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Aban Offshore Ltd. Stock Analysis

Small Cap
Evaluated by 3383 users | BSE: 523204 | NSE: ABAN |
Oil Exploration
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...

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
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 10.2%2.96%7.13%10.52%7.63%8.42%6.15%1.82%-0.65%-41.23%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,1916397978207601,014887592263241
Y-o-Y Gr. Rt.--46.4%24.8%2.9%-7.3%33.5%-12.6%-33.3%-55.6%-8.5%
Adjusted EPS (Rs.) 69.77-25.1316.0456.6537.8950.9938.312.01-18.54-197.42
Y-o-Y Gr. Rt.--136%NA253.2%-33.1%34.6%-24.9%-94.8%-1022.4%NA
Book Value per Share (Rs.) 466.75412.19397.68427.38495.53664.06700.48702.28690.46-73.24
Adjusted Net Profit 304-10969.824721929822411.7-108-1,152
Net Op. Cash Flow (Rs. Cr.) 570258341425368346317112171211
Debt to Cash Flow from Ops 5.0510.175.052.722.623.162.977.874.933.89
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Aban Offshore Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -16.3%-20.6%-35.3%-8.5%
Adjusted EPS -212.3%-239.1%-272.7%NA
Book Value per Share -181.4-168.2-147.1-110.6
Share Price -24.5% -34.1% -48.6% 3.2%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 13.41-4.943.4211.778.218.475.620.29-2.66-63.97
Operating Profit Margin (%) 69.654954.4659.1156.164.6266.2649.7431.8637.26
Net Profit Margin (%) 25.5-17.138.7630.0828.8129.3425.211.98-41.16-478.99
Debt to Equity 1.221.270.860.540.310.280.230.220.21-1.92
Working Capital Days 3435013332933814325599161,5851,146
Cash Conversion Cycle -155-137-246-351-343-231-167-6388329
Entity Percentage Holding
Promoters 46.00%
Institutions 2.43%
Non-Institutions 51.58%
Pledged *19.3719.3719.3719.3719.3719.3719.3719.3719.3719.37
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Aban Offshore Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Aban Offshore Ltd. is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Aban Offshore Ltd.'s performance infers:

Aban Offshore Ltd. earnings have declined by -239.1%, whereas share price has depreciated -34.1% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Aban Offshore Ltd. share prices over the last 10 years. Here is what we found out:

Aban Offshore Ltd. share price has depreciated -27.3% annually over the past ten years.

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

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.


Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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