Essar Oilfields Services declares results for Q1FY14
Essar Oilfields Services Limited, a wholly owned subsidiary of Essar Shipping Limited (ESL), announced its consolidated results for the quarter ended June 30, 2013, said in the company's press release.
Consolidated Results Highlights:
During Q1FY14, the company registered a growth of 1.2% in revenues at US$ 31.01 million (INR 173.52 Cr) against US$ 30.64 million (INR 165.88 Cr) in the previous quarter (Q4FY13). EBITDA increased by 13% to US$ 20.26 million (INR 113.33 Cr) as against US$ 17.90 million (INR 96.90 Cr) in the previous quarter.
The net profit of the company stands at US$ 2.08 million (INR 11.58 Cr) in this quarter as against US$ 0.06 million (INR 0.29 Cr) in the previous quarter.
The enhancement of quarter on quarter (QoQ) performance of the company is due to deployment of new onshore rigs for the CBM project at Raniganj and improved operating efficiency of its offshore semi-submersible rig Essar Wildcat.
Other Highlights
The company has reconstituted the Board of Directors of its fully owned subsidiary Essar Oilfield Services India Limited (EOSIL) by induction of industry stalwart Mr. D.K. Pande, as Independent Director. Mr. Pande, a former Director (Exploration) of Oil & Natural Gas Corporation Ltd. (ONGC), India, brings rich experience of exploration and production of over 35 years. With the induction of such an eminent professional from the E&P domain, the company shall get an impetus to its capabilities to deliver truly world class oilfield services and set global standards of corporate governance.
Operational Highlights for the quarter
Essar’s semi-submersible rig, Essar Wildcat, continues its drilling contract with ConocoPhillips, Indonesia.
Essar’s 2000 HP Land Rig (LR3) continues drilling operations for two HPHT (High Pressure High Temperature) wells for BG Shirke Group (BGS) in the onshore KG Basin in the Manepalli field. The first well has been drilled in this quarter.
Essar Oilfield Services has also undertaken an integrated drilling and services project for Essar Oil in Raniganj and has been able to provide considerable efficiency to operations.
Two new highly mobile land rigs acquired and deployed for the CBM drilling contract in West Bengal. The third rig is being mobilised and three additional rigs are on order.
EOSIL has entered into an agreement for novation of the rig building contract for the two Jack Up rigs to two offshore companies. The company is in the process of completing the novation.
