Greatship (India), the off-shore subsidiary of Great Eastern Shipping Co, has won three-year contracts from ONGC for two if its oil-drilling rigs, helping boost revenue at India’s biggest private maritime-carrier after a lacklustre second quarter that saw its net profit tank 97.6 per cent.

Last week, Great Eastern Shipping reported a net profit of ₹6.86 crore on an operating income of ₹702.43 crore, compared with ₹286.17 crore and ₹811.79 crore, respectively, a year earlier.

The company’s year-on-year revenue declined 13.5 per cent mainly due to a drop in offshore business.

Typically, the July-September quarter is a weak period for shipping due to maintenance, rains and refinery shut-downs.

This, combined with a tough market, including idling of one of its drilling rigs since January this year, added to the woes.

The net profit was also dragged down by 52 per cent increase in finance costs and 12 per cent rise in depreciation expenses.

The eight-rig tender being finalised by India’s biggest State-run oil explorer saw daily rates plunge “very significantly” from the previous contract, said an official briefed on the tendering process. The daily rates dropped from about $45,000 to about $26,000 (including GST to about $29,800).

ONGC received some 23 rig offers as against a requirement of eight rigs.

Dynamic Drilling & Services is expected to get contracts for two rigs; Shelf Drilling India got two rig contracts with one more expected, while Jindal Drilling & Industries is likely to get one.

Great Eastern Shipping was hit by the idling of one of its rigs for close to nine months because, at previous rates, it was contributing around $25 million to EBITDA. This rig will start the new three-year contract with ONGC in December.

The second rig, currently working with ONGC, will come off contract by January-end or mid-February 2018. It will then go on a five-yearly routine maintenance before starting the new three-year contract with ONGC by March-end or early April, a company official said.

Great Eastern Shipping runs a fleet of 12 crude oil tankers, 17 product carriers, three gas carriers and 16 dry bulk ships.

Greatship runs a fleet of four jack-up rigs and 19 support vessels used in oil exploration.

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