The company recorded a pre-tax profit of $A4 million during the 2004-05 financial year, up 15.7% on the $A3.5 million recorded during 2003-04. After tax profit for the year just ended was $A2.5 million.
Mermaid chairman Alan Birchmore said the company had expected a difficult year due to the lack of project-related work, but the core vessel business performed strongly in the second half of the year.
Group revenue from ordinary activities grew 51% to $A53.4 million during 2004-05 and included asset sales of about $A3.9 million.
Revenue from vessel operations increased by 33% with margins in-line with the prior year. The result was boosted by increased manning revenue and earnings.
There was a lack of pipe-laying work at the Dampier Supply Base and no drilling support work at the Broome Supply Base during the year, which Mermaid expected to pick up during the current year.
The second half of the year improved on the slow first half with the company supporting two major offshore developments: the Mutineer Exeter FPSO installation for Santos and the John Brookes platform for Apache Energy.
Mermaid also won a long-term supply and offtake support contract with Santos for its Mutineer-Exeter field, and its new vessel the Mermaid Storm commenced operations in January this year.
It won a long-term contract for supply and offtake support services for the Woodside Enfield Project and contracts were signed to begin construction of a $A13.4 million vessel, the Mermaid Sound. Combined with the delivery of the Mermaid Investigator craft in January 2006, the company expected to reach its goal of 50% contracted revenue for vessel operations during the next 12-18 months.
Contracted vessel revenue for 2004-05 was about 35% of total revenue, up from 27% in 2003-04.
Mermaid director Jeff Weber said he was relatively pleased with the result and was confident of continued earnings growth.
“We are building a strong business on the back of a substantial commitment to new assets and a focus on our core business. We have increased the depth of our management team during the year and have a number of exciting growth prospects under review,” Weber said.
