MUMBAI: A Venezuelan offshore natural gas platform, built by the Indian oilfield services firm Aban Offshore, sank into the sea on Thursday, leading to concerns among analysts over its impact on the company’s prospects. The semi-submersible rig Aban Pearle — which contributed 10-12% to the firm’s turnover — collapsed due to a failure in the operating system, prompting evacuation of all workers aboard the rig.
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MUMBAI: A Venezuelan offshore natural gas platform, built by the Indian oilfield services firm Aban Offshore, sank into the sea on Thursday, leading to concerns among analysts over its impact on the company’s prospects. The semi-submersible rig Aban Pearle — which contributed 10-12% to the firm’s turnover — collapsed due to a failure in the operating system, prompting evacuation of all workers aboard the rig. “It was decided to evacuate all personnel, following the incident on the semi-submersible rig Aban Pearl. All crew members have been evacuated and are safe,” said Aban Offshore, in a statement issued to BSE on Thursday. Analysts tracking the company feel the development is likely to have a negative impact on the Aban balance sheet. “The rig was a money-spinner and was contributing substantially to the earnings,” said an analyst with a Mumbai-based brokerage. MUMBAI: A Venezuelan offshore natural gas platform, built by the Indian oilfield services firm Aban Offshore, sank into the sea on Thursday, leading to concerns among analysts over its impact on the company’s prospects. The semi-submersible rig Aban Pearle — which contributed 10-12% to the firm’s turnover — collapsed due to a failure in the operating system, prompting evacuation of all workers aboard the rig. “It was decided to evacuate all personnel, following the incident on the semi-submersible rig Aban Pearl. All crew members have been evacuated and are safe,” said Aban Offshore, in a statement issued to BSE on Thursday. Analysts tracking the company feel the development is likely to have a negative impact on the Aban balance sheet. “The rig was a money-spinner and was contributing substantially to the earnings,” said an analyst with a Mumbai-based brokerage. “The accident will have an adverse impact on the company’s performance, with revenue and EBIDTA likely to get impacted by 12% each in FY11,” he said. He, however, added that the market will wait for further clarity on the actual damage caused by the accident and how much of it will the company be able to salvage through insurance claims. The Aban Offshore stock fell 1.5% to close at Rs 1,017 on Thursday. Aban Offshore deputy managing director CP Gopalkrishan could not be contacted despite repeated efforts at the company’s registered office in Chennai.
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Aban may take a hit as Venezuelan offshore rig sinks - Economic Times
