Sterling made bold moves and undertook smart ventures during the year
under review. Our destination has always been above us, while a
vertical take off coupled with optimum speed is our means to meet our
Keeping up with the pace of changing industry scenarios, we entered the
Oil and Gas exploration industry. And in due course we diversified
itself into mining, oil trading, leasing of oil rigs and also providing
seismic data interpretation during 2007-08.
Oil prices are comprehensively linked with the fundamentals of growth
and development of a given economy. Empirical research draws a link
between the price of oil and key macroeconomic indicators, such as GNPp
trade balance, unemployment, inflation and interest rates. It suggests
that the price of oil has a major impact on the health of domestic
economies. The continued growth in Oil and Gas exploration and
production activity, is one of the primary drivers in the use of
seismic surveys and seismic equipment.
The global economy is reeling under a spell of inflation, influenced
significantly by the accelerating crude oil prices. Even though oil
prices softened in July-August 2008, it looks like it has not yet eased
the double- digit inflationary pressures. However, the world oilfield
service market is expected to expand to a USD 15 billion industry
within the next five years. The industry is primarily driven by
increased exploration and production activities, translating into a
huge opportunity for Sterling.
Presenting a brief review of Sterling''s performance during 2007-08, I
take the privilege of declaring, that even during this period
transition, we earned a consolidated income of Rs. 2,014.28 million.
Our consolidated profit before tax was recorded at Rs. 533 million,
while our consolidated net profit stood at Rs. 524 million.
Given the growing demand and supportive government policies, we are
optimistic about our future presence because, the demand for Oil and
Gas is expected to remain strong in any feasible futuristic scenario.
Again, the emerging low-carbon economies trend, presents lucrative
opportunities for us.
In recent years, the Oil and Gas sector was characterised by a growing
appetite of oil products and low reserve accretion. The outlook for the
industry continues to be optimistic, as the increase in oil prices is
making a number of marginal fields profitable.
These factors make the prospects of the oil industry particularly
exciting and we are armed and eagerly waiting to seize the upcoming
opportunities, which can only mean that we are in the process of fast
forwarding our growth.
Nitin J. Sandesara