Mermaid Maritime

Mermaid Maritime: CIMB maintains O/p with $0.51 TP. House note that Mermaid has weathered the storm with two years of operational improvements. Its investment in premium jack-ups has also borne fruit. With a new captain at its helms and new-found resolve to unlock shareholders’ value, the seeds of its next leg of growth are being sown. Incorporating recent drilling contracts for MTR-2 and its 33.76%-owned drilling associate. Expect catalysts to come from stronger-than-expected results, subsea contracts, contract extension for MTR-1 and its final investment decision on tender-rig newbuilds.