ABAN OFFSHORE
 
  

 
 

SHARETIPSINFO >>Research Reports >>ABAN OFFSHORE ( 11-11-2008)

 

LISTING
BSE
CMP
Rs 1005
52 WEEK HIGH/LOW
Rs 5416 /Rs 610
AVG VOL
643318
FACE VALUE
Rs 2
PE RATIO
15
P/BV
10
DIV
180%

COMPANY OVERVEIW:


ABAN Group was established as small engineering company by late Mr.M.A.Abraham in 1986.
The group took a giant step when it executed the high pressure system and cross country pipelines for refineries and fertilizer and petrochemical industries.
Aban offshore was established in the same year when it provided offshore drilling services to ONGC. Aban offshore is the flagship company of the Aban group.
By 1990 most of the player chose to exit the drilling sector but Aban remained focused to the drilling business. It kept on moving and increasing its presence. Currently Aban offshore owns twenty offshore drilling and production unit.
In line with global expansion strategy, Aban offshore established its subsidiary named Aban Singapore Pte Ltd.
Its Singapore subsidiary acquired 33.7% stake in Sinvest ASA, a Norwegian company with eight new premium jack-ups on order in 2006.

VISION:


Vision is to achieve far-reaching success in every field by developing innovation, integrated, enterprising and world-class services for the global market.
 
ABAN OFFSHORE GROUP HOLDING STRUCTURE:

http://www.abanoffshore.com/images/abt_flowchart.gif

 

ABAN OFFSHORE CLIENT LIST:

ONGC
Hardy Exploration & Production (India) Inc.
Oriental Oil Co., Dubai.
Shell Brunei.
Shell Malaysia.
GSPC.
Hindustan Oil Exploration Co. Ltd.
Cairn Energy.
ROC Oil.
Shell (South East Asia)

SERVICES PROVIDED BY THE COMPANY:

Exploratory services.
Drilling services.
Production of hydrocarbon.
Manning and management.

NEW CONTRACT AND INCOME FLOW:

DEEP DRILLER 7: DEEP DRILLER 7 is one of the jack up rigs that company acquired through its acquisition of Norway based offshore company Sinvest AS. The company took delivery of newly built vessel in July 2008 & has signed contract for its deployment offshore Thailand, for firm period of 3 month with estimated revenue of USD 18 Mn.
DEEP DRILLER 8: DEEP DRILLER 8 is another jack up rig that company acquired through its acquisition of Norway based offshore company Sinvest AS. The expected to take delivery during January –March 2009.The company has received a letter of intent to deploy DEEP DRILLER 8 offshore India for two firm well, that will last 150 days.
Aban Pearl: Aban offshore had acquired this second hand semi-submersible during Q3 FY08 for USD 211 Mn & was under refurbishment since then. The company has signed an agreement for the deployment of this vessel offshore Latin America, for a period of 5 years. The contract is valued at 3150 CRORE including reimbursable towards taxes, duties &other levies.


DEEP-VENTURE:


Aban Singapore Pte Ltd (ASPL), a wholly owned subsidiary of the company has agreed to extend DEEP VENTURE current contract with Exxon Mobil for further 6 month. The estimated revenue from this contact is 1191 CRORE.

SHAREHOLDING PATTERN:

 

 

NO.OF SHARES

% OF TOTAL

PROMOTER

23030425

 

60.93

 

INSTITUTION

7840957

 

20.74

 

GENERAL PUBLIC

6930918

 

18.33

 

GRAND TOTAL

37802300

 

100

 

 

 

FINANCIAL:

 

 

31-Mar-08

31-Mar-07

31-Mar-06

31-Mar-05

TOTAL INCOME

731.81

564.59

505.42

297.13

EXPENDITURE

-320.13

-253.87

-215.11

-144.74

OPERATING INCOME

411.68

310.72

290.31

152.39

DEPRECIATION

-95.44

-94.78

-95.08

-47.42

PBIT

 

316.24

215.94

195.23

104.97

INTEREST

 

-69.24

-44.82

-43.63

-18.99

PBT

 

247

171.12

151.6

85.98

TAX

 

-87.88

-71.51

-67.78

-34.27

PAT

 

159.12

99.61

83.82

51.71

CHANGE IN TOTAL INCOME: CAGR IN TOTAL INCOME IS 35.04%


CHANGE IN OPERTING PROFIT: CAGR IN OPERATING PROFIT IS 39.27%

CHANGE IN NET PROFIT: CAGR IN NET PROFIT IS 45.44%.


 

RATIO:

 

 

31-Mar-08

31-Mar-07

31-Mar-06

31-Mar-05

 

EPS

42.095238

26.351852

22.174603

13.679894

 

NPM

21.743349

17.642891

16.584227

17.403157

 

OPM

56.255039

55.034627

57.439357

51.287315

INTEREST COVERAGE

4.5673021

4.8200893

4.4746734

5.5276461


COMPARING SEPTEMBER 2008 QUARTER WITH 2007 QUARTER:

 

 

30-Sep-08

30-Sep-07

TOTAL INCOME

290.15

187.38

EXPENDITURE

-102.19

-82.89

OPERATING PROFIT

187.96

104.49

DEPRECIATION

-24.83

-21.43

PBIT

 

163.13

83.06

INTEREST

 

-41.29

-12.71

PBT

 

121.84

70.35

TAX

 

-40.49

-23.13

PAT

 

81.35

47.22

CHANGE IN TOTAL INCOME COMPARED TO LAST QUARTER:  54.84% CHANGE IN TOTAL INCOME.

CHANGE IN OPERATING PROFIT COMPARED TO LAST YEAR  QUARTER: OPERATING PROFIT CHANGED BY 79%.

CHANGE IN NET PROFIT COMAPRED TO LAST YAER QUARTER: NETPROFIT FOR THE QUARTER MOVED UP BY 72.3% AS COMPARED TO LAST YEAR SEPTEMBER QUARTER.

VALUATION:


Company is trading at trailing twelve month earning multiple of 15X.With the significant growth in revenue from new contract  we expect the earning per share of Rs 300 at the end of FY2009.On expected earning of FY2009 the share is available at 3.33X.

CONCLUSION:


We expect price appreciation of around 40-50% from this level in medium to long term. Investor with investment horizon of 3 to 6 month can start accumulating the stock on every dip.

 

 

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