Asian Oilfield Services Limited

Transcription

1 23 December 2015 CMP: Rs.63.2 Industry: Oil and Gas BSE Group/Index: XD Promoters Samara Capital Partners Fund Year of incorporation 1992 Registered office 703, IRIS Tech Park, Tower-A, 7th Floor, Sector 48, Sohna Road, Gurgaon Haryana Key Data (as on 23 Dec 15) BSE code ISIN INE276G01015 Face Value (Rs.) 10.0 Mkt Cap (Rs. mn) 1,410.9 Current P/E - Current P/BV week high-low (Rs.) day avg. trading vol. (shares) 76,766 Equity capital (Rs. mn) Net worth (Rs. mn) Company Business Asian Oilfield Services (ASIAN) is a reservoir imaging company, offering a suite of geophysical services specializing in land and well seismic services. The portfolio of services include 2D and 3D seismic data acquisition, processing and interpretation, topographic survey, continuous core drilling for mineral and CBM exploration, wire-line logging and directional core drilling to target shallow horizons. In addition to the core services ASIAN also provides specialized high technology services to oil and gas companies for targeted applications. Peer group analysis Hindustan Oil Particulars (FY15, Asian Oilfield Selan Exploration Exploration Co. Rs.mn) Services Ltd. Technology Ltd. Ltd. Total Income 1, , EBITDA (11,432.5) EBITDA margin (%) Neg. PAT (270.1) (12,196.0) PAT margin (%) Neg Neg. EPS (Rs.) (12.1) 17.3 (93.5) Cash accruals (89.0) (11,805.5) Debt/EBITDA (x) Debt/Equity (x) ROANW (%) (52.9) 10.4 (298.7) ROACE (%) (16.0) 16.0 (421.0) P/E (TTM) P/BV (TTM) Standalone data Page 1 of 5

2 Share Price Performance Change in Shareholding Pattern (%) Year Promoters DII FII Others 87.7% 194.2% 1 Yr-0.9% 3 Yr 40.1% Sep Jun Mar Mar Mar Mar Mar Asian Oilfield Services Ltd. S&P BSE 500 Top Public Shareholders with >1% shareholding Sl. Name of the Shareholder No. No. of Shares held (in 000s) Shares as % of Total No. of Shares 1 Narinder Pal Gupta Religare Finvest Ltd Elara India Opportunities Fund Limited Yogesh Shashikumar Savadekar Total 1, Page 2 of 5

3 Key strengths The company has been in the industry for more than two decades. The company s long presence in the sector has helped it establish a brand and strong relationship with its clients. Given the niche area that it caters to (seismic services), the company has built up a diverse client base which includes both public and private sector companies. The company has a demonstrated track record and has carried out seismic services in the geographically rough terrain of North-East and has built experience working in Arunachal Pradesh, Assam, Gujarat, Tamil Nadu and Uttaranchal. Key concerns On account of its deteriorating credit profile and weak leverage ratios, the company s credit rating was downgraded to 'CRISIL BB-/Negative/CRISIL A4' from 'CRISIL BB+/Stable/CRISIL A4+' in August % of the company s order book is from the Kurdistan region in Iraq. However, geopolitical issues in the region could derail the company s strategy and operations. Most of the company s revenues are generated from a few PSU clients and over dependence on these clients could lead to operational difficulties for the company going forward. Key financial indicators In FY15, the company s operating costs increased significantly due to increased expenditure for projects in the Kurdistan region. As a result, even though the company s revenues increased from Rs.1.2 bn in FY14 to Rs.1.5 bn in FY15, the company reported a net loss of Rs.270 mn in FY15. The statutory auditors of the company have raised concerns over the company s trade receivables and loans and advances, aggregating to Rs.140 mn, which have been due for more than one year. The auditors are doubtful that his amount can be recovered. The auditors have also raised a flag for managerial remuneration exceeding the prescribed limits under Companies Act Industry overview Unexplored basins Low cost structure Given the large unexplored territories in the country, exploration companies are going to continue to require the services of seismic survey players like ASIAN. With an increase in the oil and gas exploration and production activities across the world, Indian players like ASIAN will benefit because of their increasing expertise and low cost operating models. Page 3 of 5

4 Quarterly results Particulars (Rs. in mn) Jul'15 to Sep'15 Jul'14 to Sep'14 % Change 1 Apr'15 to Jun'15 % Change 2 Total income Total expenditure EBITDA (7.3) (0.1) - (13.7) - PBT (34.9) (34.4) - (39.8) - PAT (53.0) (34.4) - (39.8) - EPS (2.4) (1.5) - (39.8) - 1 compared to corresponding quarter in the previous year 2 sequential comparison Book Value per share (Rs.) 47.1 Key ratios - Dividend per share (Rs.) EPS (Rs.) 29.1 (5.00) Mar Mar Mar-15 (10.00) (15.00) Profitability Leverage ratios RONW (%) ROCE (%) Debt/EBITDA (x) Debt/Networth (x) (3.00) (13.00) (23.00) (33.00) (43.00) (53.00) (8.00) Page 4 of 5

5 Financials P&L (Rs. mn) FY13 FY14 FY15 Balance Sheet (Rs. mn) FY13 FY14 FY15 Total income , ,473.8 Share Capital EBIDTA Share Application Money EBIDTA margin (%) Reserves & Surplus Depreciation Net worth EBIT (72.0) (139.4) (175.2) Borrowings Interest Current Liabilities & Provisions PBT (103.9) (234.1) (269.7) Total liabilities 1, , ,525.1 Tax (0.9) Net fixed assets , ,060.1 PAT (102.9) (234.3) (270.1) Capital WIP PAT Margin (%) Investments Dividend Inventories Dividend Payout Sundry Debtors Cash & Bank Cash Flow (Rs.mn) FY13 FY14 FY15 Other Current Assets PBT (103.9) (234.1) (269.7) Loans and Advances CF from Operation (94.3) (75.7) Miscellaneous Expenses not w/off CF from Investment (42.2) (454.1) (124.3) Deferred Tax Assets/(Liabilities) (0.0) - - CF from Financing Total assets 1, , ,525.1 Inc/(dec) Cash (90.1) (3.3) (23.4) Closing Balance Disclaimer The information contained herein is from publicly available data or other sources believed to be reliable, but we do not represent that it is accurate or complete and it should not be relied on as such. Our company shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. This document is provided for assistance only and is not intended to be and must not alone be taken as the basis for any investment decision. The user assumes the entire risk of any use made of this information. Each recipient of this document should make such investigation as it deems necessary to arrive at an independent evaluation which may affect their investment in the securities of companies referred to in this document (including the merits and risks involved). The discussions or views expressed may not be suitable for all investors. This information is strictly confidential and is being furnished to you solely for your information. Page 5 of 5