SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Aban may take equity route to ease cash flow

12 Nov 2010 Evaluate

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.

Aban Offshore Share Price

19.07 -1.00 (-4.98%)
20-Apr-2026 16:59 View Price Chart
Peers
Company Name CMP
ONGC 283.35
Oil India 471.35
Jindal Drilling&Inds 542.35
Deep Industries 477.70
Asian Energy Service 315.25
View more..

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×