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Shreyas Shipping hosted a conference call Feb 14, 2018. In the conference call the company was represented by Captain V K Singh, Executive Director & CEO and Rajesh Desai, CFO.
Key takeaways of the call
During Q3FY18 the company has acquired three second-hand vessels i.e. SSL Brahamutra, SSL Ganga and SSL Balaji. The company has also sold one vessel i.e. ‘SSL Sagarmala' during the quarter.
Two containers vessels and 1 MPP vessel were added into the fleet during the quarter ended Dec 2017.
Current fleet comprises 13 vessels with a tonnage capacity of 315722 DWT. The average age of the fleet is about 17.5 years.
In Q3FY18 12 vessels were operational with about 35% increase in operating capacity compared to corresponding previous period.
Post deployment of additional tonnage acquired during Q3FY18, the utilization levels on all the services from North to South and West to East remained at the level of around 98%. And on the reverse leg also the utilization was around 67%.
Market share of the company is 56%. And in EXIM and coastal shipping it is about 90%.
Cargo growth in the county is about 25-30% and there is strong growth in break bulk which the company could capture with increase in capacity. So overall there is a cargo growth of about 30-35%. To cater to a growing market, additional capacity may be required. The company is looking to add another 5000 TEUs capacity to the fleet in 2018.
During the quarter ended Q3FY18 ‘SSL Chennai' was dry docked and resultantly this vessel was out of service for 25 days.
The average bunker rate for the quarter was Rs 26200.
Container volume grew 46% with capacity increase.
Average operating revenue for Q3FY18 stood at 10057/TEUs compared to 9599/TEUs in Q3FY17 and Rs 10178/TEUs in Q2FY18. Operating profit for Q3FY18 was at Rs 2363/TEUs in Q3FY18 compared to Rs 2922/TEUs in sequential previous quarter.
Successfully completed two shipments of RINL from their plant in Visakhapatnam to their warehouses at Cochin and Mumbai.
New port namely Ennore was inaugurated for container trade by us. New Service between Colombo and Chittagong commenced jointly with Transworld Feeders, Dubai and Milaha, Quatar during Q3FY18.
Asset values up 50% at the end of the year from the level that was at the start of the year.
In 2022-23 only three of the vessels will reach 25 years of age and require replacement. If the asset price and returns justify lift extension cost, the life of this 3 vessels can be extended by another 5 years.
About 3 dry docking are scheduled in 2018 and no dry docking scheduled in 2019
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