MERMAID MARITIME 1Q 2024
RESULTS
May 15th, 2024
www.mermaid-group.com
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Mermaid Group accepts no liability whatsoever with respect to the use of this document or its contents.
AGENDA
Business Report
Financial Review
Business Outlook
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BUSINESS REPORT
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1Q 2024 HIGHLIGHTS
- In 1Q 2024, Mermaid Group recorded USD 88.0 m. of revenue from rendering of services, a remarkable increase of 101.8% YoY and 4.1% QoQ, as a result of a growth of main business sectors: Subsea IRM & Diving works, Cable Lay projects and T&I and Decommissioning projects.
- The Group reported a net profit of USD 0.5 m. for the first quarter of 2024, a significant turnaround from a net loss of USD 4.9 m. for the same period last year. The reported EBITDA also increased both YoY and QoQ to USD 11.5 m. in 1Q 2024. An increase is a consequence of revenue growth in various regions along with constricted cost management and control in spite of low season of the year.
- The net cash outflow used in operating activities at (USD 1.3 m.) came from an increase in receivable to be collected.
- The total order book stood at USD 735 m. at the end of March 2024. Mermaid Group has secured multiple project awards in South East Asia, the Middle East, North Sea and Western Sub Sahara region for both short-term and long-term throughout FY2026. The order book number includes Cable Laying, Subsea Pipeline Tie-ins, Inspection, Repair and Maintenance and T&I and Decommissioning services.
- Balance sheet position represented at 1.03x Current Ratio and low-risk level of 0.51x D/E Ratio.
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MOVEMENT IN KEY BUSINESS SEGMENT
YoY Net Profit (Loss) Change | QoQ Net Profit Change | |
(USD million)
+6.1 -0.7
0.5
(4.9)
1Q 2023 Net | Subsea | Holding | 1Q 2024 Net | |||
Loss | Profit | |||||
Decrease | Increase | |||||
(USD million)
-3.7 | |||
4.4 | |||
-0.2 | |||
0.5 | |||
4Q 2023 Net | Subsea | Holding | 1Q 2024 Net |
Profit | Profit | ||
Decrease | Increase |
- When compared YoY, there was a considerable turnaround from USD 4.9m net loss in 1Q 2023 to USD 0.5 net profit in 1Q 2024 despite the low season. This mainly came from more subsea IRM projects for short-termchartered-in vessels and diving works for non-vessel and more T&I projects in Gulf of Thailand.
- The net profit dropped QoQ from USD 4.4m in 4Q 2023 to USD 0.5m in 1Q 2024 because of:
- Dry docking costs from "Mermaid Endurer" that had finished in Feb 2024 and "Resiliant" that has been dry
docking throughout the period
- Share loss from M3JV caused by dry docking of "Millennium3" compared to share profit recognized in the previous quarter
- Seasonal business cycle
- A decrease in holding sector both YoY and QoQ came from higher financial costs to the parent company.
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REVENUE BREAKDOWN
+101.8% | +4.1% | |||||||||||
(USD million) | YoY | QoQ | 88.0 | |||||||||
85.1 | 84.6 | |||||||||||
65.8 | 62.8 | 31% | 34% | |||||||||
62.0 | 42% | |||||||||||
54.9 | 29% | 35% | 20% | 11% | 14% | |||||||
14% | ||||||||||||
40.4 | 43.6 | 18% | 9% | |||||||||
23% | 16% | |||||||||||
26% | 23% | 32% | 28% | |||||||||
36% | ||||||||||||
28% | ||||||||||||
28% | 13% | 33% | 32% | |||||||||
23% | 23% | 19% | ||||||||||
16% | 35% | 29% | 29% | 26% | 24% | |||||||
25% | 22% | 37% | 17% | |||||||||
1Q 2022 | 2Q 2022 | 3Q 2022 | 4Q 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 | 4Q 2023 | 1Q 2024 | ||||
Subsea IRM (Owned Fleet) | Subsea IRM & Diving works (Short-termChartered-in Fleet & Non Fleet) | |||||||||||
Cable Lay Projects | T&I and Decommissioning Projects | |||||||||||
The total revenue doubled YoY from USD 43.6m to USD 88.0m mainly due to an increase in revenue from subsea IRM and T&I and decommissioning sector. The revenue also increased by 4.1% QoQ because of higher revenue in subsea IRM and cable lay sector.
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SUBSEA IRM SECTOR
Revenue from Total Subsea IRM | Utilization of Performing Subsea IRM Vessels | |
(USD million) | 41.6 | 46.0 |
24.5 | 27.2 | 24.6 |
8.4 | ||
16.1 | 14.4 | 21.4 |
1Q 2023 | 4Q 2023 | 1Q 2024 |
97% | 100% | 100% | 100% |
83% | |||
67% |
248 | 273 | 366 | 210 | 297 | |||||||
20% | |||||||||||
1Q2023 | 2Q2023 | 3Q2023 | 4Q2023 | 1Q2024 |
Subsea IRM (Fleet) | Subsea IRM (Non Fleet) | Working Days | Performed Vessels Utilization | |||
In 1Q 2024, the revenue from fleet subsea IRM business grew by +32.9% YoY and +48.6% QoQ to USD 21.4m because: o "Mermaid Asiana" worked for a major customer in the Middle East at high utilization rate.
o "Mermaid Endurer" finished dry docking since end of Feb 2024 and continued her work schedule in the Middle East at high utilization rate as well.
o "Mermaid Sapphire" has been fully chartered to related party in South East Asia.
o "Mermaid Challenger" has been reactivated since last year and sold to the new JV ("Tan Cang Mermaid Subsea Services Co., Ltd.") in 1Q 2024. She was renamed to "TC Mermaid" and worked for IRM projects in South East Asia.
