The cash-strapped Aban Offshore Ltd, the country's largest offshore drilling service provider for the hydrocarbon sector in private sector, is likely to go for an equity float or an equity dilution to meet its debt repayment obligations in the near future, unless its rig Aban Abraham, which went off contract since April, get back to work soon.
The company is also facing a negative cash flow from its joint venture, Venture Drilling, which owns the drillship Deep Drilling on a 'bareboat' charter. Aban also made a one-time write off on its books after its Norwegian JV Petrojack Drilling filed for bankruptcy. Aban's consolidated debt position as on September 30, 2010 stood at Rs 13,200 crore as against Rs 14,100 crore as on March 31, 2010. The repayments include $150 million repaid from the insurance claim amount of Aban Pearl. Further, the debt is expected to be reduced to Rs 11,900 crore by the end of FY '11 based on repayment of Rs 1,680 crore which is due during the fiscal. For this, equity issuance of Rs 500 crore is expected during the course of the year.
| Company Name | CMP |
|---|---|
| ONGC | 283.35 |
| Oil India | 471.35 |
| Jindal Drilling&Inds | 542.35 |
| Deep Industries | 477.70 |
| Asian Energy Service | 315.25 |
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