The company said while this forecast represents a significant turnaround, it is less than the previously forecast after-tax profit of $14 million.

According to Neptune, the revised forecast is attributable to changes in scheduling two large NEPSYS projects that were expected to be completed in this month.

Managing director and chief executive Christian Lange said despite the delays the company is performing above expectations and experiencing strong organic growth.

"The delay in the completion of the NEPSYS projects is a timing issue only and we will capture the revenue and profit from these contracts in the first half of financial year 2009. We expect to mobilise on both projects in July or August," he said.

"All our divisions are winning new work, the businesses we have acquired are performing above expectation and experiencing strong organic growth, and customer demand for Neptune's services is at a record level.

"The growth in this half is absolute proof that we have the right service model in place, that our customers recognise the value of having a partner that can provide multiple services, and that we can now achieve significant organic growth across our comprehensive suite of services."

Lange said the company's immediate focus is to build on its integrated services strategy and benefit from the increase in spending in the subsea oil & gas services market.

Neptune recently announced it had entered into an agreement to acquire a second vessel to accelerate its integrated service model and support ROV operations.

"Neptune is currently well funded with $23 million of cash and minimal debt. Our cash flow is strong, and coupled with the significant increase in revenue that our vessels and ROVs will generate, we have the flexibility to continue our strategy for growth, while remaining conservatively geared and profitable," Lange said

"Neptune is well placed for the remainder of financial year 2008 and we are witnessing strong demand for our services well into financial year 2009."