The Hindu Business Line : Great Offshore: Betting on demand

The stock of Great Offshore, the newly de-merged offshore services business of GE Shipping, has been largely range-bound in the recent past, yet market players are keenly watching the stock. The company is expected to be the biggest beneficiary of both, the rising demand for global offshore services as well as the increasing day rates, due to its dominant position in India.

Analysts maintain that its young fleet and deepwater vessels will boost company business. Great Offshore has two exploratory drilling rigs at present which are expected to contribute about 40 per cent of revenues in FY-09 as compared to 16 per cent in FY-06 due to improved utilisations.

While there are concerns about intensifying competition due to greater participation from foreign players or a dip in oil prices below $50 or a slowdown in exploration plans, which will affect day rates, industry sources believe otherwise. They expect Great Offshore to witness increased demand on the back of heightened focus on E&P by oil majors such as ONGC and aggressive participation in NELP bidding, including that of foreign players. The stock ended at Rs 744.25 on the BSE.

Deeptha Rajkumar

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