GICS Industry : Oil, Gas & Consumable Fuelsl Sub Industry : Oil & Gas Exploration & Production l Website : www.shiv-vani.com
Shiv Vani Oil and Gas Exploration
Services Ltd
Key Stock Indicators
NSE Ticker :
Bloomberg Ticker :
Face value / Share:
Div. Yield (%):
SHIV-VANI
SVOG:IN
10.0
0.2
CMP (as on 28 Dec 2010—Rs/share):
52-week range up to 28 Dec 2010 (Rs)(H/L):
Market Cap as on 28 Dec 2010 (Rs mn):
Enterprise Value as on 28 Dec 2010 (Rs mn):
Div. Yield (%):
0.0
402.3
475.2/342.9
18,651
41,788
Shares outstanding (mn) :
Free Float (%) :
Average daily volumes (12 months) :
Beta (2 year) :
Shiv-Vani Oil & Gas Exploration Services Limited (SVOGESL), headquartered in New Delhi, was
incorporated in December 1989, and rapidly evolved to emerge as a key player in the upstream
sector of the oil industry. SVOGESL offers a wide spectrum of services in the field of oil and natural
gas exploration and production. These include shot hole drilling, seismic surveying, directional
drilling, well development, down hole operations, engineering and logistics, natural gas
compression and allied services. As of March 31, 2010, its projects were spread across 36 sites in
India. It has 40 rigs and 10 seismic survey crews.
KEY HIGHLIGHTS
Pre-qualified to work for over 25 companies
SVOGESL has a strong presence in India and extensive working relationships with key corporations
such as ONGC and Oil India Ltd. The company is pre-qualified to work for more than 25 oil and gas
exploration and production companies at home and abroad. Operations for drilling, work over
services and seismic services can be executed abroad. It is entering into markets such as the USA
and the Commonwealth of Independent States.
46.4
46
69,320
1.2
Key Financial Indicators
Mar-08
5,781.2
41.1
919.7
15.9
1.1
16.8
31.3
3.3
13.9
16.2
12.6
Revenue (Rs mn)
EBITDA ma rgins (%)
PAT (Rs mn)
PAT ma rgins (%)
Gea ring (x)
EPS (Rs /s ha re)
PE (x)
P/BV (x)
RoCE (%)
RoE (%)
EV/EBITDA (x)
Mar-09
8,773.3
41.1
1,927.1
22.0
2.4
43.9
2.2
0.5
13.7
24.5
6.6
Mar-10
12,557.6
45.2
1,991.1
15.9
2.0
42.9
9.4
1.6
13.5
19.3
7.4
n.m. : Not meaningful
Commenced major work for ONGC in FY10
In FY10, SVOGESL commenced operations of six 2000 HP rigs located at various sites in India for a
Rs 16.10 bn contract it received from ONGC. The contract is to deploy 8 rigs with integrated service
like directional drilling, mud engineering, etc. Operations for 2 rigs, consisting of a 3000 HP rig
(largest on-land rig in India) and a 2000 HP rig, had commenced in FY10-FY11.
Shareholding (As on September 30, 2010)
Others
32%
DII
4%
FII
9%
KEY RISKS
•
Fluctuations in crude oil and natural gas prices
•
Acquiring latest technology on a timely manner
•
Nature of operations presents hazards and inherent risks of loss, if not insured or indemnified
against, could adversely affect business
Promoter
55%
Stock Performances vis-à-vis market
Returns (%)
-1
16
Note:
1) YTD returns are since April 1, 2010 to Dec 28, 2010.
2) 1-m, 3-m and 12-m returns are up to Dec 28, 2010.
(index)
160
140
120
100
80
60
40
20
0
('000)
1600
1400
1200
1000
800
600
400
200
0
Volumes (RHS)
SHIV-VANI
Nov-10
4
Oct-10
13
Sep-10
NIFTY
Jul-10
20
Aug-10
-11
Jun-10
7
May-10
-9
Apr-10
SHIV-VANI
Indexed price chart
Mar-10
12-m
Jan-10
3-m
Feb-10
1-m
Dec-09
YTD
NIFTY
CRISIL COMPANY REPORT | 1
Shiv Vani Oil and Gas Exploration Services Ltd
BACKGROUND
SVOGESL, headquartered in New Delhi (India) was incorporated in December 1989 and rapidly evolved to emerge as a key player in the upstream sector of the oil industry.
