Shares of Asian Energy Services Ltd surged over 100 percent in the last one month on the back of higher volumes. The scrip is trading at Rs 110 This gain was despite the weak earnings for the first half of FY23. On Friday, the stock gained as much as 5 percent after its promoter increased its stake in the company. The stock was up five out of six sessions and jumped 37.7 percent during this period. At 10 am, the stock was trading at Rs 110 on BSE, up 4.5 percent from its previous close.
After surging to Rs 110 in the morning of March 24, up from Rs 54.75 on February 28, the stock erased the morning gains amid investors booking profit. At 11 am, the stock fell by 5 percent to Rs 101.
On March 21, a company announced that it had been granted a Letter of Award (LoA) by Svetah Energy Infrastructure FZE, based in the United Arab Emirates, for the management and maintenance of the Svetah Venetia floating production storage and offloading system (FPSO).
ASEL has announced that the Svetha Venetia floating production storage and offloading system (FPSO) will be utilized for oil and gas production in the offshore area of contract area CY-OS-90/1 (PY3 Field) in Puducherry. The Letter of Award for this project is estimated to be worth $20 million or Rs 165 crore. Additionally, the primary term is proposed to be five years, beginning from the date of Svetha Venetia's readiness to receive hydrocarbons from PY3 Field.
Asian Energy announced in a filing with the exchange that its holding company, Oilmax Energy Private Limited, has been awarded a 20-year mining lease, starting from April 1, 2023, for the DSF Block to extract crude oil and natural gas from the Government of Gujarat.
Also read: Asian Energy Services shares jumps 6% after firm acquires 50% interest in the oil & gas field at Indrora, Gujarat
Meanwhile, India Ratings and Research has downgraded Asian Energy Services Ltd's long-term issuer rating to Ind BBB- from IND BBB and kept its outlook stable.
"The downgrade reflects the significant deterioration in the consolidated revenue and profitability during 1HFY23 and the likelihood of continued deterioration in the group’s financial performance and credit metrics in the short-to-medium term", India Rating said in its February note.
During the first half of the fiscal year 2023, the group's consolidated revenue decreased to Rs52.30 crore from Rs128.60 crore in 1HFY22. This was due to the force majeure declaration for the South Tripura and Baramura projects, caused by local resistance in those areas, as well as the absence of new orders for seismic data acquisition services.
In the first half of the fiscal year 2023, the group suffered EBITDA losses of Rs12.59 crore, in contrast to an EBITDA profit of Rs37.28 crore during 1HFY22, due to the decline in revenue. Ind-Ra anticipates a substantial deterioration in the EBITDA margin for FY23, based on the weak operational performance in the first half of the fiscal year.
AESL's order book amounted to approximately Rs682.98 crore as of December 2022, which is 2.7 times the revenue of FY22. The order book comprises orders worth Rs388.86 crore from the engineering procurement and construction (EPC) segment, Rs278.57 crore of operations and maintenance (O&M) work, and Rs15.55 crore from the seismic data acquisition segment.
According to Ind-Ra, the cash flow from operations is expected to decline in FY23 due to a reduction in the scale of operations.