Cochin Shipyard Partners with Seatrium for Jack-Up Rig Solutions in India

25 Nov 2024 , 12:03 AM

A Memorandum of Understanding was sealed between Cochin Shipyard Ltd (a state-owned shipbuilder) and Seatrium Letourneau USA, Inc. (SLET). The Memorandum of Understanding primarily pertains to designing as well as delivering critical equipment for jack-up rigs customized for the Indian market.

CSL’s shipbuilding capabilities are to be allied with SLET’s offshore drilling and design capabilities in the proposed alliance. The equipment would be designed as per the MODUs by the company, depending on the requirements of exploring India under this alliance. Lines up with the vision of ‘Make in India’ from the government to support the indigenous manufacturing of the energy sector.

The net profit of Cochin Shipyard has risen by 4% year-on-year at ₹189 crore for Q2 FY25 from ₹182 crore for Q2 FY24. Revenue from operations gain by 13% year-on-year at ₹1,143.2 crore for the second quarter of FY25 from ₹1,011.7 crore for the comparable quarter last year.

EBITDA of Q2 FY25 stood at ₹197.3 crore, up 3.2% from ₹191.2 crore of Q2 FY24. EBITDA margins in the reporting quarter at 17.3%, margin compared to 18.9% a year ago in the corresponding quarter. This partnership opens a significant door for CSL to strengthen the position in the offshore drilling solution and multiply its financial growth trajectory.