Great Eastern Shipping is unlikely to be continuing its recent fleet expansion following steep price rises in its key vessel classes.
India's largest private shipowner bought two secondhand bulkers and a VLGC in March and April.
But managing director Bharat Sheth told analysts on a conference call that prices have now "rallied a great deal".
"And today, if you ask me, I would say that we are really priced out of the four sectors we are in," he added.
Sheth explained that in April, May and June of last year, the company was unable to buy ships due to Covid-19 restrictions.
"We were not in a position to acquire anything because there was no movement," the CEO said.
"Even if you can buy a ship, you couldn't get your people out there to transact."
Buying spree over?
But the Mumbai-listed company, which also owns tankers and offshore support vessels, eventually moved into buying mode.
In March, Great Eastern acquired the 56,103-dwt supramax Luminous Nova (built 2013) and the 180,700-dwt capesize True Dream (built 2013), and then added Eastern Pacific Shipping's 35,188-cbm LPG carrier Cambridge (built 2006) in April.
But that appears to be that for now.
"We would now not be looking at this moment at doing any further capex, unless of course prices were to re-correct and come down, but they are ahead of our price points," Sheth said.
The boss added that 20 vessels have been purchased over the last five years.
Sheth said the company has been very careful with the way it has allocated capital.
"We've obviously done very well. On each of our acquisitions, we are well into the money," Sheth said.
Winning 20-0
"So it's a 20-0 record in our favour at the moment," he added.
Sheth pledged to remain disciplined.
"If prices come to our price points, we continue to buy and if they don't we will have to let that opportunity go. So we will not be a momentum buyer," he said on the call.
Sheth was asked if the company's bid in the privatisation of state-owned rival Shipping Corp of India (SCI) had affected its buying power.
He responded: "Let's not look at SCI. We are just focused on looking at acquiring ships from the secondhand market if we can."
Tanker resale deals failed
Sheth also revealed the group came "very close" to finalising deals to buy crude tanker resale contracts.
"Unfortunately, it did not work from the seller side," he said.
"We were there to transact but the seller, unfortunately, after agreeing to a price, did not consummate the transaction."
Sheth also said its sale-and-purchase activities would be limited due to the difficulties involved in moving Indian crew around the world as Covid-19 cases spike in the country.
The Indian owner's fleet stands at 45 vessels, comprising 32 tankers, five LPG carriers and 13 bulkers. The offshore ships are controlled by subsidiary Greatship.
The average age of the Great Eastern fleet is nearly 12 years and the combined capacity 3.64m dwt.
