35% Growth Forecast In Operating Profits At Offshore Rig Operators In FY26
OIL & GAS

35% Growth Forecast In Operating Profits At Offshore Rig Operators In FY26

Indian offshore rig operators will see their operating profits surge 30-35 per cent in the next financial year, after a 25-30 per growth in the current fiscal year, according to a Crisil Ratings report released. This will help strengthen the debt metrics and credit profiles of rig operators in the absence of any significant investment towards new rig purchases, the report further stated. 

The Crisil Ratings study is based on domestic jack-up rig operators accounting for around 50 per cent of the domestic supply. The report also highlights that the global supply of rigs will continue to remain muted given the lack of interest by rig operators in placing new rig orders owing to long payback periods and limited long-term revenue visibility. This is because demand for rigs is tightly linked to offshore exploration and production activities which in turn depend upon the medium-term outlook of crude oil demand as well as its price. 

Global demand for crude oil is expected to remain muted growing at less than 1 per cent in 2025, its prices are also likely to remain range-bound at around $75 per barrel. Nonetheless, these crude oil prices will continue to be remunerative enough for offshore exploration and production activities resulting in steady demand for existing offshore rigs in the near term. This has also resulted in the order book for new rigs coming down gradually to record low levels of 3 per cent of existing supply from the peak of 25 per cent in fiscal 2015. 

Indian offshore rig operators will see their operating profits surge 30-35 per cent in the next financial year, after a 25-30 per growth in the current fiscal year, according to a Crisil Ratings report released. This will help strengthen the debt metrics and credit profiles of rig operators in the absence of any significant investment towards new rig purchases, the report further stated. The Crisil Ratings study is based on domestic jack-up rig operators accounting for around 50 per cent of the domestic supply. The report also highlights that the global supply of rigs will continue to remain muted given the lack of interest by rig operators in placing new rig orders owing to long payback periods and limited long-term revenue visibility. This is because demand for rigs is tightly linked to offshore exploration and production activities which in turn depend upon the medium-term outlook of crude oil demand as well as its price. Global demand for crude oil is expected to remain muted growing at less than 1 per cent in 2025, its prices are also likely to remain range-bound at around $75 per barrel. Nonetheless, these crude oil prices will continue to be remunerative enough for offshore exploration and production activities resulting in steady demand for existing offshore rigs in the near term. This has also resulted in the order book for new rigs coming down gradually to record low levels of 3 per cent of existing supply from the peak of 25 per cent in fiscal 2015. 

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code