Asian Oilfield Services announce robust Q4FY20 Results

Asian Oilfield Services Limited ("Company"), specializing in servicing the upstream value chain from seismic data acquisition, analysing the data, turnkey drilling, building oil and gas production facility and undertaking O&M of production facility, announced its Audited financial results for the year ended March 31, 2020.

Consolidated Performance highlights for FY20

Revenue from Operations for FY20 grew by 41% to Rs. 273.04 crore as compared to Rs. 193.86 crore in FY19 on account of robust execution of projects.

EBITDA for FY20 was Rs. 66.43 crore as compared to Rs. 32.88 crore in FY19, posting a growth of 102%. EBITDA margin for FY20 was at 24%. The improvement in EBITDA margins reflects better operating performance.

PAT for FY20 was Rs. 29.24 crore, up by 221%, as compared to Rs. 9.1 crore in FY19. Diluted EPS for FY20 stood at Rs. 7.71 per equity share.

Free Cash and bank balance (net of outstanding debt) is ~Rs. 61.95 crore as on 31st March 2020. Debt on books is NIL (debt free company)

Consolidated Net Worth as on 31st March 2020 is ~Rs. 181.45 crore.

Consolidated Performance highlights for Q4 FY20

Revenue from Operations for Q4FY20 grew by 160.87% to Rs. 111.86 crore as compared to Rs. 42.88 crore in Q4FY19 on account of robust execution of projects.

EBITDA for Q4FY20 was Rs. 26.36 crore as compared to Rs. 6.48 crore in Q4FY19, posting a growth of 307%. EBITDA margin for Q4FY20 was at 24%. The improvement in EBITDA margins was on account of better operating performance.

PAT for Q4FY20 was Rs. 15.24 crore, up by 535%, as compared to Rs. 2.4 crore in Q4FY19. Diluted EPS for Q4FY20 stood at Rs. 4.04 per equity share.

Operational updates:

- Company has recommenced work post Covid lockdown for acquisition of seismic data of oil blocks located in Rajasthan and Gujarat

- Company has completed seismic data acquisition of Arunachal Pradesh seismic project of Oil India Limited and Himalayan seismic project of ONGC Ltd.

- Ongoing execution of the Langley turnaround maintenance project, Nigeria is progressing very well and running at a heathy pace. The project is likely to be completed in current fiscal year.

- Company is in discussion of amicable settlement of PBG encashment and liquidated damages with clients and hopeful to resolve it soon

On the performance Mr. Ashutosh Kumar, Whole-time Director & CEO, commented, "We are pleased with our performance in Q4FY20 despite challenges related COVID. We are keenly watching developments and gearing ourselves to continue to deliver good operating and financial performance in spite of challenges faced by COVID. We are confident that we shall be able to deliver better performance in FY21 and coming years. Due to COVID and fall in oil prices, there has been some delay in execution of existing order book and ongoing tendering activities also, however our order book more or less remains intact and we do see a pickup in tendering activities which will help us in further fill up our existing order book.

Despite of current fall in crude oil prices, prospects for oil services companies in India remains bright due to Govt of India focus on reduce import. We are likely to see various opportunities in this segment in coming years for services companies to support E&P cos increasing exploration, development and production activities. We have already briefed up our resources and we are best placed to participate in this.

We now envisage to add services for Coal and other minerals going forward with an aim to diversify our revenue streams from Oil & Gas business. With new set of reforms launched by Govt of India in coal sector with allowing commercial mining, we see a tremendous scope for associated services in this sector as well. Our diversification plan into other coal and other minerals sector will go a long way to de-risk our company from volatility and dependence on Oil & Gas prices.

We are looking to change name of our company along with its object clause to reflect our ongoing pursuit in coal and other services sector. We are making some organizational changes also to have a focus on this with our current CFO - Sumit Maheshwari moving to Vice President - Commercial role to drive this."

Shares of ASIAN OILFIELD SERVICES LTD. was last trading in BSE at Rs.92.2 as compared to the previous close of Rs. 97.05. The total number of shares traded during the day was 85543 in over 730 trades.

The stock hit an intraday high of Rs. 106 and intraday low of 90. The net turnover during the day was Rs. 8478317.

Source : Equity Bulls

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