Mercator Announces H1 Results

For the half year period ended 30th September, 2011, Mercator Lines Ltd. registered 25% growth in Total Income which stood at Rs.1584 crores (Rs.1268 crores).  The Consolidated Net Profit for the period stood at Rs.21.41 crores (Rs.113.22 crores).

During the period, the Coal Division contributed 58% revenue while Dry Bulk contributed 22%; Tanker 10%; Dredging 5% and Offshore Division 5%.

The coal volumes are expected to further improve in the coming quarters.  The recent coal mine acquired in Indonesia would commence commercial operations in the last quarter of FY12.

The Oil and Gas Division has successfully commissioned FPU unit in Nigeria and the operations are doing well as per schedule.  Exploration activities of two onshore oil blocks in Gujarat are on schedule.

Backed by a good order book, the Dredging Division is doing well and to meet the increased capacity requirement, Mercator has recently added a Cutter Suction Dredger and a TSH Dredger.

The oversupply in tonnage in all the segments continued to affect the operations of the Shipping Division and the earnings were further impacted as the bunker rate of heavy fuel oil increased.

Mercator Lines Limited, has a diversified interests in Shipping (Tankers & Bulk Carriers), Dredgers, Offshore (Oil& Gas and E&P), Coal Mining & Procurement and Logistics. Mercator Group owns or operates a fleet of 18 dry carriers; 8 tankers and 6 dredgers  in addition to 1 MOPU and 1 FSO.  The Group also owns Coal mining concessions in Indonesia & Mozambique and has right to explore, develop and produce Oil and Gas from two onshore oil blocks in the Cambay basin in Gujarat under NELP VII.