GREAT OFFSHORE'S results for the December quarter were better than market expectations, as the company was able to get a higher utilisation level for its offshore supply vessels (OSVs), coupled with the company commencing billing on its lumpsum turnkey engineering contract with ONGC. In Q3FY09, Great Offshore had booked revenues to the tune of Rs 36 crore from this contract with ONGC. However, higher operational costs put pressure on Great Offshore's operating profit margins. As a result, the company's operating profit was virtually flat on a y-o-y basis at Rs 109.5 crore in the last quarter, while its income from operations rose 42.2% to Rs 275.8 crore. Its operating profit margin also declined 1,640 basis points to 39.7 % due to other expenses as a percentage of its income from operations rising 645 bps to 20.6% on repairs and maintenance costs rising 540 bps to 13.7 %. Growth in the company's top line in Q3FY09 was also driven by four vessels that became operational, and it was in contrast to the situation in the September quarter. As a result, during the December quarter, the utilisation level for Great Offshore's OSVs were 94% as compared to 91% a year earlier. Great Offshore has attempted to minimise the risk from weakening spot day rates for its fleet of 60 vessels, with only a small percentage of its fleet on spot contracts. Meanwhile, the company’s consolidated PAT of Rs 78.1 crore rose 2.7 times q-o-q, driven by commencement of contributions from two acquired offshore service companies - KEIRSOS Maritime and Rajahmahendri Shipping.
No comments:
Post a Comment