Any current/future new fundraising through debt or equity?

Asian Oilfield Services plans to incur capex of approximately Rs. 70-75 Crore for the recently awarded seismic order. This capex will be funded through a mix of internal accruals and short-term debt. No specific mention of any immediate equity fundraising or public offerings. Management intends to manage capex internally and with short-term borrowings rather than through equity. Plans to list on NSE exist but without a defined timeline; focus currently on consolidating performance before pursuing listing or equity raising.

Any current/future capex/capital investment/strategic investment?

The company is incurring capex of approximately Rs. 70-75 Crore for the recently awarded seismic order. This capex will be funded through a mix of internal accruals and short-term debt. The management is evaluating entry into new verticals like EOR (Enhanced Oil Recovery) and de-commissioning, but no specific timeline is provided for these. Capex plans will be managed carefully with a combination of internal accruals and short-term debt. The company remains cautious about project selection and capex to avoid idle assets and optimize utilization.

Future growth expectations in sales/revenue/volumes?

The company expects continued revenue growth in FY2020 and FY2021 compared to FY2019 based on a strong order book and commencement of project executions. Current order book stands at approximately Rs. 1,000 crore, with active participation in bids and a robust order pipeline, especially in seismic projects. Seismic business has significant opportunities over the next five years in India and abroad, with contract awards under OALP expected to total around Rs. 1,500 crore in the next 6-9 months. The Langley Turnaround Maintenance project in Nigeria is progressing well and contributing to revenue

Future growth expectations in earnings/operating earnings/profits/EPS?

Asian Oilfield Services expects good growth in revenue for FY2020 and FY2021 compared to previous years, driven by order book execution and new order inflows. (Page 10) EBITDA margin improvements are based on robust operating performance and are expected to be sustained per previously provided margin guidance. (Page 12) Order book as of December 31, 2019, stands at approx. Rs. 997 crore, with ongoing bids for new projects enhancing future revenue streams. (Page 3, 10) The company anticipates adding orders in upcoming years to diversify its revenue across verticals and geographies. (Page 4, 10)

Current/ Expected Orderbook/ Pending Orders?

Total outstanding orderbook as of December 31, 2019: Rs. 997 crore. - Construction of oil and gas facility: approx. 21%. - Seismic projects: approx. 58%. - Operation & Maintenance (O&M): approx. 21%. Domestic orders: 79%, International orders: 21%. Recent significant order: Rs. 570 crore seismic project for 2D and 3D seismic data acquisition in Rajasthan and Gujarat with a two-year duration. Excluded from orderbook: $37 million (approx. Rs. 260 crore) seismic order received in Q1 FY2020 for Iraq, which is likely deferred. Current orderbook is about Rs. 1000 crore with a strong pipeline o

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Asian Energy Services LtdQ4 FY21Oil

Asian Energy Services Ltd Q4 FY21 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹372P/E: 32.6Market Cap: ₹1.5K CrSector: Oil

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Yes

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→The company expects continued revenue growth in FY2020 and FY2021 compared to FY2019 based on a strong order book and commencement of project executions.
→Current order book stands at approximately Rs. 1,000 crore, with active participation in bids and a robust order pipeline, especially in seismic projects.
→Seismic business has significant opportunities over the next five years in India and abroad, with contract awards under OALP expected to total around Rs. 1,500 crore in the next 6-9 months.
→The Langley Turnaround Maintenance project in Nigeria is progressing well and contributing to revenue.
→Plans to diversify revenue streams across business verticals to reduce client concentration.
→The company anticipates growth in FY2022 and FY2023 as well from new orders being pursued.
→Outlook remains positive despite cyclicality and oil price fluctuations, supported by government policies like OALP and outsourcing trends.

Margin guidance

Category 3

→Asian Oilfield Services expects good growth in revenue for FY2020 and FY2021 compared to previous years, driven by order book execution and new order inflows. (Page 10)
→EBITDA margin improvements are based on robust operating performance and are expected to be sustained per previously provided margin guidance. (Page 12)
→Order book as of December 31, 2019, stands at approx. Rs. 997 crore, with ongoing bids for new projects enhancing future revenue streams. (Page 3, 10)
→The company anticipates adding orders in upcoming years to diversify its revenue across verticals and geographies. (Page 4, 10)
→The company is positioned to benefit from strong seismic activity demand domestically for 2-3 years, partially mitigating business cyclicality. (Page 8)
→Profit after tax rose 276.3% YoY in Q3 FY2020, reflecting strong earnings momentum. (Page 3)
→No specific EPS guidance or numeric profit forecasts were provided. (Page 10)

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Fundraise plans

Yes

→Asian Oilfield Services plans to incur capex of approximately Rs. 70-75 Crore for the recently awarded seismic order.
→This capex will be funded through a mix of internal accruals and short-term debt.
→No specific mention of any immediate equity fundraising or public offerings.
→Management intends to manage capex internally and with short-term borrowings rather than through equity.
→Plans to list on NSE exist but without a defined timeline; focus currently on consolidating performance before pursuing listing or equity raising.

Order book

Yes

→Total outstanding orderbook as of December 31, 2019: Rs. 997 crore.
→ - Construction of oil and gas facility: approx. 21%.
→ - Seismic projects: approx. 58%.
→ - Operation & Maintenance (O&M): approx. 21%.
→Domestic orders: 79%, International orders: 21%.
→Recent significant order: Rs. 570 crore seismic project for 2D and 3D seismic data acquisition in Rajasthan and Gujarat with a two-year duration.
→Excluded from orderbook: $37 million (approx. Rs. 260 crore) seismic order received in Q1 FY2020 for Iraq, which is likely deferred.
→Current orderbook is about Rs. 1000 crore with a strong pipeline of bids.
→Indian seismic contract awards under OALP worth approx. Rs. 1,500 crore expected within 6-9 months.
→Asian participates selectively in bids focusing on good margins.
→The next year's orderbook is already mostly filled, aiming to add orders for FY2022 and FY2023.
→Mobilization for the Rs. 570 crore seismic order expected to complete by March 12, 2020.

Capex plans

Yes

→The company is incurring capex of approximately Rs. 70-75 Crore for the recently awarded seismic order.
→This capex will be funded through a mix of internal accruals and short-term debt.
→The management is evaluating entry into new verticals like EOR (Enhanced Oil Recovery) and de-commissioning, but no specific timeline is provided for these.
→Capex plans will be managed carefully with a combination of internal accruals and short-term debt.
→The company remains cautious about project selection and capex to avoid idle assets and optimize utilization.

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