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Offshore drilling company Aban Offshore has announced its plans to raise over Rs 4,500 crore through GDR, FCCBs and QIPs. The company also said two of its rigs are scheduled for refurbishment during the current fiscal.
"To augment fund requirements it was proposed to create, offer, issue and allot equity shares, GDRs, ADRs, FCCBs for amount not exceeding around $400 million," it said. Apart from this, it plans to raise around Rs 2,500 crore through qualified institutional placement (QIP).
It would seek shareholders' approval for the proposed fund raising plans in the upcoming annual general meeting.
Reji Abraham, managing director, Aban Offshore, in a communication to the shareholders, said it converted a significant proportion of its rupee loans into low-cost dollar-denominated loans to save substantial interest outflow.
The company had been generating sizeable revenues in foreign exchanges that would serve as natural hedge for its forex debts, whose benefits are expected to be visible from 2013-14 onwards, he said.
To establish revenue predictability and organisational stability, starting from 2012-13, the company has been focusing on deploying assets for maximising revenue and to minimise asset-idling.
"To de-risk the company from revenue volatility, 16 rigs have been deployed under long-term contracts, creating the basis for attractive and sustainable revenue visibility," he said.
"To augment fund requirements it was proposed to create, offer, issue and allot equity shares, GDRs, ADRs, FCCBs for amount not exceeding around $400 million," it said. Apart from this, it plans to raise around Rs 2,500 crore through qualified institutional placement (QIP).
It would seek shareholders' approval for the proposed fund raising plans in the upcoming annual general meeting.
Reji Abraham, managing director, Aban Offshore, in a communication to the shareholders, said it converted a significant proportion of its rupee loans into low-cost dollar-denominated loans to save substantial interest outflow.
The company had been generating sizeable revenues in foreign exchanges that would serve as natural hedge for its forex debts, whose benefits are expected to be visible from 2013-14 onwards, he said.
To establish revenue predictability and organisational stability, starting from 2012-13, the company has been focusing on deploying assets for maximising revenue and to minimise asset-idling.
"To de-risk the company from revenue volatility, 16 rigs have been deployed under long-term contracts, creating the basis for attractive and sustainable revenue visibility," he said.
According to Abraham, two of the company's rigs were deployed with back-to-back contracts, as a resulting in near-complete asset deployment in 2012-13 and will have an advantage across the foreseeable future.
"In a volatile industry environment, we see this as the foundation towards restoring the company to its original glory in terms of growth and profitability," said Abraham.
However, he also cautioned, in the business of right chartering, one of the most crucial determinants of success is high asset utilisation. A customer, who has invested to drill for hydrocarbons, needs a service provider who can deliver service across all waters and weathers.
Technical snabscan affect the earnings of the customer and in turn, this would affect company's realisation since company's revenues are inextricably linked to the number of operating hours of company's rigs have been working.
Technical snabscan affect the earnings of the customer and in turn, this would affect company's realisation since company's revenues are inextricably linked to the number of operating hours of company's rigs have been working.
Last year the company reported an average 80% uptime across its deployed rigs and 13 of company's rig reported asset uptime rates of 95%.
