Smallcap stock engaged in the business of providing wide range of services to the energy and minerals sector jumped upto 5 percent in the day’s trade upon receiving a new work order worth Rs. 200 Crores to supply Compressor Station.
Price Action
With a market capitalization of Rs. 1,737 Crores, the shares of Asian Energy Services Limited closed at Rs. 388 per equity share, up 1.25 percent from its previous day’s close price of Rs. 383.20.
What Happened
Asian Energy Services Limited has received a new work order on a Build, Own, Operate, and Transfer (BOOT) basis for 3 years from Assam Gas Company Limited for supplying Compressor Station for a consideration of ~Rs. 200 Crores of which ~Rs 82 crores are to be realized in the first year on a Free Truck (FOT) site basis which is inclusive of freight, unloading, and stacking
The Mobilisation of 1st Compressor is expected to be completed in Q4FY25 and the rest will be completed in the following Financial Year.
Management Comment
Mr Kapil Garg, Managing Director, Asian Energy Services Limited said, “We are delighted to announce that we have been awarded a significant contract by Assam Gas Company Limited to supply and operate a compressor station on BOOT basis for a period of three years.
This achievement underscores our unwavering commitment to the operations and maintenance segment and highlights our proven expertise in delivering end-to-end upstream energy solutions.
With the government’s increasing emphasis on natural gas as a key component of the energy transition, we are well-positioned to leverage emerging opportunities in this evolving sector.”
About the Company
Asian Energy Solutions Limited is engaged in the business of providing services to the energy and minerals sector. It is an oilfield service and reservoir imaging company, offering a suite of geophysical services specializing in land and well seismic services and operation & maintenance services for oilfields. It has a strong order book of Rs. 997 Crores.
Its services include geophysical data acquisition (seismic), turnkey drilling, production facility construction (EPC) and facility operation and maintenance, on-site data processing, enhanced oil recovery services, seismic consulting and interpretation, and wireless seismic and data acquisition, and many more services.
Financials & Ratios
Its revenue from operations grew by 107 percent from Rs. 47.55 Crores in Q2FY24 to Rs. 98.57 Crores in Q2FY25, accompanied by profits of Rs. 1.06 Crores to Rs. 9.29 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 11.84 percent, and a return on capital employed (ROCE) of 14.44 percent. It has reported a debt-to-equity ratio of 0.04.
Written by: Bharath K.S
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