Asian Energy Services Ltd (AESL) is a prominent oilfield service and reservoir imaging company, offering a comprehensive suite of geophysical services. The company specializes in land and well seismic services and provides operation and maintenance services for oilfields. AESL distinguishes itself as one of the few companies providing end-to-end services across the entire upstream oil segment.
Established as a provider of services to energy and mineral sectors, both in India and internationally, AESL operates through its 'Oil and Gas' and 'Mineral and Other Energy Sectors' segments.
AESL's business model encompasses a broad range of services that extend across the entire upstream value chain. Its integrated oil & gas services include:
* 2D and 3D seismic geographical data acquisition
* Operations and maintenance of onshore and offshore oil and gas production facilities
* Production enhancement services
Beyond oil and gas, the company also offers mining services, including the supply and installation of material handling plants and rapid loading systems.
Key Services:
* Seismic services: 2D/3D land seismic acquisition, transition zone acquisition, on-site data processing, borehole and multiclient seismic, seismic consulting and interpretation, and wireless seismic and data acquisition in real time.
* Exploration Support: Topographic survey, continuous core drilling for mineral and CBM exploration, wire-line logging, and directional core drilling to target shallow horizons.
* Clients: ONGC Ltd, Oil India Ltd, Jubiliant Enpro, Canaro Resour, and Assam Gas Company.
Asian Energy Services Ltd has demonstrated strong financial performance and a resilient growth trajectory.
* Market Capitalization: ₹1,398 Crore (up 14.9% in 1 year)
* Revenue (FY25): ₹465.04 crore (vs ₹305.06 crore in FY24, a 52.44% increase)
* Net Profit (FY25): ₹42.12 crore (vs ₹25.47 crore in FY24, a 65.37% increase)
* Q4 FY25 Revenue: ₹215.44 crore (vs ₹118.73 crore in Q4 FY24, an 81.45% increase)
* Q4 FY25 Net Profit: ₹22.52 crore (vs ₹14.57 crore in Q4 FY24, a 54.56% increase)
* H1 FY25 Performance: Record revenues of INR 97.7 crores and improved EBITDA margins of 15.7%.
* Debt Status: The company is almost debt-free, strengthening its financial position.
* Stock P/E: 33.2
* Book Value: ₹89.0
* Dividend Yield: 0.00 % (FY25 recommended dividend: ₹1 per equity share)
* ROCE: 16.6 %
* ROE: 12.4 % (low return on equity of 3.88% over the last 3 years noted in previous analysis)
* Face Value: ₹10.0
* Debtor Days: Improved from 231 to 176 days, indicating better working capital management and operational efficiency.
Oilmax Energy is the holding company of Asian Energy Services Ltd, with approximately a 58% stake as of June 2024. Oilmax Energy is an integrated Oil & Gas company with a balanced portfolio across the upstream value chain, including Exploration and Production, O&M, and hydrocarbon marketing. It operates four oilfields: three in Assam and one in Gujarat.
Asian Energy Services is actively pursuing growth through strategic acquisitions and diversification into new segments.
The company is in the process of acquiring Kuiper Group, a globally recognized provider of comprehensive and integrated manpower solutions specifically tailored for the energy sector across the Middle East and Southeast Asia. This acquisition is expected to be completed within the next two months and will be funded through a combination of internal accruals and debt. This move will significantly expand AESL's global footprint and service capabilities.
AESL has been awarded a significant order from Assam Gas Company for supplying a compressor station on a Build, Own, Operate, and Transfer (BOOT) basis for three years. The total contract value is ₹200 crore, with ₹82 crore to be realized in the first year.
Management's focus on diversifying into coal handling and mineral sectors aligns with government initiatives, presenting significant growth opportunities, particularly with plans to mechanize coal handling plants and increase domestic production.
Asian Energy Services Ltd represents a compelling investment opportunity in the energy services sector. The company has shown remarkable growth trajectory with significant improvement in profitability and operational efficiency. Its diversified service portfolio, strong financial performance, and strategic expansion initiatives – including global acquisitions and diversification into coal handling and mineral sectors – position it well for future growth in India's expanding energy infrastructure landscape.
