Neptune's Revenue Up 52% from Last Quarter

Neptune Marine Services Ltd.

Neptune Marine Services has built on its encouraging FY08 financial result to record a strong revenue performance 1Q09. Highlighting the quarter was revenue of $45 million, a figure that represents a 52% increase quarter-on-quarter and a 182% increase year-on-year.

Managing Director and CEO of Neptune Marine, Christian Lange, said the significance of the quarter-on-quarter revenue was emphasised by the fact that only 6% of it was attributed to acquisition. "The high levels of organic growth that we recorded in 2H08 have been maintained and improved upon during the quarter as Neptune continues to consolidate its position in the international oil and gas industry," he explained. "If you also consider that the period only accounted for a two month contribution from the Neptune ROV Supporter and our first ROV, and nothing from the Neptune Trident or our second ROV, then the true value of this organic growth becomes even more apparent."

Key contributors to the revenue increase comprised:

  • Neptune Geomatics - geophysical and geotechnical survey works on the Ichthys Gas Field Development operated by INPEX Browse, Ltd.
  • SEA-STRUCT - 600 SEAMAT pipeline stabilisation mattresses supplied to the Santos VICP/44 Henry Project.
  • NEPSYS – completed projects in the Gulf of Thailand and the North Sea.
  • US Underwater Services – various repair works in the Gulf of Mexico following tropical cyclone Ike.
  • Neptune Deeptech – robust forward orders.
  • Neptune ROV Supporter.

"Given our consistent cash flows and conservative gearing with a debt to equity ratio of less than 30%, Neptune remains very well placed to maintain encouraging levels of growth. We are well funded and our financiers remain supportive of our longer term growth plans," Lange said.

"Additionally, Neptune's performance has not been impacted by the recent downturn in oil and gas prices as our service offering does not have a direct correlation with pricing. Short term price movements do not dictate long term spending and investment in the sector," he added.

With a solid pipeline of bidding opportunities under consideration and the acquisitions of Access Management (WA) Pty Ltd and the Neptune Trident (Nor Sea) support vessel finalized, Lange said Neptune continued to perform strongly.

"Market conditions remain favourable, we have not witnessed any slowdown in demand for our services and tendering activity remains consistent. Further to that we are currently undertaking a strong base load of work across all of our divisions," he revealed.