Mermaid Maritime Public Company (DU4) H1 2023 earnings summary

Executive summary

• Q2 total revenue was $62.8m, up 13.3% YoY; net profit was $3.2m. H1 total revenue rose 11.6% to $107.0m and the net loss narrowed to $1.7m from $5.5m.

• H1 service revenue was $105.6m; higher subsea utilization and IRM and T&I project activity supported income and gross profit.

• June-end order book was $337m, with projects extending through FY2025.

Financial highlights

• Q2 service revenue was $62.0m, up 13.0% YoY; expenses rose 11.4% to $59.8m and profit before tax increased 48.7% to $3.7m.

• H1 service revenue increased 10.8% to $105.6m; expenses rose 6.1% to $109.7m and the pre-tax loss narrowed to $1.5m from $5.5m.

• H1 EBITDA, excluding JV and associate share and non-recurring items, was $12.3m versus $0.2m; operating loss narrowed to $2.7m from $7.4m.

• Q2 net profit attributable to owners was $3.2m versus $2.3m; basic EPS was $0.0023 versus $0.0016. H1 basic loss per share was $0.0012 versus $0.0040.

• H1 finance costs increased to $2.6m from $1.0m.

Outlook and guidance

• Targeted utilization for owned, jointly owned and chartered-in fleets was achieved; very high vessel utilization was expected through 2023–2025.

• Management expected respectable short- and intermediate-term profits, citing higher energy prices and an optimistic oil and gas activity outlook.

• Priorities included expanding P&A, investing in people, plant and equipment, building Engineering and Cable capacity, and pursuing suitable renewables opportunities.