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. 

Next Story
Infrastructure Urban

DDA Approves Rs 87.2 Billion Budget for 2025-26

The Delhi Development Authority (DDA) has approved a budget of Rs 87.2 billion for the financial year 2025-26, with a strong emphasis on civic infrastructure development, green space rejuvenation, housing, and sports facilities, according to an official statement. Chaired by Lieutenant Governor V.K. Saxena, the budget meeting highlighted several large-scale projects, including the revitalisation of the Yamuna floodplain, creation of expansive parks, and upgraded civic amenities. Out of the total outlay, Rs 41.4 billion has been earmarked for capital expenditure, covering new roads, infrastruc..

Next Story
Infrastructure Energy

Vi Taps Cisco to Power Next-Gen Network

Telecom operator Vodafone Idea (Vi) has joined hands with US-based tech major Cisco Systems to revamp its transport network infrastructure across India. The strategic partnership aims to enhance network performance, scalability, and user experience for both retail and enterprise customers. As part of the agreement, Vi will deploy Cisco’s advanced Multiprotocol Label Switching (MPLS) technology to create a high-capacity, software-driven transport network. This will significantly improve the telecom player’s ability to manage surging data traffic and support data-heavy digital services such..

Next Story
Building Material

GPT Infra Commissions New Steel Girder Plant Near Kolkata

GPT Infraprojects announced the successful commissioning of its steel girder and components manufacturing facility in West Bengal on April 24, 2025. Located in Village Majinan, Hooghly district—about 60 km from Kolkata—the plant begins operations with an initial capacity of 10,000 metric tonnes per annum (MTPA). The company stated that the facility is in the process of securing RDSO (Research Designs and Standards Organisation) approval for manufacturing steel bridge girders. Once approved, this unit is expected to become a key asset for the company’s steel bridge segment, catering to c..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?