Q1 FY2010-11 (Standalone) REVIEWED	Q1 FY2009-10 (Standalone) REVIEWED
Total Income	Rs. 23,929 lacs	Rs. 24,754 lacs
Operating EBIDTA	Rs.9,636 lacs UP 22%	Rs. 7,904 lacs
Operating EBIDTA Margin %	40.8%	32%
EBIDTA	Rs.9,975 lacs UP 25%	Rs. 7,954 lacs
EBIDTA Margin %	41.69%	32.13%

Great Offshore Ltd. at its Board meeting today, approved the standalone - unaudited financial results (provisional) for the three months ended June 30, 2010.

Financial Performance (standalone) unaudited (provisional) during Q1 FY 2010-11

• Income from operations at Rs.23,590 lacs (corresponding Q1FY 2009-10 - Rs.24,704 lacs)
• PBT at Rs.3,424 lacs (corresponding Q1FY 2009-10 - Rs.2,499 lacs)
• PAT at Rs.2,673 lacs (corresponding Q1FY 2009-10 - Rs.2,220 lacs)

Accounting Policy

The Company has adopted principles set out in Accounting Standard (AS) 30 “Financial Instruments: Recognition and Measurement” issued by ICAI in respect of Hedge Accounting Policy . Accordingly, the unrealised exchange gain/loss on revaluation of its foreign currency borrowings have been designated in the Hedge Reserve Account.

During the current quarter, the net unrealised exchange loss on foreign currency borrowings aggregating to Rs. 4,013 lacs has been debited to Hedge Reserve Account and the total realised exchange loss debited to Profit & Loss Account amounts to Rs. 106 lacs. The debit balance in Hedge Reserve Account as on June 30, 2010 is Rs. 5,046 lacs.

Financials unaudited (Consolidated) for the first quarter ended June 30, 2010

For the first quarter ended June 30, 2010, consolidating all the wholly owned subsidiaries viz. Deepwater Services (India) Ltd. (which has inchartered “Badrinath”), Great Offshore (International) Limited, Great Offshore Fujairah L.L.C.- FZC , KEI-RSOS Maritime Ltd and Rajamahendri Shipping & Oilfield Services Ltd., the company in aggregate clocked a total income of around Rs. 29,049 lacs, registering a profit after tax of around Rs. 2,841 lacs.

As compared to the corresponding quarter in FY 2009-10, the first quarter of FY 2010-11 recorded a marginal decrease in operating income. Significant rise in project revenue income derived from implementation/ execution of the marine engineering and construction projects has largely offset the revenue set back on account of dry docking of Rig Kedarnath, few other high yield vessels and vessels on the spot market which witnessed the depressed charter rate market.

The addition of a PSV and an AHT resulted in a 7% rise in revenue days as compared to the corresponding period in the Q1 FY 2009-10. Increase in capital employed towards acquisitions of 6 vessels during the later part of FY 2009-10 attributed in an increase in interest and depreciation costs by 24% and 47% respectively as compared to same quarter in previous FY 2009-10.

During Q1FY 2010-11, the floater Badrinath continued its 3 year chatter with ONGC while the Jack Up rig Kedarnath proceeded for dry dock ,refurbishment and up gradation in end April 2010 to be available for its subsequent 5 year firm charter with ONGC commencing September 2010. Utilisation of the Offshore Support Vessels for the quarter under reference was around 68% as against 72% in Q1 FY 2009-10. In case of harbour tugs the quarter saw a utilisation to the extent of 95% (corresponding quarter 91% ).

Fleet

As on August 10, 2010, the standalone fleet constitutes 47 owned vessels (3 drilling units, 28 offshore support vessels, 3 marine construction assets, a floating dry dock and 12 harbour tugs).

Revenue Visibility

As on June 30, 2010, revenue visibility on existing charter contracts for owned vessels for the balance period of the financial year FY 2010-11 is around Rs. 43,200 lacs. Individually, the asset classes of offshore support vessels and harbour tugs are covered to the extent of 55 % and 90% of their operating days respectively.

Place: Mumbai

For clarifications, kindly address all emails to: investor_services@greatoffshore.com

 

In terms of Clause 41 of the Listing Agreement, Board of Directors of the Company at its meeting held on August 10, 2010 approved the Statement of Unaudited financial results for the first quarter ended June 30, 2010.

