Oil and gas carrier Varun Shipping Ltd's quarterly net profit nearly tripled on new market forays and firm charter hire rates, Managing Director Yudhishthir Khatau told a news conference on Friday.
Net profit rose to 442.7 million rupees in July-Sept compared with 153.7 million rupees a year ago. Total income for the quarter came in at 2.57 billion rupees versus 2.4 billion rupees.
"Improvement in charter rates in crude tanker has contributed significantly," Khatau said.
Tanker charter hire rates averaged around $42,000 per day.
Varun had contracted one of its large anchor handling tugs in August to South Africa's Sassol for 4-6 months and had deployed another in the North Sea, where the rates have been strong this year.
The company has increased its exposure in the offshore market to 22 percent from about 3 percent last last year, which also contributed to the bottomline, Khatau said.
Freight rates in the offshore segment have been very buoyant due to higher crude prices, which hit new life highs in 2008, crossing $147 a barrel.
Varun will invest $300 million to buy at least four vessels in the offshore segment this year.
"Even at $70 a barrel, there will be a demand driver for offshore exploration and oil transportation, the fundamentals of this segment are very strong.Shares in the company have lost a little over 13 percent of their value in the quarter compared with the CNX Midcap Index's 6.65 percent drop.
On Friday, they ended down 11.2 percent, in line with the fall in the broader 30-share BSE index, which fell 10.96 percent or 1,070.6 points.
Net profit rose to 442.7 million rupees in July-Sept compared with 153.7 million rupees a year ago. Total income for the quarter came in at 2.57 billion rupees versus 2.4 billion rupees.
"Improvement in charter rates in crude tanker has contributed significantly," Khatau said.
Tanker charter hire rates averaged around $42,000 per day.
Varun had contracted one of its large anchor handling tugs in August to South Africa's Sassol for 4-6 months and had deployed another in the North Sea, where the rates have been strong this year.
The company has increased its exposure in the offshore market to 22 percent from about 3 percent last last year, which also contributed to the bottomline, Khatau said.
Freight rates in the offshore segment have been very buoyant due to higher crude prices, which hit new life highs in 2008, crossing $147 a barrel.
Varun will invest $300 million to buy at least four vessels in the offshore segment this year.
"Even at $70 a barrel, there will be a demand driver for offshore exploration and oil transportation, the fundamentals of this segment are very strong.Shares in the company have lost a little over 13 percent of their value in the quarter compared with the CNX Midcap Index's 6.65 percent drop.
On Friday, they ended down 11.2 percent, in line with the fall in the broader 30-share BSE index, which fell 10.96 percent or 1,070.6 points.