Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Asian Energy Services Ltd (NSE: ASIANENE) Q4 2026 Earnings Call dated May. 20, 2026
Corporate Participants:
Kapil Garg — Managing Director
Sumit Maheshwari — Group Chief Financial Officer
Analysts:
Churchill Malu — Analyst
Unidentified Participant
Santosh — Analyst
Atul Taka — Analyst
Sunny Gosar — Analyst
Hina Parikh — Analyst
Nimesh Padia — Analyst
Kareena Core — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Asian Energy Service Limited Q4FY26 earnings conference call. This conference call may contain forward looking statements about the company which are based on beliefs, opinions and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risk and uncertainties that are difficult to predict from the management we have with us today. Mr. Kapilgar, Managing Director, Mr. Sumit Maheshwari, Group Chief Financial Officer and Mr.
Nirav Talati, Chief Financial Officer. As a reminder, all participant lines will be in the lesson only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on a touch tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Kapilgar, Managing Director, Asian Energy Service Limited. Thank you. And over to you sir.
Kapil Garg — Managing Director
Thank you. Good evening everyone. I welcome you all to the Q4 and FY26 earnings conference call. Along with me, we have on the call Mr. Aman Garg, Director at Asian Energy, Mr. Sumit Maheshwari Group CFO and Mr. Nirab Chalati, the CFO for Asian Energy and our ad factors PR, our investors relations Advisor. I will begin with some perspective on the operating environment and our strategic positioning before our group CFO walks you through the numbers in detail. FY26 has been a momentous year for Asian Energy.
A year in which we transformed from from a domestic energy services player to an integrated international energy platform. And the next 12 to 24 months represent an extraordinary opportunity for our group. The single biggest macro development for our industry has been the West Asia conflict. Rising geopolitical uncertainties around the Strait of Hormuz have created near term volatilities. But it has also reshaped the global energy investment cycle in ways that strengthen our outlook going ahead for India.
With crude import dependence of nearly 85 to 90% and gas import dependence of around 50%, energy security has become an increasingly critical national priority. This quest for energy security applies not only to crude oil and natural gas, but also to mineral security ranging from coal to critical minerals, which I will brief you on later. All of this is accelerating the push towards domestic exploration and production supported by structural reforms to improve the attractiveness of private sector participation.
After nearly a decade of constrained upstream capital expenditure Globally between from 2016, the industry is witnessing a sharp reversal in investment trends at elevated crude prices. India has committed nearly 100 billion of investment into oil and gas sector by 2030. Similarly, other nations, global oil majors and NOCs are accelerating their CAPEX programs and investments across the value chain. Much of that capital will be deployed through service providers like us. At the same time higher energy prices have made that marginal fields more attractive and profitable than ever.
Policy tailwinds in India evident in the form of help OALP DSF bid rounds as well as the recently announced royalty rationalizations are unlocking acreage at a pace unseen before. We have already submitted bids for three contracts under the discovered small field round four and we expect this pipeline to translate into multi year revenue visibility for Asian the increasing industry shift towards integrated field development continues to create a significant long term opportunity. The success of the integrated field development models demonstrated in projects such as with Vedanta is expected to accelerate the adoption of integrated field development contract across ENP players.
We are primed to take up opportunities for these large integrated multi year contracts because our post merger of SAAR along with Kuipers will make us the only listed energy services company in India that will be capable of self delivering across the value chain. At the operational level, the planned production ramp up at Indrara and Naval fields targeting approximately 1,000 barrels of oil equivalent per day by FY27 along with a plan to ramp it up further in coming years is expected to directly benefit from stronger crude realizations thereby supporting higher revenue and EBITDA per barrel.
In spite of tailwinds, we remain disciplined on capex deployment and timing for Kuiper Group. We believe that the acceleration in CapEx, the global oil majors and NOCs will translate into stronger manpower and technical staffing demand across key markets. At the same time, elevated crude prices are reviving offshore EPIC and Deepwater project activity resulting in broader increase in hiring requirements across the upstream value chain. Kuiper’s presence across countries combined with over two decades of established relationship with top tier EPCI and RELINK clients along with a strong specialized talent network for long tenure master services agreements positions the business advantageously in an increasingly tight manpower market.
