Varun Shipping Company has earmarked around Rs 1,600 crore ($400 million) as capital expenditure for the calendar year ending December 31, 2008. This would be used for acquisition of additional ships.
Varun, riding the wave of increased freight rates, posted an 85.96% increase in net profit at Rs 73.68 crore for the third quarter ended December 31, 2007 when compared with Rs 39.62 crore during the same quarter last fiscal.
Yudhisthir Khatau, managing director, Varun Shipping, said: "The expenditure will be for consolidation of our oil, gas and offshore activities, and for acquisition of vessels. This would be mainly raised from internal accruals and refinancing of the company’s certain assets."
The expenditure is in addition to the $400 million announced earlier this year of which the company has already spent around $320 million.
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