Ready
to sail…
Great
Eastern Shipping Company Ltd (GE Shipping) is the largest private shipping
company in India. The company is expanding its fleet size from the current 62
vessels to 74 vessels over the next two years. Its subsidiary company Greatship
Ltd has a significant presence in the offshore segment with a fleet of 21
vessels, which is being scaled up to 27 vessels. With new deliveries joining the
fleet over the next two years, GE Shipping would be operating at peak capacity
and its impact would be visible in the financial performance. Global freight
rates are also showing signs of strength. This will translate into improved
performance by the company.
GE
Shipping currently operates a fleet of 62 vessels and is expanding it to 74
vessels (consisting of 13 crude tankers, 19 product carriers, one LPG carrier,
11 dry bulk carriers and 27 offshore vessels). With new vessel additions, GE
Shipping would be operating at peak capacity, which would also translate into an
improved financial performance.
Greatship
Ltd, the subsidiary company of GE Shipping, has a significant presence in the
offshore segment with a fleet of 21 vessels, which is being scaled up to 27
vessels. Crude oil prices have been resilient in the last six months. This has
improved the utilisation levels and earnings outlook for offshore vessels.
Freight
rates across vessel categories have moved upwards over the last fortnight.
Baltic Dry Index (BDI), which is the benchmark index for dry bulk freight rates,
has spiked up sharply in the last couple of days to inch higher to 3121 level.
With a rise in commodity demand (iron ore and coal) from China, bulk rates are
expected to firm up even further. After being weak in the first half of
February, tanker rates have also recovered. As tanker/product carriers
constitute the largest segment of GE Shipping (12 crude oil tankers and 19
product carriers), any firmness in tanker rates would be very beneficial.
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