Mermaid Maritime Plc

[Layman A]

Actually I am thinking it should be due to the massive CAPEX spending of USD 436million ( about S$530 million ) that spook the hell out of the investors.

How are they going to raise the amount of CAPEX will be a big question mark.
If they choose the usual path of right issue, it will be highly dilutive and very very damaging to the stock price !

They have just done a right issue in 2013 to raise S$176million for the AOD jack up rigs. The response from the stock market is quite bad, and the stock price dive after the announcement.

This round the amount that they need to raise is about 3X , for S$530millions !

I would stay away from this stock, until I have clear picture of how they going to raise the massive amount.

[kelvesy]

I don't think it will be new rights issue, management shared it'll be new debt and retained earnings. we'll see how.

[crabcrab]

Mermaid Best 3Q Results Ever, Improvement in Both Business Divisions, Persues Opportunistic Growth

http://infopub.sgx.com/FileOpen/Mermaid_...eID=312316

[Layman A]

I don't think it will be new rights issue, management shared it'll be new debt and retained earnings. we'll see how.

It's interesting to note that during road show held in London on 20 Feb 2014, the management put in a bold statement that they are able to fund the acquisition by cash reserves, debt and the cash flow generated from the operation.

here
http://infopub.sgx.com/FileOpen/Mermaid_...eID=282345

This gives the impression that the cash flow from operation will be huge !
But the 3Q2014 results clearly fall short !

And it is interesting to note that in the latest presentation as I have posted above, the management quietly removed the bold statement that they don't need to raise equity (or rights ) to fund the massive capex.

here
http://infopub.sgx.com/FileOpen/Mermaid_...eID=310833

Actually it's not a very difficult maths to do, just add up the following
1. Retained cash
2. Debt they are able to raise ( before they push their gearing ratio beyond 100% )
3. Cash flow generated from operation , I think in 3Q14 report they stated the cash flow (Consolidated 9 month ) from operation is abt US$26 million .

There is still a big gap in the fund that they need to raise, hence right issue is unavoidable.

Of course, there are still other options like placement, but that would further dilute the controlling shareholder stake from 49% to ??
May not be viable option.

[greengiraffe]

http://infopub.sgx.com/FileOpen/Mermaid_...eID=325066

Mermaid Expands Operations to Become a Leading Indonesian Subsea Services Provider with Charter-In of DP2 DSV ‘Windermere’
• Vessel to be renamed ‘Mermaid Nusantara’
• Chartered-in for 5+5 years at a cost of approximately USD 15 million a year
• Unique vessel to Indonesia
• Vessel has a good track record in Indonesia, with work previously done for Pertamina and Chevron

[kelvesy]

Mainboard‐listed Mermaid Maritime Public Company Limited (“Mermaid”, “MMT” or the “Group”), a leading provider of subsea and drilling services for the offshore oil and gas industry, would like to announce that it has received early termination of contract
from its international upstream oil & gas client for the ‘MTR‐2’ tender drilling rig. The initial term of the contract was set to end in May 2015 but the rig is now scheduled to be demobilized to Singapore by the end of December 2014.

In a previous announcement dated 17 June 2014, Mermaid disclosed that the client was in the process of obtaining new permits from the relevant government authorities in Indonesia to continue performance of work. However, as the process in obtaining such permits by the client had been prolonged, the client had therefore elected to exercise early termination of the contract instead. The said events and early termination have all occurred through no fault of the Group.   

- http://infopub.sgx.com/FileOpen/Mermaid_...eID=327300

[CityFarmer]

High spec deepwater rigs are the most vulnerable amid the low oil price...

(not vested)

Mermaid Maritime starts construction of MTR-3 and Mermaid Ausana

SINGAPORE (Dec 8): Mermaid Maritime, the provider of subsea and drilling services, today officially marked the start of the construction of its MTR-3 rig and Mermaid Ausana vessel with steel-cutting ceremonies at the shipyards of China Merchants Heavy Industry in Nantong and Shenzhen respectively.

MTR-3 is a performance-class tender assist drilling rig incorporating the latest modern design features. It will be the most advanced tender rigs in the market when it is delivered in 2016.

The rig will be equipped with a modern drilling package supplied by leading drilling equipment specialist National Oilwell Varco and will feature a larger deck space, bigger cranes, faster rig moves, larger living quarters and larger tank storage.

In addition, the rig will be able to operate in water depths of up to 243 meters with conventional mooring and 914 meters with pre-laid mooring, and have a drilling depth rating of 7.62 km and accommodation for 200 personnel.
...
http://www.theedgemarkets.com/sg/article...aid-ausana

[thor666]

High spec deepwater rigs are the most vulnerable amid the low oil price...

(not vested)

Mermaid Maritime starts construction of MTR-3 and Mermaid Ausana

SINGAPORE (Dec 8): Mermaid Maritime, the provider of subsea and drilling services, today officially marked the start of the construction of its MTR-3 rig and Mermaid Ausana vessel with steel-cutting ceremonies at the shipyards of China Merchants Heavy Industry in Nantong and Shenzhen respectively.

MTR-3 is a performance-class tender assist drilling rig incorporating the latest modern design features. It will be the most advanced tender rigs in the market when it is delivered in 2016.

The rig will be equipped with a modern drilling package supplied by leading drilling equipment specialist National Oilwell Varco and will feature a larger deck space, bigger cranes, faster rig moves, larger living quarters and larger tank storage.

In addition, the rig will be able to operate in water depths of up to 243 meters with conventional mooring and 914 meters with pre-laid mooring, and have a drilling depth rating of 7.62 km and accommodation for 200 personnel.
...
http://www.theedgemarkets.com/sg/article...aid-ausana

Mermaid seems pretty confident about its prospects despite the oil oversupply. Some of the directors had done share buyback on individual basis. Is there anything that investors may not see?

(Not vested, fellow friend is though.)

Sent from my D5503 using Tapatalk

[yewkim]

I don't think oil has bottom yet. Saudi recent lowering of price to win market share has set for more low in oil. I think play will be on those sector that benefit from low oil price.
Over at Wall street, I bought DENN, and a few, already making nice profit.

[fattboy]

Mermaid Martitime's owner , the Mahagitsiri family is also holding substantial stake in Food & Beverages Counter : Sino Grandness.


Sent from Tapatalk