Seacoast Shipping Services set to resume agreement with Dubai’s Maria Shipping

Seacoast Shipping Services Limited, a leading single-window logistics services provider, is all set to resume its agreement with Maria Shipping Fze., Dubai. The deal, originally agreed upon on February 20, 2023, will now take effect from August 15, following successful negotiations and the successful completion of a rights issue to meet working capital requirements.

The initial contract aimed to establish Seacoast’s Shipping and Logistics Services in Dubai, with an intended start date of April 1, 2023. However, the deal faced temporary suspension due to unforeseen challenges in fulfilling the necessary working capital requirements.

Determined to fulfil its commitment, Seacoast Shipping promptly launched a rights issue to secure sufficient working capital. The ongoing rights issue, which opened on July 21, has provided Seacoast Shipping with the necessary resources to proceed with the services outlined in the contract with Maria Shipping.

Productive discussions between Seacoast Shipping and Maria Shipping over the past week have facilitated the planned resumption of the agreement, which is expected to lead to mutual benefits.

Manishkumar Shah, Managing Director of Seacoast Shipping, said, "We are excited to resume our collaboration with Maria Shipping and are confident that it will usher in new growth opportunities for both companies. Our team’s dedication has been instrumental in ensuring the success of this agreement. We look forward to commencing our Shipping and Logistics Services in Dubai from August 15 and building a long-term and mutually rewarding business relationship with Maria Shipping.”

The renewed agreement with Maria Shipping is expected to lead to significant gains for Seacoast Shipping, with an additional projected annual revenue of Rs. 100 crore. Considering Seacoast Shipping’s revenue of Rs. 429 crore for FY22-23, and leveraging the working capital obtained from the rights issue, the company envisions revenue of approximately Rs. 800 crore in the current fiscal.

This resumption of the agreement with Maria Shipping stands as a testament to Seacoast Shipping’s dedication to fulfilling its professional commitments and forging mutually rewarding business relationships.

Seacoast Shipping’s rights issue of up to 20,20,05,000 fully paid-up equity shares is slated to close on August 2. The company is issuing the shares at Rs 2.40 per share in the rights issue.

Separately, Seacoast Shipping reported excellent numbers for the first quarter of FY 2023-24. The Profit After Tax (PAT) surged by an impressive 65% YoY and 80% QoQ to Rs. 4.98 crore.

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