Nine months ended December 31, 2007
Essar Shipping Limited reported a consolidated income of Rs 1529.74 crores (USD 385.71 million) for the nine-month period ended December 31, 2007, an increase of 21% over Rs 1261.45 crores (USD 283.98 million) in the corresponding period of last year.

The company also announced plans to bring under its fold the existing businesses of the group viz ports, terminals and contract drilling services in order to strengthen its position as a fully integrated, comprehensive logistics solutions provider. The company said that it would explore further opportunities in crude and dry bulk carriers as well as terminals and expand its operations in onshore and offshore drilling services.

Earnings Before Interest Tax Depreciation & Ammortisation (EBITDA) for the nine months ended 31st December 2007 registered a growth of 37% at Rs. 428.57 crore (USD 108.06 million) compared to Rs. 311.85 crore (USD 70.20 million) in the corresponding period of the previous year. The significant growth in the revenues and EBITDA is on account of the good performance of Vadinar Oil Terminal Limited, Essar Logistics Limited, etc and Contracts of Affreightment entered into by Essar International Limited. Net profit declined to Rs 87.45 crores (USD 22.05 million) on account of increased interest and depreciation cost.

On a standalone basis EBITDA for the nine months stood at Rs. 288.07 crore (USD 72.63 million) as compared to Rs. 239.32 crore (USD 53.88 million). Total Income for the said period stood at Rs. 746.18 crore (USD 188.14 million) as compared to Rs. 829.48 crore (USD 186.74 million). The drop in earnings was on account of drop in spot rates in the tanker and dry bulk segments, and lower ship operating days on account of sale of three ships during the period.

The Net Profit for the period was Rs. 130.96 crore (USD 33.02 million) as compared to Rs. 95.78 crore (USD 21.56 million). The interest and depreciation outgo stood at Rs. 63.61 crore (USD 16.04 million) and Rs. 77.14 crore (USD 19.45 million) respectively as compared to Rs. 65.90 crore (USD 14.84 million) and Rs. 70.80 crore (USD 15.94 million) for the corresponding period of the previous year.

Quarter ended December 31, 2007
The company’s revenue for the quarter ended December 31, 2007 fell to Rs 227.60 crores (USD 58.26 million) due to difficult situations prevailing in the spot market. However the company’s thrust of efficiency and cost management enabled it to maintain profitability.

Net Profit for the quarter ended 31st December 2007 stood at Rs. 43.61 crore (USD 11.00 million) as compared to Rs. 43.53 crore (USD 9.80 million) on a standalone basis.

Speaking on these developments, Mr Sanjay Mehta, CEO, Essar Shipping & Logistics Limited mentioned that these were exciting times for the company as it looked ahead to consolidate its business as well as enter into newer territories. The company would aim to be a global services provider as well as add value to the shareholders of the company. He added that once the re-organisation was put in place, the company would scale newer heights worldwide.

The above results were taken on record at the meeting of the Board of Directors held on January 31, 2008.

About Essar Shipping
Essar Shipping provides sea transportation management services to the global energy industry, including US, European and Indian oil companies. The company owns 26 vessels with a diverse fleet comprising Very large Crude Carriers, Suezmax tankers, product tankers, Bulk Carriers, Mini Bulk Carriers, Handymax, tugs and Barges.

About Essar Group
The Essar Group is one of India’s largest corporate houses, with interests spanning the core and infrastructure sectors of industry - steel, oil & gas, power, telecom & BPO, shipping & logistics and construction. It has an asset base in excess of US $ 10 billion (Rs. 40,000 crore). It employs 30,000 people world-wide.

Unaudited Financial Results for the Quarter Ended 31st December 2007

For more information, please contact
V Krishnan, Head Corporate Communications, Essar, India at +91 98197 30208 vkrishnan@essar.com
Manish Kedia, Sr. Vice President, Corporate Affairs, Essar, India at +91 98197 30092 mkedia@essar.com
B Ganesh Pai, General Manager, Corporate Communications, Essar, India at +91 98197 30225 gpai@essar.com
Mohan Nair, General Manager, Essar Shipping, India at +91 98339 45779 m_nair@essar.com
Parikshit Kaul, Deputy General Manager, Essar, New Delhi, at +91 98735 70816 pkaul@essar.com
William Clutterbuck, Maitland, UK at +44 20 7379 5151 wclutterbuck@maitland.co.uk