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CRISIL has revised its rating outlook on Great Offshore Ltd’s (GOL) long-term loan to ‘Stable’ from ‘Negative’, while reaffirming the rating at ‘A’; the rating on the company’s short-term facilities has also been reaffirmed at ‘P1’. The revision in the outlook reflects CRISIL’s expectation of continued strong relationship with Oil and Natural Gas Corporation (ONGC), and that GOL’s operational and financial performance will remain stable, over the medium term.

During 2009-10 (refers to financial year, April 1 to March 31), ONGC cancelled an order due to delay in delivery of the 350-foot jack-up rig by GOL; this exposed GOL to the risk of decline in business from ONGC in future. However, during the same year, ONGC, through a global competitive tendering process, awarded a contract for one of GOL’s existing jack-up rig, Kedarnath for a period of five years at the rate of USD69,000 per day. This rig was earlier under a three year contract with ONGC for USD46,000 per day. Apart from Kedarnath, ONGC also chartered few of GOL’s offshore supply vessels.

The ratings continue to be supported by GOL’s stable cash flows and high revenue visibility owing to its strategy of contracting bulk of its assets on a long-term basis. The ratings are also underpinned by the company’s strong market position in the offshore oil field services business. However, these rating strengths are partially offset by GOL’s ageing fleet, with high maintenance costs, and its moderate financial risk profile marked by large debt levels.

Outlook: Stable
CRISIL believes that GOL will maintain its credit risk profile over the medium term backed by its ability to enter into long-term contracts, which account for significant proportion of its revenues. Furthermore, the new 350-foot jack-up rig, which is to be delivered by the end of 2010 (refers to calendar year, January 1 to December 31) is expected to be deployed in early 2011-12 at favourable day rates. More-than-expected cash accruals, coupled with an improvement in GOL’s capital structure, could result in a revision of the outlook to ‘Positive’. Conversely, the outlook could be revised to ‘Negative’ in case of weaker-than-estimated debt protection metrics or large debt-funded capital expenditure.

About the Company
GOL is one of the largest offshore oil field service providers in India, offering drilling and offshore support services to oil and gas companies for exploration and production activities. The company was formed when the offshore division of The Great Eastern Shipping Company Ltd (GESCL) was demerged into a separate company in October 2006.

Taking into account the years when it was the offshore division of GESCL, GOL has over two decades of operational experience in the offshore oil field services business. The company, as an erstwhile division of GESCL, is India’s first private sector company to enter the offshore business, with the purchase of an offshore support vessel in 1983. The company entered the drilling business with its first rig in 1987. It was also the first to own a platform supply vessel, and, pioneered the fire-fighting vessel segment with two dedicated fire-fighting support vessels under long-term charter with ONGC. GOL has a total fleet of 47 comprising drilling assets, support vessels, construction barges and tugs. It has four wholly owned subsidiaries, Deep Water Services (India) Ltd, Great Offshore Fujairah LLC-FZC, KEI-RSOS Maritime Ltd and Rajamahendri Shipping and Oilfield Service Ltd. GOL also holds a 26 per cent stake in a joint venture company, United Helicharters Pvt Ltd.

Bharati Shipyard Ltd (BSL), along with its subsidiaries, is now the single-largest shareholder in GOL, with about 49 per cent stake and has recently appointed three representatives as directors on the board of GOL, two of whom are executive directors

For 2009-10, GOL reported a profit after tax of Rs.2.01 billion on net sales of Rs.11.71 billion, against Rs.2.75 billion and Rs.11.39 billion, respectively, for 2008-09.

 

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	Q4 FY2009-10 (Standalone)UNAUDITED	FY 2009-10 (Standalone)UNAUDITED
Total Income	Rs. 27,852 lacs UP 3%	Rs. 101,238 lacs UP 6%
Operating EBIDTA	Rs.13,571 lacs UP 13%	Rs. 42,808 lacs UP 16%
Operating EBIDTA Margin %	49.5%	46.4%

Great Offshore Ltd. at its Board meeting today, approved the standalone - unaudited financial results for the three months and financial year ended March 31, 2010.

