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S t r o n g r e v e n u e v i s i b i l i t y …
Global Offshore (GOL) reported disappointing Q1FY12 results with
contraction in topline on a QoQ basis by 9.4% to | 46.2 crore and a net
loss of | 2.1 crore against a net profit of | 1.6 crore in Q4FY11. The
topline declined as two of its vessels (MV Kailash and MV
Beaucephalus) remained idle for a major part of the quarter as they had
to be modified and mobilised for a new charter. The EBITDA margin
declined by 940 bps QoQ to 33.4% on account of higher staff expenses
and modification and mobilisation expenses on MV Kailash and MV
Beaucephalus . In spite of flattish interest and depreciation charges,
lower revenues and EBITDA have resulted in the company reporting a
net loss of | 2.1 crore for Q1FY12.
ƒ Higher mobilisation expenses impact Q1FY12 performance
GOL reported a 9.4% QoQ drop in topline at | 46.2 crore in Q1FY12. Two
of its PSV vessels i.e. MV Kailash and MV Beaucephalus had come off
contract and their mobilisation for new contracts during the quarter was
the main reason for the decline in the topline. The company’s EBITDA
declined to | 15.4 crore with a corresponding decline in EBITDA margin
to 33.4% in Q1FY12 on account of higher mobilisation expenses. Interest
and depreciation remained flattish with depreciation increasing by 1% to
| 10.4 crore and interest cost declining by 7% to | 7.1 crore. The decline
in topline along with lower EBITDA resulted in the company reporting a
net loss of | 2.1 crore.
ƒ Long-term contracts provide comfort
GOL operates a fleet of 12 vessels, which consist of seven AHTS vessels,
four OSVs and one construction barge. The company has strong
revenues as majority of its fleet is deployed on long-term charter contract,
which also ensures higher utilisation level.
V a l u a t i o n
At the CMP of | 97, the stock is trading at 11.9x FY13E EPS of | 8.2 and
0.7x FY13E book value of | 136. We have valued the stock at 0.9x FY13E
book value to arrive at a price target of | 122 and recommend a BUY
rating. Existing investors should also continue to hold the stock.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
S t r o n g r e v e n u e v i s i b i l i t y …
Global Offshore (GOL) reported disappointing Q1FY12 results with
contraction in topline on a QoQ basis by 9.4% to | 46.2 crore and a net
loss of | 2.1 crore against a net profit of | 1.6 crore in Q4FY11. The
topline declined as two of its vessels (MV Kailash and MV
Beaucephalus) remained idle for a major part of the quarter as they had
to be modified and mobilised for a new charter. The EBITDA margin
declined by 940 bps QoQ to 33.4% on account of higher staff expenses
and modification and mobilisation expenses on MV Kailash and MV
Beaucephalus . In spite of flattish interest and depreciation charges,
lower revenues and EBITDA have resulted in the company reporting a
net loss of | 2.1 crore for Q1FY12.
ƒ Higher mobilisation expenses impact Q1FY12 performance
GOL reported a 9.4% QoQ drop in topline at | 46.2 crore in Q1FY12. Two
of its PSV vessels i.e. MV Kailash and MV Beaucephalus had come off
contract and their mobilisation for new contracts during the quarter was
the main reason for the decline in the topline. The company’s EBITDA
declined to | 15.4 crore with a corresponding decline in EBITDA margin
to 33.4% in Q1FY12 on account of higher mobilisation expenses. Interest
and depreciation remained flattish with depreciation increasing by 1% to
| 10.4 crore and interest cost declining by 7% to | 7.1 crore. The decline
in topline along with lower EBITDA resulted in the company reporting a
net loss of | 2.1 crore.
ƒ Long-term contracts provide comfort
GOL operates a fleet of 12 vessels, which consist of seven AHTS vessels,
four OSVs and one construction barge. The company has strong
revenues as majority of its fleet is deployed on long-term charter contract,
which also ensures higher utilisation level.
V a l u a t i o n
At the CMP of | 97, the stock is trading at 11.9x FY13E EPS of | 8.2 and
0.7x FY13E book value of | 136. We have valued the stock at 0.9x FY13E
book value to arrive at a price target of | 122 and recommend a BUY
rating. Existing investors should also continue to hold the stock.
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