Mermaid Maritime

Mermaid Maritime: 3QFY14 marginally missed expectations, up 21.3% y/y to US$13.0m (or +30.3% to THB 421.3m) mainly due to larger share of profits from associates (US$7.4m in 3QFY14 vs 3QFY13 US$0.8) as AOD II and AOD III became fully operative. Group revenue dipped 3.3% y/y to US$77.8m, mainly from 9.6% y/y decrease in Subsea service income to US$61.9m as one vessel was put on standby for crane modification and engine improvement. Income from Surveys and Drilling increased 220.9% and 24.1% y/y to US$13.8m and US$5.4m respectively. MTR-2 utilization rate was a disappointment at 91% (vs 2QFY14 100%) and MTR-1 is still on standby to be marketed for work. Management sees strong demand for its subsea vessels and related services and remains positive in the near-term outlook while actively seeking to increase utilization of its vessels and rigs. MMPCL trades at 8.8x annualized 3QFY14 P/E and 0.8x P/BV.