Great Offshore's net profit falls 27% at Rs 74.34 crore

MUMBAI: Bharati Shipyard promoted Great Offshore on Monday said that the company's net profit in the financial year 2011-12 fell by 27% to Rs 74.34 crore as against Rs 101.7 crore in the year ago period.

Great Offshore's net profit has fallen by more than 64% since 2009 and the company has also said that the revenue from operations are likely to fall by atleast 19 percent in the current year(FY12-13). The company's operating revenue stood at Rs 797 crore as against Rs 836 crore in the year ago period.

Recently, credit rating agency, Crisil downgraded the ratings on bank facilities of Great Offshore Ltd to D, or default from B+ and A4+.

Great Offshore has been undergoing a series of problems after the company's debt mounted and a top level exodus when four directors and the head of finance quit the offshore explorer triggering concerns about the company's future. Great Offshore's debt has risen by more than 66% to 3,040 crore since Bharati acquired controlling stake in it two years ago.

Earlier this month, Lenders of debt laden Bharati Shipyard approved a debt recast of Rs 5600 crore after the company approached the commercial debt restructuring empowered group of Banks, set up to oversee the debt restructuring, agreed to help the shipbuilding major tide over the financial crisis.

"Great Offshore and Bharati are staring at high debts and the interest costs have been significantly high. Substantial portion of their operating profits would go into paying interest on the debt and it is a cause of serious concern", said an analyst from a leading financial institution.

Great Offshore currently has a fleet size of 43 vessels including 25 offshore support vessels and 12 harbour tugs.