GE Shipping sets sail on sale of ship

Great Eastern Shipping Company gained 1.88% to Rs 354.90 at 11:34 IST on BSE after the company said it has contracted to sell its dry bulk carrier Jag Vikas.

The company made this announcement during trading hours today, 18 March 2008.

The stock hit a high of Rs 359 and a low of Rs 341.05 so far during the day. The stock had a 52-week high of Rs 572 on 31 December 2007 and a 52-week low of Rs 185 on 19 March 2007.

The company’s current equity is Rs 152.27 crore. Face value per share is Rs 10.

The current price of Rs 354.90 discounts its Q3 December 2007 annualized EPS of Rs 77.12, by a PE multiple of 4.60.

The 26,781 dead weight tonnage (DWT) vessel, built in 1977 is likely to be delivered to the buyer in the first quarter of the financial year 2008-09, GE Shipping said. The company’s current fleet stands at 46 vessels, comprising 33 tankers and 13 dry bulk carriers with an average age of 10.4 years aggregating 3.07 million DWT.

In January 2008, Great Eastern Shipping Company signed a contract to sell Jag Akshay, a Panamax dry bulk carrier.

In December 2007, the company signed a contract with SPP Shipbuilding Co, Korea for acquiring two new Kamsarmax dry bulk carriers.

Great Eastern Shipping Company’s net profit rose 77% to Rs 293.57 crore on 23.3% growth in net sales to Rs 604.29 crore in Q3 December 2007 over Q3 December 2006.

The company has two main businesses, shipping and offshore. The shipping business is involved in transportation of crude oil, petroleum products, gas and dry bulk commodities. The offshore business services to the oil companies in carrying out offshore exploration and production activities, through its wholly owned subsidiary Greatship (India).