Neptune acquires second vessel for $35m

Engineering company Neptune Marine Services Ltd has finalised a $35 million acquisition of its second offshore construction vessel, with $7 million worth of contracts already locked in.

Below is the full announcement:

Leading oil and gas and energy services company, Neptune Marine Services Limited (ASX:NMS) today confirms that it has taken delivery of its second offshore construction support vessel.

Formerly known as the Nor Sea, the 70.05 metre dynamically positioned (DP2) anchor handling, tug and supply (AHTS) vessel was acquired at a cost of USD$30 million (AUD$35.5 million)*. The vessel has been renamed the MV Neptune Trident. The purchase was funded by way of debt facilities provided by National Australia Bank as announced on 25 August, 2008.

Neptune will immediately generate an income from the vessel stemming from an existing charter valued at approximately AUD $7.0 million. The charter is for a term of five months with a two month extension option. There is significant interest in the vessel post the current charter.

Managing Director and CEO of Neptune Marine, Christian Lange, said the delivery of the Trident builds on the company's excellent FY08 results.

"On the back of our record FY08 result, Neptune is experiencing a very encouraging start to the new financial year and we would expect to deliver a solid first quarter.

"The addition of the Trident will act to both support and further develop our integrated services capability and provide Neptune with greater scope and flexibility in the execution of offshore projects," he said.

"The MV Neptune Trident will now complement the service provided by the MV Neptune ROV Supporter that is presently under a long term charter in the South East Asian region."

Mr. Lange said Neptune is conservatively geared and the company's cash flow is solid.

"Neptune's debt to equity ratio is less than 30% and we are generating very strong cashflow. The company is on a very stable financial footing and well placed to continue our tremendous growth."

Mr. Lange said conditions in the oil and gas and broader energy sector remain robust.

"While there is evidence of some slowing in the mineral resources sector, the energy sector continues to experience very strong growth and Neptune is well placed to capitalise on this."