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I take this opportunity to welcome you all on the occasion of this 39th Annual General Meeting of your Company.
As you must have already observed from the Annual Report for the financial year ended 31st March, 2010, the Company’s freight and charter hire income for the year ended 31st March, 2010 was Rs.6,662.23 million and the net profit after tax was Rs.125.53 million.
The financial year ended 31st March, 2010 was a challenging year for shipping industry as a whole. Due to global recession, the shipping industry was adversely affected and there was a sharp drop in freight rates across all sectors during the year. The “Right of First Refusal”, which is available to Indian flag vessels for domestic trade facilitated better utilization of vessels in the LPG sector. However, as there was no protection on rates, Indian companies were required to match lower charter rates offered by foreign vessel owners resulting in sub-optimal returns for the company. In the crude oil sector, the charter rates for the company’s Aframax crude oil tankers, which are deployed in international trade, were adversely affected mainly due to a decline in oil consumption as a consequence of the economic slowdown compounded by an over supply of ships. In the offshore sector, charter rates and utilization of the company’s Anchor Handling Towing and Supply (AHTS) vessels were adversely affected by a cut back in deep sea exploration activity and an increase in supply of tonnage.
During the current financial year, the utilization and charter hire rates of LPG vessels have improved considerably mainly due to increased domestic LPG demand partially generated by “Rajiv Gandhi Gramin LPG Vitrak Scheme”. There has also been an improvement in freight rates for the Aframax crude oil sector. As regards the offshore sector, international oil companies have once again increased their exploration activities in North Sea, West Africa and Brazil, which have improved the demand for AHTS vessels.
The Board of Directors has recommended dividend of 8 per cent i.e. Rs.0.80 per equity share, for the financial year ended 31st March, 2010.
In April, 2009, your company acquired a newly built large and sophisticated AHTS vessel Suchandra. This vessel is built in Norway and will cater to the deep water offshore sector. The acquisition of this vessel has strengthened company’s leadership in ownership of large AHTS vessels in Asia. Further, during the financial year ended 31st March, 2010, your Company sold six of its vessels, namely, Maharshi Vasishth, Maharshi Shivatreya, Maharshi Labhatreya, Maharshi Dattatreya, Maharshi Bhavatreya and Maharshi Devatreya, out of which three vessels were taken back on charter. During the current financial year, your company has sold its vessel Maharshi Shubhatreya and taken it back on charter.
Your company presently owns/operates a well diversified fleet of 20 vessels comprising of 10 LPG carriers, 3 double hull aframax crude oil tankers and 7 AHTS vessels. The company’s LPG fleet is the largest in India in terms of both fleet size and cargo carrying capacity. Your Company’s three modern double hull Aframax crude oil tankers which are placed in the Sigma Tanker Pool continue to trade globally. Your Company’s five large, modern and powerful AHTS vessels have the highest bollard pull under Indian flag.
In October, 2009 your company received “The Tanker Operator Award” at the Seatrade Middle East & Indian Subcontinent Awards 2009 ceremony held at Dubai.
In October, 2009, your company received “Training & Crewing Award” at the 11th Lloyd's List Asia Awards 2009 ceremony held at Singapore.
In November, 2009, your company received “The Energy Award” at the Lloyd’s List Middle East & Indian Sub-Continent Awards-2009 ceremony held at Dubai.
I would like to take this opportunity on your behalf to congratulate Mr.Yudhishthir D. Khatau, Vice Chairman & Managing Director on being elected as “President Designate” of the Baltic and International Maritime Council (BIMCO) and on his receiving “Young Entrepreneur of the Year” award at the Shipping, Marine & Ports 2010 Leadership & Excellence awards ceremony held at Mumbai in March, 2010.
I wish to place on record my sincere appreciation for the continued support and co-operation of all the government agencies, oil companies, banks and financial institutions. I also express my sincere gratitude to all our officers and staff, both on shore and at sea for their sustained dedication and hard work. On behalf of the Board of Directors and the management, I thank all the shareholders for their continued trust and confidence reposed in the Company and its management and look forward to the same in future also.
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