Aban Offshore Ltd Stock Analysis

BSE: 523204 | NSE: ABAN | Oil Exploration | Small Cap

BSE Share Price Jan 20, 18:01
49.70 -0.80 (-1.58%)

DeciZen - Make an Informed Decision on Aban Offshore

Overall Rating
M-Cap below 500cr. High Risk from low Liquidity

1. Quality

2. Valuation

Overvalued
P/E P/S EV/EBITDA

3. Price Trend

Semi Strong

FAQ's

1. Is Aban Offshore Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Aban Offshore Ltd is a below average quality company.

2. Is Aban Offshore Ltd undervalued or overvalued?

The key valuation ratios of Aban Offshore Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Aban Offshore Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Aban Offshore Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Aban Offshore:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Aban Offshore Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide
Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 3%7.1%10.5%7.6%8.4%6.2%1.8%-0.7%-41.2%-45%-
Value Creation Index -0.8-0.5-0.3-0.5-0.4-0.6-0.9-1.1NANA-

Growth Parameters

Growth Parameters Colour Code Guide
Sales 6397978207601,01488759226324115664
YoY Gr. Rt. %-24.8%2.9%-7.3%33.5%-12.6%-33.3%-55.6%-8.5%-35.2%-
Adj EPS -25.11656.737.95138.32-18.5-197.4-28.9-47.8
YoY Gr. Rt. %-NA253.2%-33.1%34.6%-24.9%-94.8%-1022.4%NANA-
BVPS (₹) 412.2397.7427.4495.5664.1700.5702.3690.5-73.2-113-119
Adj Net Profit -10969.824721929822411.7-108-1,152-168-279
Cash Flow from Ops. 258341425368346317112171211102-
Debt/CF from Ops. 10.25.12.72.63.237.94.93.97.5-

CAGR

CAGR Colour Code Guide
9 Years 5 Years 3 Years 1 Years
Sales -14.5%-31.2%-35.9%-35.2%
Adj EPS NA-189.2%-343%NA
BVPS -186.6-170.2-154.40
Share Price -19.6% -27.4% -12% 74.1%

Key Financial Parameters

Performance Ratio Colour Code Guide
Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % -4.93.411.88.28.55.60.3-2.7-643141.2
Op. Profit Mgn % 4954.559.156.164.666.349.731.937.3-35.2-386.6
Net Profit Mgn % -17.18.830.128.829.325.22-41.2-479-108-436.8
Debt to Equity 1.30.90.50.30.30.20.20.2-1.9-1.2-
Working Cap Days 5013332933814325599161,5851,1491,6432,770
Cash Conv. Cycle -137-246-351-343-231-167-6388332-610

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 41.20%

Sales growth has been subdued in last 3 years -35.88%

Sales growth is not so good in last 4 quarters at -75.28%

Latest Financials - Aban Offshore Ltd.

Standalone Consolidated
TTM EPS (₹) -47.8 -354.5
TTM Sales (₹ Cr.) 63.9 812
BVPS (₹.) -119 -2,968.6
Reserves (₹ Cr.) -706 -17,338
P/BV -0.42 -0.02
PE 0.00 0.00
From the Market
52 Week Low / High (₹) 26.55 / 74.90
All Time Low / High (₹) 3.18 / 5555.00
Market Cap (₹ Cr.) 290
Equity (₹ Cr.) 11.7
Face Value (₹) 2
Industry PE 7.1

Management X-Ray of Aban Offshore :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *19.3719.3719.3719.3719.3719.3719.3719.3719.3719.37
* Pledged shares as % of Promoter's holding (%)

Event Update

Analyst's Notes

News

About Aban Offshore Ltd

Aban Offshore (AOL),formerly known as Aban Loyd Chiles Offshore Ltd.,  the Aban Group company was established by late M A Abraham in 1986 when Indian entrepreneurs were encouraged to provide offshore drilling services to the Oil and Natural Gas Corporation (ONGC) to meet the growing needs of a vibrant economy. AOL launched its first contract drilling service to the ONGC in 1987 with two modern jack-up drilling rigs acquired from the USA.

