Mermaid Maritime returns to profitability in 2QFY2022 due to revenue surge

Felicia Tan
2-min read

Despite the profitable quarter, the group's 1HFY2022 earnings still stood at a US$5.6 million loss.

Mermaid Maritime has reported earnings of US$2.3 million ($3.1 million) for the 2QFY2022 ended June 30, reversing the loss of US$3.2 million in the corresponding period the year before.

Earnings for the 1HFY2022, still stood at a US$5.6 million loss, albeit narrower than the US$7.3 million loss in the year before.

2QFY2022 total revenues surged by 126.8% y-o-y to US$55.4 million.

This was attributable to the 126.3% y-o-y surge in revenues from the rendering of services, which stood at US$54.9 million. The increase in this segment was primarily from the group’s subsea inspection, repair and maintenance (IRM) project, cable lay projects and transportation & installation (T&I) project. The higher other income, which increased by 76.5% y-o-y to US$300,000, as well as a net gain of US$176,000 on foreign exchange also contributed to the higher total revenue.

In the same period, profit before income tax expense stood at US$2.5 million, reversing from the loss of US$2.8 million.

Total revenues for the 1HFY2022 increased by 118.1% y-o-y to US$95.9 million, mainly due to the higher revenues from the rendering of services.

Earnings per share (EPS) for the 2QFY2022 stood at 0.16 US cents, while the 1HFY2022 saw a loss per share of 0.4 US cents.

Cash and cash equivalents as at June 30 stood at US$4.0 million.

In its outlook statement, the group notes that the “healthy” oil prices will have a “very positive impact” on its subsea business. That said, it remains uncertain over the market dynamics in 2023 as global growth is expected to moderate to 2.9% in 2022 from the 5.7% in 2021. Analysts also expect global growth to hover “around that pace” over 2023 to 2024 amid the war in Ukraine, says the group.

Against the ongoing uncertainties, the group says it maintains a “cautionary perspective” on the oil and gas outlook over the next 12 months, although it believes that it remains one of those well-placed companies due to its “strategic industry positioning, reputation, track record, and fiscal discipline”.

“Looking ahead, the group remains focused on building capacity in the engineering and cable divisions with the intended goal of being able to seamlessly move into the renewables space when the opportunity presents,” says the group in its Aug 9 statement.

Shares in Mermaid closed 0.1 cent higher or 1.16% up at 8.7 cents on Aug 8.

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