>ABAN(EDELWEISS)

Aban Offshore’s (Aban) standalone PAT was at INR 1.6 bn vis-à-vis INR 1.2 bn for
consolidated entity. High financing expenses and losses in a few subsidiaries subdued
profits.
�� Losses reported in a few subsidiaries were significantly higher than their respective
revenues (please refer subsidiary analysis section for details).
High leverage: Future incremental cash flows will be key to deleveraging BS
�� The debt-equity (DE) ratio as at end-FY08 was 16x; however, on considering nonconvertible
redeemable preference shares as debt, D/E would stood at 26.3x. D/E for
the standalone entity as at the end of FY08 was at 1.4x and on considering nonconvertible
redeemable preference share as debt , D/E was at 2.5x. Preference shares
are redeemable at par during 2011 & 2012
�� Loan book has increased from INR 11 bn in FY06 to INR 130 bn in FY08, primarily due
to the USD 2.2 bn Sinvest acquisition.
�� Loan repayable in FY09 is INR 17.02 bn, which is ~8 times net cash from FY08
operations. However, with delivery and full-year contributions of many new-build rigs,
future cash flows may be significantly higher, facilitating debt repayment. Also, the
company had significant cash and cash equivalents of INR 8.4 bn.

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