Neptune deliver, charter $6.7m vessel

Perth-based engineering services company Neptune Marine Services Ltd has delivered its new construction support vessel and signed a $4.5 million letter of intent for its charter.

The delivery and agreement comes a day after the company downgraded its net profit after tax expectations to between $10 and $12 million for this financial year.

News of the delivery and charter boosted the company's share price nearly 10 per cent to 51.5c in early afternoon trade, after closing down over 9 per cent to 47c yesterday.

Both announcement by the company are pasted below:

Neptune takes delivery of new vessel

Leading engineering services company Neptune Marine Services Limited (ASX:NMS) announces that it has taken delivery of its new DP1 capable construction support vessel, the MV Neptune ROV Supporter, following completion of the acquisition on 4 June, 2008 in Singapore.

Neptune paid SGD$8.5 million (AUD$6.7 million)* for the vessel in cash from the company's existing capital reserves. As part of the acquisition, the vessel, formerly known as the MV ROV Supplier, was renamed the MV Neptune ROV Supporter.

The MV Neptune ROV Supporter will now undergo a program of refurbishment and be permanently fitted with one of Neptune's new Swift XL Work Class ROV systems.

Managing Director and CEO of Neptune Marine, Christian Lange, said the MV Neptune ROV Supporter was an integral component of the company's strategy for growth that would add value to and improve the delivery of its integrated services.

"Our vessel supply and ROV strategies will be major growth drivers for the company into
the future as the demand for these services continues to outstrip supply," he added.

Neptune signs LOI for $4.5m vessel charter
Leading engineering services company Neptune Marine Services Limited (ASX:NMS) has signed a letter of intent (LOI) for the charter of its newly acquired DP1 capable construction support vessel, the MV Neptune ROV Supporter

Valued at AUD$4.5 million, the project involves pipeline survey and general construction support activities in South East Asia for a major international oil and gas EPIC (Engineering, Procurement, Installation and Commissioning) contractor based in Singapore.

It also represents the integration of Neptune's new vessel supply and ROV (remotely operated vehicle) operations into a package that will be tailored to meet the specific requirements of the project. All ROV support works will be carried out using Neptune's new Swift XL Work Class ROV system that will be permanently fitted to the vessel.

Scheduled for early August, the initial charter is 120 days, however there is strong
potential for further extension.

Managing Director and CEO of Neptune Marine, Christian Lange, said the LOI was indicative of the vital role that vessel access had to play in the delivery of the company's integrated services model.

"It confirms that our vessel supply and ROV strategies will be major growth drivers for the company into the future as the demand for these services continues to outstrip supply," he explained.

"Projects of this nature are a better reflection of the type of work that Neptune is now securing - they are much greater in scope and value and they deliver stable, recurring revenue over longer time frames.

"Complementing this is our pipeline of future project opportunities that is at a record level as the awareness of and demand for Neptune's integrated services increases across the oil and gas market."