Mermaid

Mermaid: Announce that its units has been awarded a series of contracts from existing clients for the provision of subsea services to support offshore oil and gas fields in the Gulf of Thailand, Sakhalin and Qatar. The combined value of these contract awards is approximately US$30m. The announcement follows a number of significant deals for Mermaid over the last few mths. In Oct12, 2 Mermaid associates concluded deals with Saudi Arabian Oil Co, for a US$530m inspection, repair, and maintenance contract and a US$235.5m jack-up drilling services contract. Meanwhile in Nov12 Subtech announced a US$25m contract with Total, a leading international upstream oil and gas company, utilizing the ‘Mermaid Siam’ in Qatar and last week MOS announced a US$30m subsea construction services contract award from China Offshore Oil Engineering Co. We note that prospects for Mermaid appears more rosy then before, and in its latest Fy12 results, grp managed to register a turn around in its business operations, registering a net profit of Thb71.5m, vs a net loss of Thb167.3m yoy. CIMB has an O/p rating on grp with a $0.44 TP