Asian Oilfield surges on order

Asian Oilfield Services is in the limelight today morning. It scaled up almost 11% at Rs.79.50 but profit booking at that level has not brought the stock to Rs.74 levels, up some 2.5%.

The stock surged on the back of good news that it has received Letters of Award (LoA) for two contracts from Oil India for an estimated total value of Rs 140 crore.

This contract is for acquisition of 2D Seismic Data in unappraised land areas of North East India.

The going seems to be good for the company as it had received a contract in September from a company in Netherlands for 222.1 square kilometer of 3D Seismic Data Acquisition at block EP 4 in Myanmar. This contract was valued at $7.33 million.

On the financial front though Q2FY17 was bad as it had ended the quarter with a much lower topline and a net loss of Rs.1.55 crore. Market cap is at Rs.164 crore. Promoters holding is suspiciously low at 9.88%.