This acquisition is aligned with our long term vision to expand our integrated operation and maintenance capabilities, diversify our service offering and scale our global presence. On the strategic front, we are pleased to share that the company has received approval from SEBI for the proposed merger with OilMax Energy and the NCLT convened shareholders meeting is now scheduled for June 2026. We expect the completion of the merger process by September October 2026. With respect to Oilmax’s assets, we are commencing production for Tipik field in the coming months where pipeline connectivity is expected soon.
We will also increase production from Amguri field in this year once connection with Namalygadh refinery and the National Grid is established, which is expected over next few months. We also expect production to start from Dwarmara field in this year. Work has already commenced in the CBM block after receiving necessary permissions. Our integrated oil and services segment delivered a steady performance supported by strong execution. Meanwhile, the mineral segment continued to be a key growth driver for the company in the mineral infrastructure space.
We are already lowest bidder in one of the tenders and expect to secure few more contracts in this vertical going forward. As I said earlier, energy security will be strengthened not only through domestic oil and gas production, but higher mineral production too, and the government policy is recognizing and encouraging this more than ever. This applies not only to coal but also the critical minerals as well. Where India is expected to see a higher domestic investment in the foreseeable future to reduce import dependencies in the coal space, we first saw the thrust on first mile connectivity and we capitalized on it at the most opportune time.
The capabilities we have developed in the mineral infrastructure space in areas like bulk material handling and movement paired with our expertise in oil and natural gas will allow us to capture the current tailwinds in the mineral space in the form of coal gasification projects, the critical mining projects which are being auctioned by the government. Heavy investments are expected in these allied sectors such as bulk material handling, logistics processing of raw ores which will lead to significant addressable opportunities for Asian energy and our unique strength will make us well poised to capitalize on them too.
Before I conclude, I would like to emphasize the large structural shifts that have come from the additions of Kuiper and our integrated field development contracts have fundamentally risked our earnings profile from seasonal and sensitive earning cycles towards multi year recurring revenue stream engagements. Predictable cash flows which are diversified across a plethora of clientele, climates and geographies. This is going to result in more predictable and higher quality quarterly performances and earnings and visible cash flow conversions.
Nevertheless, considering the impact of West Asia and the ongoing conflict on our path ahead in both good ways and bad ways, we continue to keep a close eye on any and all developments in this conflict which could impact our operations directly or indirectly. In recognition of the Company’s strategy developments and strong operational performance using FY26, we are pleased to propose a dividend of Rupees 1.25 per share subject to shareholders approval. This reflects our continued commitment towards creating shareholder value while maintaining adequate financial flexibility to support our long term growth initiatives.
I would like to extend my sincere gratitude to our Board of Directors, our employees and our partners for their continuous support and dedication. Now I hand over the call to Mr. Sumit Maheshwari, our group CFO to talk about the financials.
Sumit Maheshwari — Group Chief Financial Officer
Thank
Kapil Garg — Managing Director
You Kapil Sir
Sumit Maheshwari — Group Chief Financial Officer
Good evening everyone. Talking about FY26 financial performance, the company reported revenue from operations of Rupees 791 crore compared to Rupees 465 crores in FY25 reflecting a growth of 70% year on year, EBITDA for the year stood at in rupees 99 crore representing a growth of 37% while EBITDA margin came in at 12.5%. On a profitability front, adjusted profit after tax for FY26 stood at rupees 60.6 crore compared to rupees 42.2 crores in FY25 translating into adjusted pet margin of 7.7%. It is important to note that FY26 PAT figure is after adjusting one time exceptional item of rupees 9.0 crore related to Kuiper acquisition cost and a write off moving to Q4FY26.
The company reported revenue from operation of Rs.338 crore compared to Rs.215 crore in Q4FY25 growing 57%. EBITDA for the quarter grew at 47% to INR 49 crores compared to Rupees 34 crores in corresponding period last year while EBITDA margin came in at 14.6%. During the fourth quarter we witnessed certain challenges and disruption related to the supply chain owing to West Asia conflict and some delays from client side which has delayed execution and consequent revenue recognition in Q4. As a result, the company was unable to fully meet the previously communicated guidance for the year.
