Aban Offshore - Weak results - Kotak

Aban Offshore reported 3QFY13 net income at Rs.318 mn, sharply lower than our estimate of Rs.809 mn led by weaker revenues which reflects lower utilization levels. Sharp decline in net income yoy reflects increase in operating and interest expenses and a higher effective tax rate.

We expect the company to continue restructuring its debt over the next few years as estimated cash flows from operations are not sufficient to service its repayment schedule for existing debt obligations.

Source : Equity Bulls

Keywords