The Hindu Business Line : Varun Shipping rides profit wave with LPG carriers

Varun Shipping has come out with its numbers. Profit for the quarter is up 94 per cent at Rs 58 crore. The Vice-Chairman and Managing Director at Varun Shipping Company, Mr Arun Mehta, says LPG carriers are the major contributor to revenues, at 60-62 per cent. Excerpts from CNBC-TV18's exclusive interview with Mr Arun Mehta:

Do you think you will be able to sustain this growth rate at Varun Shipping?

In the previous year, we succeeded in maintaining the growth. It is difficult to predict the future, but we will work towards that.

Could you give us a revenue break-up from all your divisions?

We are not dividing between various segments because out of the 18-19 ships that we are operating, 11 ships are LPG carriers and that is our major segment. Revenue-wise, it comes to about 60-62 per cent of the total revenues, so these LPG carriers contribute to profits in a big way. The other major segment has been Aframax crude carriers.

Out of your total fleet of 19 ships, Varun Shipping owns 18. Could you give us the average age of the fleet as well as the average operating days that you see from them?

For all fleet put together, we are operating at 91 per cent and the balance is provided for the dry dock, for various surveys and other maintenance jobs. But the average is 91 per cent occupancy.

Regarding age, it is segment-wise. Age for an LPG carrier is longer because the life expectancy of an LPG carrier goes up to 35 years. For other vessels, the maximum life is rated at 25 years. So we cannot have a common average.

Could you give us some details regarding your expansion plans in the offshore business?

We are looking for offshore supply vessels. Whether it will be specialised vessels or anchor handlers, we have yet to take a view on that.