Mermaid Marine reports 19% boost to net profit

Fremantle-based oil and gas services company Mermaid Marine Australia Ltd has reported a net profit of $7.5 million for the six months to December 2007, up 19 per cent on the previous corresponding period in 2006.

Increased earnings across all of its operating divisions helped the marine services company record revenue of $63.2 million, an increase of 23 per cent on the previous period's $51.7 million in revenue.

Earnings per share increased by 12 per cent from the first half of FY2007 to 5.1 cents reflecting a higher effective tax rate.

Mermaid said, while its vessel business still dominated the overall performance, it was now achieving improved returns on its supply base assets with excellent prospects for further growth.

The company is the major marine provider supporting McDermott Australia in the construction of Woodside's Angel gas project and has also captured a significant new longer term contract with an unnamed party in its vessel business.

Mermaid said its Singapore company was profitable after only a short operating period and had opened up new opportunities for international growth after securing an 18 month overseas contract for its new vessel Mermaid Discovery.

Mermaid Marine chairman Tony Howarth said the Board had set management aggressive growth targets and was pleased these targets were being met.

"The fundamentals of the company are strong and the structure of our debt facilities has protected the company during the recent turmoil in the credit market. Looking forward, the oil and gas market remains buoyant and we are in an excellent position to take advantage of this," Mr Howarth saiid.

Mermaid managing director Jeff Weber said its second quarter was particularly strong and it saw these levels of activity continuing.

"We therefore expect our second half to again be stronger than our first half. The company has been able to sustain consecutive periods of strong organic growth through the acquisition of new vessels and development of our supply base assets. The prospects for the organisation are now as healthy as ever," Mr Webber said.

Mermaid shares ended 2.8 per cent higher at $1.62 each today.