Shares of Asian Energy Services rallied 9.92% on Wednesday’s early trades after the company bagged an order worth ₹ 165 crores for the operation and maintenance of a floating production storage and offloading system in Puducherry. At 12:02 PM, its shares were trading at ₹ 104.55 up 6.41%.
According to an exchange filing, the company has received a Letter of Award (LOA) from Svetah Energy Infrastructure FZE, UAE for the operations and maintenance works (O&M) of the floating production storage and offloading system (FPSO) named Svetah Venetia, to be deployed for the production of oil and gas in the offshore area of contract (PY-3 Field) located near Puducherry on the east coast of India.
The estimated value of the project is around 20 million USD (₹ 165 crores). The primary term is proposed to be 5 years commencing from the date of readiness of Svetha Venetia to receive hydrocarbons from the PY_3 field.
This order is the third of its kind and the company has achieved a key milestone with this LOA to emerge as a dependable and cost-efficient service partner for the O&M of production facilities for the oil and gas industry.
With a market capitalization of ₹ 370.00 crores, Asian Energy Services is a micro-cap company. It is an oil field service and reservoir imaging company, offering a suite of geophysical services. The company has a return on equity of 17.44% and an ideal debt-to-equity ratio of 0.09.
Written by Simran Bafna
