*(Formerly Global Offshore Services Limited)* Garware Offshore Services Limited (the **"Company"**) is a specialized provider of offshore logistics and support services for the global oil and gas exploration and production (E&P) industry. Following a decade of financial restructuring necessitated by the **2015** oil price crash, the Company has successfully deleveraged its balance sheet and is now executing a strategic "pivot" back to its core Indian operations. The Company is currently rebranding from **Global Offshore Services Limited** to **Garware Offshore Services Limited** (BSE in-principle approval received **January 2026**) to reflect its renewed strategic direction and shareholding structure. --- ### **Strategic Reorientation & Fleet "Rejig"** The Company has transitioned from a broad international focus to a concentrated operational presence in **Indian waters**, leveraging high charter rates and supply constraints in the domestic **Offshore Support Vessel (OSV)** market. * **Operational Restructuring:** The Company is establishing **three (3) new Wholly Owned Subsidiaries (WOS)** to "rejig" operations. This long-term strategy involves utilizing **International Lenders** and **Flags of Convenience (FOC)** through overseas SPVs (Singapore/Netherlands) to access more favorable debt terms and operational flexibility. * **Fleet Expansion Target:** Management aims to expand the fleet to **6 vessels** over the next **36 months**. The focus is on mid-size assets, specifically **80 Ton AHTSV** and **3000 DWT PSV** units. * **Sector Diversification:** While E&P remains the core, the Company is exploring entry into **Multi-purpose (Construction) support** and the **Offshore Wind** sector to mitigate cyclical oil price risks. * **Relisting:** The Company is actively applying for the re-listing of its Equity Shares on the **National Stock Exchange of India Limited (NSE)** to improve liquidity and investor access. --- ### **Asset Portfolio & Chartering Status** The Company has rationalized its fleet from a peak of **15 vessels** down to a high-specification core. The current fleet has an average age of **16 years**, well within the sustainable operational life of **25 years**. | Vessel Name | Type | Status / Contract Details | | :--- | :--- | :--- | | **M.V. Mahanadi** | **AHTSV** | Acquired **June 2025** (80 Ton BP, DP2). Secured **4-month** term contract (Sept 2025) with **8-month** extension. Annual value: **~₹36 Cr**. | | **M.V. Kamet** | **PSV** | Upgraded to **DP2** (Dynamic Positioning) in **2025**. Operating on the West Coast of India. | | **M.V. Mahananda** | **PSV** | Secured **3-year** contract with **Cairn Oil & Gas** (annual value **~₹15 Cr**). Also secured a **90-day** term contract in Dec 2025 (annualized value **~₹25 Cr**). | | **M.V. Makalu** | **PSV** | Sold by subsidiary in **Sept 2023** for **USD 9.30 million** to settle debt. | | **M.V. Poorna** | **PSV** | Sold in **May 2023** as part of the restructuring plan. | --- ### **Financial Restructuring & Capital Recovery** The Company has completed a comprehensive financial cleanup, settling massive legacy debts with secured lenders including **Phoenix ARC**, **Axis Bank**, and **Punjab National Bank**. * **Debt Settlement Success:** Settled assigned debt of **₹414.96 crores** with **Phoenix ARC**. As of **June 2025**, total debt has been reduced to **₹52.46 crores**, of which **₹36.40 crores** is fresh debt specifically for vessel acquisition. * **Capital Infusion:** To fund growth, the Company increased its Authorized Share Capital from **₹30 crores** to **₹50 crores**. * **Nov 2024:** Preferential issue of **6,929,750 shares** and **339,500 warrants** at **₹92** per unit. * **May 2024:** Preferential issue of **1,562,500 warrants** at **₹56** per unit. * **Subsidiary De-risking:** * **Global Offshore Services B.V. (Netherlands):** Stake reduced from **68%** to **28%** in **March 2024**. Now classified as an **Associate**, removing its debt from the consolidated balance sheet but resulting in a realized loss of **₹66.62 crores**. * **Garware Offshore International Services Pte. Ltd. (Singapore):** Remains a **100% WOS**, though currently facing negative net worth (**-₹20.92 crores**) and seeking new revenue streams. --- ### **Comparative Financial Performance (2024-2025)** The Company’s ratios reflect a transition from a distressed entity to a capitalized growth vehicle. | Metric | Change (YoY) | Primary Driver | | :--- | :--- | :--- | | **Current Ratio** | **+252.25%** | High bank balances from unutilized preferential funds. | | **Debt Equity Ratio** | **-47.91%** | Significant reduction in long-term liabilities; Target **< 1:1**. | | **Net Profit Margin** | **+94%** | Drastic reduction in net losses post-restructuring. | | **Operating Profit Margin** | **-204%** | Lower "Other Income" compared to the massive FY23 debt write-back. | *Note: FY2023 reported a net profit of **₹171.99 Cr** solely due to a one-time debt write-back of **~₹415 Cr**. FY2024 showed a loss of **₹120.95 Cr** due to exceptional impairment charges.* --- ### **Market Dynamics & Risk Framework** The Company operates in a high-barrier-to-entry market characterized by a **7-8 year** lack of new vessel construction globally. * **Market Outlook:** OSV utilization is projected to reach **79%** by late **2025**, with demand growing by **3%**. High newbuild prices are preventing competitors from adding supply, supporting higher charter rates. * **Contracting Strategy:** Preference for **Term Contracts (3–5 years)** with blue-chip clients (**ONGC, Vedanta, Shell, BP, TotalEnergies**) to ensure cash flow visibility. * **Legal Contingency:** The Company is contesting a **$13.50 million** UK Court verdict regarding expired corporate guarantees to Chinese SPVs. Management is seeking leave to appeal and considering counterclaims. * **Operational Risks:** * **Concentration:** Heavy reliance on the Indian E&P sector. * **Solvency:** The Singapore subsidiary's negative net worth remains a point of audit qualification. * **Actuarial Risks:** Exposure to interest rate and salary risks regarding the funded gratuity plan, which is currently concentrated with a single insurance provider. ### **Investment Summary** Garware Offshore Services has emerged from a decade of survival mode with a **Debt/EBITDA target of below 3:1** and a lean fleet of high-spec vessels. Under the leadership of **Mr. Aditya A. Garware** (CMD as of **Nov 2025**), the Company is positioned to capture the upswing in the Indian offshore market, provided it can successfully navigate its remaining international legal encumbrances and the solvency issues of its Singaporean arm.