Essar Oilfields Services Q3FY14 EBIDTA at USD 18.39 million

Mauritius: Essar Oilfields Services Limited, a wholly owned subsidiary of Essar Shipping Limited (ESL), announced its consolidated results for the quarter ended December 2013.

Consolidated results highlights
During Q3 of FY2014, the company has reported total revenue of USD29.90 million (INR179.63 crore) as against USD32.33 million (INR 176.33 crore) in the corresponding quarter of FY2013. Further, the EBITDA stands at USD18.39 million (INR 110.49 crore) as against USD21.03 million (INR 114.72 crore) in the corresponding quarter of FY 2013.

The results of the company were impacted by the high volatility of the US Dollar vs. the Indian Rupee in this quarter. Additionally, there have been some delays in the deployment of some of its land rigs that are owned and operated by its wholly-owned subsidiary Essar Oilfield Services India Limited (EOSIL). During this quarter, the company has reported a loss of USD 0.47 million (INR 2.81 crore) as against a profit of USD 4.95 million (INR 26.99 crore) in the corresponding quarter of the FY 2013.

Operational highlights for the quarter

• Essar’s semi-submersible rig, Essar Wildcat, continues its drilling contract with ConocoPhillips, Indonesia, operating at very high efficiency levels
• Land rig LR#3 is hired by KEI-RSOS Petroleum & Energy Ltd to drill its 3+2 well campaign in the East Godavari District, near Rajahmundry in Andhra Pradesh.
• Land rig MR#1 is hired by BG Shirke for its workover operations of 1+1 well in the Manepalli field, Rajahmundry, Andhra Pradesh 
• Land Rig LR#4 is hired by Oilex India to drill its one well (plus four optional wells) in Cambay region, Gujarat

Commenting on the results, Mr Ankur Gupta, CEO of Essar’s Oilfield Services Business, said: “The high volatility of US dollar has swayed the profitability of the business in this quarter which has in turn impacted the performance of the business on a consolidated basis. Irrespective of the consistent high efficiency of Essar Wildcat, the gross earnings from land rig operations have dropped in this quarter. However, the expected commencement of operations of land rigs LR#3, LR#4, and MR#1 gives a positive outlook for the company in the near term. We are actively pursuing various other opportunities in India as well as in international geographies to maximise our asset utilization rate.”

Essar Oilfields Services provides contract drilling and related services to oil and gas companies worldwide, operating both offshore and onshore. It owns a fleet of 16 rigs, which includes one semi-submersible rig and 15 onshore rigs.

For Media Queries
Mauritius
Ritesh Doorbiz,
Email: ritish.doorbiz@essar.com

India
Manish Kedia,
Senior VP Corporate Affairs, Essar
Phone: +91 98197 30092
Email: manish.kedia@essar.com