However, we would like to clarify that this is largely a timing related impact rather than a loss of revenue and the deferred revenue are expected to recognize in FY27 over the coming quarters as the operating environment normalizes and execution schedule stabilizes. Despite these temporary disruptions, our diversified business model, strong execution capabilities and integrated Operating platform enable us to deliver resilient performance. During the period within the oil and gas segment, revenue for Q4.26 stood at rupees 256 crore with a segment profit of rupees 42 crore.
For the full year basis segmented reported revenue 633 crore with a profit of 102 crore. In in the mineral segment, revenue for Q4 FY26 was 82 crore rupees with a profit of rupees 18 crore. For the FY26, this segment reported revenue of one hundred and fifty eight crore while profit came at rupees 32 crore. As we step into FY27 we do so with a robust, well diversified order book of approximately rupees 1750 crore. This is excluding taxes and excluding the Kuiper portfolio. This combined with the Deferred revenue from FY26 give us a strong and improving revenue visibility heading into the new year.
We continue to remain a net zero debt company with strong balance sheet and the recent receipt of rupees 92 crore from warrants conversion has further strengthened our balance sheet. We are well capitalized, operationally focused and strategically positioned to accelerate our growth in FY27. Our priorities are clear. Tighter execution, deeper Kuiper integration and sustained margin improvement. We remain committed to delivering long term value for all our stakeholders. We now open the floor for questions.
Thank you.
Questions and Answers:
Operator
Thank you very much sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the attached tone telephone. If you wish to withdraw yourself from the question queue, you may press star and two participants are requested to use handset while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. First question is from the line of Churchill Malu from Genuity Capital. Please go ahead.
Churchill Malu
Hi sir. Thanks a lot for the opportunity. First of all, congratulations on good set of numbers. So my first question is regarding the oil mix. So how what was the revenue of oil mix in FY26 and what kind of revenue we can expect going forward in F27 and F28?
Sumit Maheshwari
Regarding the oil max revenue. The FY26 oil max revenue is on the similar line on FY25. Regarding the going forward Oilmax revenue, we have already guided that in FY29 FY30 we are looking for reaching an oil max revenue of between 800 to 900 crore rupees where the current existing producing assets and the assets which are coming into the production in this year will start contributing to our revenue. It’s difficult to give an exact guidance for FY27 and FY28 because couple of our fields are coming into the production in this year.
But on the long term visibility point of view, FY29, FY30, we are looking at the revenue guidance of roughly around 800 to 900 crore rupees coming from oil max.
Churchill Malu
So like we are saying in FY26 the revenue was close to 150. 128cr. Right.
Sumit Maheshwari
25 revenue
Churchill Malu
So close to 130cr with 30. I think 35% fat margin. Right.
Sumit Maheshwari
The oil max. The last we have granted some ESOPs for the last year before the merger announcement. So the patent margins and those numbers will not may not be the comparable with the FY25. But yes, on the revenue side and with the operating EBITDA side, The performance of Oilmax is almost similar to what we had in FY25.
Churchill Malu
Great. Just one more question. We are on thin line with the guidance of Asian Energy. Right. That is happy person via growth.
Sumit Maheshwari
Yeah. So as we told you FY26 we had a Kuiper only for the seven months for the standalone basis. For FY27 we hope to grow between 30 to 40%. And the type of for the full year basis we are looking at the top line of roughly around $60 to 65 million. This is what we are guiding for the FY27.
Churchill Malu
Okay. And what kind of blended EBITDA margin and pat margin we can expect in F27 and F28
Sumit Maheshwari
On a standalone basis Our EBITDA margin for the last year FY26 was roughly around 16% and we hope to improve our EBITDA margins at least by 100 to 200bps in FY27. On the KYPA front our EBITDA margins were 7% last year and we hope to that there also we are hoping to increase our ebitda margins by 100 to 200 days.
Churchill Malu
And on the console level,
Sumit Maheshwari
On the console level I think our EBITDA margins will be roughly around 12 to 13%.
Churchill Malu
Great, thank you. Thanks a lot.
Operator
Thank you. Next question is from the line of WebHav from honesty and Integrity Investments. Please go ahead.
Unidentified Participant
Yeah, thanks. Thanks for providing the opportunity. So you know continuing the discussion on oil mix from the previous partition. So I understand Fi 2938 but building more onto it. You know the largest asset that oil makes have in terms of speed production is Duarmara. And Duarmara, I just. I just wanted to have an Update from you because that is critical to achieve those objectives. You know I think the production was supposed to start sometime last year and it is getting delayed for a few times.
