In talks with banks, stakeholders for settlements of dues: Aban Offshore

Capacity utilisation of company's rigs at its disposal increased to 55% in 2019-20 from 38% in 2018-19

Offshore drilling contractor, Aban Offshore on Saturday said that it was in discussion with banks and other stakeholders for amicable settlements of dues.

Aban Offshore is the country’s largest offshore drilling services provider to oil companies, mainly to state-owned ONGC.
 

The company also said that capacity utilisation of its rigs at its disposal increased to 55% in 2019-20 from 38% in 2018-19, which resulted in revenue hike.
 

Sales rose 117.01 per cent to Rs 296.87 crore in the quarter ended June 2020 as against Rs 136.80 crore during the previous quarter ended June 2019. Company's total debt stands at around Rs 14,350 crore, according to Value Research.
 

In a letter to the shareholders, Reji Abraham, Managing Director, Aban Offshore said, "We are in discussions with banks about our  business outcomes with the objective to seek a resolution that accommodates mutual interests. We are constantly in discussion with banks and other stakeholders for amicable settlements of dues".
 

Aban bagged long/medium-term contracts for three rigs with ADNOC Drilling Company, part of the Abu Dhabi National Oil Company (ADNOC). The  company deployed its rigs with prestigious international oil companies like Carigalli  –  PTTEPI Operating Company SDN BHD (CPOC) and Petronas Carigalli SDN BHD, Malaysia and Petronas Carigalli SDN BHD, Malaysia. 
 

Abraham said rigs under deployment indicates that there was a growth in exploration activities the world over as the price of oil stabilised through the course of the year. Besides, the enhanced deployment indicates a decline in the number of available rigs on account of some scrapping and a relative decline in the ability of some rig providers to compete.

On the other hand, the company has strengthened its competitiveness through an ongoing culture of training coupled with enhanced compliances benchmarked with some of the most demanding standards of global oil companies, Abraham said.
 

"Our priority will be to continue enhancing the utilisation of our assets, which would strengthen cash flows. We believe that this will strengthen our market respect and standing, which will be one decisive step towards business sustainability," said Abraham.