Synopsis: SEAMEC Limited, an offshore marine and support services company for the oil and gas industry, has been awarded a new contract by Oil and Natural Gas Corporation. The contract is for operational support services for one of the company’s vessels for a fixed period.
The shares of this shipping company majorly engaged in operating 4 multi-support vessels for the provision of diving services, manned and unmanned subsea operations and other related activities, were in focus after bagging orders worth Rs. 410 Crores.
With the market capitalization of Rs. 3510 Crores, the shares of Seamec Ltd reached an intraday high of Rs. 1382 per share, raising nearly 4.4 percent from its previous day close of Rs. 1323 per share and is trading at a P/E of 18.4 whereas industry P/E stands at 11.2
News
The Oil and Natural Gas Corporation has released a Notification of Award to a consortium of SEAMEC Limited and Supreme Hydro Pvt Ltd for the provision of operation and maintenance services for ONGC’s marine support vessel “Samudra Sevak”. The contract value is approximately Rs. 410.74 crores, including GST, and will be valid for a period of 738 days.
The project is expected to commence within 60 days of the award date. The company also made it clear that the award has been received from a domestic company in the normal course of business and that the promoters do not have any interest in the awarding company, thus the award does not qualify as a related party transaction.
About the Company and Financials
Seamec Ltd majorly engaged in operating 4 multi-support vessels for the provision of diving services, manned and unmanned subsea operations and other related activities. The company provides broad range of services which includes IMR Operations, ROV operations, Subsea Construction, Pollution Control, Fire fighting and many more whose clientele includes ONGC, L&T Hydrocarbon Engineering, Posh, Clipper, Saudi Aramco etc
The company also ensures environmental sustainability and operational safety and strictly adheres to Quality, Health, Safety, Environmental (QHSE) standards fully compliant with ISO 9001:2015, ISO 14001:2018 and ISO 45001:2018. The company has its presence both in India and internationally whose fleet includes 6 DSvs, 1 OSVs, and 1 accommodation barge which has been equipped to meet diverse offshore needs.
Year on Year analysis: Revenue from operations has increased from Rs. 149 Crores to Rs. 317 Crores, up 112.7 percent. Operating profit has increased from Rs. 44 Crores to Rs. 136 Crores, up 209 percent and made a profit of Rs. 100 Crores from net loss of Rs. 3 Crores last year.
Quarter on Quarter analysis: Revenue from operations has increased from Rs. 97 Crores to Rs. 317 Crores, up 226.8 percent. Operating profit has increased from Rs. 8 Crores to Rs. 136 Crores, up 1600 percent and has turned into profit of Rs. 100 Crores from net loss of 26 Crores last quarter.
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