So if you can just highlight what are the reasons for the delay and is the natural gas flow that has happened or there is a water cut on the well or it is, it is now converting, it is now being converted into oil production. Story what is happening currently on Doamar if you can provide details.
Kapil Garg
So Dwarmara, as you are aware we are non operators. The field is operated by Antilopus Ceylon.
Santosh
So the
Kapil Garg
Information we have got from them that the well was drilled last year as you correctly pointed out and on the log we have found good oil shows and gas shows and during the testing period oil was flowed to the surface along with gas. It appeared to be a little bit tighter. So Anti Lopus is doing a little bit more test as we speak today and today morning also there was some more oil flow in the well. The detailed testing is being carried out now with a workover rig and we’ll provide a further update to you as we get information from Antilop.
Unidentified Participant
Okay, when is the. When is the production likely to start with their oil or gas then the production commercial sale likely to start?
Kapil Garg
I think within a month or so. We’ll be able to give you much better prediction as the testing results come out. It’s difficult for me to commit to a date to you today so we will follow up with more with our partner and both of us will come out with with the tentative dates.
Unidentified Participant
Got. Got it. Understand. Yeah. That’s it for my. Thank you.
Operator
Thank you. Before we move to the next question, a reminder to the participants to ask a question. You may press star and one next question is from the line of Santosh from Funda. Please go ahead.
Santosh
Thank you for the opportunity and congratulations for the great set of numbers that you have provided. I have a couple of questions. One is with respect to again oil max energy and AESL capabilities with respect to gasification because recently government has released their intestine full gasification. So do we have any capabilities or are we trying to build any capabilities in that respect?
Kapil Garg
So from the gasification side, I mean we do as you are aware we do build process plants for oil and gas. So we do understand the basic chemistry and the process plans. But if you ask for a specific do we have the knowledge? We don’t. So we are evaluating the evaluation stage right now and we will look for a technology partner already in discussion with some potential partners and hopefully we’ll finalize it in case we decide to go forward with this. But all the coal guys, what we. I meant in my speech earlier that even large scale coal gasification plants will require coal handling element of it.
And we are definitely looking to provide that service.
Santosh
Okay, got it. Thank you sir. And my second question is regarding the coal handling plant itself. Are we due to this crisis in Middle east and raw material prices increase across segments, are we seeing any challenges in our coal handling plants, equipment or any other risk that you’re facing from raw material side of.
Kapil Garg
On the coal handling plant side we are not facing any challenge because almost all the material is domestic supplied. We’re not really facing any challenge on the coal handling plant side.
Santosh
Okay. And one last question sir. Regarding the Kuiper process. As believe if I’m not wrong, it is in uae. So as because of the recent geopolitical tensions, is this process face any challenges? The Kuiper side of the entity
Kapil Garg
We did see some disruptions in March during the month only in Qatar. In Qatar we are providing services offshore. So that was once one geographical location we face some challenge. But most of those clients have kind of remobilized now and we are almost back to normal now.
Sumit Maheshwari
And adding to what Kapizar has told, Kuiper has a diversified portfolio and diversified locations also. So apart from the Middle East, Kuiper is active into Southeast Asia and other African market also. So yes, as we mentioned there was a small disruption in Qatar in the Marjoram. But most of the operations of the Kuiper have remained unaffected during this period. And we have seen once the things are getting normalized, we have seen the remobilization started in the Qatar also. So if the situation remain secure and safe, we do see a higher opportunity and the Kuiper operation returning back to the normal.
Santosh
So if I understand right now there is some impact in the Middle east portion of the Kuiper but not to large extent, Is that correct?
Sumit Maheshwari
Yes, that’s right.
Santosh
Thank you sir. I have a few more questions but I’ll come back in the view.
Operator
Thank you. Next question is from the line of Atul Taka from Taka Securities. Please go ahead.
Atul Taka
Hi sir, I have just two questions for you. First one is beyond Keeper and Olimax, does management see any further inorganic opportunities in the OM Services mining services? If yes, what would be the acquisition criteria?