The company offers a wide spectrum of services in the field of oil and natural gas exploration and production. These include shot hole drilling, seismic surveying, directional
drilling, well development, down hole operations, engineering and logistics, natural gas compression and allied services. It also provides integrated coal bed methane (CBM)
services in India. As of March 31, 2010, its projects are spread across 36 sites in India. The company has 40 rigs and 10 seismic survey crews. Key clients for the company are
Oil and Natural Gas Corp Ltd (ONGC), Oil India Ltd, Petroleum Development Oman and Shell Development Oman.
SVOGESL has 6 subsidiaries -- Shiv-Vani Oil & Gas Co LLC, Oman; SV Oil & Natural Gas Ltd, Mauritius; Natural Oil & Gas Services Ltd, Mauritius; Shiv-Vani Singapore Pte Ltd,
Singapore; Shiv-Vani Oil Services Ltd, New Delhi and TNG Shiv Geo Services Ltd, New Delhi.
COMPETITIVE POSITION
Peer Comparison
Revenue (Rs mn)
EBITDA ma rgins (%)
PAT (Rs mn)
PAT ma rgi ns (%)
Gea ri ng (x)
EPS (Rs /s ha re)
PE (x)
P/BV (x)
RoCE (%)
RoE (%)
EV/EBITDA (x)
Shiv Vani Oil and
Gas Exploration
Services Ltd Aban Offshore Ltd. Great Offshore Ltd.
Mar-10
Mar-10
Mar-10
12,557.6
33,744.3
11,670.5
45.2
65.7
46.7
1,991.1
3,110.0
2,025.9
15.9
9.2
17.4
2.0
-4.7
2.3
42.9
71.5
54.4
9.4
10.4
7.0
1.6
-1.0
1.4
13.5
14.5
13.5
19.3
24.1
7.4
7.9
6.7
Jindal Drilling &
Industries Ltd.
Mar-10
11,958.4
12.1
841.4
7.0
0.1
36.7
14.1
3.4
38.5
27.1
8.3
n.m: Not meaningful
FINANCIAL PROFILE
Key Financial Indicators
Units
Robust growth over last 2 years; operating margin expands
Revenue
SVOGESL has registered robust growth of ~47% CAGR between FY08 and FY10 with
top-line growing from Rs 5.7 billion in FY08 to Rs 12.5 billion in FY10. This was
primarily due to an increase in revenues from seismic services and deep drilling
services, arising from the commencement of new contracts. EBITDA margins
expanded to 45.2% in FY10 vis-à-vis 41.1% in FY09 due to better realizations.
Rs mil li on
EBITDA ma rgins Per cent
PAT
Rs mil li on
PAT ma rgi ns
Per cent
Mar-08
Mar-09
Mar-10
5,781.2
8,773.3
12,557.6
41.1
41.1
45.2
919.7
1,927.1
1,991.1
15.9
22.0
15.9
Revenue growth Per cent
66.8
89.7
43.1
EBITDA growth
Per cent
93.3
89.6
57.5
PAT growth
Per cent
98.3
161.9
3.3
Gea ri ng
Ti mes
1.1
2.4
2.0
RoCE
Per cent
13.9
13.7
13.5
RoE
Per cent
16.2
24.5
19.3
INDUSTRY PROFILE
Oilfield services
Increase in the crude oil demand in the last few years has led to increase in crude oil prices, thereby increasing drilling activities. Rising demand for drilling activity and tight
demand supply situation of rigs and oil field service markets caused prices to rise steadily. Investments in new building rig have not kept pace with the rally in crude oil
prices. With incremental oil exploration progressively moving into the offshore frontier at the deep and ultra-deep water depth, offshore rigs experienced a surge in
demand and rig rates. Moreover, a great deal of the additions made to the existing fleet has gone into the replacement of older rigs, leading to continued tightness in the
markets thus far. Therefore, rig utilisation rates for semi-submersibles and drill-ships have been consistently more than 90 per cent over the last 3-4 years. Moreover, rigs
are being chartered for 2 years in advance. As a result of the long time lag involved in the construction of rigs, the demand-supply mismatch is expected to continue in the
rig market, especially with deepwater rigs.
