Market Update

RNS Number : 2250Y

SKIL Ports & Logistics Limited

28 February 2012

 



SKIL Ports & Logistics Limited

(the "Company")

Market Update

The Company provides the following summary of progress of its ports and logistics project at Karanja in Navi Mumbai.

As announced at the time of the Company's interim results last September, the additional studies that were required by the Environment Agencies have been submitted. Since that time, the Company has continued to make rigorous efforts to conclude the planning and design phase of the project (Phase I) and has completed the necessary studies, including Coastal Regulatory Zone (CRZ) demarcation, modelling studies (including shoreline changes and hydrodynamics pre- and post-construction) and the Environment Impact Assessment Report. The Company remains confident that it will receive the necessary clearances, enabling the Company to complete the project within the timetable set at the time of Admission and estimates that the majority of the costs required to complete Phase I of the project have been incurred and are within budget.

However, it is clear that additional time has been taken during Phase I of the project. Both the Chairman and others associated with the Company are proud and protective of their track record of building world-class infrastructure projects in India on time and within budget. As a result, the Company announces that it will seek to return cash to shareholders in the event that clearances in relation to the build out of the project have not been received and on-site reclamation works not have commenced during the fourth quarter of calendar year 2012. As at 31 January 2012, the Company had cash or cash equivalent balances of £63.3* million held in both GBP and INR (includes INR 4.59 bn) compared to £69.4** million held in both GBP and INR (includes INR 4.61 bn) as referred to in the Company's interim results as of 30 June 2011, released on 30 September 2011.

The Company continues to evaluate additional strategic opportunities to maximise shareholder value and will provide further updates in due course.

* Based on an exchange rate of INR 77.99:£1.00

** Based on an exchange rate of INR 71.53:£1.00

Enquiries

SPL                              -           Pavan Bakhshi
                                                [phone]

Cenkos Securities plc    -           Stephen Keys
                                                020 7397 8926

 

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