Company report: OCTL


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Company report: OCTL

  1. 1. Company Profile Registered Address: 108 Kanchanjunga, King Koti Road,Hyderabad 500001 Tel.:040-23231496 , 23231497 , 23235619Fax:040- 23235617 ,
  2. 2. Table of Content 2
  3. 3. Company Profile 3 OCTL is a leading companies in the world processing range of Oil Country Tubular Goods. Single unique integrated Plant located at Narketpally and corporate headquarters at Hyderabad, India. The facilities include Upsetting, Heat Treatment, Non-Destructive Testing, Metallurgical Laboratory, Gagging and Calibration Laboratory, Tool Joint and Coupling Threading, Casing and Tubing Threading, Friction Welding of Drill Pipe, Hydrostatic Testing and Internal Plastic Coating of Tubular. Oil Country Tubular Limited has been assessed and certified by the American Petroleum Institute Quality Registrar (APIQR) as being in compliance with ISO 9001:2008 Quality System. OCTL is licensed by American Petroleum Institute (API) as: 1. Manufacturer of Casing and Tubing: plain end, threaded and coupled, and threader as per API Specification 5CT 2. Manufacturer of Drill Pipe as per API Specification 5DP 3. Manufacturer of Rotary Drill Stem Elements as per API 7-1 Top
  4. 4. Company History 4 1985 - Oil Country Tubular (OCTL) was incorporated on 22nd February. The Company obtained Certificate of commencement of business on 30th March.  The Company was promoted by United Steel Allied Industries (USAI), its managing partner K. Suryanarayana and their associates.  The Company entered into a technical collaboration with Baker Huges Tubular Services Inc. USA., for Oil exploration equipment, comprehensive technology for manufacture of tubular in one integrated plant, and a wellhead scan log - computerized system for automatic and elaborate inspection of tubing on well site. 1991 - The overall production and sales were affected due to restriction on imports. The company proposed to expand its capacity from 50,000 MT to 75,000 MT with additional investment in equipment and other assets. 1995 - The Company entered into a long term arrangement with M/s. Grant Prideco SA Switzerland, a subsidiary of EVI, USA for services and purchase of tubular goods manufactured by the Company. This arrangement ensure optimum utilization of the capacity and substantially add to the income of the company. 1997 - OCTL has only a marketing joint venture with EVI – 100% sales agreement. EVI has entered into an exclusive manufacturing agreement with OCT for five years by which 75% of the OCTs manufacturing facility was exclusive to EVI. The company manufactures drill pipes, production tubings and casing pipes for the oil exploration industry in technical collaboration with Baker Huges Tubular Services of the US. 1998 - OCTL is yet another company that currently enjoys the benefits of catering to the oil industry. OCTL supplies the oil industry (mainly ONGC) with tubes and pipes that are used in drilling operations. The company managed to improve the debt equity ratio by repaying a substantial quantum of debt amounting to Rs.33 crore. 1999 - The company floated a new arm - United Seamless Tubular Ltd, to manufacture seamless pipes ranging from 5 inches to 14 inches with a capacity of 140 thousand tonnes per annum. 2003 - Shri Sunil Kapoor ceases to be Director with effect from December 5, 2003 as IFCI has withdrawn the nomination vide letter dated December 5, 2003. Source: Money Control Top
  5. 5. Product & Services 5Products Drill PipeCasing Tubing OCTL DS Connection Heavy Weight Drill Pipe Drill Collars (Slick and Spiral) Accessories: Rotary Subs, Lift Plugs and Lift Subs, Cross Over (Drill Pipe to Drill Collar or Drill Collar to Drill Collar), Stabilizer Sleeves, Welded Blade Stabilizers & Integral Stabilizers and Cast Steel Lifting Bails Top