This industry has seen strong growth on the back of increased E&P spending. The industry is not local in nature, and government intervention is minimal. An Indian
company is not restricted to its national shores and vice-versa. The dynamics of location, availability and demand for rigs have a direct bearing on rig rates and the cost of
availing oilfield services.
CRISIL COMPANY REPORT | 2
Shiv Vani Oil and Gas Exploration Services Ltd
ANNUAL RESULTS
Income Statement
(Rs million )
Net Sales
Operating Income
Mar-08
5,745.5
5,781.2
Mar-09
8,712.7
8,773.3
Mar-10
12,520.1
12,557.6
EBITDA
EBITDA Margin
2,377.7
41.1
3,606.8
41.1
5,681.5
45.2
428.7
800.1
54.1
502.2
628.3
16.5
1,071.6
1,952.6
14.0
1,186.9
919.7
2,444.3
1,927.1
2,552.9
1,991.1
PAT Margin
15.9
22.0
15.9
No. of shares (Mn No.)
43.9
43.9
46.4
Earnings per share (EPS)
-2.1
-6.1
10.8
Cash flow
(Rs million )
Pre-tax profit
Total tax paid
Depreciation
Change in working capital
Mar-08
1,203.0
-183.2
428.7
-1,875.5
Mar-09
2,492.8
-231.7
502.2
582.5
Mar-10
2,671.4
-120.0
1,071.6
-1,310.7
Cash flow from operating activities
Capital Expenditure
Investments and others
-427.0
-5,794.2
-3.8
3,345.8
-15,944.8
0.0
2,312.3
-6,627.9
-0.5
Cash flow from investing activities
Equity raised/(repaid)
Debt raised/(repaid)
Dividend (incl. tax)
Others (incl extraordinaries)
-5,798.0
3,525.3
2,099.9
0.0
312.2
-15,944.8
0.0
13,012.1
-51.4
36.9
-6,628.4
934.0
3,025.4
-54.1
-22.8
Cash flow from financing activities
Change in cash position
Opening cash
Closing cash
5,937.4
-287.6
922.6
634.9
12,997.6
398.6
634.9
1,033.6
3,882.5
-433.6
1,033.6
600.1
Depreciation
Interest
Other Income
PBT
PAT
Balance sheet
(Rs million )
Equity share capital
Reserves and surplus
Tangible net worth
Deferred tax liablity:|asset|
Long-term debt
Short-term-debt
Total debt
Current liabilities
Total provisions
Total liabilities
Gross block
Net fixed assets
Investments
Current assets
Receivables
Inventories
Cash
Total assets
Mar-08
439.0
6,502.7
6,941.7
247.2
4,581.4
3,118.2
7,699.6
1,174.9
188.9
16,252.3
8,646.0
10,373.9
14.7
5,863.7
2,763.2
239.2
634.9
16,252.3
Mar-09
439.0
8,330.1
8,769.2
532.7
16,363.7
4,348.0
20,711.7
2,133.7
324.8
32,472.1
18,154.1
25,682.8
14.7
6,774.6
2,323.4
878.0
1,033.6
32,472.1
Mar-10
463.6
11,364.2
11,827.8
974.4
18,336.4
5,400.7
23,737.1
3,438.3
111.3
40,088.9
29,150.2
31,331.0
15.2
8,742.8
4,010.6
768.3
600.1
40,089.0
Revenue growth (%)
EBITDA growth(%)
PAT growth(%)
Mar-08
66.8
93.3
98.3
Mar-09
89.7
89.6
161.9
Mar-10
43.1
57.5
3.3
EBITDA margins(%)
Tax rate (%)
