Essar Shipping is all set to list on the exchanges. Mr AR Ramakrishnan CEO of Essar Shipping indicated that if the company adds a crude oil transportation business going forward, it would look at anything between USD 25 to USD 30 million, which is firm contracted. Therefore, it would generate very stable revenues over years.
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Essar Shipping is all set to list on the exchanges tomorrow. AR Ramakrishnan, chief executive officer of Essar Shipping indicated that if the company adds a crude oil transportation business going forward, it would look at anything between USD 25-30 million, which is firm contracted. Therefore, it would generate very stable revenues over years.
Here is the edited transcript of his interview to CNBC-TV18.
Q - Are you looking at the long-term contracts? What range would it be in on an annual basis?
A - It will be in the region of USD 400 million of contracts annually.
Q - Does that also include revenues from Essar Wildcat and oil fields?
A - No. I am talking about the pure shipping business. The Wildcat is at USD 285 per day going for the next 15 to 18 months. We are already looking to be there longer and better. It is a very good market and our client relationship has been excellent.
Q - When will the USD 400 million revenues that you estimated start flowing in? Would it happen from this fiscal?
A - It has been already taking place to some extent. Ramp ups in terms of our clients’ capacity installations will also ramp up over next one-two years.
Therefore, the revenues will kick in from all these activities in this fiscal and then after that in a larger way as our assets also come in the next financial year onwards. We are talking about only the firm contracts. Besides these, we should accrue the revenue from the spot cargos.
Source - CNBC-TV18
