GE Shipping enters contract to sell its very large gas carrier

The Great Eastern Shipping Company (GE Shipping) has entered into a contract to sell its 1994 built very large gas carrier Jag Vishnu of about 49,353DWT (deadweight tonnage). The vessel will be delivered to the new buyer in H1FY20.

Jan 18, 2019 09:01 IST India Infoline News Service

The Great Eastern Shipping Company Ltd. (GE Shipping) has entered into a contract to sell its 1994 built very large gas carrier Jag Vishnu of about 49,353 deadweight tonnage (DWT).

The vessel will be delivered to the new buyer in H1FY20. The company made the announcement on Thursday afternoon, post market hours. Despite the news, shares of the company slipped ~1% in intraday trade on Friday.

“The company's current fleet stands at 48 vessels, comprising 35 tankers (12 crude carriers, 17 product tankers, 6 LPG carrier) and 13 dry bulk carriers (1 Capesize, 7 Kamsarmax, 5 Supramax), including Jag Vishnu,” added the company in the exchange filing. 

The average age of the carriers is 11.31 years aggregating to 3.90mn deadweight tonnage.

GE Shipping is likely to see revenue CAGR of 12% supported by firm crude oil prices that will lead to improved utilization of offshore rigs and better rates for crude shipping segment, and higher dry bulk rates due to upturn in commodity cycle. We expect EBITDA CAGR of 24.1% over FY18-20E with an EBITDA margin of 39% in FY20E.

Great Eastern Shipping Company Ltd is currently trading at Rs304.80 down by Rs4.15 or 1.34% from its previous closing of Rs308.95 on the BSE.

The scrip opened at Rs307.35 and has touched a high and low of Rs308 and Rs302 respectively. So far 16,952 (NSE+BSE) shares were traded on the counter. 

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