Varun Shipping eyes vessel buys, expansion

Varun Shipping eyes vessel buys, expansion

Mumbai: Oil and gas carrier Varun Shipping Co Ltd is looking to acquire vessels in tanker, offshore and liquified petroleum gas segments, its vice chairman and managing director, said on Friday.

“We will be looking at ship acquisitions both in India and overseas," Yuddhishthir Khatau told reporters on the sidelines of India Shipping Summit.

The firm has a fleet of 20 across the three segments, he added.

It is also scouting for new markets in Brazil and Australia, Khatau said without giving a timeline.

Globally, shipping companies were mauled by the economic downturn last year as freight rates hit rock bottom and demand plunged.

Now, with a spurt in demand in fast-growing Asian countries, company officials and analysts expect an improvement.

“There has been an improvement compared to last year both in rates and utilisation. Utilisation is about 80% in LPG and 60-70% in offshore," Khatau said.

“Rates are still soft. Rate improvement should take place in the winter month."

At 1.06 p.m., shares in the firm were up 2.18% at 42.25 in a firm Mumbai market.