This microcap shipping company, which is engaged in providing shipping services is in focus after receiving an order from Schlumberger Asia worth Rs. 197 crores.
Price Movement
In Tuesday’s trading session, ABS Marine Services Limited stock touched a high of Rs. 258.95 which is 10.35 percent up from its previous close price of Rs.234.65. The stock has recently been listed in the bourses. The issue price was Rs. 147 and listed at Rs. 294 per share. The stock has delivered a negative return of around 13.64 percent and underperformed nifty in the same period. Currently, the stock is trading at Rs.251.90 per share.
What happened
The company has received orders from Schlumberger Asia Services (Hong Kong) for the Charter Hire of an Offshore supply vessel to be converted to a well-stimulation vessel. The contract tenure period is for 3 years and any conversion time is further extendible for three years at the charter’s option. The value of the contract is worth Rs. 197 crore or USD 23.5 million.
Financial Performance
Their recent FY24 results show revenue from operations increased by 21.49 percent year on year, from Rs. 111 crores in FY23 to Rs. 135 crores in FY24. Their net profit increased by 148.63 percent year on year, from Rs. 10.22 crores in FY23 to Rs. 25.41 crores in FY24.
The return on equity in FY24 stood at 24.12 percent up from 11.53 percent a year ago. The debt to equity ratio was 0.45 times which has reduced from 0.62 times in FY23. However, the return on capital employed has stood at 20.32 percent which has increased from 11.80 percent in FY23.
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Revenue Segment
According to the company’s annual report, they considered revenue from a single source. They derive their revenue from the shipping business as of FY24. Charter hire charges contribute around 40.84 percent, Ship Management Fees contribute around 58.37 percent, and 0.77 percent from Vicutualling Income (Food, drink, and other stores for length of passage for the trip).
Shareholding Pattern
As of September 2024, the shareholding pattern includes promoters holding a major share of 63.42 percent stake in ABS Marine Services. Foreign Institutional Investors (FIIs) hold 0.48 percent, Domestic Individual Investors hold around 10.03 percent, and public holdings stand at 26.07 percent.
About the company
ABS Marine Services Limited is into marine solutions which include ship ownership, crew services, and management. The company operates a fleet of five owned vessels and they manage an additional twelve for various clients including the private sector and government.
Their business model focuses on integrating in-house vessel management with advanced offshore support services while catering to the oil and gas industry. ABS Marine also looks for strategic partnerships and contracts, which significantly contribute to its topline. The company also aims to improve its capabilities through IPO funding for vessel acquisition and working capital needs.
Written by Santhosh S
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