Kapil Garg
I mean obviously we remain open to inorganic acquisition opportunities. But if specifically are we chasing something right now the answer is no. And as we keep on talking about the capital discipline even the opportunities, if and when they come along we will evaluate them very carefully before making the decision.
Atul Taka
Got it? And secondly sir, what is the expected consolidated capex requirement for FY27 and FY28 and how much of this will be towards upstream assets, field development and international services expansion.
Sumit Maheshwari
Regarding that CapEx commitment for FY27 so there’s no CapEx commitment we have for our services business or for international expansion. The only capex as an Asian what we are looking at currently is drilling more wells in Indore and Mewar field where we have found good oil success. So there we are evaluating to drill additional well. So the overall commitment what we are seeing in over the next one year on the overall block level is roughly around 100 crores crore and out of that our portion will be roughly around 50 crore.
Apart from that there is no additional capex which we are currently planned or which we have committed. And regarding the oil max assets, the couple of oil max assets which are already producing there we will be doing the capacity ramp up where we do not require any further capex and couple of our blocks where our partners are carrying out the capex. So as such there is no committed capex capex or large capex commitment from the oilmax side also and depends on the success what we get into our endeavor.
We’ll continue to keep evaluating the CapEx requirement and we’ll remain very very disciplined in our overall CapEx assessment.
Atul Taka
Fair enough, Fair enough. Got it. Thank you so much and all the best for you.
Sumit Maheshwari
Thank you.
Operator
Thank you. Next question is from the line of Sunny Gosar from MK Ventures. Please go ahead.
Sunny Gosar
Yeah, thanks for taking my question. My first question is regards our guidance for the standalone business. So we have guided for about 30 to 40% top line growth for FY27. So what I wanted to understand is how much of this top line growth can be achieved only based on the current order book that we already have in hand of about 750. And how much are we dependent on some new orders coming in during the year to kind of achieve this guidance?
Sumit Maheshwari
Sunny, to answer your question, so our current order book is 1750 cr and as we told you we are already L1 in one of the tender where we are expecting the contract award. So the guidance which we have provided is more or less almost 90 95% of the current guidance. What we are providing is coming from our existing order book and the contract where we are L1. So we have not factored in any new contracts or new order book built up into our current Year guidance.
Sunny Gosar
Got it. That’s very helpful. And in terms of the overall order pipeline and outlook for say maybe FY28 and beyond. So what is the visibility there in terms of oil and gas minerals business? So how should we think about say a two, three year perspective on growth in the service part of the business which is a standalone business and how are we seeing new discussions or opportunities there?
Kapil Garg
So Sunny, as I mentioned earlier in my speech, we are on this integrated development basis we are looking at there are multiple opportunities on the radar. So based on the Vedanta model which we have kind of successfully proved, ONGC has recently come out with some tenders which we are evaluating for decent sized fields to provide end to end solutions. And I believe some other operators are also considering the same model. So on the oil and gas front I do see visibility of multiple tenders coming out for integrated service platform on the coal handling and the material handling plant also there are multiple opportunities on the radar as we expand more from coal to other minerals.
So we do see a decent pipeline to keep us going for the next few years for the targeted growth rate.
Unidentified Participant
Got
Sunny Gosar
It. And is it fair to assume that the growth rate like or maybe if you can give us some like a two to three year view on how should we think about overall CAGR growth rate for the standalone business beyond FY27,
Kapil Garg
25 to 30% would be a pretty decent range, Sunny.
Sunny Gosar
Got it. Got it. My next question is on Kuiper. So in the presentation you have mentioned that you look to scale the business to about $100 million of revenue by FY29. So that largely is at between say 900, 950 crores of top line by FY29 versus current annualized run rate of between 530 to 540 crores. So how like how should we think about drivers for achieving this growth? Is it new customers, is it new geographies or enhancing wallet share with existing customers? So if you can help us understand what is what, like what would be the drivers of this growth over the next two to three years.
Kapil Garg
It is a combination of all the factors we talked about and let me elaborate right now the major chunk of the top line comes from providing manpower through drilling rigs. We have already started to diversify the base and we are in multiple discussions and we have started seeing some initial success with epc, large EPC contractors in Middle east and Southeast Asia. So we have started to diversify our portfolio of clients and services rather than being dependent on only offshore drilling rigs. We’re already expanding into marine services, into offshore construction services, into cable laying and we also intend to to diversify geography.
