Gandhar Oil shares surge 6% after $45 million annual order win from Abu Dhabi oil company
An oil tanker is being loaded at Saudi Aramco's Ras Tanura oil refinery and oil terminal in Saudi Arabia May 21, 2018. Picture taken May 21, 2018. REUTERS/Ahmed Jadallah
Shares of Gandhar Oil Refinery ended 6% higher on Monday after the company's foreign material subsidiary, Texol Lubritech FZC, won an order from the Abu Dhabi National Oil Company (ADNOC).
The scope for the order includes manufacturing, packaging, label and make available the products for ADNOC Distribution on a contract basis.
The estimated annual value for the contract is said to be $45 million, which is equivalent to nearly ₹375 crore for each year of 2024, 2025 and 2026. The contract is for a period of three years.
Average annual volume forecast for the order is said to be 30 million litres for each year of the contract duration. Pricing will be determined in accordance with the price formula as per the contract.
Gandhar Oil Refinery is a refiner and producer of specialty oil and lubricants like liquid paraffin, greases, automotive lubricants, petroleum jelly and rubber processing oils.
Shares of Gandhar Oil had made their stock market debut in November 2023 at an IPO price of ₹169. The stock had listed at a 76% premium to its issue price at ₹298. However, after making an all-time high of ₹344, the stock now trades 35% below those levels.
In fact, Gandhar Oil even trades below its listing price of ₹298.
Shares of Gandhar Oil ended 5.8% higher at ₹221. The stock is down 20% so far in 2024.