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Essar Shipping Posts Loss of Rs 116 Cr in June Quarter

New Delhi: Essar Shipping Ltd (ESL) on Friday reported a consolidated net loss of Rs 115.71 crore for the quarter ended June 2015.

The company had registered a consolidated net loss of 140.16 crore for the corresponding period a year ago, it said in a regulatory filing.

Total income, during the quarter under review, declined to Rs 425.88 crore as against Rs 496.47 crore in the year-ago period.

Total expenses declined to Rs 481.40 crore, as against Rs 594.60 crore a year ago.

The revenues from fleet operating and charting during the quarter under review dropped to Rs 204.33 crore, as against Rs 214.25 crore a year ago.

"Goodwill of Rs 5,826.95 crore on consolidation in the financial statements of the group pertains to the Oilfields Service business. The carrying amount of certain rigs...which have been generally not been deployed for the extended period of time of the said business is Rs 338.29 crore as at June 30, 2015."

The management has initiated the exercise of assessing the valuation of the oilfields services business during 2013-14 "in terms of Accounting Standard...'Impairment of Assets'".

In view of the recent volatility in crude oil prices, current economic scenario and evaluation of possible upgradation and utilization of rigs, various operational assumptions for long-term projections are being assessed in detail by the management, it added.

"Pending conclusion of the said assessment, the recoverable amounts of the goodwill and rigs are not yet estimated and accordingly, provision for impairment of the goodwill and rigs, if any, has not been recognised as on June 30, 2015...,"it said.

Shares in Essar Shipping, on Friday, ended almost 1 per cent lower at Rs 20.20 apiece on the BSE.