India's Great Eastern Shipping is mulling a big securities offering after posting a loss in its fourth quarter.
The board has approved a non-convertible debenture issue worth INR 10bn ($132.5bn) this year.
These can be sold at any time through private placements. It did not specify a use for the money.
Chairman KM Sheth said: "The group has adequate resources including liquid investments and cash and cash equivalents to meet its financial obligations for the foreseeable future."
He added that tankers had not been negatively impacted by the coronavirus crisis, while dry bulk had.
"The offshore assets under term contracts with reputed customers continue to operate as per the original schedule," he said.
"While there may be some volatility in markets and earnings, this has not materially impacted the rates."
Company turns to loss in final three months
Great Eastern made a net loss of INR 506.8m in the three months to 31 March, compared to a profit of INR 1.48bn a year ago.
Revenue grew to INR 10.5bn from INR 10.2bn, but bunker costs rose and the company was hit by a change in the value of derivatives.
The company has 46 conventional ships, ranging from suezmax tankers and capesize bulkers to VLGCs, as well as 23 offshore vessels and rigs.
The crude tankers averaged daily earnings of $32,338 in the quarter, from $21,559 a year ago. Great Eastern's product carriers achieved $18,274 per day in earnings, up from $16,325.
Bulkers logged only $8,321 perday, down from $10,389, however. The gas carriers saw earnings jump to $25,932 per day, against $16,505 in 2019.
Great Eastern has INR 8.65bn of revenue contracted in the current financial year, with 75% of VLGC days fixed, and the other vessel classes ranging from 20% to 26%.
The offshore ship backlog is INR 5.89bn, with platform supply vessels having 94% of days booked.
It declared a dividend of INR 2.70 per share for the period.
Great Eastern also revealed it is setting up a wholly owned subsidiary to provide shipmanagement and chartering services.
Great Eastern Services will have a paid-up capital of INR 1m.
