Jindal Drilling rises as board OKs to buy jack-up rig for $75 mln

Jindal Drilling and Industries advanced 2.62% to Rs 628 after its board approved to purchase jack-up rig 'Jindal Pioneer' from Discovery Drilling Pte., Singapore at a consideration of $75 million.

Discovery Drilling Pte., Singapore is a joint venture of company of Jindal Drilling and Industries.

The said rig is presently deployed by Discovery Drilling Pte., on a bareboat charter with Saimexicana S.A. de C.V. in Mexico at a day rate of $35,000 net of withholding taxes, which will increase sequentially during the present contract to continue till December, 2025.

The acquisition is subject to regulatory approvals and it will be funded by internal accruals. The company said that it shall improve operational synergies, increase the scale of operations and profitability.

Jindal Drilling and Industries, part of the Dharam Pal Jindal Group (DP Jindal Group), is a leading Indian company in offshore drilling and allied services, including directional drilling and mud logging. JDIL takes rigs on lease from group companies or third parties and provides drilling services to upstream companies in Mumbai Offshore (Bombay High) region. The company also provides mud-logging and directional drilling services to onshore sites.

The company reported 28.42% increase in consolidated net profit to Rs 31.94 crore on 32.42% growth in revenue from operations to Rs 183.06 crore in Q3 FY24 over in Q3 FY23.

Powered by Capital Market - Live News