PAT margins (%)
41.1
15.4
15.9
41.1
9.5
22.0
45.2
4.7
15.9
Dividend payout (%)
Return on Equity (%)
Return on capital employed (%)
0.0
16.2
13.9
2.3
24.5
13.7
2.3
19.3
13.5
Gearing (x)
Interest coverage (x)
Debt/EBITDA (x)
1.1
3.0
3.2
2.4
5.7
5.7
2.0
2.9
4.2
Asset turnover (x)
Current ratio (x)
Gross current assets (days)
0.7
1.3
463
0.7
1.0
282
0.5
1.0
250
Ratio
n.m : Not meaningful;
QUARTERLY RESULTS
Profit and loss account
(Rs million)
No of Months
Sep-10
% of Rev
3
Sep-09
% of Rev
3
Jun-10
% of Rev
3
Sep-10
% of Rev
6
Sep-09
% of Rev
6
Revenue
2,971.2
100.0
3,250.6
100.0
3,996.2
100.0
6,967.4
100.0
6,038.0
100.0
EBITDA
1,404.6
47.3
1,397.8
43.0
1,760.5
44.1
3,165.2
45.4
2,546.9
42.2
Intere s t
794.7
26.7
408.0
12.6
584.4
14.6
1,379.1
19.8
756.0
12.5
Depre ci a ti on
307.7
10.4
271.4
8.3
389.9
9.8
697.6
10.0
489.2
8.1
PBT
302.2
10.2
696.7
21.4
786.3
19.7
1,088.4
15.6
1,280.1
21.2
PAT
326.1
11.0
563.9
17.3
645.1
16.1
971.2
13.9
984.5
16.3
CRISIL COMPANY REPORT | 3
Shiv Vani Oil and Gas Exploration Services Ltd
FOCUS CHARTS & TABLES
100
80
60
40
500
20
0
-20
100
150
100
400
50
300
0
200
-50
Net Profit
Per cent
60
EPS
14
Sep-10
Jun-10
Mar-10
Dec-09
Sep-09
Jun-09
Mar-09
Dec-08
-100
Sep-08
0
Sales growth y-o-y (RHS)
Rs/share
16
Per cent
200
Quarterly PAT & y-o-y growth
600
Sep-10
Jun-10
Mar-10
Dec-09
Sep-09
Jun-09
Mar-09
Dec-08
Sep-08
Jun-08
Mar-08
Sales
Rs mn
700
Jun-08
Per cent
140
120
Quarterly sales & y-o-y growth
Mar-08
Rs mn
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
Net profit growth y-o-y (RHS)
Movement in operating and net margins
50
12
40
10
8
30
6
20
4
10
2
Jun 2010
58.8
14.4
2.1
24.7
Sep 2010
54.0
9.5
4.5
32.1
Board of Directors
Director Name
Prem Si nghee (Mr.)
Sep-10
Jun-10
Mar-10
Dec-09
Sep-09
Jun-09
Dec-08
Mar-09
OPM
Sep-08
Jun-08
Mar-08
Sep-10
Jun-10
Mar-10
Dec-09
Sep-09
Jun-09
Mar-09
Dec-08
Sep-08
Jun-08
Mar-08
Dec-07
Shareholding Pattern (Per cent)
Dec 2009
Mar 2010
Promoter
58.7
58.8
FII
14.4
14.4
DII
2.1
2.1
Others
24.8
24.7
Dec-07
0
0
NPM
Designation
Executive Cha i rma n & Ma na gi ng
Director
Pa da m Si nghee (Mr.)
Jt.Ma na ging Director
Dwa rka Da s Da ga (Mr.)
Non-Executive Di rector
Om Pra ka s h Ga rg (Mr.)
Ra jnees h Gupta (Mr.)
Non-Executive Di rector
Non-Executive Di rector
Pra teep Kuma r La hiri (Mr.)
Non-Executive Di rector
Hites hi Cha nder Ma l ik (Mr.)
Non-Executive Di rector
Additional Disclosure
This report has been sponsored by NSE - Investor Protection Fund Trust (NSEIPFT).
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CRISIL COMPANY REPORT | 4