Drydocked vessels now profitably deployed
Bloomberg dataMermaid Maritime’s 1QFY2015 loss was primarily due to the simultaneous drydocking of 3 of its highest earning vessels.
There was no revenue from these vessels for about 200 days.
It was the first time its dive support vessels (DSVs), Endurer and Asia, were drydocking.
The drydocking was planned to be more than 40 days but ended up being more than 70 days due to unexpected circumstances.
The longer drydocking period meant the Group had to charter an expensive vessel to replace the DSV, the Asiana, on its existing contract.
The drydocking period has ended and the vessels are now profitably redeployed.
DBS Vickers analyst Suvro Sarkar expects Mermaid Maritime to break even in FY2015.
He has a ‘Hold’ rating on the stock with a target price of 23 cents.
