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September 1st, 2008
Category
Coal, Exploration, Mining, Mining Technology, Trade & Market |
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FE reported that, Mercator Lines’ foray into dredging and coal mining business coupled with demand for vessels, its transformation into complete logistics solution provider and contract renewals at higher rates will provide a boost to the earnings growth of the company.
To minimize earnings volatility, it has employed 70% of its shipping fleet in long term fixed charter rates, while another 30% of the fleet is deployed in spot markets to cash in on high spot rates.
Analysts believe that carrier freight rates will firm up by 10% to 15% on the back of increasing demand for oil, coal and iron ore from non Organization for Economic Co operation & Development nations, which is India and China. This will benefit companies like Mercator Lines in the form of higher day rates for existing and newer contracts.
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August 29th, 2008
Category
Coal, Exploration, Iron ore, Metal, Mining, Mining Contractor, Mining Technology |
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Mercator Lines’ foray into dredging and coal mining business coupled with demand for vessels, its transformation into complete logistics solution provider and contract renewals at higher rates will provide a boost to the earnings growth of the company.
To minimize earnings volatility, it has employed 70% of its shipping fleet in long-term fixed charter rates, while another 30% of the fleet is deployed in spot markets to cash in on high spot rates.
Analysts believe that carrier freight rates will firm up by 10-15% on the back of increasing demand for oil, coal and iron ore from non-OECD (Organisation for Economic Co-operation and Development) nations, which is India and China. This will benefit companies like Mercator Lines in the form of higher day rates for existing and newer contracts.
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August 28th, 2008
Category
Coal, Exploration, General News, Mining, Mining Investment |
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Mercator Lines, which is possibly the only domestic shipping company to foray into the coal mining business, is now planning to acquire a 50 million tonne coal mine in Indonesia. Mercator expects to invest $50-75 million (approximately Rs 200-300 crore) for acquisition, a senior company official said.
He said that the company is evaluating acquisition options, in terms of quality of coal, coupled with the necessary infrastructure needed to transport this product. Mercator has leveraged its Singapore-based subsidiary Mercator Lines Singapore for its coal mining activities. Mercator Lines’ cash and bank balance at the end of FY08 was Rs 853 crore.
Mercator Lines derived nearly 95% of its FY08 net profit of Rs 370 crore from its core shipping business. Company officials pointed out that the objective over the next three years is to derisk themselves from the inherent cyclical nature of the shipping industry, via their recent forays like coal and the offshore segment.
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