Mermaid Maritime Public Company (DU4) Q3 2023 TU earnings summary

Executive summary

• Q3 service revenue was USD 85.2m, up 29.5% YoY; net profit reached a record USD 6.9m, versus USD 3.1m a year earlier.

• 9M service revenue rose 18.4% to USD 190.8m, and results returned to net profit of USD 5.3m from a USD 2.4m loss.

• Order book exceeded USD 697m at 30 Sep 2023, with awards across regions and work types extending through FY2026.

Financial highlights

• Q3 total income was USD 85.6m; total revenue was USD 85.6m, up 29.2% YoY, and profit before tax was USD 7.5m.

• Q3 operating profit was USD 6.8m versus USD 3.7m YoY; EPS was USD 0.5 cents versus USD 0.2 cents in both comparison periods.

• 9M total revenue was USD 192.3m, up 18.6%; profit before tax was USD 6.0m versus a USD 1.3m loss.

• 9M basic EPS was USD 0.0037 versus a loss per share of USD 0.0019; adjusted EBITDA was USD 26.8m versus USD 11.1m.

• 9M operating cash flow was USD 8.1m, investing outflow USD 7.3m and financing inflow USD 3.8m; cash ended September at USD 12.4m.

Outlook and guidance

• Very high vessel utilization is anticipated through 2023–2025; fleet mobility remains important to organic growth.

• Intermediate outlook remains optimistic, supported by mobilizing construction work, Middle East investment and West African budgets; no numerical earnings guidance was stated.

• Strategic priorities include P&A, decommissioning and diving, including North Sea opportunities and expected abandonment work in Thailand and Africa.

• Engineering and Cable capacity expansion and potential entry into renewables remain priorities as opportunities arise.