United Drilling Tools rose 5.63% to Rs 506.05 after the company said it has appointed marketing representatives to promote its product portfolio for oil exploration and completion equipments in Kuwait and United Arab Emirates.
United Drilling Tools (UDTL) said this representation will open opportunities to expand its market base in Kuwait, where major state E&P company KOC, Kuwait Oil Company has a strong presence. About 2000 wells are underplanning for next 5 years and KOC is drilling almost 400 new wells every year.In United Arab Emirates (UAE), the Abu Dhabi National Oil Company (ADNOC) is the state-owned oil company. It is the world's 12th largest oil company by production. As of 2021, the company has an oil production capacity exceeding 4 million bpd with plans to increase to 5 million bpd by 2030. ADNOC is the largest drilling company in the Middle East, and has drilled more than 6,200 wells. Adnoc has total 99 number of operational rigs & total well delivered is 10,000. The target is for another 1000 wells by 2030.
UDTL said that the market size for its range of products is about 250 crore per annum in Kuwait and 200 crore per annum in UAE. Thus, it has a strong chance of increasing its market share & profitability from these markets.
Further, the company said that in 2021, it registered itself with major global service providers such as Halliburton, Schlumberger, Baker Hughes. This facilated the company to get enquiries across its global offices. Within a short span, we has received some good number of development orders and more enquiries from these global companies are in pipeline.
UDTL manufactures & supplies equipments used in the oil & gas sector. Its product portfolio comprises of connectors, casing pipes with connectors, stabilizers and artificial lift equipment amongst others.
Net profit of UDTL rose 8.04% to Rs 13.04 crore on 43.66% rise in net sales to Rs 45.54 crore in Q3 December 2021 over Q3 December 2020.
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