Mermaid, Miclyn post increased profits

Strong demand from the oil and gas industry in Western Australia’s north-west is expected to drive the profits of two ASX-listed providers of service vessels to the sector in 2011.

Singapore-based Miclyn Express Offshore and Fremantle-based Mermaid Marine both recorded significant profit rises in 2010 and are anticipating further growth in the next 12 months.

Miclyn, which listed on the ASX earlier this year, posted a $27.5 million net profit after tax, a 131 per cent increase on the previous corresponding period. The Neil Hamilton-chaired company said one of the factors which contributed to its earnings growth in 2010 was three months of revenue attributed to the 50 per cent acquisition of Samson Maritime for $US21.2 million.

Miclyn took a controlling stake in Fremantle-based Samson in April.

The growth opportunities in the sector were highlighted this week when Miclyn announced a deal to charter up to three tugs and four barges for transportation services from Indonesia to Barrow Island, as part of the services DB Schenker Australia will provide to the Gorgon LNG project.

The project will commence in September for 10 months and will be operated by the Samson joint venture.

“This contract confirms the strength of our recent Samson acquisition, combining the strengths of both organisations to provide a superior service offering,” chief executive officer Diederik de Boer said.

“Beyond calendar year 2010, we anticipate continued strong top line growth for the existing fleet plus scheduled new-builds,” he said.

Mermaid Marine recorded a 43 per cent increase in net profit after tax for the 2010 financial year, lifting its profit to $37.9 million.

“The result reflects a year of strong growth in earnings from the Dampier Supply Base and solid growth in the vessel business,” chairman Tony Howarth said.

Mermaid Marine managing director Jeffrey Weber said the future also looked bright for the company.

“We expect by the end of the 2010 financial year, increased demand for charter vessels will begin to address the current oversupply,” he said.

“In addition, demand for all MMA’s services is expected to increase as the Gorgon Project moves further into the major construction phase,” Mr Weber said.

“On this basis MMA looks forward to continuing to grow earnings in the 2011 financial year.”

Mermaid Marine said it expected activity in the state’s north-west to increase as construction and development of the Gorgon Project ramped up.

“MMA has invested more than $109 million during FY10 to boost its fleet capability and increase its supply base infrastructure,” the company said in a statement to the Australian Securities Exchange.

“The Company is well positioned to take advantage of the increase in demand for services and looks forward to continued earnings growth in FY11.”