Asian Oilfield to acquire majority stake in joint venture Optimum Oil and Gas

Asian Oilfield Services has entered into a share purchase agreement for the acquisition of 51 per cent of equity share capital in Optimum Oil and Gas from its existing shareholder.

The company currently holds 23 per cent of equity share capital in Optimum. "On completion of all closing formalities, Optimum will become a subsidiary of the company with 74 per cent holding," said a statement issued by Asian Oilfield Services.

The company specialises in a geophysical range of onshore seismic and drilling services, including acquisition, imaging and field evaluation. In the second fiscal quarter (Q2 FY20), its revenue from operations grew by 45.9 per cent to Rs 56 crore as compared to Rs 38 crore in Q2 FY19.

Its profit after tax totalled Rs 6.3 crore as compared to a loss of Rs 1 crore in Q2FY19. Earnings before interest, tax, depreciation and amortisation (EBITDA) for Q2 FY20 was Rs 12.5 crore as compared to Rs 6 crore in Q2 FY19, posting a growth of 110 per cent.

The EBITDA margin of 22.6 per cent was due to better operating performance and focus on cost optimisation, the company said.