GOL Offshore
The company, earlier known as Great Eastern Shipping did not do too well. It was other income and lower finance cost which came to the rescue of the company for Q4FY13. Thus despite a 6% (YoY) drop in consolidated freight and charter hire charges at Rs.770 crore, the company posted a 115% rise in net profit at Rs.84 crore. Operating profit was down 11% at Rs.284 crore. Thus surge in net profit was up due to a hefty other income component of Rs.75 crore v/s loss of Rs.1 crore in Q4Fy12. Finance cost for the quarter fell 26% at Rs.83 crore and all these collectively helped boost the net profit and not on the basis of operational efficiency.
For FY13, the company showed a 2% rise in total revenue at Rs.3009 crore and net profit at Rs.538 crore was up 70%. At the end of FY13, the consolidated gross debt was at Rs.6739 crore and cash balance has come down from Rs.2144 crore in FY12 to Rs.1987 crore in Fy13. For the quarter, total owned tonnage was down from 2.62 mn.dwt to 2.53 mn.dwt. the average TCYs earned in various categories was down – crude carriers was down 12%, product carriers including gas was down 28% and dry bulk fell 48%. The company at end of FY13 has a total fleet size of 31, with an average 9.6 years. For FY14, the company expects a much lower revenue visibility at Rs.381 crore. Crude tankers and product carriers are covered to the extent of around 42% and 56% of their operating days respectively. Dry bulk carriers are covered upto 26% only.
This is India’s largest private sector shipping company. The company has two main business: shipping and offshore. The shipping business is involved in transportation of crude oil, petroleum products, gas and dry bulk commodities. The offshore business; services the oil companies in carrying out offshore exploration and production activities through its wholly owned subsidiary Greatship (India) Limited. The main promoter was Vijay Seth who created Great Offshore as a division of Great Eastern Shipping Co. but he lost control over the company after it was taken over by Bharati Shipyard. In 2009, when the value of shares he had pledged with financial institutions plunged below the value of the loans he had taken, there was no financial backing from his cousins and Bharati Shipyard bought the shares pledged by Sheth, 14.89% stake at Rs.315/share.