Aban Offshore is India’s largest drilling entity in the private sector offering world class drilling and other services. Aban Offshore is a company which provides oil field services for offshore exploration and production of  hydrocarbons to the oil industry in India and abroad.

The ABAN Group was born as a small engineering firm in Chennai, The Group took giant strides into newer arenas of operation like the execution of high-pressure systems and cross-country pipelines for refineries and fertilizer and petrochemical industries. Inevitably, Aban ventured into the high-powered domains of drilling, power generation and IT Enabled Services (ITES).

Aban Offshore possesses twenty offshore assets including fifteen jack-up offshore drilling rigs, two drill ships, one floating production platform and a jack-up rig and drill ship each on bareboat charter.

Aban Singapore- Aban Singapore (ASPL) was formed as a wholly owned subsidiary of Aban Offshore Ltd. to offer drilling services to large global oil and gas operators.

Aban Offshore in its commitment to providing a range of drilling services has also equipped itself with an equally wide range of rigs and drill ships.

Jack-up Rigs

  • RIG ABAN - II (ex-Griffin Alexander - III)
  • RIG ABAN - III (ex-ILE D'AMSTERDAM)
  • RIG ABAN - IV (ex-HITDRILL - I)
  • RIG ABAN - V (ex-Pride West Virginia)
  • RIG ABAN - VI (ex-Energy Explorer - IV)

Floaters / Drill Ship

  • Aban Ice

FPU

  • Tahara

Services offered by the company:

Aban Offshore offers a diverse range of offshore drilling services to clients in India and abroad.

  • Exploratory services
  • Drilling services
  • Production of hydrocarbons
  • Manning and management

Clientele:

  • Oil & Natural Gas Corporation Ltd. (ONGC)
  • Hardy Exploration & Production (India) Inc.
  • Oriental Oil Co., Dubai
  • Shell Brunei
  • Shell Malaysia
  • Gujarat State Petroleum Corporation Ltd. (GSPC)
  • Hindustan Oil Exploration Co. Ltd.
  • Cairn Energy
  • Petronas Carigali
  • ROC Oil
  • Shell (South East Asia)

Milestones

By the 1990s, many private sector companies in India chose to exit the drilling business. However, AOL preferred to increase its focus on the sector with newer rigs, acquisitions and mergers.

1993: Fleet AdditionAOL purchases a 300-ft. jack-up rig from Mahindra & Mahindra Ltd.

2000: 2001: Hitech Acquisition AOL acquires Hitech Drilling Services (India) Ltd., belonging to the Tata Group, boosting AOL’s fleet to four rigs. This also enables AOL to enter the FPSO business with the FPU ‘Tahara’ owned by Hitech.

2005: Fleet AdditionAOL adds two jack-up rigs (Aban V and Aban VI) and a drill ship (Frontier Ice).

2005: International Expansion In line with its global expansion strategy, AOL launches Aban Singapore Pte Ltd. (ASPL) in November as its vehicle for international operations. ASPL, in turn, sets up 3 SPVs as step down subsidiaries, each equipped with a rig or drill ship.

2006: Sinvest AcquisitionASPL acquires a 33.7% stake in Sinvest ASA, a Norwegian company with eight new premium jack-ups on order. ASPL subsequently completes the acquisition in stages, including a mandatory offer to all shareholders. AOL currently possesses twenty offshore drilling and production units spiraling us to a prestigious position among the top ten offshore drilling asset owners in the world.

2010: Aban Offshore and Venture Drilling AS (VDAS), a joint venture between Petrolia ASA and Sinvest AS (50/50), entered into an agreement for early redelivery of the drillship Deep Venture also known as Valentin Shashin being on bareboat from its Russian owner Arktikmorneftegazrazvedka (Arktik).

2011: Aban Offshores’ drillship Aban Abraham which is owned by the wholly owned step down subsidiary commenced operations under a 5 year contract with Petrobras, Brazil, on June 05, 2011.

2014: Aban Offshore received letter of award (LOA) for the deployment of the jack-up rig Deep Driller 5, owned by the company's step down subsidiary, Offshore Vietnam, for a firm period of 1 year and an optional period of 1 year.


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