The share price of this small cap Oil & Gas industry service provider hits a 5% lower limit after ONGC’s 2 year tendering ban.
Share price variations:
With a market capitalization of Rs. 1,541.62 crores, the shares of Asian Energy Services Ltd hit its lower price band of 5% in NSE on Monday at Rs. 357.05 per share from its previous closing of Rs. 375.05 per share and closed at Rs. 364.00 per share,down 3.14% below the previous close. The share price has increased by 31.17% over the last six months and given a multibagger return of 124.49% in the past year.
Reason for the fall:
According to exchange filings, Oil & Natural Gas Corporation (ONGC), India’s largest crude oil and natural gas company, has barred Asian Energy Services Ltd from participating in any tenders with ONGC for a period of two years.
The order pertains to two contracts awarded to Asian Energy Services Ltd by ONGC in 2017 and 2018 for seismic data acquisition and clarifies that it has received all payments and completion certificates. The order was issued on specific technical grounds, and the company is taking appropriate measures to protect its interests.
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Financial Performance:
For Q1 FY25 the company reported a net profit of Rs. 2.06 crores compared to net loss of Rs. 3.03 crores in Q1 FY24, while revenue from operations marked an increase by 30.79% to Rs. 60.19 crores from Rs. 46.02 crores in comparison to the same period.
In Q1 FY25, the company reported an order book value of Rs. 1,022 crores, with 61% attributable to Infrastructure, 34% to Operations & Maintenance, and 5% to Seismic services. Management anticipates revenue for FY25 to range between Rs. 450-500 crores, up from Rs. 305 crores in FY24.
Recent Projects Received:
In June, the company was awarded a project by Sun Petrochemicals Private Limited for 3D Seismic Data Acquisition and Processing Services in Gujarat, valued at Rs. 37.71 crores.
About the company:
Founded in 1992, Asian Energy Services Limited is an Oil & Gas industry service provider offering services like Geophysical Data Acquisition, operation and maintenance, production facility construction and production enhancement.
Asian Energy Services Ltd has been a subsidiary of Oilmax Energy since 2016, holding approximately 62% of the company. Its order book, valued at Rs. 1,022 crores, includes clients such as Vedanta Ltd, Hardy Oil, Sun Petrochemicals Ltd, Oilmax Energy, HEC, ECL, SCCL, and HEP.
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Written By: Joseph Pv
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