The Hindu Business Line : Great Offshore Q4 net grows 41%

Higher earnings from drilling units and offshore support vessels along with robust earnings from fresh commencement of charters led Great Offshore to post a net profit growth of 41 per cent at Rs 42.3 crore for the fourth quarter ended March 31, 2008, against Rs 29.9 crore in the corresponding period last year.

However, aggregate earnings from harbour tugs were virtually flat, said a statement. Total income for the same period has risen by 35 per cent to Rs 204.9 crore (Rs 151.9 crore).

The net profit for the financial year ended March 31, 2008, grew by 44 per cent to Rs 203.2 crore against Rs 141.4 crore for the corresponding period last year. The company’s total income grew by 38 per cent to Rs 750.3 crore (Rs 544.6 crore).

During the year, the drilling units operated at an average utilisation of around 96 per cent. The offshore support vessels operated for around 9,400 days during the year clocking utilisation of around 83 per cent.

New building contracts

As on March 31, 2008, the fleet of 40 vessels comprise two drilling units, a construction barge, 26 offshore support vessels (OSVs) and 11 harbour tugs. New building contracts on order aggregating around $230 million include a multi support vessel expected to be delivered during the first quarter of the financial year 2009 and a jack-up rig is expected to be delivered by December 2008 or January 2009.

Few of the company’s OSVs would be completing their execution of earlier charters or contracts during the financial year 2009, thereby, being eligible for new tenders and bids. The drilling units are fully chartered for the period under reference and the OSVs and harbour tugs are covered to the extent of 69 per cent and 80 per cent of their operating days, respectively.

On a sector outlook, the company sees hydrocarbon directed activity to have positive results in the emerging tight demand supply fundamentals. Price volatility would continue to negatively impact global economy.

However, as a mismatch exists between supply of assets and the growing exploration and production activity in oil and gas sector in India, the day rates and utilisations will continue to be tightly balanced.