Thailand-based provider of subsea and drilling services to the offshore petroleum industry Mermaid Maritime Public Company Ltd. posted a net profit of $45.27 million for financial year 2014 (FY 2014) that ended Sept. 30, up 193.4 percent from $15.42 million a year ago, according to financial results released by the firm Wednesday.
Mermaid's revenue rose 16.1 percent in FY 2014 to $312.96 million, compared to $26.60 million in the previous year. The improved performance was attributed to contribution from associate company Asia Offshore Drilling (AOD) and the company's subsea and drilling segments.
"The share of profit from AOD increased six folds to $31.1 million from $4.4 million in FY 2013, as AOD I (400' ILC), AOD II (400' ILC) and AOD III (400' ILC) were fully operational in FY 2014 as compared to only AOD I being operational in FY 2013 given that AOD II and AOD III were still under construction," Mermaid said in the press release.
There was a 15.9 percent growth in income from the subsea segment to $289.1 million, boosted primarily by the Saudi Aramco project, other Middle Eastern projects as well as projects in Indonesia.
Meanwhile, Mermaid's drilling business achieved an 18.2 percent growth in revenue to $27.8 million, with all the income generated by MTR-2 tender drilling rig that has an utilization rate of 98 percent for the year under review.
“The encouraging financial performance is testimony of our resilient business model as our operations have exposure to mostly shallow water fields and to the production phase of the oil and gas supply chain. Shallow water fields are more defensive and oil price volatility has a lower impact on these fields as break-even points are much lower...we also enjoy a presence in cabotage and restricted regions that are benefiting from a concerted local expansion effort. Our order book of $470 million will also bring in steady revenue,” Chalermchai Mahagitsiri, Mermaid's CEO said.
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