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Aban Offshore Ltd
Strong Operations; Aban Abraham Starts Mobilisation
Among the Best Operationally: Aban’s F3Q11 results
demonstrated Aban’s efficient operation, recording one
of the best EBITDA margins in industry of 66.4% as DD8
and DD1 operated at full utilization this quarter. We
estimate margins will average 65% in F2012 as the
company increases utilization for new assets, redeploys
its old assets at lower rates, and Aban Abraham starts
operations. Aban Abraham was mobilized in early
Feb-11 to start its five-year contract with Petrobras (we
expect it to start generating cashflows from March-11 of
US$69mn pa). Also, two of company’s older rigs Aban II
and Aban VII have been re-deployed in F4Q11.
Strong F3Q11 Results: Aban reported consolidated
EBITDA 10% ahead of our estimates but down 7% QoQ
and flat YoY at Rs5.2bn. The decline in EBITDA was
primarily on the back of Aban IV remaining idle in F3Q11.
Net profit, adjusting for exceptional items and loss (no
cash loss) in deep Venture (Aban owns 50%) was flat
QoQ and more than doubled on a YoY basis. Reported
net profit decline 16% QoQ and YoY.
ABAN Singapore Reports Record EBITDA Margins
of 69%: Aban’s high end jackup assets operated at
~90% utilization in F3Q11, resulting in record EBITDA
margins and second highest EBITDA contribution of
estimated Rs3.3bn.
Aban India Margins Remain under Pressure- With
Aban IV getting off contract in F3Q11, and Aban II and
VII remaining idle, Aban India EBITDA and PAT
declined by 21% and 29% respectively on a YoY basis.
We estimate the profitability for the older rigs to decline
as they get re-deployed from the current high rates to
US$156K/day to US$65k/day.
Cheapest Offshore Driller Globally on All Metrics
Despite Being the Most Efficient: Aban is trading at
EV/EBITDA of 6.7x and P/E of 4.0x on F2012e
compared to global offshore drillers trading at average
P/E of 10.6x and EV/EBITDA of 8.1x.
Exceptional Items: Write down of its stake in
Norwegian offshore drilling company PetroJack
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Aban Offshore Ltd
Strong Operations; Aban Abraham Starts Mobilisation
Among the Best Operationally: Aban’s F3Q11 results
demonstrated Aban’s efficient operation, recording one
of the best EBITDA margins in industry of 66.4% as DD8
and DD1 operated at full utilization this quarter. We
estimate margins will average 65% in F2012 as the
company increases utilization for new assets, redeploys
its old assets at lower rates, and Aban Abraham starts
operations. Aban Abraham was mobilized in early
Feb-11 to start its five-year contract with Petrobras (we
expect it to start generating cashflows from March-11 of
US$69mn pa). Also, two of company’s older rigs Aban II
and Aban VII have been re-deployed in F4Q11.
Strong F3Q11 Results: Aban reported consolidated
EBITDA 10% ahead of our estimates but down 7% QoQ
and flat YoY at Rs5.2bn. The decline in EBITDA was
primarily on the back of Aban IV remaining idle in F3Q11.
Net profit, adjusting for exceptional items and loss (no
cash loss) in deep Venture (Aban owns 50%) was flat
QoQ and more than doubled on a YoY basis. Reported
net profit decline 16% QoQ and YoY.
ABAN Singapore Reports Record EBITDA Margins
of 69%: Aban’s high end jackup assets operated at
~90% utilization in F3Q11, resulting in record EBITDA
margins and second highest EBITDA contribution of
estimated Rs3.3bn.
Aban India Margins Remain under Pressure- With
Aban IV getting off contract in F3Q11, and Aban II and
VII remaining idle, Aban India EBITDA and PAT
declined by 21% and 29% respectively on a YoY basis.
We estimate the profitability for the older rigs to decline
as they get re-deployed from the current high rates to
US$156K/day to US$65k/day.
Cheapest Offshore Driller Globally on All Metrics
Despite Being the Most Efficient: Aban is trading at
EV/EBITDA of 6.7x and P/E of 4.0x on F2012e
compared to global offshore drillers trading at average
P/E of 10.6x and EV/EBITDA of 8.1x.
Exceptional Items: Write down of its stake in
Norwegian offshore drilling company PetroJack
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