Aban Offshore - EBIDTA in line-Higher tax drag net profit - Emkay

3Q13 EBIDTA at Rs4.9 bn (-2.6% yoy) came in line. Higher tax rate @48% (vs estimate of 26%) drags APAT at Rs390 mn (-46.6% yoy) below est (Rs689 mn).

Refinance of INR debt of ~USD350 on track-see potential saving of USD25 mn. USD140mn already done @ LIBOR+6% bps implying ~8% savings. Balance by 1QFY14.

DD-2,4,5 contract/day rate renewal (though on track) delayed by a quarter resulting in incremental revenues loss for 4QFY13 leading to cut in FY13E/14E EBIDTA estimate by - 3.5%/-1.7% while EPS est see higher cuts at -27%/-10%.

Contract renewals & debt refinance remains key triggers to improve cash flow visibility & accelerate de-leveraging. Possible QIP of up to USD100 mn leading to high dilution could be a stock dampener. ACCUMULATE.

Source : Equity Bulls

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