  6. 6. Product & Services 6Services Reconditioning of Drill Pipe Rethreading of Drill Pipe Field Inspection Tool Joint Hardfacing Internal Plastic Coating Top
  7. 7. Management Team 7Board of Directors DesignationMr. K. Suryanarayana ChairmanMr. Sridhar Kamineni Managing DirectorMr. K. G. Joshi Whole time DirectorDr. Abdul Halim Bin Harun DirectorDr. T. S. Sethurathnam DirectorDr. N. S. Datar DirectorMr. K. V. Ravindra Reddy Director Source: BSE India Top
  8. 8. Ownership 8Ownership Dec - 10Promoter & Promoter Group 19,121,701 Indian 19,121,701 Foreign --Public 25,167,829 Institution 68,630 FII 5,400 DII 63,230Non Institution 25,099,199Bodies Corporate 2,605,247 Source: BSE India Top
  9. 9. Peer Group 9 Oil Country Tubular Ltd. Great Offshore Aegis Logistics Dolphin OffshorePeer Group Comparison Results (in USD Oil Country Tub Great Offshore Aegis Logistics Dolphin Offsh Million) Mar- 2010 Sales 70.67 215.40 60.71 112.34 PAT 11.88 37.49 8.29 9.92 Equity 9.42 7.92 3.99 3.35 Source: BSE India Top
  10. 10. Financials 10Income Statement (Annual Trend)(In USD Million) 2009-10 2008-09 2007-08 2006-07 2005 - 06Revenue 70.67 89.44 72.24 55.64 33.70Other Income 0.55 0.37 0.38 0.69 0.29Total Income 71.22 89.81 72.62 56.33 33.99Expenditure -48.65 -68.37 -53.60 -48.63 -28.40Interest -0.37 -0.46 -7.99 -3.94 -3.63PBDT 22.20 20.98 11.03 3.76 1.96Depreciation -1.49 -1.59 -1.53 -1.33 -1.40PBT 20.72 19.39 9.50 2.43 0.56Tax -8.84 -5.57 -3.35 -0.41 -0.07Net Profit 11.88 13.82 6.15 2.03 0.4915 13.82 11.8810 Profit Trend (In USD Million) 6.15 5 2.03 Source: BSE India 0 0.49 Top 2005 - 06 2006-07 2007-08 2008-09 2009-10
  11. 11. Geographic Segment 11The Company is predominantly Profit Contributing (Profit %) Profit (In USDengaged in the manufacture and Million) Countriessale of Oil Country TubularGoods where the risks and America 33 3.92returns associated with the African 5 0.59product are uniform. Hence, the Europe 1 0.12Company has identified the India 32geographic segments as its 3.80primary segment for reporting. Other Asian 29 3.45 Total 100 11.88 29% 33% AmericaThe geographic segmentsof the Company are AfricanAmerica, Europe, India Europeand Other Asian Countries. 32% India 5% Other Asian 1% Source: Company Annual Report Top
  12. 12. Announcements 12 Oil Country Tubular net plummets 85.9% for Sep`10 qtr Oil Country Tubular disclosed a phenomenon drop in standalone net profit for the quarter ended September 2010. During the quarter, the profit of the company declined 85.90% to Rs 34.09 million from Rs 241.85 million in the same quarter previous year. Source: IRIS (25-OCT-10) ICRA upgrades short term rating of Oil Country to `A1 Credit rating agency, ICRA has upgraded the short term rating assigned to the Rs 235 million fund based limits and the Rs 830 million non fund based limits and has also assigned an LA rating in the long term to the Rs 92.5 million fund based limits of Oil Country Tubular (OCTL) to A1 from A2+ earlier. Source: IRIS (02-DEC-09) Oil Country to set up threading facility in Oman Oil Country Tubular (Oil Country), a Hyderabad-based company, is mulling over to set up a threading facility in Oman. The company is also in talks with Oman based Golden Dunes International and Malaysian based UMW Petropipes for setting up a joint venture. Source: IRIS (22-JAN-09) ICRA assigns `A2+` rating to Oil Country Tubular ICRA has assigned an A2+ rating to the Rs 235 million fund based limit and the Rs 830 million non fund based limit of Oil Country Tubular (OCTL). A2 is the above-average credit-quality rating assigned by ICRA to short-term debt instruments; instruments rated in this category carry higher credit risk than instruments rated A1. Source: IRIS (24-DEC-08) Source: IRIS Top
  13. 13. Thank You!By: Pranjali Singh(Research Analyst)