Asian Energy Services Ltd Q3 FY20 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Management growth scorecard
Revenue
Category 3
Margin
Category 3
Fundraise
Yes
Order
Yes
Capex
Yes
3 of 5 growth signals are positive.
Full analysisRevenue 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.
See what Asian Energy Services Ltd management said on margin guidance — free account, 30 seconds.
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.
See what Asian Energy Services Ltd management said on order book — free account, 30 seconds.
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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