Global Offshore Services- Lower operating days impact performance:: Emkay

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Global Offshore Services

Lower operating days impact performance

HOLD

CMP: Rs 97                                       Target Price: Rs 110

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n     GOSL’s Q1FY12 APAT at Rs6.1mn (-89% yoy) below estimates led by lower than estimated revenues, mobilization exp on two vessels and higher interest charges

n     Revenues at Rs462mn (-4.9%yoy), below est due to lower op days for MV Beaucephalus & no revenues from PSV Kailash. However mobilization charges drag  margins to 33.4%

n     GOSL has sold vessel MV Mana and also Garware I. Hence downgrade FY12E/13E estimates by 19.4% /8.4% 

n     GOSL revenue backlog of just USD130mn doesn’t instill much revenue visibility. Stock trades at 6.6X FY12 earnings & 7.5X EV/EBITDA. Maintain HOLD with revised TP of Rs110