Aban Offshore lost 2.25% to Rs 364.20 at 11:34 IST on BSE, with the stock sliding on profit booking after 2-day 24.2% rally triggered by hopes that the lifting of Western sanctions on Iran will improve oil exploration activity in the region.
Meanwhile, the S&P BSE Sensex was down 28.50 points or 0.14% at 20,396.52.
On BSE, 2.68 lakh shares were traded in the counter as against average daily volume of 11.15 lakh shares in the past two weeks.
The stock hit a high of Rs 377.90 and a low of Rs 361.15 so far during the day.
Shares of Aban Offshore had rallied 24.2% in two trading sessions to settle at Rs 372.60 on Tuesday, 26 November 2013, from a recent low of Rs 360 on 25 November 2013. According to reports, Aban Offshore has revenue accruing from Iran. Around 40% of the company's business comes from Iran and around seven rigs of the company had been deployed in Iranian offshore sites.
On 24 November 2013, Iran and world powers reached an initial agreement on the Islamic republic's nuclear program that will loosen economic sanctions while maintaining a cap on oil sales. The deal will suspend restrictions on shipping cover and will enable Indian oil companies to purchase contracted volumes of oil more easily.
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Meanwhile, the Indian government is likely to kick-start the auction of the next round of oil and gas blocks under New Exploration Licensing Policy (NELP) in January 2014, which also augurs well for offshore oil services providers.
Aban Offshore's consolidated net profit rose 57.8% to Rs 77.68 crore on 5% growth in net sales to Rs 1001.59 crore in Q2 September 2013 over Q2 September 2012.
Aban Offshore is India's largest offshore drilling contractor in the private sector, offering drilling and oil field services for offshore exploration and production of hydrocarbons to the oil industry in India and abroad.
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