Essar Oilfields Services Ltd, the unlisted arm of Essar Shipping, today reported net profit of $15.71 million for 2012-13 as against $14.84 million loss in the previous fiscal.

Revenue was up 44 per cent to $124.7 million, the company said in a statement here.

The company provides contract drilling and related services to oil and gas companies worldwide, operating both offshore and onshore. It owns a fleet of 15 rigs, which includes one semi-submersible rig and 14 onshore rigs.

Ankur Gupta, CEO, Essar Oilfields said its semi-submersible rig, Essar Wildcat, has been contracted to ConocoPhilip at a date rate of $2,85,000, the highest in the region.

ConocoPhilip has extended the Essar Wildcat contract till June 2014, he said, adding that the company’s 2000 horse-power land rig is drilling for a sub-contractor of state-owned ONGC.

Two new highly mobile land rigs were acquired and deployed for the CBM drilling contract in West Bengal. Four additional rigs are on order.

“The oilfields business has shown strong performance on all fronts — our assets are operating with the highest standards of safety and performance, leading to a substantial increase in revenue and profits,” Gupta said.

“The business has been positively impacted by increased utilisation of Essar Wildcat rig at increased day rates and better deployment of land rigs, both in conventional oil and gas markets as well as the unconventional CBM (Coal Bed Methane) markets,” he said.

The company, which had a debt of $370 million, is looking at replacing expensive rupee loans with cheaper foreign currency borrowings.

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