GE Shipping sells its Suezmax Crude Carrier ‘Jag Lakshita

The Great Indian Shipping Company Limited (GE Shipping) has contracted to sell 'Jag Lakshita', its 2000 built Suezmax Crude Carrier of about 1,47,092 dwt. The vessel will be delivered to the new buyer in Q3FY20.

Including Jag Lakshita, the company’s current fleet stands at 47 vessels, comprising 34 tankers (12 crude carriers, 17 product tankers, and 5 LPG carriers) and 13 dry bulk carriers, with an average age of 11.98 years, aggregating to 3.85 mn dwt.

Recently, the company’s management has issued estimates pertaining to its earnings for FY20. As per the expectation, the coverage extent of operating days of its fleets is Crude Carriers - 38 per cent, Product Carriers – 26 per cent, LPG Carriers – 90 per cent, and Dry Bulk – 36 per cent. This estimation has given the revenue visibility of additional Rs. 567 crores for FY20.

The company expects higher refinery turnarounds as refiners prepare for IMO 2020, capping tanker markets earnings. However, runs should increase in H2FY20 to meet higher MGO bunker demand in 2020. It is expecting the LPG freight markets to improve strongly over the next 6-12 months. It also remains cautious on the dry bulk freight market for next 6-12 months.

The stock of GE Shipping had closed at Rs. 299.25 on Wednesday. On Thursday, it opened at Rs. 307.55, up by 2.8 per cent. At 10.15 am, the stock was trading at Rs. 306.50.