 "An offshore oil platform at the Bouri Oil Field off the coast of Libya")
At a time when crude oil prices have been down, oil drilling major Aban Offshore decided to strengthen its balance sheet as the overall market weakened. Debts of $22 million were cleared-off and a loan of $65 million was extended for two years, which strengthened the company's cash flows.
Aban Offshore promoters exercised their balance preferential warrants, which, along with exercise of warrants in the previous year, infused $25 million into the company's networth and benefits of the same will be visible from the current fiscal, said P Murari, chairman, Aban Offshore.
Addressing the shareholders, he said, "Receivables from Iran have been declining. This improved cashflow is likely to bolster liquidity and profitability of the company."
The development comes in the backdrop of lifting of the US embargo on Iran.
The stigma of Iran is rapidly receding, which is expected to reduce their cost of spares, ensure quicker returns on investments and, in general, facilitate a greater opportunity of opening up of business.
By the end of March 2016, nine out of the company's 18 rigs were deployed. The company said that it is now focusing on maximising asset utilisation within two years and then strengthening the day rates.
