Business Daily from THE HINDU group of publications
Tuesday, Sep 18, 2007
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Business Daily from THE HINDU group of publications Tuesday, Sep 18, 2007 ePaper |
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Stocks Markets - Stock Markets
BL Research Bureau Aban Offshore has emerged as one of the leading beneficiaries of the upturn in investments in offshore drilling. The company’s latest order win- a new three-year contract worth Rs 2,000 crore from ONGC for the deployment of rigs, reiterates this. Repeat orders from companies such as ONGC are crucial because they reinforce the company’s execution skills. Amidst a strong demand environment, Aban has been addressing capacity constraints through a string of acquisitions. The latest, an agreement with Bulford Dolphin Pte Ltd last week for the purchase of a semi-submersible rig “Bulford Dolphin” was viewed quite favourably by the markets. While this is likely to help the company capitalise on the current upturn in demand, additional debt to fund these buys is a source of concern. In this context, the expected listing of Aban’s Singapore arm in the near future, could be crucial as the funds so raised could be used to finance the acquisition/expansion plans. Nevertheless, Aban’s increased fleet size, well-timed acquisitions and execution skills amidst improving day rates for drilling (because of supply constraints in the industry) augur well for the stock. The stock has, in the recent past, witnessed a surge in buying interest recording a 20 per cent gain over a month. More Stories on : Stocks | Stock Markets | Petroleum
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