Aban Offshore Shares Climb to Four-Month High on Debt Plans
May 15 (Bloomberg) -- Shares of Aban Offshore Ltd., an Indian oil-drilling company, advanced to their highest in four months on speculation the company may renegotiate to improve the terms of its debt.
Aban Offshore, the best performer on the broader BSE200 Index today, jumped 22 percent to 618.25 rupees as of 2:51 p.m. in Mumbai, the highest since Jan. 14
"There are rumors of the company restructuring its debt obligations," said Saeed Jaffery, a Mumbai-based analyst at Ambit Capital Pvt. Shares also gained on expectations it may win a contract from Oil & Natural Gas Corp. following speculation that the oil explorer may have canceled an agreement with rival Great Offshore Ltd., Jaffery said.
C.P. Gopalkrishnan, deputy managing director at Aban Offshore, couldn't be immediately reached for a comment and didn't respond to e-mailed questions. Oil & Natural Gas Chairman R.S. Sharma and Finance Director D.K. Sarraf were traveling and couldn't be reached for a comment on their mobile phones.
Aban had $3.2 billion of debt as of March, Jaffery said. The company on April 27 reported a loss of 930.4 million rupees ($19 million) in the fourth quarter, compared with a profit of 339.2 million a year earlier.
Great Offshore fell 3.7 percent to 268 rupees. Rajat Dutta, general manager of corporate communications at Great Offshore couldn't be immediately reached in his office.
Bharati Shipyard Ltd., India's second-largest shipbuilder that acquired a 14.89 percent stake in Great Offshore this month, dropped 3.8 percent to 110.30 rupees.
To contact the reporter on this story: Pooja Thakur in Mumbai at pthakur@bloomberg.net .
May 15 (Bloomberg) -- Shares of Aban Offshore Ltd., an Indian oil-drilling company, advanced to their highest in four months on speculation the company may renegotiate to improve the terms of its debt.
Aban Offshore, the best performer on the broader BSE200 Index today, jumped 22 percent to 618.25 rupees as of 2:51 p.m. in Mumbai, the highest since Jan. 14
"There are rumors of the company restructuring its debt obligations," said Saeed Jaffery, a Mumbai-based analyst at Ambit Capital Pvt. Shares also gained on expectations it may win a contract from Oil & Natural Gas Corp. following speculation that the oil explorer may have canceled an agreement with rival Great Offshore Ltd., Jaffery said.
C.P. Gopalkrishnan, deputy managing director at Aban Offshore, couldn't be immediately reached for a comment and didn't respond to e-mailed questions. Oil & Natural Gas Chairman R.S. Sharma and Finance Director D.K. Sarraf were traveling and couldn't be reached for a comment on their mobile phones.
Aban had $3.2 billion of debt as of March, Jaffery said. The company on April 27 reported a loss of 930.4 million rupees ($19 million) in the fourth quarter, compared with a profit of 339.2 million a year earlier.
Great Offshore fell 3.7 percent to 268 rupees. Rajat Dutta, general manager of corporate communications at Great Offshore couldn't be immediately reached in his office.
Bharati Shipyard Ltd., India's second-largest shipbuilder that acquired a 14.89 percent stake in Great Offshore this month, dropped 3.8 percent to 110.30 rupees.
To contact the reporter on this story: Pooja Thakur in Mumbai at pthakur@bloomberg.net .
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