compared with 27% during the same quarter last year.

The shipping business reported a turnover of Rs 255 crore, down from Rs 370 crore last year, while the oilfields services business reported a Rs 191 crore, up from Rs 165 crore last year.

“Shipping industry is still facing pressure on freight rates, though there is some increase in the Capesize dry bulk sector. The tanker segment continues to be under pressure,” said Capt. Anoop Sharma, Director & CEO Sea Transportation Business at Essar Shipping.

Shipping companies, including Essar Shipping and Shipping Corp of India, had seen a pick up in dry bulk cargo volumes, on the back of higher demand from China.

Shares of the company closed up 0.58% at Rs17.45 on the Bombay Stock Exchange.