Mermaid Maritime's 3Q 2015 Net Profit Up 9.2% to $16.5M, Trims Staff by 15%

Singapore-listed Mermaid Maritime Public Company Limited (Mermaid, MMT or the Group), a leading provider of subsea and drilling services for the offshore oil and gas industry, announced Friday the financial results for the three month ended Sept. 30 (3Q FY2015). Group reported earnings of $16.5 million, compared to the earnings of $13.8 million for the corresponding quarter in 2014 (3Q FY2014).

Group reported total revenue of $96.6 million for 3Q FY2015, an increase of 10.1 percent year-on-year as compared to $87.7 million for 3Q FY2014. The Group reported a gross profit of $20.9 million, representing an increase of $2.5 million or 13.9 percent as compared to 3Q FY2014.

Subsea Group reported service income of $96.6 million for 3Q FY2015, an increase of $12.5 million, or 14.9 percent, compared to 3Q FY2014. The increase was primarily attributed to the high value cable laying projects in the Middle East and also due to some non-performing vessels coming back on the projects. Subsea Group generated gross profit of $22.7 million for 3Q FY2015, an increase of $3.7 million year on year, mainly due to the cessation of depreciation of certain vessel which was classified as “asset held for sales”.

Drilling Group reported nil service income for 3Q FY2015, a $3.6 million decrease as compared to 3Q FY2014. Reduced expenses were mainly due to the management’s decision to cold stack the rigs. This has led to Drilling Group’s gross loss of $1.8 million for the quarter, a decrease of $1.1 million from the gross loss of $0.7 million for 3Q FY2014.

The share of profits from drilling associate Asia Offshore Drilling (AOD) for 3Q FY2015 was $7.3 million, a slight decrease of $0.6 million year on year mainly due to higher operational costs. During the quarter, the three high specification jackups achieved an average utilization rate of 97 percent.

Overall, the Group reported a net profit attributable to shareholders of $16.5 million for 3Q FY2015, an increase of 19.2 percent year on year.

As of Sept. 30, the Group had cash and cash equivalents of $54.9 million (Dec. 31, 2014: $89.4 million), a healthy net gearing ratio of 10.1 percent (Dec. 31, 2014: 4.1 percent), and net asset value per share of $0.40 (Dec. 31, 2014: $0.40).


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