SEAMEC Ltd -
Q1 concall and results highlights -
Revenues - 223 vs 224 cr ( flat YoY )
EBITDA - 81 vs 61 cr, 33 pc ( margin @ 36 vs 27 pc - massive expansion, does not include the exceptional gain on sale of one of the bulk carriers )
PAT - 50 vs 26 cr ( includes an exceptional gain of 9 cr )
Company is net debt free. Has net cash on books @ 92 cr
Company profile - Owns and operates 05 state of the art DSV ( Diving support vehicles used to support offshore work like - maintenance and inspection of mobile platforms, pipelines etc ) and 03 OSV ( Offshore support Vehicles- 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, Aramco, 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 )
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
The DSV/OSV work has much higher margins due to the specialised nature of work vs margins earned by Bulk carriers
Confident of growing the business profitability @ 15-20 pc rates in the medium term. Acquisition and deployment of vessels this yr and DSV - Nusantara should ensure growth for FY 25 and FY 26. Even going fwd, company will not shy away from procuring more DSV / OSV assets in order to keep the growth engine running
Revenue enhancing triggers lined up for next 1-2 yrs include - repricing of OSV - Glorious, DSV - Swordfish, Deployment of Nusantara, Deployment of another OSV
Disc: holding, biased, not SEBI registered, not a buy / sell recommendation
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