Mercator

Mercator Limited, formerly known as Mercator Lines Ltd., was an Indian corporate group headquartered in Mumbai and built around marine transportation. Its activities expanded beyond conventional shipping into coal logistics, mining interests, offshore drilling, and floating production and storage services. The business developed during a period in which Indian energy demand and international commodity flows supported investment in vessels and related infrastructure. The company was incorporated as a private limited company on 24 November 1983 and became a public limited company on 3 April 1984. After its maiden public issue in 1993, Mercator grew in turnover, profitability, fleet capacity, and market capitalization. It entered wet-bulk shipping in 1998 with the acquisition of the tanker M. T. Richa, a vessel of approximately 9,750 deadweight tonnes, and moved into crude-oil transportation in 2003. The tanker business subsequently became one of its most prominent operating segments. Mercator stated that it operated a combination of spot and period contracts and developed a double-hull tanker fleet, including Aframax tonnage used for transportation and, in some cases, offshore storage. The group entered dry-bulk shipping through its Singapore subsidiary in 2005. The subsidiary concentrated on moving coal from Australia and Indonesia into India and transporting iron ore from India to China. Its commercial model used triangular routes linking Indonesia, India, and China, with customers including thermal power and steel companies. The group described its fleet as including a very large ore carrier and other bulk vessels, and positioned its logistics network as a way to improve vessel utilization and serve large industrial users. Mercator also pursued vertical integration into the coal business. It had provided coal transportation and logistics services to Indian thermal power stations since 1995 and entered coal ownership and trading activities in 2008. It acquired economic interests in coal mines in Indonesia and Mozambique, seeking to connect resource ownership with its shipping operations and to participate in India’s growing energy supply chain. Commercial operations in Indonesia had commenced according to company material. A further diversification effort took the group into offshore energy. Mercator ordered a jack-up drilling rig from Keppel FELS in 2007, received it in 2009, and placed it on a bareboat charter. The company later decided to exit offshore drilling effective March 2011. In the floating-production segment, it won a 2010 contract connected with Afren Plc. to provide a floating production unit combining a mobile offshore production unit and a floating storage and offloading facility. Mercator supplied engineering, procurement, construction, installation, and commissioning services for the project and operated the resulting facility at the Ebok field in Nigeria. The group’s expansion coincided with a long period of strong commodity and shipping markets. It raised US$60 million through its first international foreign-currency convertible-bond offering in 2005 and listed its Singapore subsidiary in 2007, becoming one of the early Indian companies to list a Singapore subsidiary. The global financial crisis and the subsequent collapse in commodity and shipping markets placed substantial pressure on the business. The reference material describes a severe downturn in shipping from the 2008 peak through the middle of the following decade, which materially affected Mercator. The available material does not establish a definitive current operating status, controlling owner, or current corporate website.

Mercator was incorporated in India as a private limited company on 24 November 1983 and converted into a public limited company on 3 April 1984. It completed its first public issue in 1993, after which the group expanded in fleet size, business scale, and capital-market presence. The company later became associated with the Mercator Lines name before adopting Mercator Limited as its corporate name. The group’s first major operating expansion was in wet-bulk shipping. It acquired the tanker M. T. Richa in 1998 and entered crude-oil transportation in 2003. The tanker fleet was operated under both spot and period contracts. Mercator promoted the use of double-hull tankers and also described tanker capacity as suitable for offshore storage. By the middle of its expansion period, the company characterized itself as one of India’s leading private-sector tanker owners by tonnage. Mercator broadened its maritime platform through dry-bulk shipping. Operations began in 2005 and were handled through Mercator Lines (Singapore) Limited, a Singapore-listed subsidiary. The subsidiary transported coal from Australia and Indonesia to India and iron ore from India to China. Its network emphasized triangular trading routes between Indonesia, India, and China, and it served large power-generation and steel customers. The group described the subsidiary as controlling a fleet that included a very large ore carrier. The company also pursued backward integration into the coal supply chain. It had been involved in coal transportation and logistics since 1995, serving Indian thermal power stations. In 2008 it moved into coal ownership and related commercial activity, acquiring economic interests in mines in Indonesia and Mozambique. The strategy was intended to support shipping operations and participate directly in the energy commodities needed by India’s industrial economy. Mercator entered offshore drilling after ordering a jack-up rig from Keppel FELS in November 2007. The rig was delivered in 2009 and immediately placed on a three-year firm bareboat charter. The group subsequently withdrew from offshore drilling with effect from March 2011, describing the move as a strategic decision. In 2010 it won a contract associated with Afren Plc. for a floating production unit combining a mobile offshore production unit and a floating storage and offloading facility. Mercator carried out engineering, procurement, construction, installation, and commissioning work for the project and operated the unit at the Ebok oil field in Nigeria. Capital-market activity supported the group’s international growth. In April 2005, Mercator completed a US$60 million foreign-currency convertible-bond offering. In 2007, Mercator Lines (Singapore) Limited was listed on the Singapore Exchange. The company received corporate and business awards during the expansion period, including recognition reported by Business Standard and The Economic Times in 2007 and 2008. The financial crisis beginning in 2008 was followed by a prolonged downturn in commodity markets and international shipping. Falling freight and commodity-market conditions placed pressure on Mercator’s diversified model, particularly its shipping and resource-linked businesses. The supplied reference material records that the company suffered significantly during this period. It does not provide sufficient reliable information to determine the group’s present operating condition, subsequent ownership, or the final status of all subsidiaries and assets.