For example, in Africa we have limited presence right now but we are evaluating that market very carefully with the intention of diversifying there. So combination of all the three factors we talked about.
Sunny Gosar
Got it, got it. And at about $100 million of top line, what kind of EBITDA margins can be achieved with operating leverage and EBITDA efficiencies? So from current 7 odd percent margins, what could be the target margins by FY29?
Kapil Garg
We are targeting 11 to 12%.
Sunny Gosar
Okay, got it, got it. And one last question before I get back in the queue. So in last year I think in the AGM presentation you had indicated some FY29 guidance of topline, EBITDA and PAT. Based on the current circumstances and whatever opportunities you are seeing, are we kind of on track to be able to achieve those numbers or any change in the broader guidance? I think you had indicated about 450 to 500 crores of PAT by FY29. So any color on that?
Kapil Garg
We are more or less on the same guidance. Still sunny. I mean as I mentioned earlier there is a turmoil in the world but with the plan we have and the opportunities we have on hand, there is no reason for us to believe that there’s any change in that guidance.
Sunny Gosar
Got it. Thank you for the detailed answers and I’ll get back in the queue.
Kapil Garg
Thank you.
Operator
Thank you. Next question is from the line of Hina Parikh from Sovereign Capital. Please go ahead.
Hina Parikh
Hi. Thank you for the opportunity. Firstly, congratulation on the set of numbers. I have two questions. First is on what is the thesis of mewar production ramp up and what are the key operational steps to reach the thousand DOPD target by FY29 and also additionally what is the expected consolidated CAPEX and working capital requirement over the next two years and how will it be funded as well?
Kapil Garg
So he know. So first question, how we will ramp up Mivad? We have already drilled two new wells and the both wells have perform better than the initial expectations which has further confirmed our belief in the development of Miwad and Indorar field. We are mobilizing a rig now and within a month we start drilling back to back wells. The initial plan is to drill six more new wells and we are already producing in excess of 200 barrels. And with the new six wells coming in we should start getting closer to the target.
It’s an iterative process, oil and gas. As we drill more and more Wells we keep on refeeding the data into our system to keep on fine tuning the well locations. But with the initial success we have seen, we are very confident that the guidance we have provided will be able to meet
Sumit Maheshwari
And specifically the 1000 BOPD guidance we want to achieve in this year and in the next coming years. We intend to take Indora production further to 1500 BOPD per day in next 2, 3 years. Depends on what type of results and success we get into the current guidance. Now in terms of your second question about the requirement of the working capital and other things. So as you would appreciate, we continue to remain zero debt company and our debt to equity ratio is virtually nil. So we have a sufficient room to raise working capital debt and additional debt also which require us to fuel our growth.
We have been supported by two nationalized bank and two private sector bank also including the Citibank. So they are supporting us in whatever manner is required to get additional banking guarantee limits or additional working capital limit. So we remain confident that we will have a sufficient working capital limits available to us to pursue our future growth also and we remain very well decently capitalized.
Hina Parikh
Got it, Got it. Thank you so much and all the very best.
Sumit Maheshwari
Thank you.
Operator
Thank you. Next question is from the line of Nimesh Padia from NP Invest. Please go ahead.
Nimesh Padia
Hello. So am I audible?
Operator
Yes, yes, please go ahead.
Nimesh Padia
Thanks for giving me this opportunity. So I have a couple of questions. First being what are the main geography wise growth opportunities for Q4 across the middle East, Africa and Southeast Asia? And are there any new country or client segments being targeted in FY27?
Kapil Garg
So Kuiper, if you ask specific geographies, I mean Nigeria is one geography we are seriously considering because the several current clients of Kuiper are operating there and they keep on requesting us to look at that. So there’s a specific country. Nigeria is definitely on the radar but we are seeing a lot of activity in Southeast Asia too which is our current market. So between Southeast Asia, Middle east and Africa especially focusing on Nigeria are the current target markets.
Nimesh Padia
Okay, got it sir. So next question is how is the management prioritizing allocation? I mean capital allocation across organic growth, capex like new article development, KAIPA expansion, oil, mass integration, debt reduction and shareholder return.
