Mermaid Marine lifts half-year profit to $6.3m

Marine services company Mermaid Marine Ltd has reported a sharp increase in net profit to $6.3 million for the half-year to December 2006, up from $1.5 million in the previous corresponding period.

The higher profit was driven by a doubling of revenue to $51.5 million and followed a major restructurin of the business.

A company announcement is pasted below:

Mermaid Marine continues earnings growth

The Directors of Mermaid Marine Australia Ltd (MMA) are pleased to advise that the
company recorded a profit before tax for the 6 months to December 2006 of $8.5
Million as detailed in the attached half year Financial Report. This represents a
substantial increase on the result for the previous corresponding period and more
importantly continues to build on the excellent result the company achieved in the
second half of last financial year.

MMA made a substantial investment in new vessels in FY 2006 and these acquisitions
are driving growth in revenue and profitability. Revenue for the first half grew to $51
Million, almost double that of the first half in 2005. The result reflects revenue growth
across all divisions and improved margins.

In announcing the result the Chairman, Mr Tony Howarth said, "The Board is pleased
to have been able to continue to grow earnings and the market in the oil and gas
sector remains buoyant".

The Managing Director, Mr Jeff Weber commented, "While the result is primarily driven
by our vessel business, it is pleasing to note that our supply base businesses in
Dampier and Broome are starting to make a material contribution to our earnings. On
the basis of our first half result and our subsequent performance we expect to
comfortably exceed the forecast earnings included in our December announcement of
the proposed P&O Maritime merger".