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Varun Shipping to sell second very large gas carrier to trim debts

24 Mar 2014 Evaluate

In a bid to bring down debt by $25-26 million, Varun Shipping Company is all set to sell its second very large gas carrier -- Maharshi Bhardwaj -- by May. Following the sale, the company will own two large and seven mid-sized gas carriers. Moreover, the company will focus on the mid-sized gas carrier segment, where haulage rates are relatively stable.

Earlier, the company sold Vishwamitra to Mercator for approximately $30 million, which reduced the company’s loans by about $25-26 million. The second sale will also reduce loans by the same amount.

Varun Shipping Company (VSCL) was incorporated on January 29, 1971. Later on February 18, 1972 it was converted into a public company. The company started its operation in 1973 by acquiring one product tanker. The company’s corporate headquarters and registered office are located in Mumbai.

Peers
Company Name CMP
Shipping Corpn. 305.85
GE Shipping 1425.30
Dredging Corp 976.65
Seamec 1556.00
Shreeji Ship.Global 377.10
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