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Global Offshore - Steady recovery on better utilisation... - ICICIdirect
Posted On : 2013-02-13 22:12:26( TIMEZONE : IST )
Global Offshore's (GOL) Q3FY13 revenues showed better recovery than anticipated on account of better utilisation. Revenues grew 15% QoQ to Rs. 60.6 crore in Q3FY13 as against Rs. 52.8 crore in Q2FY13 (I-direct estimate: Rs. 57.3 crore). EBITDA for the quarter stood at Rs. 29.4 crore vis-Ã vis Rs. 21.9 crore in Q2FY13, due to expansion in EBITDA margin by 696 bps to 48.5%. Margins improved on account of lower expense on MV Makalu and Sherghar. Consequently, PAT for Q3FY13 stood at Rs. 9.6 crore, a significant rise over Q2FY13 PAT of Rs. 4 crore. Consequent to the quarter, GOL acquired an AHTSV, which is expected to be deployed by end of February 2013. The asset profile for GOL continues to improve with expected addition of a couple of new PSVs in the first half of FY14.
- Asset base expansion and better utilisation amid discounted rates Completion of mobilisation of Sherghar and continuation of MV Kamet and Meghna with existing customers led to better utilisation numbers for GOL. Also, consequent to the quarter, GOL acquired a second hand AHTSV (60 GT) and expects the same to be deployed by end of February 2013. Further, the company is expected to add a couple of PSVs in the first half of FY14. The contracts for the same are in their final stages of discussion. GOL continues to add assets to its fleet. However, existing contract charter rates are being extended at a discount of 15-20%. Going ahead, with increase in global order book for offshore vessels (100 PSVs globally), charter rates are expected to face some pressure.
- Cautious stance owing to likely weakness in day rates Rolling over to FY15E, there is considerable contraction in revenue visibility from FY13E levels of ~85% to 69% for FY14E and 65% for FY15E. Also, renewal of existing contracts has been at a discounted rate. Going ahead, with the impending decline in global charter rates amid significant addition of supply, we value the stock at ~63% discount to CY13E global average price to book value of 1.2x. We ascribe a multiple of 0.45x FY15E P/BV to arrive at a target price of Rs. 75.