The revenue from other subsea IRM markedly grew by +192.8% YoY due to more inspection projects that using short-termcharted-in fleet as well as more survey projects. However, it slightly dropped by -9.5% when compared QoQ due to the project that end since 4Q 2023.
"Mermaid Commander" remained cold-stacked during the period and were considered for an option to sell or reactivate.
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CABLE LAY SECTOR AND
T&I AND DECOMMISSIONING SECTOR
Revenue from Cable Lay Projects
(USD million)
12.2 | 12.1 | |
7.4 | ||
1Q 2023 | 4Q 2023 | 1Q 2024 |
Revenue from T&I and Decommissioning Projects
(USD million)
35.6 | 29.9 | |
6.9 | ||
1Q 2023 | 4Q 2023 | 1Q 2024 |
- Revenue from cable lay sector remained the same level YoY as USD 12.2m in 1Q 2023 and USD 12.1m in 1Q 2024. However, the revenue rose by +63.5% when compared QoQ. The increase mainly came from projects in the west-central coast of Southern Africa region.
- The vessel "Millennium 3" that owned by M3JV has been dry-docking during 1Q 2024 and will continue to work in 2Q 2024. Therefore, Mermaid recognized USD 0.4m share loss from M3JV.
- Revenue from T&I and decommissioning sector increased YoY by +333.3% due to the main project in Gulf of Thailand that has just started since 4Q 2023.
-
When compare QoQ, the revenue from this business dropped by -16.0% because:
o Owned vessel "Resiliant" has been dry docking throughout the first quarter of the year.
o Long-termchartered-in vessel "Van Gogh" had also been dry-docked since end of Dec 2023 until end of Feb 2024 and continued her main project work in Gulf of Thailand.
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COSTS & EXPENSES
Vessel Running Costs
(Owned Performing Vessels)
• VRC of owned performing vessels(1) increased YoY from USD 4.4m |
in 1Q 2023 to USD 5.6m in 1Q 2024 because of higher repair and |
(USD million)
27.4
24.4
maintenance costs from "Resiliant" that has been dry-docked |
during 1Q 2024 and "Mermaid Endurer" that has just finished dry- |
docking since the beginning of year 2024. However, the ratio of |
VRC to the revenue generated from owned active vessels declined |
17.1
4.4 | 25.7% | 5.9 | 21.5% | 5.6 | 23.0% |
1Q 2023 | 4Q 2023 | 1Q 2024 |
Vessel Running Costs
Revenue from Owned Performing Vessels
when compared to 1Q 2023 because of "TC Mermaid(2)" that has |
been reactivated and started working in Gulf of Thailand as well as |
higher revenue generated from "Mermaid Asiana", "Mermaid |
Endurer" and "Resiliant". |
• VRC of decreased QoQ from USD 5.9m in 4Q 2023 to USD 5.6m in |
1Q 2024 due to the dry docking of Resiliant and it consequently |
led to the decrease in the revenue generated from this vessel. |
- Mermaid Asiana, Mermaid Endurer, Mermaid Sapphire, TC Mermaid and Resiliant
- formerly known as Mermaid Challenger
Selling and Administrative Expenses
(USD million)
5.2 | 5.2 | 5.3 |
1Q 2023 | 4Q 2023 | 1Q 2024 |
- SG&A expenses slightly increased both YoY and QoQ from USD 5.2m in 1Q 2023 and 4Q 2023 to USD 5.3m in 1Q 2024 mainly due to travelling expenses.
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ORDER BOOK
Total Order Book
Order Book by Region
697
734 735
Middle East, |
33% |
735 MM |
million | 486 | 463 | |||||||
520 | |||||||||
320 | 337 | ||||||||
USD | |||||||||
63 | 69 | ||||||||
23 | |||||||||
25 | 96 | ||||||||
79 | |||||||||
14 | |||||||||
232 | 245 | 163 | 169 | 176 | |||||
31-Mar-23 | 30-Jun-2330-Sep-23 | 31-Dec-2331-Mar-24 | |||||||
T&I and Decommissioning | Cable Lay | Subsea IRM | |||||||
Asia Pacific & SEA, | Africa, 3% |
62% | North Sea, 2% |
At the end of March 2024, the order book was at USD 735 m. Mermaid Group has secured multiple project awards in South East Asia, the Middle East, North Sea and Western Sub Sahara region for both short-term and long-term throughout FY2026. The order book number included Cable Laying, Subsea Pipeline Tie-ins, Inspection, Repair and Maintenance and T&I and Decommissioning services.
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Disclaimer
Mermaid Maritime Public Company Limited published this content on 16 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 May 2024 05:05:03 UTC.
