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Ammaa Ji, this is Aban.... Beta and Beta Gain...
Posted by :
suunilpandeyWhat happen to your black Aban Sir?...
Buy Aban Offshore:Target 1740- India Infoline Research Team / 05:10 PM , Nov 09, 2009
Posted by :
prabi
Recovery in oil prices results in increased utilization rates for jack-up rigs
Crude oil prices have recovered from US$30/bbl to about US$80/bbl within a period of eight months. The recovery has been on back of increased estimates of crude oil demand for CY09 and CY10. E&P players had put on hold their exploration commitments following fall in crude oil prices, especially in deep water blocks. However, with crude oil prices now substantially above the break even level for deep water blocks, demand for jack-ups is firming up. Resultantly, utilization of rigs has been on rising trend in the recent past.
Revenue visibility strong with only three rigs currently idle
During Q2 FY10, Aban Offhsore Ltd (AOL) contracted six vessels on long term basis, leaving only three of its rigs currently under marketing. This has translated into strong revenue visibility for the near term. 100% of H2 FY10 and 75% of FY11 projected revenues are from the existing contracts. Going ahead, with improvement in demand environment, we expect close to 95% utilization levels for AOL’s fleet in FY11.
Equity dilution or sale of assets imminent for debt repayment
During FY11, AOL has a commitment to repay US$410mn worth of debt. We expect the company to generate Rs20bn worth of cash profits in FY10, which should take care of debt repayment. However, considering increase in business activity we expect higher working capital requirement resulting in strained overall cash-flows. Hence, we expect the company to raise funds either through equity dilution (QIP issue) or sale of assets. At our target price, we expect about 10-15% dilution in equity, if the company raises about US$200mn through the QIP issue.
Steep discount to global peers not justified, recommend BUY
AOL is currently trading at P/E multiple of 4x, its FY11E earnings of Rs316. However, global average of major players is currently at 10x 2009 and 8x 2010 earnings. Considering, AOL’s highly leveraged balance sheet, a discount is warranted. However, we believe the 50% discount is unjustified in the light of improving demand environment. We value AOL at 6x FY11E earnings (25% discount to global average) yielding a target price of Rs1,740. Recommend BUY.
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i have aban 800 share at the rate of 1677 what to do...
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Posted by : suunilpandeyAban is still struggling, I dont think Aban will maintain 1400 INR up level. if any good official news will come then may be it will move up. I will always predict to smaller investment to avoid this stock. It is big Junk for portfolio and only owners & supporter of Aban enjoying to grab money from smaller investor. ...
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Posted by :
Guest
ABAN has nothing good. they posted negative results, Rigs are idiel, huge debt
THere are lot of negative things and nothing positive news from ABAN official.
last week 2 days it ran well but from yesterday it is tired due to above reasons.
We can see uptrend only after Official good news, otherwise this scrip will go down even the market positive
Your suggestions are welcomed...
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Posted by : ipsearch
Hi,
Its bit strange, but even when market is heading for 5000, Aban seems to have slowed down. I was expecting it to rise much more then its closed too. It was finding difficult to even cross 1300. Any views or the stocks has been revalued taking debt of Aban + QIP withdran into consideration.
Cheeers...
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Posted by : mukund_India
Thanks To Market buying, due to huge buying in market only ABAN could come to 1290, otherwise we would seen the ABAN at 1240 level
ABAN was very weak today, but due to market support only it came up and I feel that tommorow no will save ABAN. Except if positive news comes from ABAN officials
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Posted by : malteshlingoToday in last half an hour of trade it picks up as usual.... tgt is 1350+...
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Posted by : NAUGHTY007what is the next week hope...
willl shoot up
Posted by : sabret00theVery true and I agree with your point. ...
Rig Details
Posted by :
rono28us
Dear Friends,
It is good to note that ABAN is deploying 2 rigs by Dec. It would certainly act as a trigger for the price to go up. Could someone inform the source of the information?...
Aban in deal to deploy 2 rigs by Dec
Posted by : prabi
Mumbai: Aban Offshore has confirmed that it has contracted two of three idle rigs at $120,000 per day, and they will be deployed by December first week.
A source close to the development said the management will not sell any of the rigs -- as reported in media -- saying it is still aggressively marketing the third one.
"The rigs will not be deployed in the Middle-East ... more like in North America," the source said.
The rigs (Aban VII, Deep Driller 1 and Deep Driller 6) are a part of the company`s seven rigs that were lying idle for the past few months. Aban was able to deploy four of these on long-term contracts four months ago.
Crude prices have doubled in the last six months from $40 per barrel to nearly $80, making it lucrative for oil exploration companies to rent rigs.
Kunal Lakhan, analyst with broking house K R Choksey Shares and Securities had earlier told DNA Money at $70-75 per barrel, it becomes affordable for oil companies to get into exploration and production activities.
By Neha Rishi / DNA
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willl shoot up
Posted by : suunilpandey
Dear Aamaa,
This type of wording we also heared in 2 years back when aban was trading more than 2000, then suddenly what happen Sir?
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willl shoot up
Posted by : suunilpandey
I dont think so, market already passed from lot of correction and From USA we are getting some good news, so I hope Nifty will move updward.
But if we are seeing risk factor & lot of invester also weired to invest in Aban, because if we see the price graph with in 2 years, Aban could not perform well. you all must remember when any one purchase Aban (2 years before) at 2500 above.Till this date he could not get his refund back, WE know VERY WELL lot of blue chip & mid cap companies had given his 52 week high, but Aban is still left 20% to achieve 1680 and 50% dip from 1 & half years.
I am not mentioning to any one or intraday guy. we are investor and we look forward to get well refund of our money. ...
