Mermaid Maritime Public Company (DU4) Q1 2023 TU earnings summary

Executive summary

• Q1 service revenue rose 7.93% YoY to $43.6m; gross profit improved to $0.3m from a $4.8m loss, adjusted EBITDA reached $1.8m from a $5.2m loss, and net loss narrowed to $4.9m from $8.0m.

• Order book was $320m at March-end, with awards extending through FY2025, mainly for Middle East IRM and cable-laying projects.

Financial highlights

• Total income was $44.3m versus $40.6m YoY; operating loss narrowed to $5.6m from $9.1m, and pretax loss to $5.2m from $8.0m.

• Service costs fell 4.2% to $43.3m; administrative expenses rose 33.2% to $5.2m, while finance costs increased to $1.3m from $0.5m.

• Loss per share improved to $0.0034 from $0.0056; depreciation and amortization were $6.1m.

• Share of associate and JV profit fell to $0.4m from $1.1m, primarily on lower M3JV profit.

Segment performance

• Subsea IRM revenue rose YoY on stronger inspection, repair and maintenance activity and higher owned-vessel utilization; subsea operating loss narrowed to $4.4m from $8.2m.

• Fleet IRM revenue fell $2.1m QoQ due to planned maintenance and seasonal scheduling; non-fleet IRM revenue increased $1.9m YoY, supported by survey and inspection projects.

• Cable-laying revenue rose to $12.3m from $9.4m YoY on increased Middle East projects, but declined $2.0m QoQ; $0.6m share profit was recognized from M3JV.

• T&I and decommissioning revenue fell to $6.9m, down $7.6m YoY and $15.1m QoQ, as projects ended in Q4 2022 and Van Gogh underwent dry docking.

• Resiliant began its first project in Q1; Mermaid Commander and Mermaid Challenger remained cold-stacked, with sale or reactivation under consideration.