Mermaid Maritime' s stock has risen over 45 per cent in the past month. 

SINGAPORE &ndash While the recovery in the offshore and marine sector is lifting all boats, some are rising faster than others.

 

Take Mermaid Maritime, whose stock has risen over 45 per cent in the past month, hitting a record high of 14.7 cents on April 12.

 

The share recovery comes after the company unveiled a 23 per cent rise in revenue for 2023 to US$275.4 million (S$374 million) and net profit of US$9.7 million, turning around from a loss of US$200,000 in 2022.

 

The rebound was driven by growth across all its business segments &ndash subsea inspection, repair and maintenance cable laying and engineering and transportation and installation and decommissioning. The rally also fits in with the stated objective of the company, which operates eight subsea vessels, 18 saturation/air diving systems and 14 remotely operated vehicles.

 

The Thailand-based subsea and offshore services provider noted in its latest annual report that it is committed to raising &ldquo the group&rsquo s profile in the public domain&rdquo aimed at &ldquo further elevating&rdquo its share price.

 

It doubled its order book in the July-December 2023 period, from US$337 million to US$734 million, thanks largely to a huge contract from Chevron Thailand for decommissioning work in the Gulf of Thailand. The contract will underpin company revenue for the next few years.

 

Mermaid, whose chief executive is Mr Chalermchai Mahagitsiri, has also clinched contracts in South-east Asia, the Middle East, the North Sea and the Western Sub-Saharan region. 

 

While scantly covered by analysts, UOB Kay Hian cited the company&rsquo s solid post-Covid-19 recovery, improving margins and strong order book growth.

 

The investment house noted on April 12 that Mermaid&rsquo s management has guided for stronger revenues and profitability in 2024 and 2025 on the back of increased day-rates as old contracts roll over and new ones start, sustained high utilisation levels and continued strength in new order wins.

 

&ldquo Industry expectations for oil prices in excess of US$80 per barrel levels should underpin this growth,&rdquo UOB Kay Hian stated.

 

Oil prices now average around US$85 a barrel.