India: Mercator Lines Reports Higher Income and Profit in All Fields but Dredging

Mr. V.S. Manf, Chief Financial Officer, of Mercator Lines Limited said, “We are happy to announce a good set of Q1 FY 2011 results with increase in revenues and profits. Our business model is now well rounded and diversified and that our strategy of sustainable and scalable business model has borne the fruit.”

Mumbai, July 31, 2010 – Mercator Lines Limited, India’s 2nd largest private sector shipping company (in terms of tonnage), announced its results for the quarter ended June 2010 (Q1 TYll). The total consolidated income was Rs. 602.88 Cr. against Rs. 442.47 Cr. in Q1 FY10 recording increase of 36% on YOY basis. Correspondingly, the Net Profit after Minority Interest and Tax was Rs. 61.70 Cr. against Rs. 44.48 Cr. in the Q1 FY10 recording growth of 39%.

TCY for Dredging division which contributed to about 4% of the total revenue for Q1 FY 2011 was USD 18,289/day against USD 23,825 of Q1 FY 2010 with about 23% decline.

About the Company:

Mercator Lines Limited, the second largest private sector shipping company in India (by aggregate fleet tonnage capacity), has global presence through its subsidiaries. The group has diversified interests in Tankers, Bulk Carriers, Dredgers, Coal Mines, Logistics and Offshore. The Group owns or operates a fleet of 1 Rig; 16 dry carriers; 8 tankers and 4 dredgers with an aggregate capacity of about 2.25 million DWT of an average age of about eight years. The Group is in the process of getting constructed a Mobile Offshore Production Unit (MOPU) and Floating Storage & Offloading Unit (FSO). The Group has recently taken delivery of an Aframax vessel of 90,607 DWT.

The Group services primarily Indian / International Oil Majors, large thermal- based power plants and steel companies, and has established strong relationships with its reputed end user customers such as Indian Oil Corporation, BG Exploration & Production , Major Ports in India, Vale, Tata Power, Arcelor Mittal Group, COSCO Group, Afren PLC, to name a few. Mercator’s strategy is to employ a large part of its fleet on long-term contracts, specifically time charters and contracts of affreightment (“COAs”)/ consecutive voyage (WCV”) contracts. Its long term fixed rate contracts, ranging from 11 months to 5 years and above, ensures revenue stability and cash flow visibility.

Helmed by an experienced management team with in-depth understanding of the industry, a wide network of customer contacts and diligent risk management practices, Mercator has been able to make proactive business decisions for well- timed expansion and diversifications.

(mllindia)

[mappress]

Source: mllindia, August 3, 2010;

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