MUMBAI (Commodity Online): The deployment of a recently acquired tanker on contract by shipping and logistics company, Mercator Lines Ltd (BOM:526235) has boosted investor sentiments on the bourses as the company stocks were buoyed by increased buying on the Bombay Stock Exchange (BSE) in the morning trades on Monday.

Company stocks had gained by as much as 3.23% to Rs.59.80 in the early trading hours. The stock hit a high of Rs.60.15 and a low of Rs.57.10 so far during the day. However, the company did not share the contract details. The announcement was made after market hours on Friday, 12 March 2010.

The company had acquired a medium range tanker of 42,235 DWT or dead weight tonnage. “The acquisition of the vessels has been financed through a mix of debt and internal accruals. Both the vessels have been deployed gainfully immediately after acquisition,” the company said in a release in Mumbai on Saturday.

Get a bigger political picture to help you invest

Its Singapore-based subsidiary, Mercator Lines (Singapore), has signed a contract to purchase a gearless panamax dry bulk carrier for around Rs.175 crore. “This vessel is less than three years old, built in 2007, and has a capacity of about 74,483 DWT. It is expected to join the fleet in April or May with an attached charter for three years,” it said. The value of this three-year contract is Rs.110 crore.

The company had also acquired another vessel in December, the firm said. The cost of acquisition of the two the vessels is about Rs.83 crore, it said.

Mercator Lines' net profit rose 70% to Rs.5.66 crore on a 55.1% decline in sales to Rs.133.14 crore in Q3 December 2009 over Q3 December 2008.
Mercator currently owns a fleet of 15 dry carriers, nine tankers and four dredgers besides a rig. The company has coal mines in Indonesia and is scouting for more buys as part of its backward integration strategy.

Post your comment  (0)

Connect:

Post to Twitter

Post to Facebook