Oil and gas carrier Varun Shipping Co Ltd on Wednesday said low tanker freight rates dragged its net profit down by over 90 percent in the April-June quarter, sending its shares down more than 7 percent.
The shipping services firm posted a 91 percent fall in quarterly net profit to 18.5 million rupees, while net sales fell 14.6 percent to 1.76 billion rupees.
Its shares fell 7.7 percent to a low of 54.15 rupees immediately after the results, ending down 4 percent at 56.25 rupees in a weak Mumbai market.
Managing Director Yuddhishthir Khatau told Reuters the profit dip was "predominantly on account of very low rates in crude tanker market".
"Lack of demand for oil, which drove oil prices down, have affected the tanker market and still continues to do," he said. An Aframax ship, a smaller-sized tanker, earns around $15,000 per day now, compared with $45,000-$50,000 a year ago, Khatau added.
However, offshore market, in which Varun has 7 vessels of its fleet of 20, is doing better and the firm plans a capex of $100 million to buy vessels in this segment in 2009/10, he said.
Rival Shipping Corp of India , the country's largest shipping firm, on Wednesday posted a 57 percent fall in the June quarter to 1.2 billion rupees.
The shipping services firm posted a 91 percent fall in quarterly net profit to 18.5 million rupees, while net sales fell 14.6 percent to 1.76 billion rupees.
Its shares fell 7.7 percent to a low of 54.15 rupees immediately after the results, ending down 4 percent at 56.25 rupees in a weak Mumbai market.
Managing Director Yuddhishthir Khatau told Reuters the profit dip was "predominantly on account of very low rates in crude tanker market".
"Lack of demand for oil, which drove oil prices down, have affected the tanker market and still continues to do," he said. An Aframax ship, a smaller-sized tanker, earns around $15,000 per day now, compared with $45,000-$50,000 a year ago, Khatau added.
However, offshore market, in which Varun has 7 vessels of its fleet of 20, is doing better and the firm plans a capex of $100 million to buy vessels in this segment in 2009/10, he said.
Rival Shipping Corp of India , the country's largest shipping firm, on Wednesday posted a 57 percent fall in the June quarter to 1.2 billion rupees.