Q4 net profit flat; Ebidta improves on drop in costs.
Great Offshore Ltd (GOL) has reported a net profit of Rs 73.1 crore in the fourth quarter of the last financial year, up 2.38% over Rs 71.35 crore in the same period of financial year 2008-9.
On a consolidated basis for the latest full year, GOL reported revenue of Rs 1,172.7 crore and net profit of Rs 202.6 crore.
Ebidta rose Rs 140.3 crore in the fourth quarter compared with Rs 116.1 crore in the third. Margin expanded from 48% to 50.4% sequentially.
The improvement was mainly led by a drop in employee costs and other operating expenses.
Total income grew 3.3% year on year (YoY) and 15.1% quarter on quarter (QoQ) to Rs 278.5 crore. The increase in revenue was on account of doubling of engineering project income and 12% rise in revenue days due to fleet addition.
With the spot market seeing correction in the day rates, Great Offshore has witnessed a higher fleet utilisation for its offshore support vessels QoQ, which increased from 77% to 78%.
According to a note by Ajit Motwani from Emkay Research, the five vessels which GOL added during FY10 will drive revenues and reduce dry dock costs. He said apart from the three supply vessels that are likely to boost revenues in FY11 on account of their full year of operation, GOL’s recent acquisition of second-hand rig renamed Amarnath is expected to fuel growth.
In case of rig Kedarnath, Rajat Dutta, general manager (corporate finance and corporate affairs), said Kedarnath has been operational only for one month in the current quarter at a day rate of $46,000 and after the 4-month dry dock season will begin operations in September at a rate of $69,000 for a period of 5 years with ONGC.
According to a note by K R Choksey, the delivery of a 350 feet jack-up rig and a new multi supply vessel by the end of the current fiscal is expected to help growth momentum in financial year 2012. Dutta said there would be no problem in getting a contract for these vessels as ONGC and Oil India are keen on drilling activity in India.
“Most of GOL’s vessels are deployed on long-term contracts with ONGC and marquee clients. This ensures revenue visibility coupled with contract assurance, as the government is likely to go ahead with its capex plans irrespective of crude oil price direction in interest of energy security,” the K R Choksey report said.
Going forward, Dutta said, “The increase in terms of renewals will be at a higher realisation levels, further driving our growth.” As on March 31, 2010, revenue visibility on existing charter contracts for owned vessels for the next financial year FY 2010-11 is around Rs 600 crore, said a company statement.
The company plans to incur capex of Rs 1,734 crore over the next 3-4 years. The debt as of 31 March 2010 stands at Rs. 2,140 crore and cash of Rs 45 core.
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