Financial Performance (standalone) unaudited during Q4 FY09-10

• Income from operations at Rs.27,393 lakhs (corresponding Q4FY 2008-09 - Rs.25,731 lakhs)
• EBIDTA of Rs.14,030 lakhs (corresponding Q4FY 2008-09 - Rs.13,177 lakhs)
• PBT at Rs.7,818 lakhs (corresponding Q4FY 2008-09 - Rs.8,296 lakhs)
• PAT at Rs.7,305 lakhs (corresponding Q4FY 2008-09 - Rs.7,135 lakhs)

Financial Performance (standalone) unaudited for the financial year ended March 31, 2009

• Income from operations Rs.1,00,739 lakhs (corresponding period during FY 2008-09- Rs. 89,516 lakhs)
• EBIDTA of Rs.42,808 lakhs (corresponding period during FY 2008-09 - Rs.36,706 lakhs)
• PBT at Rs.19,378 lakhs (corresponding period during FY 2008-09 - Rs.23,590 lakhs)
• PAT at Rs.17,618 lakhs (corresponding period during FY 2008-09- Rs.21,110 lakhs)

Accounting Policy

Company has been following principles set out in Accounting Standard (AS) 30 “Financial Instruments: Recognition and Measurement” issued by ICAI in respect of Hedge Accounting Policy. Accordingly, the unrealised exchange gain/loss on revaluation of its foreign currency borrowings have been designated in the Hedging Reserve Account. During the current quarter, the net unrealised exchange gain on foreign currency borrowings aggregating to Rs. 4,177 lakhs has been credited to Hedge Reserve Account and the total realised exchange loss debited to Profit & Loss Account amounts to Rs. 305 lakhs. The debit balance in Hedge Reserve Account as on March 31, 2010 is Rs. 1,139 lakhs.

The Company has changed its Accounting Policy with effect from April 1, 2009 in respect of expenses incurred at the time of five yearly Special Surveys and / or life enhancement programmes by which Class certificates / Operating licenses are renewed and capitalised the said expenses. In the opinion of the Company, the said change in the accounting policy would result in a more appropriate representation of the Financial Statements of the Company. The Company has also obtained opinion from Independent Chartered Accountants in this regard. Accordingly, during the Quarter ended March 31, 2010, the Company has capitalised Rs. 151 lakhs ( Rs. 3,989 lakhs for year ended March 31, 2009) expenditure incurred during five yearly Special Surveys and charge on Profit & Loss Account is lesser by Rs. 149 lakhs. ( Rs.3,511 lakhs for the year ended March 31, 2010).

Financials unaudited (Consolidated) for financial year ended March 31, 2010

• For the financial year ended March 31, 2010, consolidating all the wholly owned subsidiaries viz. Deepwater Services (India) Ltd. (which has inchartered “Badrinath”), Great Offshore (International) Limited, Great Offshore Fujairah L.L.C.- FZC , KEI-RSOS Maritime Ltd and Rajamahendri Shipping & Oilfield Services Ltd. the company in aggregate clocked a total income of around Rs. 1,17,154 lakhs, registering a profit after tax of around Rs.20,259 lakhs as against Rs. 1,13,925 lakhs and Rs. 27,507 lakhs

During the fourth quarter of FY 2009-10, there has been a 6% rise in operating income primarily on account of doubling of engineering project income and 12% rise in revenue days due to fleet addition. As compared to the corresponding period in the FY Q4 2008-09, addition of 3 assets has resulted in rise in interest cost and a 47% rise in depreciation.

During Q4FY 2009-10, drilling rigs continued to be fully utilised similar to their utilisation during the corresponding Q of FY 2008-09. In case of harbour tugs the quarter saw a utilisation to the extent of 96% (corresponding quarter 100% ). The offshore support vessels were utilised to the extent of around 78% as against 94 % during Q4 FY 2008-09.

Fleet

As on April 20, 2010, the standalone fleet constitutes 47 owned vessels (3 drilling units, 28 offshore support vessels, 2 construction barges , a heavy lift vessel, a floating dry dock and 12 harbour tugs). During the quarter the company took delivery of a second hand 350 feet Jack Up rig renamed “AMARNATH”.

Revenue Visibility

As on March 31, 2010, revenue visibility on existing charter contracts for owned vessels for the next financial year FY 2010-11 is around Rs. 60,000 lakhs.

The Jack Up Rig Kedarnath will end its continuing charter during Q1 FY 2010-11 while the Rig Badrinath will end its charter during Q3 FY 2010-11. Individually, the asset classes of offshore support vessels and harbour tugs are covered to the extent of 55 % and 100% of their operating days respectively.

Place: Mumbai

For clarifications, kindly address all emails to: investor_services@greatoffshore.com