MERMAID MARITIME stock forum
DU4 Mermaid Maritime: Resilience Amid Challenges
Despite headwinds in Q3 2024, Mermaid Maritime continues to demonstrate its resilience and growth potential in the offshore services industry. The company reported a subsea fleet utilization rate of 87%, its highest this year, underscoring strong operational performance. While revenue dipped due to completed decommissioning contracts in the UK and Thailand, a robust order book of US$814 million highlights its sustained market leadership.
Notably, Mermaid’s net profit stood firm at US$3.8 million (excluding a forex loss of US$2.7 million), meeting forecasts. With a target price of S$0.16, Mermaid Maritime is trading at a 32% discount to global peers, offering a compelling opportunity for investors. A potential rebound in the US dollar against the Thai Baht could further bolster its financial outlook.
The chart is turning bullish
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DU4 Mermaid Maritime(DU4.SI) Orderbook (OB): As of the second quarter of 2024, Mermaid Maritime’s orderbook reached an 11-year high, standing at US$976 million. This surge is driven by new decommissioning orders and the renewal of Inspection, Repair, and Maintenance (IRM) contracts at higher values.
Net Profit Growth: The company is projected to achieve impressive net profit growth of 22% in FY2024 and 70% in FY2025. This growth is attributed to the execution of larger-scale decommissioning projects and high-margin cable-lay orders.
Valuation: Mermaid Maritime trades at a 33% discount to its global peers’ 2025 forward Price-to-Earnings (P/E) ratio.
minichart.com.sg/2024/09/30/mermaid-maritime-charting-new-waters-with-record-orderbook-and-profit-growth/