Date:25/03/2008 URL: http://www.thehindubusinessline.com/2008/03/25/stories/2008032551230300.htm

Back Great Offshore mulls buyback

Our Bureau

Mumbai, March 24 Great Offshore, an integrated offshore oilfield services provider, proposes to go in for a buy-back of shares.

The board of directors of the company will meet on March 31 to consider the proposal, the company said in a notice to the Bombay Stock Exchange.

While the company declined to comment, market analysts said that the company wants to shore up the market value of its shares. Since January 8, the shares of Great Offshore lost 48.5 per cent to Rs 591.30 on Monday.

Mr Ajay Parmar, Head of Research from Institutional Equities of Emkay Shares said, “Usually the companies tend to buy back five to 10 per cent of equity.” However he added, what would be Great Offshore’s strategy would be known only after the board meeting.

According to Mr Parmar, the outlook on exploration and production sector is upbeat. Oil prices are spiralling and contracts are happening at multiplier levels. “With the payback period for the companies being reduced to four to five years, the companies are also sure of their income.”

Great Offshore is the hived off arm of Great Eastern Shipping Company. The promoters hold 20.5 per cent stake in the company.