• Q1 FY08-09 income from operations up by 39%
• Revenues at Rs. 20,268 lakhs
• EBIDTA increase of 31%
• Profit before exceptional items at Rs. 4,196 lakhs up by 20%
• Exceptional item of Rs.2,364 lakhs represents no current cash outflow
• Bags prestigious engineering services contract of Rs.23,400 lakhs

Great Offshore Ltd. at its Board meeting today approved the standalone - unaudited financial results (provisional) for the three months ended on June 30, 2008.

Performance (standalone) during Q1 FY08-09

Financials unaudited (Standalone)

• Income from Operations Rs.20,268 lakhs (corresponding Q1FY 2007-08- Rs. 14,501 lakhs)
• EBIDTA of Rs.8,427 lakhs, an increase of 31% (corresponding Q1FY 2007-08- Rs.6,398
lakhs)

Since a substantial part of the Company’s revenues are dollar denominated, it has been by and large the Company’s policy not to hedge its dollar liability. The Company believes this to be in its longterm interest. In strict compliance with Accounting Standard (AS) 11, the loss arising out of translation of its loan liabilities for acquiring vessels from abroad is disclosed as an exceptional item. The Company intends to advance comply with AS 30 and has launched an exercise to determine what its effective hedge position would imply. This exceptional item represents no current cash outflow.

Financials unaudited (Consolidated)

Consolidating the wholly owned subsidiary, Deepwater Services (India) Ltd., the company registered a profit after tax of around Rs. 2,040 lakhs on a total income of around Rs.22,400 lakhs.

Fleet

As on July 30, 2008, the fleet comprises 40 vessels ( 2 drilling units, a construction barge and a heavy lift vessel , 25 offshore support vessels and 11 harbour tugs).

Corporate developments

Business

The Company has been awarded an engineering contract on a lump sum turn key basis of around Rs.23,400 lakhs by ONGC to be completed by middle of CY 2010. The EPIC contract dealing with carrying out engineering , procurement, fabrication , transportation and installation of barge bumpers, boat landings, riser protectors on 79 offshore platforms is aimed at accomplishing ONGCs commitment to enhancing safety. The work would be carried out at production/ process platforms operating in three fields of Mumbai High, Bassein & Satellite and Neelam & Heera fields all on the west coast of India.

Status on Inorganic growth opportunity

Further to the announcements made on January 15 and July 7, 2008 respectively, the Company has communicated its decision to discontinue, pursuance of the offer - for purchase of controlling stake in an overseas body corporate which has on order two harsh environment, semi-submersible, sixth generation drilling rigs on order. The decision to withdraw from the above is without any implication of any kind, financial or otherwise on the Company.

Financial

As of July 30, 2008, the company has bought back around 8,81,000 equity share under its ensuing buy back programme from May 7, 2008 aggregating around Rs. 5,031 lakhs.

As on June 30, 2008, revenue visibility for the balance period of 9 months for the FY 2008-09 is around Rs. 50,506 lakhs. While the drilling units are fully chartered , individually the asset classes of offshore support vessels and harbour tugs are covered to the extent of 80 % of their operating days.

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Great Offshore has been awarded a lump-sum turn key engineering contract of around Rs. 234 crores by ONGC. The contract execution is scheduled to be completed by middle of CY 2010.

The Engineering Procurement Installation & Commissioning contract scope involves carrying out engineering , procurement , fabrication , transportation and installation of barge bumpers, boat landings, riser protectors on 79 ONGCs offshore platforms; aimed at accomplishing ONGCs commitment to enhancing safety. The work will be carried out at production/ process platforms in the western Indian fields of Mumbai High, Bassein & Satellite and Neelam & Heera.

This contract represents an important milestone in Great Offshore’s attempt to grow its engineering services and projects earnings to complement its offshore logistics and drilling services earnings. Consolidated revenues from engineering services and projects undertaken during FY 2007-08 attributed to around Rs.25 crores.

“It’s been our consistent endeavour to diversify the growth drivers for our business. This contract is a big step in that direction. It is a formidable leap for the Company in terms of business positioning. As in the past, it is the company’s endeavour to live up to the expectations and aspirations of all our stakeholders.” – Vijay K Sheth- Vice Chairman cum Managing Director

 

With reference to the “Public Announcement” dated April 16, 2008 and as per Regulation 15(i) of Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998, the shareholders of the Company are hereby informed that for the fortnight ending July 21, 2008, the Company has purchased 8,79,615 (Eight lakh seventy nine thousand six hundred and fifteen) equity shares from NSE and 1000 (One thousand) equity shares from BSE totaling 8,80,615 (Eight lakh eighty thousand six hundred and fifteen) equity shares.

The said purchase amounts to 91.04% of the amount envisaged as per the “Public Announcement”.

 

Third Annual General Meeting of the Company was held on July 10, 2008. The business as mentioned in the notice convening the said meeting was transacted in detail.

All the resolutions, including declaration of pro-rata dividend @ 5.66% on Optionally Convertible Redeemable Preference Shares and final dividend @ of Rs 8/- per equity share for the financial year 2007-08 were passed unanimously.

 

A Meeting of the Board of Directors of the Company will be held on July 30, 2008 at 2.00 p.m. at the Board Room,Energy House, 81, Dr D N Road, Mumbai-400001 to consider the Unaudited financial results of the Company for the first quarter ended on June 30, 2008.