• 2011

  Exit from offshore drilling

  [1]Mercator (company)en.wikipedia.org

  The group opted out of the offshore-drilling segment with effect from March 2011 as part of a strategic decision.

• 2010

  Floating production contract

  [1]Mercator (company)en.wikipedia.org

  Mercator won a contract associated with Afren Plc. to provide a floating production unit for the Ebok field in Nigeria.

• 2009

  Jack-up rig delivery

  [1]Mercator (company)en.wikipedia.org

  A jack-up rig ordered from Keppel FELS was delivered and deployed under a firm bareboat charter.

• 2008

  Entry into coal ownership

  [1]Mercator (company)en.wikipedia.org

  Mercator entered the coal business and acquired economic interests in coal mines in Indonesia, with additional interests reported in Mozambique.

• 2007

  Singapore subsidiary listing

  [1]Mercator (company)en.wikipedia.org

  Mercator Lines (Singapore) Limited was listed on the Singapore Exchange, giving the group an international capital-markets presence.

• 2005

  Dry-bulk expansion and convertible-bond issue

  [1]Mercator (company)en.wikipedia.org

  Dry-bulk operations commenced through the Singapore subsidiary, while Mercator completed a US$60 million foreign-currency convertible-bond offering in April.

• 2003

  Entry into crude-oil transportation

  [1]Mercator (company)en.wikipedia.org

  The group expanded its tanker activities into crude-oil transportation.

• 1998

  Entry into wet-bulk shipping

  [1]Mercator (company)en.wikipedia.org

  Mercator entered wet-bulk shipping by acquiring the tanker M. T. Richa.

• 1995

  Coal logistics activity

  [1]Mercator (company)en.wikipedia.org

  The group was active in coal transportation and logistics serving Indian thermal power stations.

• 1993

  First public issue

  [1]Mercator (company)en.wikipedia.org

  Mercator completed its maiden public issue, beginning a period of expansion in financial scale and market capitalization.

• 1984

  Conversion into a public limited company

  [1]Mercator (company)en.wikipedia.org

  The company was converted into a public limited company on 3 April 1984.

• 1983

  Incorporation as a private company

  [1]Mercator (company)en.wikipedia.org

  Mercator was incorporated in India on 24 November 1983 as a private limited company.

A diversified Indian maritime and energy-infrastructure group combining vessel ownership and chartering with commodity logistics, resource interests, and selected offshore services.

• Marine transportation · 1998

  Tanker shipping

  Mercator’s wet-bulk business transported crude oil and other liquid cargoes using a fleet operated under spot and period contracts. The company highlighted its double-hull tanker configuration and included Aframax capacity that could also be used for offshore storage. The segment developed from the 1998 acquisition of M. T. Richa and the group’s 2003 entry into crude-oil transportation.

• Marine transportation · 2005

  Dry-bulk shipping

  Dry-bulk operations began in 2005 through Mercator Lines (Singapore) Limited. The business focused on coal shipments from Australia and Indonesia to India and iron-ore movements from India to China. Its route planning used a triangular Indonesia–India–China–Indonesia network and served large thermal-power and steel customers.

• Energy logistics · 1995

  Coal logistics and mining

  The group provided coal transportation and logistics services to Indian thermal power stations and later entered coal ownership as a form of backward integration. It acquired economic interests in coal mines in Indonesia and Mozambique, linking resource interests with its maritime transportation platform.

• Offshore energy services · 2007

  Offshore drilling

  Mercator entered offshore drilling through a jack-up rig ordered from Keppel FELS in 2007 and delivered in 2009. The rig was deployed immediately under a three-year firm bareboat charter. The group later withdrew from the segment in March 2011.

• Offshore energy services · 2010

  Floating production unit services

  Mercator provided engineering, procurement, construction, installation, and commissioning services for a floating production unit combining a mobile offshore production unit with a floating storage and offloading facility. The unit was associated with Afren’s Ebok field in Nigeria.

• 2011

  Withdrawal from offshore drillingStrategy

  Background

  Mercator had entered offshore drilling after ordering a jack-up rig in 2007 and receiving it in 2009.

  Action taken

  The group chose to exit the offshore-drilling segment effective March 2011.

  Aftermath

  The decision narrowed Mercator’s offshore-energy exposure while its core activities remained associated with shipping, coal logistics, and related energy services.

  Source

1. 1Mercator (company)en.wikipedia.org