Ranvir’s Portfolio

SEAMEC Ltd –

Q4 and FY 24 concall and results highlights –

Q4 outcomes –

Revenues – 239 vs 124 cr, up 92 pc

EBITDA – 90 vs 25 cr, up 253 pc ( margins @ 37 vs 21 pc )

PAT – 52 vs (-) 5 cr

FY 24 outcomes –

Revenues – 758 vs 457 cr

EBITDA – 271 vs 146 cr ( margins @ 36 vs 32 pc )

PAT – 120 vs 34 cr

Gross Debt @ 234 cr

Net Debt ( gross debt – cash ) @ 34 cr

Company profile –

Owns and operates 05 state of the art DSV
( offshore – Diving support vehicles used to support offshore work like – maintenance and inspection of mobile platforms, pipelines etc ) and 03 OSV ( these are also used to support offshore work ) and 02 Bulk Carriers ( used to carry dry bulk cargo like – coal, iron ore, grains etc )

Services provided by the company –

IMR ( inspection, maint, repair ) Operations – for Sub Sea infra
ROV ( remotely operated vehicles ) – facilitating safe and unmanned sub sea operations where human presence is unviable
Sub-Sea construction
Sub Sea fire fighting
Sub Sea pollution control

Major clients –

ONGC
L&T
POSH
MERMAID
ZAMIL
James Fisher
Kreuz Subsea

Current Portfolio of vessels –

DSVs, Gross Tonnage, Year of procurement –

Seamec – II, 4503, 1993
Seamec – III, 4327, 1993
Seamec – Princess, 11121, 2006
Seamec – Paladin, 5648, 2021
Seamec – Swordfish, 5732, 2023

OSVs, Gross Tonnage, Year of procurement –

Seamec – Diamond, 1922, 2024 ( acquired in Apr 24. Deployed with ONGC for 3 yrs @ $ 8750 / day. That translates to aprox 16-18 Cr / yr … assuming 270 days of deployment )
Seamec – Glorious, 8950, 2021
Seamec – Pearl – Delivery expected in June 24 ( again expected to be deployed with ONGC at similar rates as Diamond )
Delivery of another OSV – Nusantara – is expected in Sep 25

Bulk Carriers, Gross Tonnage, Year of procurement –

Seamec – Gallant, 32289, 2017
Seamec – Asian Pearl, 27989, 2020

Improved EBITDA margins are due to deployment of newer vessels ( Paladin and Swordfish ), higher deployment days and increased rates

Both the bulk carriers – Gallant, Asian Pearl are operated under the company’s subsidiaries

The DSV/OSV work has much higher margins due to the specialised nature of work vs margins earned by Bulk carriers

Company expects the hiring rates for its vessels to remain firm for next 2-3 yrs

Company has sold one of its vessels – Seamec – Nidhi ( a bulk carrier ) for a consideration of $ 10 million. It was a loss making vessel and was dragging down the company’s consolidated results. This should lead to a further improvement in company’s consolidated margins / results

Business has an inbuilt seasonality – Q1, Q2 are weaker due monsoons

Capex planned for next 3 yrs combined @ 700 cr – mostly for procurement of newer vessels. All of this is likely to be funded via internal accruals

Company maintains a working capital cycle of 80-90 days

Disc: initiated a tracking position, not SEBI registered, biased