Jindal Drilling and Industries Ltd
NSE:JINDRILL
Jindal Drilling and Industries Ltd
Jindal Drilling & Industries Ltd. engages in the provision of services to entities involved in exploration of oil and gas. The company is headquartered in Gurgaon, Haryana. The firm operates through Drilling and related services segment. The firm offers various services, such as offshore drilling, directional/horizontal drilling, measurement while drilling (MWD) services and mud logging services. The company offers various types of offshore rigs, such as drilling barges, jack-up rigs, submersible rigs, semi-submersible rigs and drill ships. The company owns approximately 10 ready sets of MWD tools, over 80 steerable downhole mud motors, approximately 20 jars and about 90 non-magnetic drill collars. The MWD is a technology used to determine the position of the well by measuring the real time parameters, such as direction, inclination and tool face. The company operates approximately six Jack-up Rigs, namely Jindal Explorer, Jindal Pioneer, Discovery I, Jindal Star, Virtue I and Jindal Supreme.
Jindal Drilling & Industries Ltd. engages in the provision of services to entities involved in exploration of oil and gas. The company is headquartered in Gurgaon, Haryana. The firm operates through Drilling and related services segment. The firm offers various services, such as offshore drilling, directional/horizontal drilling, measurement while drilling (MWD) services and mud logging services. The company offers various types of offshore rigs, such as drilling barges, jack-up rigs, submersible rigs, semi-submersible rigs and drill ships. The company owns approximately 10 ready sets of MWD tools, over 80 steerable downhole mud motors, approximately 20 jars and about 90 non-magnetic drill collars. The MWD is a technology used to determine the position of the well by measuring the real time parameters, such as direction, inclination and tool face. The company operates approximately six Jack-up Rigs, namely Jindal Explorer, Jindal Pioneer, Discovery I, Jindal Star, Virtue I and Jindal Supreme.
Operational Performance: The company's Q3 operational results were broadly unchanged from previous quarters, with no major changes in core business performance.
Litigation Impact: A gain of around INR 100 crores from a favorable ONGC litigation outcome in prior quarters was reversed this quarter after the case became subjudice in the Supreme Court, significantly affecting reported bottom line.
Order Book: The company confirmed its order book for Q4, indicating revenue visibility in the near term.
Rig Contracts & Tenders: Multiple rigs are coming up for contract renewal, with ONGC expected to release several tenders soon. Management does not anticipate major competitive pressures for these contracts.
Cost Management: Dry dock/refurbishment expenses for rigs are expected to be between INR 50 to 100 crores per rig, amortized over the contract period.
Demand Outlook: Global rig demand is rising, especially as Saudi Aramco brings back rigs, but competition remains limited in the Indian market due to specific ONGC requirements.
Cash Usage: The company is cash-rich but prioritizing cash conservation for upcoming rig refurbishments and vendor payments, though it has doubled its dividend payout compared to the previous year.
