 "Aban Offshore plans to reduces debt by 10% this year")
Aban Offshore, which provides drilling and support services for offshore oil exploration and production, is planning to reduce its debt level by 10 per cent this year from $2.2 billion now. It has moved an enabling resolution to get shareholders' approval to raise $400 million through global depositary receipts, American depositary receipts and another Rs 2,500 crore through qualified institutional placements (QIPs). In 2014, it raised Rs 750 crore and the funds were utilised to repay debt.
Speaking on the sidelines of the company's annual general meeting on Wednesday, managing director Reji Abraham said the company plans to bring down the debt level by 10 per cent every year.
Arm ties up with Airtel, TCS
Aban Energies, subsidiary of Aban Offshore, has formed a joint venture with Tata Consultancy Service and Airtel to sell wind energy, which is produced by Radhapuram Wintech and Aban Green Power. The companies entered into an agreement for supply of green power under group captive scheme, said Abraham.
The company has 60 megawatt (Mw) in Tamil Nadu and planning to add around 10 Mw every year.
Aban was supplying the power to TNEB, since payment was getting delayed and prices were also lower, it decided to supply to private entities.
Reji Abraham, managing director, Aban Offshore said that the company was supplying power to the Board for Rs 3-3.5 per unit, the private players are paying double of that.
The wind energy division of the Company reported an improvement in performance, ending the year with revenues of Rs 8.7 crore million as compared to Rs 6.2 crore in the previous year without any asset increase.