Kapil Garg
So I think Sumit explained earlier about we don’t really have a very large CAPEX program going forward this year and most of our businesses in the service side do not require capex. They only require operating expenses which we are kind of fully funded.
Nimesh Padia
Okay, got it. Thanks sir, that answered my question.
Kapil Garg
Thank
Operator
You. Thank you. Next question is from the line of Kareena Core from Starcomb Capital. Please go ahead.
Kareena Core
Hi. Thank you so much. Firstly congratulations on such great numbers. My question is could you provide details on the integration roadmap for Oilmax post merger? Additionally, what will be the governance phase framework and business segment disclosures in place post the merger.
Sumit Maheshwari
Regarding the Oilmax integration? As you would appreciate, Oilmax and Asian the reason for integration is to build an integrated organization platform and integrated energy platform. So the integration activities are already underway. In fact, ASEAN provides services to Oilmax at couple of the blocks which have been operated by OilMax and one oil block is common between Asian and Oilmax. So integration is already under the way and we expect integration to be over by the time we receive the complete merger approvals and all other aspects.
In terms of the governance, we already very highly gone company and we we put a very good focus on the corporate governance. So after the Oilmax is being merged into Asian Energy, the entire promoter and all business of the promoter will be into the single entity. Currently also the promoter own Asian energy directly through Oil Max and then the entire businesses will be into a single entity which is a large digital entity. And we already have a strong corporate governance system and independent directors on the board.
And whatever additional things are required to make our corporate governance system more robust, we will implement those things.
Kapil Garg
From the reporting question you asked, we’ll be reporting in three segments. One is the oil field ownership model which is current Oilmax model. Second is the Asian current services model and third is the Global Kuiper model. So those are the three segments we’ll continue to report.
Kareena Core
All right, thank you so much. Good luck.
Operator
Thank you. Next question is from the line of Santosh from Fun Witha. Please go ahead.
Santosh
Hi, one quick question regarding the Mewar field, right? As you’re producing around 100 BOQD crude in the field, how does the current Brent link pricing works or current environment of the pricing impact based cash flows? How does actually the pricing works for the crude that we generate or produce from Mevard?
Kapil Garg
Our crude from Mevard, we have a contract with Indian Oil Corporation and the formula is linked to Brent a monthly average of dated Brent as per the formula we supply to IOC and we get paid.
Santosh
Okay, so in that sense the higher the price the better the revenue from that particular field for us.
Kapil Garg
That is correct.
Santosh
Okay. And regarding the minerals thing that you have spoken before, right? I did not completely get it. So can you spread more light on that? Sir, with respect to Critical minerals. Are you seeing any developments there from the government side or from the calendars or anything going on in that industry?
Sumit Maheshwari
If you have seen the government is avoiding lot of critical minerals blocks and the award process and that process is continuously happening. And now after the receipt of lot of critical mineral blocks award, the work has started happening on those blocks. And one, we need to appreciate any bulk material, whether it is a critical mineral or coal or any natural resources. They require specialized logistic solution and bulk material handling system. So the opportunity, what we are eyeing into that segment is more of setting up the logistics chains and the bulk material handling system there.
And specifically in the critical mineral where the ore processing or critical mineral processing is required, the logistics required at the two places. The first thing is bringing the ore to the processing plant and then taking back the entire ore which has not been used back to the dump yard. So the logistics supply logistic chain, specifically the bulk material handling systems become very, very critical aspect for the critical mineral also. So we are targeting that particular segment and with the few mines which have been awarded likely to come into the operation in coming years.
So we do see good opportunity coming from there. And the second segment which we like to target in the critical mineral segment is the processing and setting up a processing plant or running those processing plants like what we have been doing into oil and gas segment.
Santosh
Okay, this is very insightful. Thank you very much.
Operator
Thank you. Ladies and gentlemen. We will take this as the last question for the day. I now hand the conference over to the management for the closing comments.
Kapil Garg
Thank you all for joining the call. I hope we were able to answer most of your questions. Is there any particular question remains unanswered? Kindly reach out to our to add factors and we’ll be happy to clarify. Thank you so much.
Operator
Thank you, sir. On behalf of Asian Energy Service Ltd. That concludes this conference. Thank you all for joining us. And you may now disconnect your lines.