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Shipping Corporation of India, which is returning to profits after three consecutive years of losses, is reviving its ship acquisition plans, though in a small way.
It is planning to buy one or two LPG ships, besides placing orders for some smaller offshore vessels, this year at a cost of Rs 800 crore, which will be its first vessel acquisition in over three years.
India’s largest ship owner had to shelve its buying plans all these years due to its financial losses, tepid freight market conditions and high asset prices. Its losses for the last three fiscals were Rs 275 crore, Rs 114 crore, 428 crore, respectively.
“We are looking for second-hand LPG vessels, which we would like to induct in our fleet by December 2015. Also, we will place orders for some offshore vessels, each costing some $22 million, with Cochin shipyard this year,” A K Gupta, Chairman and Managing Director of the company, said.
The acquisition will be funded through an equity of Rs 300 crore and debt of Rs 500 crore.
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