Fremantle-based marine services company Mermaid Marine Australia has announced a post-tax profit of $9.2 million, doubling its operating earnings in the process.
Fremantle-based marine services company Mermaid Marine Australia Ltd has announced a post-tax profit of $9.2 million, doubling its operating earnings in the process.
The annual result was further boosted with a $4.4 million pre-tax profit after the company sold its Manning business to Integrated Group.
Mermaid chief executive Jeff Weber told WA Business News in July that the company had been building its strong position over the past three years.
"The new infrastructure we have taken on in recent years is just starting to hit the bottom line," Mr Weber said.
The company undertook a major investment programme during the year with a total of over $49 million committed in capital expenditure, largely driven by the $24 million purchase of vessels from the Integrated Group.
Despite the news that it had posted a post-tax profit, the company closed at 60.5 cents, down almost 4 per cent.
The full text of the Mermaid announcement is pasted below:
The Chairman of Mermaid Marine Australia Limited (MMA), Mr. Tony Howarth, today announced a record pre-tax profit for the year ended 30 June 2006 of $12.2 million with an after tax result of $9.2 million. Underlying operating earnings were up approximately 100% on the previous year with the result further boosted by a pre-tax profit of $4.4 million from the sale of MMA's manning business to the Integrated Group. Earnings per share increased from 1.8 cents to 6.6 cents.
Mr. Howarth said, "The Board is pleased with the progress of the company over the last 12 months and has set itself the challenge of sustaining this higher level of profitability going forward. It is satisfying to see our shareholders rewarded with substantial growth in their stock during the year and future prospects remain strong".
Group revenue from ordinary activities increased by 35% to $66.8 million. Vessel related revenue increased by 50% to $53.5 million while margins were maintained in line with the previous year. Supply base and slipway operations also had improved performance during the year showing a 27% increase in revenue and stronger earnings contribution.
MMA undertook a major investment programme during the year with a total of over $49 million committed in capital expenditure. Of this total, $44 million was committed to acquire additional vessels including the newbuilding programme which saw the construction and delivery of the Mermaid Investigator which went into a long term contract with Apache Energy. $5 million was spent on extending our wharf facility in Dampier to meet expectations of future demand in our Supply Base business. The majority of this capital expenditure came on line in the last quarter of the year, primarily driven by the $24 million purchase of vessels from the Integrated Group.
"The Board is confident that the capital has been invested wisely and will drive future earnings growth in both our vessel operations and Dampier supply base operation", Mr Howarth said.
Mermaid Marine Managing Director, Mr Jeff Weber said, "We have grown our earnings substantially during the year and in the process have built a solid platform for further improvement and growth. Market conditions remain favourable and our fleet renewal programme, combined with our strategic locations in Dampier and Broome, put us in an excellent position to take advantage of the forecast growth in offshore oil and gas developments".