G E Shipping announces sale of 2005-built tanker Jag Padma

The Great Eastern Shipping Company Limited (G E Shipping) revealed on October 31, 2024, its decision to sell the 2005-built Medium Range product tanker, Jag Padma, boasting a capacity of approximately 47,999 deadweight tonnes (dwt). The sale has been contracted with an unaffiliated third party, with the handover scheduled by Q3 of FY25.

This move comes as part of G E Shipping’s strategic fleet management. The company’s current fleet, following the sale of Jag Padma, comprises 41 vessels, which include 28 tankers – subdivided into six crude carriers, 18 product tankers, and four LPG carriers – alongside 13 dry bulk carriers. The entire fleet collectively totals an impressive 3.31 million dwt.

Further emphasizing its divestment strategy, the company also recently contracted to sell a Suezmax crude tanker in September 2024, expected to be delivered to the buyer by Q3 FY25. This initiative highlights the company’s dynamic approach to optimizing its fleet portfolio and capital allocation.

Strategic divestment enhances fleet flexibility

Experts have noted that G E Shipping’s decision to sell older vessels like the Jag Padma aligns with industry practices aimed at maintaining a competitive, modern fleet. While the impact on future earnings may be mitigated by these strategic sales, it reflects a broader trend of asset management amid fluctuating market conditions.

Anand Punde, Company Secretary, confirmed the sale through a formal communication to the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE), underlining that stakeholders should take note of the announcement.